On Tuesday, Contra Costa County Board of Supervisor Diane Burigs says she will introduce a 15% cap on fees for takeout and delivery services within the county.
She made the comments as the Board of Supervisors were discussing COVID-19 and the stay-at-home order–this was prior to the discussion on increasing fines. Supervisor John Gioia was discussing the idea of the County creating a “take out order campaign” and urging people to use take out when Burgis stated she was planning to introduce the proposal at their next meeting.
In the brief statement, she stated she wanted to lower the burden on business which is why she was introducing the proposal.
In a statement issued by Burgis office, they offered greater clarification:
“As we maneuver our way through this worldwide pandemic, I want Contra Costa County to do everything we possibly can to support our small business community. During the statewide surge we are asking restaurants to pivot to takeout and delivery, I believe we should do everything we can to try to create a level playing field between small businesses and large chains who can negotiate directly with the apps to reduce fees. That’s why I’ll be introducing a 15% cap on delivery fees for Contra Costa County. At the end of the day, I’m still hoping for more federal stimulus, but in the interim, this is something we have the ability to do,” said Burgis in a statement.
Back in October, the City of Walnut Creek City Council unanimously approved the 15% cap for a period of 6-months.
According to their agenda at the time:
Food delivery services have been charging such commissions prior to the COVID-19 pandemic; it is a part of their business model and not a unique response to the reduction in dine-in opportunities or the increase in takeout orders. However, staff’s understanding and market survey indicate that prior to COVID-19, restaurants in Walnut Creek were able to absorb these fees since delivery/take-out orders for many businesses constituted only a small portion of their business operations, at around 5-15%, and indoor dining accounted for upwards of 95% of the restaurants’ business operations. However, with indoor dining suspended since March, restaurants in Walnut Creek are now reliant on delivery/take-out orders for upwards of 70% of their business operations. The fees on these orders thus result in a significant impact on restaurants’ profitability–Full Staff Report.
Walnut Creek staff found that DoorDash, Uber Eats, and Grubhub are the primary service providers for Walnut Creek restaurants and each own smaller subsidiary companies the public may be familiar with (such as Caviar, Seamless, and Postmates). Each service offers a different model, fee structure, commission package, and programs to help restaurants reach their customers through online ordering with pickup and delivery options.
Similar local legislation imposing temporary caps from jurisdictions in the Bay Area, including Berkeley, San Francisco, South San Francisco, San Leandro, and Fremont. The caps imposed are calculated as a percentage of the purchase price per order.
5 comments
All that fast food shes been gobbling up must be costing her too much! The fat supervisors getting fatter!!
why so the county can make money to??? Ya fuck no
I’m not sure you understood the story.
She is making it so delivery services can only charge 15% of the meal cost to deliver it.
When you order food, some delivery services are charging you a lot more, like 25% or 30%?
The County is not involved in this transaction at all so there is no way they’ll be making money.
Pretty simple, eh?
I think it’s probably the best thing she has done. She is stopping gouging. That to me is a positive for all CC residents
Not sure if that works. If someone orders 3 tacos for 6 bucks, then delivery cannot cost more than 90 ct. I think businesses will just raise their food prices.
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