Senator Patrick M. Gallivan (R-C-I, Elma) joined his colleagues in the New York State Senate in passing a pair of bills that provide support to the state’s restaurant industry as it continues to face financial challenges associated with the COVID-19 pandemic. The legislation would put restrictions on third-party delivery services and limit the fees they charge.
“Restaurants across the state are facing an unprecedented hardship because of dining restrictions associated with the ongoing pandemic,” Senator Gallivan said. “Third-party food delivery services provide a valuable service to consumers, but some have imposed exorbitant fees and commissions that cut into the already thin profit margins of restaurants. This legislation will cap these fees and create a uniform statewide policy.”
The first bill (S.1554B) would cap the fee third-party food delivery services can charge restaurants at 15-percent of the purchase price. Typically, third party food delivery services charge between 10 and 30 percent commission per order, with some charging as much as 40-percent. The New York State Restaurant Association and the New York State Association of Counties support the legislation, which would expire 90-days after the end of current health emergency.
The second bill (S.1630A) would require third-party food delivery services to establish a written agreement with restaurants and food service establishments before offering products for delivery. It would ensure restaurants have control over their product and how it is advertised, sold and delivered. The bill is supported by the New York State Restaurant Association.
Both bills will be sent to the State Assembly.