ENCINITAS–The City of Encinitas Council took measures to limit fees charged by third-party delivery companies for food delivery services for the duration of the coronavirus pandemic.
During the February 24 council meeting, direction was given to City Manager Pam Antil to work with the City Attorney to implement a proclamation and emergency ordinance limiting the delivery fees charged by restaurant food delivery services to 15 percent of the menu-priced items. As the Emergency Services Director, Pam Antil passed and adopted a proclamation effective immediately which is enforceable by the Encinitas Municipal Code.
With the survival of many independent restaurants dependent on delivery services, restaurants have been reliant on take-out and delivery orders to remain open, continue to service their customers and provide jobs.
Third party delivery services charge a fee to both the customer and the food provider, and fees paid by the restaurants range from 20 to 30 percent.
“This cap will be helpful for small businesses. We have done our best to remain open during the pandemic to maintain our customer base and keep our employees working as best as we can,” local restaurant owner Kris Buchanan stated. “With such a large share of our business coming from delivery services and the fees we have to pay those services, there is no room left for profit.”