Baltimore County Executive Johnny Olszewski yesterday issued an Executive Order to cap the fees that third-party food delivery applications can charge restaurants for using their services.
The order aims to help restaurants and bars keep more of their delivery profits by prohibiting third-party platforms from charging them a fee in excess of 15% of the price of the customer’s online order. The order also prohibits third-party delivery companies from reducing the gratuity or compensation paid to drivers in order to comply with the fee cap.
“Our restaurants and bars are a critical part of our economy and our neighborhoods. In Baltimore County, we have already committed millions to directly support this hard-hit industry, and today we’re doing even more,” Olszewski said. “By capping the fees that these third party delivery services can charge, we can ensure more of our money goes where it belongs: in the pockets of our community’s restaurant owners and their staff.”
According to a County press release:
As restaurants have had to shift their business models to respond to pandemic-related restrictions on dining, many have looked to third-party delivery apps to help continue providing service. However, fees from third-party delivery companies can be as high as 30 percent per order.
Through its grant programs, the County has approved more than $13 million in grants for more than 300 County restaurants. In addition, the County has made millions in grant funds available to:
- Support small business payroll, operating, and rent expenses;
- Reimburse improvements to help prevent the spread of COVID-19;
- Assist chambers of commerce and business associations to support businesses;
- Provide direct funding to assist professional artists, musicians and performers.