San Francisco restaurants now have one less thing to worry about.
The city’s Board of Supervisors voted unanimously to approve a resolution that permanently caps food delivery fee commissions charged by companies like DoorDash and Grubhub at 15% per order on Tuesday.
The legislation only pertains to delivery fees — a provision that has already been in place since April 2020 — but does not cover other costs like marketing fees
According to reporting by the San Francisco Chronicle, amendments are still to be introduced on restaurants and delivery companies that aim to work out separate agreements on marketing fees. The legislation also includes a provision to cap credit card processing fees at 3%.
Those measures will be voted on at a later date.
The legislation passed Tuesday makes the emergency provision, which was set to expire Aug. 15, permanent.
Restaurants have always bemoaned excessive commission fees charged by delivery companies, which ranged from 15% to 30% per order. During pandemic-related shutdown orders last year, major cities across the country enacted temporary measures to cap delivery commissions.
San Francisco is the first to enact a permanent cap.
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