ROCHESTER, N.Y. — A Monroe County legislator plans to introduce a proposal to cap third-party food service fees for local restaurants.

Jeffery Scott owns Kainos in the Corn Hill Neighborhood.


What You Need To Know

  • Delivery app services can charge restaurants 30% of an order's purchase price
  • The proposal would cap the rate at 15%

  • Legislator Rachel Barnhart plans to introduce legislation Tuesday

He says his restaurant stopped using third-party delivery apps a few months ago after their fees cut deeply into his profits.

"I made a $1,079. So I'm like, not too bad, for one party that was grub hub. The check that came was for $379 and it showed in there: delivery fee, usage fee, marketing fee, mask fee. I was paying for the drivers to have a mask," Scott explained.

It was the same reason that Kelly Bush, co-owner of Marshall Street Bar & Grill, never considered using them even though more people are using delivery apps because of the pandemic.

"Profits in the restaurant industry are already pretty slim to begin with. So once you start money away, there's none left. So it becomes pointless to use these third-party apps," said Bush.

This issue led county legislator Rachel Barnhart to draft legislation that would cap third party food service commission fees during the pandemic.

Barnhart explained that these companies can charge restaurants 30% or more of the purchase price.

Her new proposal aims to cap that fee at 15% and prohibit the delivery service from cutting the wages of the driver as long as the COVID-19 pandemic continues.

"This is a win for restaurants. It's a win for consumers who will know what they are actually paying for and where there money is going. It's also a win for public health. Restaurants have been deemed essential businesses because we want the public to have access to food and delivery. And take out services are very important at a time when we have to enforce social distancing measures," Barnhart said.

If the proposal passes, both Scott and Bush intend to use third-party delivery apps for their restaurants.

They also believe it would come at a perfect time as they expect more people using delivery services during the winter.

"This legislation will help us at least make a little bit of money rather than zero or you are in the whole," said Scott.

"It may be the thing where we get to keep one more staff and not have to furlough somebody. The benefit is there. Nothing is going to be enough at this point until we get back to the way things were," added Bush.

Barnhart plans to introduce the legislation on Tuesday and it could be voted on as early as December.