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Committee backs ordinance to cap third‑party food‑delivery fees at 15% and strengthen restaurant protections
Summary
The committee accepted amendments and voted Oct. 22 to forward an ordinance that caps third‑party delivery fees at 15%, protects restaurants’ ability to set menu pricing, requires written agreements for service, allows 72‑hour contract termination, and authorizes OEWD enforcement; it advances to the full Board with a positive recommendation.
A Board of Supervisors measure intended to ease costs for San Francisco restaurants during the pandemic advanced out of committee on Oct. 22 after the sponsor and staff agreed on targeted amendments.
Supervisor Aaron Peskin, the ordinance sponsor, said the measure would cap third‑party delivery fees charged to restaurants at 15% and protect restaurants from contractual restrictions that limit their ability to set menu prices for delivery. Peskin summarized four principal protections in the draft: a 15% cap on fees, a prohibition on delivery companies restricting restaurants’ pricing, a ban on charging restaurants for telephone calls that do not result in orders, and a requirement that third‑party services obtain restaurants’ express written agreement before providing service. The ordinance also would require providers to terminate service contracts within 72 hours of a restaurant’s written notice and retain records for city access; it authorizes penalties and directs the Office of Economic and Workforce Development to implement and enforce the law.
Peskin proposed several adjustments to reflect recent stakeholder discussions: removing an additional 3% point‑of‑sale fee previously included, and setting the ordinance to sunset 60 days after the city’s chief health officer allows 100% indoor dining, rather than a fixed two‑year sunset. He said the changes are reflected in highlighted edits provided to the committee.
Business and restaurant trade group speakers urged swift committee approval. Chavisani, director of public policy at the Golden Gate Restaurant Association, thanked the committee and said the association and local restaurateurs supported the legislation as a step toward helping small businesses survive the pandemic. Michael Nolte of the North Market Business Association also offered support, noting confusion customers face when online prices differ from in‑restaurant menus.
The committee voted to accept the amendments and forwarded the ordinance to the full Board as amended with a positive recommendation (3 ayes). The ordinance will next be scheduled for Board consideration.
