Coronavirus Update: San Francisco Caps Delivery Service Charges On Cash-Strapped Local Restaurants
SAN FRANCISCO (CBS SF) -- In an effort to give a financial boost to San Francisco's cash-strapped restaurant industry, city officials placed a cap Friday on the charges delivery services can charge during the coronavirus shutdown.
The cap of no more than 15 percent of the order's total cost, Mayor London Breed said, would remain in effect through the remainder of the local coronavirus shelter in place emergency or until businesses are permitted to reopen for dine-in service.
"Restaurants across San Francisco are struggling to stay open," Breed said in a prepared statement. "In these tough financial circumstances, every dollar counts and can make the difference between a restaurant staying open, or shuttering. It can make the difference between staying afloat or needing to lay-off staff."
Across the city, cafes and restaurants have been closed down for nearly a month ever since local health officials ordered residents to shelter in place. Staffs have been laid off and several eateries have closed for good.
Others have attempted to weather the financial storm by remaining open as take out or delivery operations. Those restaurants have been using services like Door Dash, Grub Hub and Cavier to delivery meals to homes.
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"We've listened to our restaurants and the struggles they're facing during this unprecedented time," said San Francicso Supervisor Ahsha Safaí. "The high commission fees being charged to our businesses remains unchanged and that cannot continue as every dollar can mean staying open or laying- off more staff."
Under the city's Stay Home Public Health Order, restaurants are not permitted to offer dine-in service. In order to stay open, restaurants are offering take-out and delivery, and many restaurants are relying on third-party delivery services to provide that delivery.
While some delivery services have waived fees on the customer-side, delivery services have continued to charge restaurants a commission. These fees typically range from 10% to 30% and can represent a significant portion of a restaurant's revenue.
