Share to Facebook Share to Twitter Bookmark and Share
File #: 2020-8280   
Type: Regular Agenda Item
Body: City Council
On agenda: 9/15/2020
Title: Introduction of Ordinance Amending the Alameda Municipal Code by Adding a New Article XVIV (Third-Party Food Delivery Services) of Chapter VI (Businesses, Occupations and Industries) Establishing a Temporary Limit on Charges Imposed by Third-Party Delivery Services During the Locally Declared State of Emergency Related to the COVID-19 Pandemic. (Community Development 256)
Attachments: 1. Ordinance, 2. Presentation
Title

Introduction of Ordinance Amending the Alameda Municipal Code by Adding a New Article XVIV (Third-Party Food Delivery Services) of Chapter VI (Businesses, Occupations and Industries) Establishing a Temporary Limit on Charges Imposed by Third-Party Delivery Services During the Locally Declared State of Emergency Related to the COVID-19 Pandemic. (Community Development 256)

Body

To: Honorable Mayor and Members of the City Council

EXECUTIVE SUMMARY

Since the advent of shelter in place in March of 2020, many Alameda restaurants, and their consumers, have come to rely on third-party delivery service companies, online platforms that facilitate food delivery and pick-up. These companies provide a variety of services, including food delivery, website integration, marketing assistance, credit card processing and insurance coverage. Typical fees these companies charge restaurants for these services range from 15% to 31% of the purchase price, on top of the 12-30% fees charged to customers. While services offered by these companies are valuable and important, the services offered by brick-and-mortar restaurants are essential during the COVID-19 pandemic. In short, restaurants and their prepared foods are an important link in the U.S. food supply chain. Significantly, these fees represent a significant financial hardship to restaurants which are already experiencing great difficulty due to restrictions imposed in response to the COVID-19 pandemic.

In order to ensure food security and to safeguard the welfare of restaurant employees and customers, who rely greatly on the restaurant industry during this pandemic, staff is recommending that third-party delivery service fees for restaurants be limited to 15% of purchase price until the local state of emergency ends, or indoor dining resumes at 100% capacity (whichever comes later).

BACKGROUND

Since the implementation of Alameda County's shelter in place order on March 17, 2020, many Alameda restaurants have been...

Click here for full text