Board advances ordinance to cap third‑party delivery commissions, sends amended bill back to committee

The San Francisco Board of Supervisors on Nov. 3 voted unanimously on first reading to advance an ordinance that would cap commissions charged by third‑party food delivery services at 15% and restrict other platform practices seen as disadvantaging restaurants.

Supervisor Peskin, the legislation's lead sponsor, said the measure builds on Mayor Breed's April executive order that set a 15% commission cap during the public‑health emergency and seeks to extend that protection while restaurants recover. “This legislation today builds on that by extending the duration of that cap, which is inclusive of all fees charged by third party food delivery services, including advertising and all the bells and whistles,” Peskin said.

The ordinance, as amended, would: maintain the 15% cap on commissions (inclusive of advertising and other fees), prohibit apps from listing different menu prices in‑app that would undercut in‑restaurant pricing, give restaurants 72 hours' notice to cancel an app relationship, and bar delivery from restaurants with which the service does not have a preexisting relationship. The sponsor said the measure will automatically expire 60 days after a public‑health order allows 100% indoor dining.

The board adopted a non‑substantive amendment to exclude formula retail establishments defined under Planning Code section 303.1 from the covered‑establishment definition and then voted to duplicate the file as amended and return it to committee for further consideration. Supervisor Safai seconded the amendment; the roll calls on the amendment, on the motion to duplicate and send to committee, and on the ordinance as amended were all unanimous (11 ayes).

Supporters on the dais and in testimony cited the pandemic's heavy toll on restaurants and credited negotiations that led to raising the originally proposed cap from 10% to 15% in compromise with city leadership. Supervisor Walton and others asked to be added as cosponsors during the item.

The file will be duplicated and sent back to committee — Land Use and the Public Safety & Neighborhood Services committee origins were discussed on the record — so staff can continue negotiations and possible further amendments before second reading.

Votes at the meeting on the item were unanimous; no final adoption on second reading occurred Nov. 3.

The ordinance references the mayor's prior emergency order (April 2020) and planning code definitions; the board did not finalize the ordinance's long‑term effective date at first reading beyond the stated 60‑day sunset trigger tied to the public‑health order.