Frey signs emergency regulation capping third-party food service delivery fees at 15% in Minneapolis

Monday, Minneapolis Mayor Jacob Frey signed an emergency regulation into law, capping third-party food service delivery fees at 15% in the city.

With more people relying on food delivery service platforms amid the COVID-19 pandemic, some restaurants are incurring delivery fees as high as 40% of a customer’s order, according to the city. Under the regulation, restaurants can now choose to pay a higher commission or supplemental fee to access additional products and services offered by any third-party food delivery platform.

"Our restaurants have stepped up to continue serving their communities while safeguarding the health of their employees and customers," Frey said. "We need to provide every ounce of available support to them. Our restaurants are cultural institutions throughout Minneapolis, and this is urgently needed relief at a critical time."

The regulation will take effect at 12 a.m. on Wednesday. Third-party food service delivery platforms in violation of the law can be subject to enforcement action up to and including misdemeanor prosecution or other legal relief authorized by law, the city said.

"The Twin Cities restaurant scene is an envy of the nation," said Minneapolis City Council Member Lisa Goodman, who worked to develop the measure. "This new policy reflects a commitment to having their backs as they confront challenges beyond their control. Making sure they get to keep more of their sales while maintaining access to delivery services will be good for the businesses and good for the overall health of our economy."

Third-party food delivery platforms won’t perform any services or disclose any information about food establishments without their consent, and no additional fees will allowed to be charged to restaurants that they haven’t voluntarily agreed to pay.

"This lifeline is coming at just the right time. Margins in the restaurant business are always low and massive delivery fees put us in the hole on every delivery," Tomme Beevas, of Pimento Jamaican Kitchen, said. "Having this kind of security from having to make deeper cuts is a huge deal for Minneapolis restaurants."