Encinitas Takes Action To Cap Food Delivery Fees Amid Pandemic

ENCINITAS, CA — The Encinitas City Council last week took measures to limit fees charged by third-party delivery companies for food delivery services amid the coronavirus pandemic.

The council on Feb. 24 directed city staff 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 emergency services director, City Manager Pam Antil passed and adopted a proclamation effective immediately, which is enforceable by the Encinitas Municipal Code, according to a news release from the city.

"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," the news release stated.

Third-party delivery services charge a fee to both the customer and the food provider, and fees paid by restaurants range from 20 to 30 percent, according to the city.

"This cap will be helpful for small businesses," local restaurant owner Kris Buchanan said in the release.

"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. 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."

The provision of the proclamation will expire when the state and local public health order related to COVID-19 pandemic is lifted, according to the city.