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Minneapolis St. Paul News, Weather, Traffic, Sports | Minneapolis, Minnesota | kare11.com

New law caps fees for third-party food delivery services in Minneapolis

Mayor Jacob Frey signed an Emergency Regulation Monday which keeps any food delivery service from charging more than 15%.
Credit: Getty Images/iStockphoto

MINNEAPOLIS — Starting Wednesday, Dec. 23, third-party food delivery services will no longer be able to charge more than a 15% delivery fee in Minneapolis.

Mayor Jacob Frey signed an Emergency Regulation Monday which keeps any food delivery service from charging more than 15%. According to a press release from the mayor's office, some restaurants were being charged up to 40% by some services.

“Our restaurants have stepped up to continue serving their communities while safeguarding the health of their employees and customers,” said Frey in the release. “We need to provide every ounce of available support to them. Our restaurants are cultural institutions throughout Minneapolis, and this is urgently needed relief at a critical time.” 

Restaurants will have the option to pay a higher commission or supplemental fee for additional products and services from third-party food delivery services, according to the release.

“The Twin Cities restaurant scene is an envy of the nation,” said Minneapolis City Council Member Lisa Goodman, who worked closely with Frey on the order. “This new policy reflects a commitment to having their backs as they confront challenges beyond their control. Making sure they get to keep more of their sales while maintaining access to delivery services will be good for the businesses and good for the overall health of our economy.” 

According to the release, any delivery service that violates the new law may face administrative enforcement action up to and including a misdemeanor. The service will receive separate violations for each day it violates the law.

“We’ve worked hard to innovate and prioritize the public health of our staff and customers,” said Brent Frederick, CEO of Jester Concepts, in the release. “This new measure will help us compete while continuing to put the public health of our communities first.”