Olszewski Order Caps Third Party Food Delivery Application Fees

BALTIMORE COUNTY, MD — In the latest effort from the Olszewski administration to support Baltimore County’s restaurant industry during the coronavirus pandemic, Baltimore County Executive Johnny Olszewski issued an executive order to cap the fees that third-party food delivery application services can charge restaurants.

“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 in a statement. “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.”

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, the county noted. The order prohibits third-party food delivery companies from charging fees that exceed 15 percent of the purchase price of an online order from a restaurant. In addition, the order prohibits third-party delivery companies from reducing the gratuity or compensation paid to drivers in order to comply with the fee cap.