N.S. food delivery startup offers restaurants lower fees, customer service control

HALIFAX – Delivery was never on the menu at restaurateur Craig Flinn’s neighbourhood eateries.

Even when spring lockdowns shuttered restaurants and forced diners to stay home, the chef and proprietor of Two Doors Down offered only curbside pickup, rejecting the sky-high fees charged by food-service delivery companies.

“I flat-out refused,” says Flinn, who has two locations in Halifax and Dartmouth. “When you don’t have dine-in and then all your business would be reduced by 25 or 30 per cent, it’s completely unsustainable.”

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Halifax restaurants call for cap to third-party delivery service fees

With indoor dining banned or significantly reduced in many parts of the country, delivery is one of the few remaining revenue streams for restaurants. But restaurateurs say exorbitant fees of up to 30 per cent charged by online food ordering and delivery apps can make it unprofitable to stay open.

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City Council weighs putting a cap on delivery service fees charged Lincoln restaurants | Dining



DoorDash

Derek Johnson, who delivers for DoorDash, leaves the downtown Qdoba with a customer’s order March 27.




Lincoln City Councilwoman Tammy Ward, seeking to throw local restaurants another pandemic lifeline, proposed an ordinance to cap the fee a food delivery service can charge a restaurant to shuttle takeout to hungry homebodies. 

Third-party companies such as DoorDash or UberEats could not charge restaurants more than 15% of the purchase price to deliver orders under the ordinance, which Ward crafted to mirror one passed in Chicago.

The ordinance would only apply while the city’s pandemic emergency lasts, said Ward, who has introduced other measures to help restaurants financially during the pandemic.

Brian Kitten, owner of Brewsky’s, called on the council last year to follow Chicago’s course to help out restaurants such as his that relied heavily on the delivery services when restaurants couldn’t offer dine-in service. 

“We

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County To Consider Cap On Food Delivery Fees

Contra Costa County supervisors on Tuesday will consider capping fees food delivery companies charge restaurants, as restaurants continue to suffer economically under COVID-19 restrictions.

If approved, companies like Uber Eats and DoorDash could charge restaurants no more than 15 percent of the total order price, including delivery, for delivery services.

While the state recently allowed county restaurants to re-open outdoor dining areas, indoor dining is still prohibited while the county is still in the most restrictive tier of California’s Blueprint for a Safer Economy.


Dozens of Contra Costa restaurants have closed in the past year, as the spread of COVID-19 continues to keep people home. Many restaurants have survived through delivery services, which often charge up to 30 percent of the price of an order. Some estimates say delivery has gobbled up to a quarter of some establishments’ profits.

According to the staff report for Tuesday’s meeting, “There is an

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Supes Cap Food Delivery Fees During Covid-19

Lending a hand to local restaurants suffering economically under COVID-19 restrictions, the Contra Costa County Board of Supervisors on Tuesday capped what third parties can charge for food delivery.

DoorDash, Uber Eats, Grubhub, and other services now can only charge up to 15 percent of the total cost of an order, and 10 percent of third-party orders picked up by the customer at a restaurant. Typically, delivery providers charge up to 30 percent.

The cap would be lifted once the state allows restaurants to open indoor seating at 100 percent capacity, though the board can revisit that at any time.


Restaurants have seen income plunge more than 20 percent since February 2020, according to a county staff report. Overall, total restaurant and food service income has declined $240 billion from expected revenue.

DoorDash representative Chad Horrell asked the board, if passing the ordinance, to cap the amount at 20 percent

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