Technology

Washington state caps third-party delivery fees at 15%

It becomes the first state to place limits on the charges paid by restaurants to delivery companies.
Washington State
Photograph: Shutterstock

Washington state will cap the fees charged to restaurants by third-party delivery companies, becoming the first state to do so.

The proclamation by Gov. Jay Inslee on Thursday caps delivery fees at 15% of the order total, and total fees and commissions can be no higher than 18%. 

Inslee acknowledged the support delivery companies have provided to restaurants and consumers during the pandemic. “However, these are difficult times,” he said in a statement. “We all must sacrifice during these uniquely challenging times to both support our businesses and slow the spread of COVID-19. We encourage Washingtonians to support their local restaurants safely through delivery and take-out options that are available.”

The order goes into effect next Wednesday and will apply in any county where indoor dining has yet to return to 50% capacity. 

Washington joins a long list of cities and municipalities to level similar caps, including its largest city, Seattle. Chicago earlier this week advanced its own measure limiting fees. They’re intended to help struggling restaurants during the pandemic that would otherwise have to pay fees and commissions of as high as 30% or more.

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