Third-party food delivery service fees capped at 15 percent in Onondaga County

SYRACUSE, N.Y. — Fees for third-party food-delivery services in Onondaga County — including the city of Syracuse — are now capped at 15 percent.

Onondaga County Executive Ryan McMahon and Syracuse Mayor Ben Walsh on Wednesday announced an executive order capping that fee, per a joint statement.

When New York State first ordered the closure of eateries and restaurants, the demand for third-party online ordering and food delivery services increased across the local food-service industry. With parts of Onondaga County now placed in yellow and orange zones, restaurants and local eateries have become more dependent on “take out” services, the two elected officials say. So, the fees the delivery services charge take a bite out of restaurants’ already strained revenue totals.

“The hospitality industry has been devastatingly impacted by the COVID-19 pandemic and it is critical County government does everything in our power to help them stay in business. After consulting with members of the restaurant industry, it became clear that some third-party delivery service companies are charging egregious fees.” McMahon said. “This cap, effective immediately, will limit any surcharges to no more than 15 percent in an effort to provide some economic stability and confidence for our local business community.”

For local businesses, this is “about survival,” and for their employees, it is about livelihoods, Walsh noted.

Third-party delivery services are playing an important role for restaurants and customers, but their fee structures simply don’t work during the pandemic,” Walsh said. “I appreciate County Executive McMahon working with the City to help our local restaurants keep more of their revenue from food and beverage sales in their own cash registers.”