Advocating for Third Party Delivery Fee Caps
ORLA has been participating in the drafting and adoption of a permanent third-party delivery fee cap for the City of Portland along with other stakeholders and the Mayor’s office in a transparent collaboration with input from all sides. See the latest draft here.
During the pandemic, the city of Portland adopted a temporary 10% cap on third-party delivery fees to help restaurants. This past June, ORLA was instrumental in securing an extension of the cap another eight months. Now, the city is looking to adopt a permanent cap of 15% along with protections for restaurants. The ordinance is consistent with similar approaches taken in recent months by Seattle and San Francisco and its provisions offer strong protections and support to restaurants and food carts.
This approach also reduces the likelihood of continued consumer-facing fees or constrained delivery radiuses that may negatively impact restaurant sales. Additionally, this policy will require food service platforms to provide a reasonable level of service at or below a 15% commission rate in the City. It also seeks to protect restaurants from being penalized or otherwise disadvantaged from opting into the 15% capped rate. The cap on takeout commissions will be 4% under this policy.
Other notable protections and operational standards that support local restaurants and food carts include:
ORLA is pleased to have been instrumental in the creation of this new policy to protect restaurants and consumers.
Next Steps: The final ordinance language will be filed with the Council Clerk. This item has been scheduled for a first reading as a time-certain item at the Portland City Council meeting on 10:40am on Wednesday, December 7. Following the first reading, it would move to a second reading and vote for adoption on Wednesday, December 14.
Contact Greg Astley, ORLA Director of Government Affairs if you are interested in providing public testimony on December 7.
The Oregon Restaurant & Lodging Association (ORLA) keeps members informed and educated on important issues impacting the hospitality industry. If you are not yet a member of ORLA, please consider joining the association in order to access the latest industry intelligence for businesses like yours. Visit our Membership page or reach out to an ORLA Regional Representative nearest you.