As of March 2020, 38% of American consumers had ordered food through a food delivery app. One year later, the number jumped nearly 10 points as 47% of Americans had used a food delivery app.
This small business legislation capping fees charged by delivery companies is vital to support Seattle’s diverse restaurants,” Pederson said. “Over the past two years, the 15% cap has proven to be reasonable as well as vital for supporting Seattle’s diverse restaurants that have struggled mightily to survive in our city. Because Seattle’s Emergency Order for the pandemic could end soon, this legislation saves our local restaurants from a financial cliff.
Gov. Jay Inslee announced last week that he will rescind 12 decrees under his COVID-19 emergency authority, saying they are no longer needed in response to the pandemic as the city pivots to post-pandemic practices.Hazard pay for grocery workers also ended after a 5-2 decision from Seattle City Council yesterday, citing that hazard pay was never intended to be long-term or a way to combat inflation. It was always tied to COVID-19, not consumer prices.
“As everyone knows, restaurants were the hardest hit throughout the pandemic,” said Steve Hooper, President of the Seattle Restaurant Alliance. “Today’s vote making the 15% commission cap permanent ensures the best customer experience by keeping delivery a viable option as restaurants navigate post-pandemic challenges and gives restaurants much-needed assistance and predictability without additional financial hardship as they seek to recover and thrive.
Without the limitation, some delivery companies reportedly charged restaurants fees as high as 30% prior to the pandemic. With the legislation passing by the full city council, it will go to the mayor for his signature. If signed, it will go into effect 30 days afterward.
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