Temporary Cap on Third Party Food Delivery Fees

POUGHKEEPSIE – With COVID numbers again on the rise and local restaurants faced with the likelihood that in-person dining restrictions will persist at least through the winter, the Democratic Caucus of the Dutchess County Legislature has put forward a local law that would put a temporary cap on the fee that third party food delivery services can charge local restaurants and other food service establishments, limiting all such fees to no more than 10% of any delivery or pickup order. The fees are usually set to at least 20% of an order and often up to and even over 30% of an order, in most cases eliminating all profit margin for the food establishments. The local law precludes a reduction in delivery driver compensation or the shifting of the cost to other fees to the food establishments due to its application. The 10% cap would expire upon the lifting of the New York State COVID-related state of emergency. Bill attached below.

“During this crisis we need to protect our small businesses from unfair or predatory practices, which in addition to other severe challenges they are facing. Delivery services should not take such an immense cut–30% in many places–that local restaurants cannot survive. I hope a bipartisan majority of legislators agrees to pass these temporary protections.” Rebecca Edwards (District 6, Town of Poughkeepsie)

“Local businesses are the heart of thriving communities. Especially now, we must take measures to protect them.” Brennan Kearney (District 11, Rhinebeck/Clinton)
“By making it more affordable for restaurants and their customers to engage delivery services, this law will help make it acceptable and accessible for us all to do what we need to do to get this thing under control.” Frits Zernike (District 16, Fishkill/Beacon)
“With a long winter ahead, local government needs to do our part to fight for the survival of our local businesses.” Nick Page (District 18, Beacon/Fishkill)

Print Friendly, PDF & Email