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Committee advances permanent 15% delivery‑fee cap to full Board amid split public comment
Summary
The committee voted to forward an ordinance removing the sunset on a 15% cap on third‑party delivery commissions to the full Board and duplicated the file to allow amendments. Testimony split among restaurant owners who backed the cap and drivers and industry groups who warned of negative earnings and higher consumer prices.
The Public Safety and Neighborhood Services Committee forwarded an ordinance June 22 that would remove the sunset clause from emergency rules capping third‑party food delivery fees at 15%, sending the measure to the full Board of Supervisors with a positive recommendation and duplicating the file so technical amendments can be prepared.
Lee Heffner, representing Supervisor Peskin, said the proposal seeks to maintain protections established early in the pandemic, preserve restaurant choice and prevent platforms from bundling nondelivery services (such as marketing) into delivery contracts. Heffner said staff and stakeholders are working on language to allow separate contracts for nondelivery services and to define enforcement responsibilities.
Why it matters: Restaurants reported heavy pandemic losses and told the committee the 15% cap helps them keep delivery partners viable without being forced to absorb high platform commissions. Supporters said a permanent rule is needed to avoid cliffs when indoor dining resumes. Several restaurateurs and the Golden Gate Restaurant Association backed the ordinance with the suggested technical fixes.
Opposing perspective: Delivery drivers, independent contractors and tech trade groups urged the committee not to make the cap permanent. Drivers warned a cap could reduce earnings or order volume; tech groups argued price controls distort market incentives and could raise consumer prices. Industry groups said many platforms already offer flexible contract options and that voluntary market solutions better preserve choice.
Committee action: To avoid a coverage gap when the existing cap expires, the committee duplicated the file (allowing a working copy for forthcoming amendments) and continued the duplicated file to the call of the chair; the original draft was forwarded to the full Board with a positive recommendation. The roll call recorded three ayes on both procedural outcomes.
Next steps: Committee staff said they will continue negotiations with stakeholders on drafting language to allow separate nondelivery service contracts and to clarify enforcement roles.
