After being sued by DoorDash and Grubhub, the city may placate the companies with a more flexible law.
The new legislation, which will be considered by the city this week, would keep the 15 percent cap but allow restaurant owners to opt out of it in favor of paying more for better placement on the apps. DoorDash already uses this model in localities without a delivery-fee cap, allowing restaurants to pay a 25 or 30 percent rate to improve their promotion on the app.
“I hope this is a rare win-win-win between the restaurants, the delivery companies and the legislative process,” Laurie Thomas, the executive director of the Golden Gate Restaurant Association, told theWhile many seem excited about the potential for San Francisco to avoid a costly lawsuit with the delivery apps , not all restaurant owners are on board.
Thomas, however, said that the new legislation would clearly outline the terms of the deals, and she doesn’t foresee any loopholes that the delivery apps could use to nickel-and-dime restaurants. As a local restaurant owner herself, behind Terzo and Rose’s Cafe, she’s planning to offer delivery at the basic 15 percent rate.
If the new legislation is passed, DoorDash and Grubhub would need to notify all restaurants with existing contracts about their new options by December 1, with the law going into effect on January 31, 2023. If it isn’t approved, San Francisco might be in for a bumpy ride in its dealings with delivery companies.
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