SF Mayor Breed orders cap to third party delivery fees to keep restaurants afloat
SAN FRANCISCO - In order to support struggling San Francisco restaurants offering take-out food during the shelter order, Mayor London Breed on Friday issued an emergency order temporarily placing a cap on delivery fees from third-party delivery companies.
As delivery service is the only option for customers other than take-out, the order limits the fee app-based delivery companies can charge restaurants to 15 percent, according to the Mayor's office.
Fees can typically range from 10 to 30 percent, which oftentimes represents a significant amount of the business's revenue. Furthermore, because of the novel coronavirus pandemic, the vast majority of sales are for delivery at this time.
The emergency order will last through the duration of the shelter-in-place order, which could end as early as May 3, or until restaurants are allowed to resume in-person dining.
"Restaurants across San Francisco are struggling to stay open. In these tough financial circumstances, every dollar counts and can make the difference between a restaurant staying open, or shuttering," Breed said in a statement. "It can make the difference between staying afloat or needing to lay-off staff."
Supervisors Aaron Peskin and Ahsha Safai helped work on the order.
According to the Golden Gate Restaurant Association, between 30 and 50 percent of restaurants are still operating and offering food delivery during the shelter order.