San Francisco Board Considers Permanent Cap on Food Delivery Fees Amid Pandemic Recovery

The San Francisco County Public Safety and Neighborhood Services Committee convened on July 4, 2025, to discuss an ordinance aimed at regulating third-party food delivery services. The primary focus of the meeting was to consider the removal of a sunset clause from existing legislation that imposes a 15% cap on delivery fees charged by platforms such as DoorDash and Uber Eats to restaurants.

The discussion began with Lee Heffner from Supervisor Peskin's office presenting the ordinance. He highlighted that the emergency order, initially implemented in April 2020, was designed to support restaurants during the pandemic by capping delivery fees. He emphasized the ongoing struggles faced by the restaurant industry, noting that many establishments are still recovering from significant financial losses incurred during the pandemic.

Heffner proposed that the removal of the sunset clause would provide continued protection for restaurants, which have been burdened by debt and operational challenges. He also mentioned potential amendments to allow restaurants more flexibility in engaging with delivery platforms for non-delivery services, such as marketing and business counseling.

Committee members expressed support for the legislation, with Supervisor Stephanie noting the importance of fair regulation in the growing delivery industry. However, there was a discussion about the timing of the ordinance's progression, with some members suggesting it might be more prudent to delay the vote until the proposed amendments were finalized.

Public comments were solicited, and a diverse range of opinions emerged. Many delivery drivers and representatives from the delivery industry opposed the ordinance, arguing that permanent price controls would harm their earnings and limit options for both drivers and restaurants. They expressed concerns that such regulations could lead to higher consumer prices and reduced delivery opportunities.

Conversely, several restaurant owners and representatives from the Golden Gate Restaurant Association voiced strong support for the ordinance, asserting that the cap is essential for their survival. They argued that the financial burden of high delivery fees should not fall solely on restaurants, and that the cap would help ensure a more sustainable business model moving forward.

The meeting concluded with a call for further discussion and potential amendments to the ordinance, reflecting a desire for a balanced approach that considers the needs of both restaurants and delivery service providers. The committee plans to reconvene to address these amendments and finalize the legislation.