Third-Party Food Delivery Fees

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This project has concluded.

Restauranteurs report that sharp revenue declines due to the months-long indoor dining restrictions and temporary prohibition of outdoor dining have forced their businesses to rely on income generated from takeout and delivery services/ Some restaurant operators have reported that they are being charged with fees as high as 30% from third-party food delivery apps and services. The delivery fees have cut in to restaurants' ability to generate revenue in order to cover expenses, including rent, utilities, food, supplies, and staffing.

In January 2021, downtown restaurants and the Monterey Peninsula Chamber of Commerce approached the Monterey City Council to consider limiting fees and commissions on third-party food delivery services (e.g., Uber Eats, DoorDash, etc.).

The City of Monterey is engaging in community discussions about third-party food delivery fees. Some cities such as Berkeley, Santa Clara, Santa Cruz, and Fremont have implemented ordinances capping third-party food delivery service fees. Some of these ordinances prohibit delivery companies from shifting costs by retaining any portion of a driver's gratuities. However, some third-party food service delivery operators have passed on those fees to customers. Recently, customers ordering delivery from Santa Cruz restaurants are charged a $2 "Santa Cruz Fee" to customers offset the City's limits on delivery fees ("Understanding DoorDash's Santa Cruz fee," Santa Cruz Sentinel, 1/10/21).


Restauranteurs report that sharp revenue declines due to the months-long indoor dining restrictions and temporary prohibition of outdoor dining have forced their businesses to rely on income generated from takeout and delivery services/ Some restaurant operators have reported that they are being charged with fees as high as 30% from third-party food delivery apps and services. The delivery fees have cut in to restaurants' ability to generate revenue in order to cover expenses, including rent, utilities, food, supplies, and staffing.

In January 2021, downtown restaurants and the Monterey Peninsula Chamber of Commerce approached the Monterey City Council to consider limiting fees and commissions on third-party food delivery services (e.g., Uber Eats, DoorDash, etc.).

The City of Monterey is engaging in community discussions about third-party food delivery fees. Some cities such as Berkeley, Santa Clara, Santa Cruz, and Fremont have implemented ordinances capping third-party food delivery service fees. Some of these ordinances prohibit delivery companies from shifting costs by retaining any portion of a driver's gratuities. However, some third-party food service delivery operators have passed on those fees to customers. Recently, customers ordering delivery from Santa Cruz restaurants are charged a $2 "Santa Cruz Fee" to customers offset the City's limits on delivery fees ("Understanding DoorDash's Santa Cruz fee," Santa Cruz Sentinel, 1/10/21).


This project has concluded.