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Chula Vista passes cap on delivery fees for restaurants, businesses

Grubhub customers wait for food that never arrives
Posted at 1:45 PM, Mar 03, 2021
and last updated 2021-03-03 16:47:24-05

CHULA VISTA, Calif. (KGTV) — Chula Vista city leaders voted Tuesday to cap delivery fees apps charge small businesses and restaurants amid restrictions on indoor dining.

Chula Vista City Council voted to cap delivery fees at 15% of the total purchase price and cap other related fees at no more than 3% of the total purchase price. The city says the vote was necessary to help support restaurants and businesses impacted by pandemic-related closures.

"Restaurants and food vendors have been some of the hardest-hit businesses in our community," said Councilmember Steve Padilla. "This measure is a small but critical step to support many of our struggling small businesses trying to make ends meet."

The measure will be active until indoor dining resumes at 100% capacity, according to the city.

Chula Vista's measure is similar to an executive order issued by San Diego Mayor Todd Gloria in January, which capped delivery app fees at 15% for delivery and limited total fees at 18%.

Gloria's office said at the time that some delivery apps were charging as much as 30% or more for fees, commissions, and service charges to restaurants and businesses.

With San Diego County in the purple tier of California's reopening tier plan, indoor dining is prohibited, though outdoor dining is allowed with modifications. Restaurants can resume indoor dining at 25% capacity or 100 people, whichever is fewer, in the red tier.