NYSLA: Food Delivery Services Fees Shouldn’t Top 10% of Order

Deliverers such as GrubHub, UberEats and DoorDash would have to adhere to a rule that caps their fees at 10% of the cost of a takeout order.  If their fee exceeds 10%, they would have to be listed as partners of establishments holding liquor licenses.

Or they could opt for a flat fee for each delivery.

“Under our view of the law, they should not charge anything percentage-wise,” SLA Chairman Vincent Bradley said during a 90-minute hearing. He noted the SLA allows restaurant landlords to collect up to 10% of an establishment’s liquor revenue but anything more than that is considered “profiting” from a liquor license and, therefore, would require registering as a liquor license partner.

Tech companies hate the idea, saying becoming partners on a license would expose them to new legal liabilities and responsibilities.

But Robert Bookman, counsel for the New York City Hospitality Alliance, a restaurant trade group, says delivery companies are taking a bite out of their business.  The current law is clear, he says. “You get a percentage, you’re on the license. It’s not that complicated.”

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