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Board moves to keep 15% cap on third‑party delivery commissions
Summary
The Board of Supervisors approved on first reading an ordinance removing the sunset clause on a 15% commission cap for third‑party food delivery platforms, keeping the fee limit passed during the pandemic in place.
The San Francisco Board of Supervisors on June 22 approved on first reading an ordinance to remove the sunset clause from the police code provision that caps commissions third‑party food delivery companies may charge restaurants at 15%.
The vote, taken after a lengthy floor debate about pandemic impacts on restaurants and small businesses, was unanimous on first reading. Supervisor Peskin recommended preserving the cap as a permanent protection for independent restaurants; Supervisor Safaie and several others voiced support and described a need for further work on related fees and commercial rent relief.
The measure responds to what proponents described as sharply rising use and market power of delivery platforms during the COVID‑19 pandemic. Supervisor Peskin said delivery platforms “extracted wealth from our local economy” during the emergency and cited DoorDash, Uber Eats and Postmates as examples of platforms whose sales increased during the pandemic. Peskin told the board that the 15% cap was originally enacted as an emergency measure and should be made permanent to protect neighborhood restaurants.
Supervisor Safaie said he had met with delivery company representatives and encouraged voluntary changes, but added that platforms “chose not to” voluntarily reduce fees, and that a statutory cap was therefore necessary. Members also flagged concerns about the platforms’ push toward “ghost kitchens” and warned against companies adding new fees or city surcharges designed to circumvent the cap.
Board members noted the cap does not preclude restaurants and platforms from negotiating separate marketing or premium services, and that follow‑up legislation may establish a separate tier of optional services negotiated under distinct contracts. Several supervisors also said they were coordinating with the mayor’s office on complementary measures—such as commercial rent relief—to help neighborhood businesses recover.
The ordinance was read into the record as item 15 and passed on first reading by a roll call of supervisors, with the transcript record showing each supervisor voting “aye.” The board will consider subsequent readings and any implementing regulations needed to define permitted separate services and to monitor for circumvention via additional fees.
Members requesting further follow‑up asked staff to track new or ancillary fees and to return with potential trailing legislation on marketing and add‑on services.
The measure was advanced on first reading; additional votes will be required for final passage.
