Updates: Delivery Apps and Your Business

Does your restaurant use an app to take customer orders for delivery or pickup?

NYC’s Third-Party Food Delivery Service Laws have a licensing requirement for apps and protections for the restaurants that use them. Restaurants have requirements, as well.

YOUR RIGHTS:

  • Apps must have a written agreement with your restaurant to list it on the app.

    Agreements must include bathroom access for food delivery workers. See responsibilities section below.

  • Apps cannot charge your restaurant more than the fee caps.
    • Delivery fees are capped at 15% of the purchase price of each online order, with limited exceptions;
    • Transaction fees are capped at 3% of the purchase price of each online order, with limited exceptions;
    • Basic service fees are capped at 5% of the purchase price of each online order, with limited exceptions; and
    • Enhanced service fees are capped at 20% of the purchase price of each online order, with limited exceptions. Note: the enhanced service fee can only be charged if the app offers a plan at a basic service fee amount.
  • Apps that list or link to a phone number for your restaurant must include your direct phone number.
  • Apps must make clear to customers that any additional listed phone number is for the app and confirm any fees to use numbers to place orders.
  • Apps cannot charge your restaurant for phone orders that do not end with a sale.
  • In some cases, apps must give your restaurant customer data if you request it.
  • Restaurants can include menus and coupons in customers’ orders.
  • Restaurants can charge different prices for items ordered on the app and items ordered directly at the restaurant, with limited exceptions.

YOUR RESPONSIBILITIES:

  • Restaurants must comply with agreements to provide bathroom access to food delivery workers when they pick up orders for delivery. Limited exceptions for health or safety reasons.
  • Restaurants must let customers withdraw consent to use data shared by apps and delete it on request.
  • Restaurants cannot sell, rent, or disclose customer data without customer consent.

More Information

Restaurants can file a complaint about apps that are unlicensed or that violate your restaurant rights. Use DCWP Online Services to file a complaint online or ask a question online