NEW YORK — The New York State Restaurant Association testified with other organizations in a public hearing against changes to the third-party delivery rate cap before the New York City Council’s Committee on Consumer and Worker Protection. New York City.
The proposed legislation would change the third-party fee cap restaurants have and allow these third parties to charge unlimited “marketing fees” on top of the per-order fees already paid. In other words, when the person orders food through an application, they would have to pay more, which would lead, according to restaurant owners, to losing customers and eventually closing.
“The food delivery market must remain balanced. Third-party delivery platforms cannot be allowed to change the landscape with miscellaneous and nondescript “marketing” fees. Restaurant owners have worked hard to survive for the last three years and cannot be asked once again to readjust their margins to benefit large corporations and their shareholders,” said Melissa Fleischut, President and CEO of the Restaurant Association. of the State of New York.
The participants said no to bill 813, which would increase the fee by 20% when ordering food for delivery, using applications such as Uber Eats, Dashboard, among others.
If this legislation passes, restaurants will not be able to maintain their current level of service at current prices, the association said.
In Washington, DC, where the third-party fee cap has been removed, a DCist report reveals that restaurant owners were suddenly shocked to find they will have to pay much more for each order, returning to pre-cap rates of 30%. to even 50%.
So far there is no scheduled date for a next hearing.
