Albany County sets delivery service cap for restaurant orders

ALBANY, N.Y. (NEWS10) — Albany County Executive Daniel. P. McCoy signed an emergency order aimed at helping restaurants get back on their feet. He announced the order—and the corresponding local law capping third-party delivery fees—on Monday. “Few businesses have been hurt worse during the pandemic and economic shutdown than our bars and restaurants. They were [...]

ALBANY, N.Y. (NEWS10) — Albany County Executive Daniel. P. McCoy signed an emergency order aimed at helping restaurants get back on their feet. He announced the order—and the corresponding local law capping third-party delivery fees—on Monday.

“Few businesses have been hurt worse during the pandemic and economic shutdown than our bars and restaurants. They were one of the last to reopen and many won’t survive through the winter, especially if their indoor capacity gets cut to 25%,” McCoy said.

During the pandemic, restaurants have been hit with many obstacles, including new safety protocols and customer requirements. One issue that consumers usually don't consider is fees charged by third-party delivery services like Uber Eats or Grubhub. Service fees mean that some restaurants see 30% of a check claimed by the app. In Albany, starting Friday, this will change.

McCoy's executive order caps food delivery fees at 15%. McCoy says the order is necessary to help restaurants survive during the pandemic. Albany County Legislative Chair Andrew Joyce says the order will be renewed every five days until it's officially signed into law.

“The Emergency Order I signed today will cap delivery fees from third-party companies like GrubHub and DoorDash to 15%, ensuring our local businesses and residents aren’t being nickel-and-dimed, while delivery workers are left holding the bag with a mediocre tip,” McCoy continued.

The county wants to encourage people to use whatever companies they want to get food delivered. Officials say the new measures will give restaurants the relief they seek, and that legal action will be available if companies do not comply. The local law going before the County Legislature will codify the 15% cap.

“Since the beginning of this crisis, the members of the Albany County Legislature have stepped up in a major way in the fight against COVID-19,” Joyce said. “Now, we’re moving quickly to help our restaurant owners secure as much of their hard earned income as possible.”

New York City, Syracuse, and Seattle have all recently passed similar cap rules.