“Restaurants owned by Black, Indigenous, people of color, and immigrants are anchors of their communities. They are also some of those most at risk of closure—and if they do, they are the most unlikely to return after the pandemic. By passing this ordinance, our city has helped create a viable lifeline for these businesses. These reasonable regulations level the playing field so that restaurants can stay afloat, and we can keep these cultural assets in our community.”
—Jenny Lee, former Advocacy Director
Who would have thought that something as small as delivery and marketing fees would make such a difference for small businesses?
But we quickly learned from small businesses we worked with that the high fees were making it impossible for them to make ends meet during the pandemic when many restaurants relied on takeout and delivery to keep their businesses going. The delivery fee cap ordinance that was ultimately passed is a strong reminder that Asians and Pacific Islanders have a role in lifting our collective struggles to the table, and making systemic change that benefits all of us.
We’re grateful for our partnership with Commissioner Eudaly’s office on this ordinance to ensure small businesses and cultural havens are supported through the pandemic.
The delivery fee ordinance created a 5% cap for restaurant fees when a company does not include delivery or a 10% cap for restaurant fees when a company does include delivery. There is a $500 penalty for third-party companies that violate these caps, and companies are not allowed to reduce the compensation rates paid to the person making deliveries.