Technology

Minneapolis caps delivery fees at 15%

It joins more than a dozen other cities and counties to limit what delivery providers charge restaurants.
Photograph: Shutterstock

Minneapolis on Monday became the latest city to limit the fees third-party delivery companies charge restaurants.

The emergency order signed by Mayor Jacob Frey caps fees for delivery or pickup at 15% of the order total. It allows restaurants to voluntarily pay more for additional services such as marketing. It also prevents delivery services from listing restaurants on their platforms without the restaurants’ consent.

“Our restaurants have stepped up to continue serving their communities while safeguarding the health of their employees and customers,” said Frey in a statement. “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 order goes into effect Wednesday and will continue until 90 days after the local public health emergency expires. 

More than a dozen cities and counties and one state have enacted similar measures intended to help restaurants during the pandemic. The fees associated with delivery can be 30% or higher. Restaurants have largely supported the caps, while delivery companies say they will ultimately hurt restaurants because the costs will be passed to the consumer, depressing demand. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners