City of Albany issued the following on Dec. 28
County Executive McCoy Announces Amendment to Emergency Order Capping Third-Party Delivery Fees
Albany County Executive Daniel P. McCoy announced today an amendment to his December 14 Emergency Order capping third-party delivery fees at 15%. Marketing and other fees will now be capped at 5% or the purchase price. The amended order will take effect immediately.
“I’ve heard first-hand from business owners about their struggles to keep the lights on during the pandemic, having to make the impossible decision to either shutdown or dip into their life savings to stay afloat. Meanwhile, some of the biggest online food delivery companies have only seen their revenues skyrocket this year since the outbreak started. That’s why I issued an Emergency Order capping third-party delivery fees to 15%,” said County Executive McCoy. “Unfortunately, we’ve gotten multiple reports from local restaurants recently that delivery, marketing and other fees combined can still amount to over 20% or even 30% of the purchase price. Price gouging has no place in Albany County and this needs to stop.”
“At a time when the restaurant industry needs a helping hand, we applaud Albany County Executive Dan McCoy and the Albany County Legislature for taking proactive steps in offering relief,” said Melissa Fleischut, President and CEO of the New York State Restaurant Association. “Limits to indoor dining have caused restaurants across the region to rely on takeout and delivery more than ever. The delivery and marketing fees some third-party delivery companies charge can dramatically cut into the profit margin of every order, sometimes taking as much as 30% away from the local restaurant. By imposing caps on third-party fees, owners will be able to keep more money in the restaurant, giving them a better chance of making it through this difficult time.”
“We are thrilled with County Executive McCoy’s announcement that third party food delivery service fee caps have been expanded to include marketing and other fees, a move that will continue to help keep funds in the hands of our locally owned and operated restaurants in Downtown. At a time when business owners are needing to continually pivot, steps like these at the local level serve to make the light at the end of the tunnel a little brighter," said Georgette Steffens, executive director of the Downtown Albany Business Improvement District.
“For Lark Street business owners, this is simply about surviving and protecting the livelihoods of their employees. While third party delivery systems may play an important role for restaurants and customers, their fee structures are unfair and simply don’t work, especially during a pandemic. I applaud County Executive McCoy, Chairman Joyce, Mayor Sheehan and Legislators Fein, Peter and Reidy for helping local restaurants keep more of their revenue in their registers,” said Patrick Noonan, Chairman of the BID.
Original source can be found here
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