The Big News February 2008

OSI drops credit card fee for servers

by Nation’s Restaurant News

TAMPA , Fla. Outback Steakhouse parent OSI Restaurant Partners Inc. has reportedly dropped its plan to deduct credit card processing fees from servers’ tips at restaurants in Arkansas and elsewhere.

News reports said that about 1,200 OSI-affiliated restaurants in 26 states either have the policy in place or were slated to have it adopted by outlets there. The company operates or franchises about 1,400 casual restaurants in total. Its other brands include Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse, Cheeseburger in Paradise, Roy’s and Blue Corral Seafood & Spirits.

Some of the states where OSI restaurants were poised to adopt the policy were targeted because of their relatively high minimum wages, Joseph Kadow, the casual-dining company’s vice president and chief officer for legal and corporate affairs, told the Tampa Tribune.