Burbank Caps Food Delivery Fees

Following the lead of other cities including Los Angeles and San Francisco, the Burbank City Council has adopted a temporary ordinance to cap commission rates for food delivery to assist in the reopening of businesses impacted by COVID-19.The ordinance, announced Thursday, caps third-party delivery fees from services such as Door Dash and Uber Eats at 15 percent of the online purchase price and 5 percent for additional services. It also requires detailed receipts for the restaurant and end consumer, as well as prohibiting a decrease in compensation to drivers due to the cap.“With Burbankers turning more to food delivery during the pandemic, temporarily capping the commission rates for third-party food delivery services will provide some economic relief for our Burbank restaurants,” City Manager Justin Hess said in a statement.During normal times, restaurants could more readily absorb the delivery service pricing because it was a small part of the restaurants’ overall business, the ordinance stated. Capping the per-order fees will ease the financial burden on struggling restaurants during this emergency and while not unduly burdening third-party platforms.The temporary cap applies to food delivery within Burbank only, and ends 90 days after the County’s Health Officer Orders and the State Orders allow for indoor dining and outdoor dining at 100 percent capacity.