Contra Costa County supervisors on Tuesday will consider capping fees food delivery companies charge restaurants, as restaurants continue to suffer economically under COVID-19 restrictions.
If approved, companies like Uber Eats and DoorDash could charge restaurants no more than 15% of the total order price, including delivery, for delivery services.
While the state recently allowed county restaurants to re-open outdoor dining areas, indoor dining is still prohibited while the county is still in the most restrictive tier of California’s Blueprint for a Safer Economy.
Dozens of Contra Costa restaurants have closed in the past year, as the spread of COVID-19 continues to keep people home. Many restaurants have survived through delivery services, which often charge up to 30% of the price of an order. Some estimates say delivery has gobbled up to a quarter of some establishments’ profits.
According to the staff report for Tuesday’s meeting, “There is an urgent need for the County to place limits on the fees that third-party firms operating food delivery platforms may charge restaurants.”
It also called the limits “necessary” for the health, safety and welfare of county residents.
If approved by at least four-fifths of the board, the ordinance would go into effect immediately and expire when the state allows county restaurants to resume indoor dining at 100% capacity.
Contra Costa County would join other Bay Area jurisdictions enacting similar caps, including Santa Clara County, Alameda County, Marin County, Oakland, San Jose, and Santa Cruz County. In Contra Costa County, the city of Lafayette already has a similar cap in place. Tuesday’s virtual meeting starts at 9 a.m. and is accessible to the public. Click here for more information.
Source: NBC Bay Area