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Grubhub’s Bogus Fees + Other Updates

By NYC Hospitality Alliance

The NYC Hospitality Alliance is fighting on all fronts on behalf of restaurants + nightlife establishments, including against unsavory business practices of certain delivery platforms, like GrubHub charging restaurants bogus fees for customer phone calls.

As we recently reported, the State Liquor Authority is now investigating the practice of delivery platforms charging a percentage fee, which the agency prohibits entities to do unless they are listed on the liquor license. We testified at the City Council oversight hearing looking into the business practices of delivery companies, which could lead to regulations requiring transparency and fee structure modifications. The Attorney General has been called on to investigate potential anti-competitive business practices of delivery companies. In addition, we recently participated in a press conference with U.S. Senator Chuck Schumer calling on Grubhub to return all of the bogus fees they charged restaurants and stop other problematic business practices.
 
Also of interest: A restaurateur from Philadelphia has filed a class action lawsuit against Grubhub for their business practices, including bogus phone call fees they have charged restaurants. If your restaurant was subject to bogus fees from Grubhub or other questionable business practices and you want to learn if you're eligible to participate in the class action lawsuit, you may contact the attorney handling the case: Catherine Pratsinakis at cpratsinakis@dilworthlaw.com or 215-757-7013.
 
As you'll see by the long list of press stories the NYC Hospitality Alliance is quoted in below, we're working hard to keep this issue in the news so that lawmakers, the dining public, and delivery companies know that while delivery is a great service for restaurants and New Yorkers, we will NOT standby idle and be exploited by large delivery corporations. 
 
  • New York Post: Grubhub's profits plunge 96% as it grapples with fake-fee outcry, July 30
  • MarketWatch: After DoorDash's U-turn on tipping policy, here are the food delivery services that pass 100% of tips to workers, July 28
  • New York Post: State liquor authority threatens delivery services over hefty fees, July 10
  • Yahoo! Finance: GrubHub Shares Fall In Wake Of Report On Duplicate Restaurant Websites, July 1
  • New York Post: Grubhub made over 30K websites disguised as restaurant homepages, June 31
  • NY Post: Grubhub repays one eatery $10K over fee protest, June 24
  • NY Post: City Council to investigate Grubhub's restaurant-killing fees, June 9

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