ACTION REQUESTED:
Title
Communication from the Mayor and Corporation Counsel with a Request to ADOPT an ORDINANCE Imposing a FEE CAP for Third-Party Food Delivery Services.
Body
BACKGROUND:
As a result of the global COVID-19 pandemic, local restaurants have endured hardships including closure, outdoor dining restrictions, and indoor capacity limits due to social distancing requirements.
While restaurants are closed or limited in their ability to utilize their indoor space, they are highly reliant on third-party delivery services that charge as much as 30% of the purchase price. In order to provide support for the suffering business community, the proposed ordinance would cap third-party food delivery service fees at 10% of the purchase price and restrict to the totality of all fees to no more than 15% of a restaurant’s monthly net sales through a given delivery service. The fee cap will automatically expire after the when indoor dining capacity returns to 50% or greater for 60 consecutive days.
NEIGHBORHOOD CONCERNS: None.
IMPACT IF APPROVED: Local restaurants, already enduring the hardships of the global pandemic, will receive relief from high third-party service delivery fees.
IMPACT IF DENIED: Local restaurants may suffer reduced revenue in an already competitive industry with razor-thin profit margins, leading to the potential closure of businesses and the loss of jobs.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Grow employers and jobs.
DEPARTMENT: Legal