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Third-Party Delivery Fee Cap and Bogus Fees

By NYC Hospitality Alliance

Today The Alliance testified before the NYC Council in support of extending the fee cap on third-party food delivery fees and in support of prohibiting these companies from charging restaurants fees for telephone orders that didn't result in a transaction

The NYC Hospitality Alliance continues to fight for the needs of the city's restaurant and nightlife industry. Today August 13, The Alliance testified before the New York City Council in support of extending the fee cap on third-party food delivery fees, and in support of prohibiting these companies from charging restaurants fees for telephone orders that did not result in a transaction during the call. Although not the focus of the hearing, we also raised the urgency of a plan to reopen indoor dining, allowing restaurants to use a clearly disclosed surcharge, using heat lamps for outdoor dining, eliminating Commercial Rent Tax and more.
 
The NYC Hospitality Alliance will continue to advocate for our industry at all levels of government with a passionate, thoughtful, strategic and solution-oriented approach. 
 
We thank the Chair of the Small Business Committee, Mark Gjonaj, for hosting the hearing. We also want to thank the prime sponsors of this legislation: Chair Mark Gjonaj, and Council Member Moya as well as Speaker Johnson for their continued support of the industry during thee trying times.
 
Highlight of the Proposed Legislation
 
T2020-6439: Third-party food delivery services are entities that provide restaurants with online order and delivery services. This bill would amend the conditions in existing law under which third-party food delivery services are prohibited from charging restaurants for telephone orders that did not result in a transaction during the call. Under the existing law, such charges are prohibited only during states of emergency when on-premises dining is prohibited entirely, plus an additional 90 days thereafter. This bill would instead prohibit such charges during states of emergency when restaurants are restricted from operating at maximum indoor occupancy, plus an additional 90 days thereafter.
 
T2020-6438: Third-party food delivery services are entities that provide restaurants with online order and delivery services. This bill would amend an existing law limiting third-party food delivery service fees under certain circumstances. Under the existing law, third-party food delivery services are prohibited from charging restaurants more than 15% per order for delivery and more than 5% per order for all other fees during states of emergency when on-premises dining is prohibited entirely, plus an additional 90 days thereafter. This bill would instead limit such fees during states of emergency when restaurants are restricted from operating at maximum indoor occupancy, plus an additional 90 days thereafter.

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