What to do
1. Check if your restaurant is eligible
A restaurant is protected by San Francisco’s food delivery service requirements if it:
- Offers, over the Internet, the sale and same-day delivery of food to customers from one or more retail locations within the City; and
- Does not meet the definition of a “Formula Retail” business
2. Read the rules for third-party delivery services
The rules have recently changed. See below.
Until January 30, 2023:
A food delivery service can’t charge a restaurant more than 15% of the price of an online order as a fee, commission, or charge.
Beginning on January 31, 2023:
The 15% limit on delivery fees will not apply when a food delivery service does both of the following:
(1) Offers all restaurants the option to select a "core delivery service" option for a total fee, commission, or charge that is not more than 15% of the cost of the online order without having to pay more for other services.
(2) Notifies all restaurants with existing contracts by December 1, 2022, that they have the option to get "core delivery service."
How “Core delivery service” is defined:
- “Core delivery service” means a service that lists a restaurant and makes it discoverable on all platforms offered by a food delivery service, including its web site and mobile application, and facilitates and/or performs the delivery of food or beverages from restaurants to customers.
- “Core delivery service” does not include any other services that a food delivery service may offer to a restaurant, including, but not limited to:
- Advertising services
- Search engine optimization
- Business consulting
- Credit card processing
A contract between a food delivery service and a restaurant must clearly list the fees, commissions, or other costs the food delivery service is charging the restaurant for any services it provides.
A food delivery service may not:
- Limit how much a restaurant can charge for food or drinks, whether they are sold directly from the restaurant or through a food delivery service.
- Charge a restaurant a fee for a customer's phone call that doesn't result in an order.
- Process or deliver orders for a restaurant unless the restaurant has agreed to that in writing.
In addition, a food delivery service must:
- End any contract with a restaurant within 72 hours after getting notice from the restaurant that it wants to end the contract.
- Keep records for at least three years to show that it has met these requirements.
3. File a report
If you believe a third-party food delivery service has not followed any of the above requirements in dealing with your restaurant, click the button below to file a report.
Last updated December 1, 2022