This coming September, COVID-19 relief bills geared to help small businesses are set to expire. On Thursday, Aug. 27, the City Council approved an extension of that legislation.
The two measures were sponsored by Small Business Committee Chair Councilman Mark Gjonaj and will extend the commission cap on third-party delivery fees charged to vulnerable restaurants and prohibit platforms from charging restaurants for erroneous telephone orders that did not result in an actual purchase
The mayor is expected to sign these into law soon. The legislation will remain in effect for the duration of the state of emergency and an additional 90 days thereafter.
“Today, the New York City Council took significant action to stand by and protect local restaurants struggling to survive during an unprecedented global health crisis,” Gjonaj said. “The COVID-19 pandemic presents perhaps the greatest threat to the restaurant industry in modern history. Over 1,200 New York City restaurants have closed since March, and restaurants will continue to close over the coming months.”
While restaurants are struggling to keep their doors open and continue paying their staff, third-party delivery platforms have experienced a surge in use. Their business model continues to thrive under COVID-19, while restaurants continue to need help.”
GrubHub is not in favor of this cap and earlier this month launched a petition in an attempt to axe the cap and has plans for a paid campaign targeting officials who passed recent reform flaws that have given a lifeline to struggling businesses during COVID-19.