DiDomenico Co-Sponsors Bill to Support Local Restaurants

Senator DiDomenico has joined his colleagues in the Legislature to support our local restaurants by co-sponsoring, HD.5054, An Act relative to restaurant delivery commissions during the COVID-19 state of emergency . This bill would cap the amount that third-party delivery services– like Uber Eats, DoorDash, and GrubHub– could charge small restaurants and other food and beverage service establishments for the duration of the COVID-19 state of emergency.

“I have heard from many restaurant owners on this specific issue, especially as the industry has transitioned to take-out and delivery service during the COVID emergency. My district is a hub for independently owned restaurants and these small businesses are in large part what make our community so vibrant. The restaurant industry throughout the Commonwealth has taken a terrible hit during this crisis, and we must do everything we can to protect and support them during these exceptionally difficult times. Capping the amount that third-party delivery services can charge restaurants is much-needed action that we should take immediately.”

As many small and family-owned restaurants have had to transition from dine-in service to exclusively take-out or delivery service, many third-party apps that handle the food and drink delivery are imposing fees on restaurants up to 30% of the order total. In many cases, this wipes out any margin these food and beverage establishments have in their reduced business, and the smaller restaurants lack the bargaining power to negotiate lower fees.

To protect restaurants, this legislation will cap the fees delivery services may impose on the restaurants at 10% of the cost of the order. It would also only apply to establishments that have four or fewer retail locations, to ensure it helps those in the most need of help at this time.

HD.5054 was filed by Representative Mike Day and has been reported to the Joint Committee on Labor and Workforce Development.

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