Philadelphia’s thriving restaurant scene has helped our city become an international destination. Many of our restaurants are locally owned and reflect the people, places, and international flavors of our population. The City of Philadelphia recognizes the critical services that restaurants provide to our city while creating jobs, creating a sense of community and enhancing the economy. 

Attention restaurant owners in Philadelphia! Did you know? 

During the pandemic, the City of Philadelphia permanently lowered the maximum delivery fee that all third-party delivery platforms can charge your business to 15%.

Know your rights

According to Bill No. 210670, all food establishments must be offered a fee cap of 10% for delivery fees + a cap of 5% for any fee other than delivery fees. Any fees or other charges from a third-party delivery service to a food business beyond the established 15% maximum are unlawful unless the food business has opted for higher fees in return for additional services.

Purpose of maximum delivery fee

In 2020, legislation was established in response to food businesses expressing that high delivery fees were impacting their capacity to operate, in addition to low profit margins. The City of Philadelphia hoped that this law would provide an additional layer of protection during economic recovery and moving forward. 

The City of Philadelphia recognizes that third-party delivery services further enable customers to enjoy their favorite restaurants at home. This helps food businesses reach a higher radius of customers. Many restaurants rely heavily on takeout and delivery. Therefore, to balance the needs of both delivery platforms and food businesses, we capped the maximum delivery fee to 15%. We remain committed to helping all businesses start, open, operate, and grow successfully.

How to verify your latest delivery fees

All food businesses are recommended to make sure that food delivery platforms are charging their accounts no more than the 15% maximum delivery fee (10% for delivery, 5% for any other fee) unless chosen to opt-in for additional services at a higher fee rate.  Be sure to check your email for any recent updates from the delivery platform about your contract and/or fee structure, verify your account settings, and contact your delivery platform if needed including:

Submit a formal complaint, if needed

If you, as a food business, contacted your delivery platform and you are still being charged more than the 15% cap, you can report noncompliance to the City of Philadelphia to issue a violation. To submit a complaint, contact the Office of Business Services by calling (215) 683-2100 or emailing business@phila.gov.

You will be asked to submit the following:

  • Full name and contact information of the food business owner(s) and/or manager(s). 
  • Copy of the delivery platform’s ad(s), webpage(s), or mobile app screen(s) that show your food business’ name, likeness, or IP and/or that lack the appropriate fee disclosure.
  • Copy of your food business’ menu or website showing its name, likeness, and IP.
  • Purchase order/invoice records from the food business showing (a) income per online order through the delivery platform, and (b) fees paid per order to the platform.
  • Statement from the owner(s) or manager(s) stating: 
    • “I affirm the delivery service exceeds 10% and/or other services exceed 5% of the purchase order; AND No agreement between the food business and delivery service authorizing higher fees in accordance with 9-5104(2) is in effect.” 

Contact us

We’re here to help.

Restaurants and other food businesses using third-party delivery services can contact the Department of Commerce Office of Business Services for one-on-one assistance by calling (215) 683-2100 or emailing business@phila.gov.

We welcome feedback on these guidelines. The Department of Commerce works closely with economic development partners and hospitality industry leaders, including Pennsylvania Restaurant and Lodging Association (PRLA) to assist restaurants and support your needs.

Learn more about the Department of Commerce
The Department of Commerce is the economic catalyst for the City of Philadelphia helping businesses start, operate, grow and thrive.