Chairman Andrew Joyce and members of the Albany County Legislature are working with County Executive Daniel P. McCoy to impose a cap on fees third-party delivery companies charge a business for their service.

On Monday, McCoy announced an Executive Order capping fees and Joyce announced that the Legislature would be introducing a local law that would give restaurants the ability to seek relief and enforcement, and to commence legal action if necessary.

At a press conference, Joyce and McCoy announced the measures which restricts a delivery company from charging no higher than 15 percent of the purchase price during the state of emergency. The local law is expected to pass in early 2021.

"Since the beginning of this crisis, the members of the Albany County Legislature have stepped up in a major way in fight against COVID-19,” Joyce said. “We’ve distributed PPE in our districts, volunteered for the county’s Medical Reserve Corps, delivered food and passed mission critical items to keep the county running. Now, we’re moving quickly to help our restaurant owners secure as much of their hard earned income as possible,” said Albany County Legislature Chairman Andrew Joyce.

The issue of delivery fees was first raised in recent weeks by Legislator Samuel Fein who was concerned about the impact the fees were having on local businesses, already struggling because of the COVID-19 pandemic.

“Our local restaurants are losing upwards of 30 percent of each order to delivery apps. At a time when they are struggling to survive, these exorbitant fees are unacceptable. I appreciate the County Executive for taking action to cap these fees. I am proud to be introducing legislation to codify this into law so that we can end this exploitative practice and protect our restaurants,” said Fein.

The Legislation, which is expected to be introduced this month, will allow businesses to seek relief and enforcement if the delivery companies fail to comply with the Executive Order. Legislators Matthew Peter and Dustin Reidy have also expressed their support for the bill.

“It’s bad enough when national and international companies take advantage of small independent businesses, but during a pandemic it’s almost criminal. At a time when local restaurants are facing the most uncertain of economic times we cannot let delivery companies take advantage of their need with predatory fees and practices,” said Peter. “I want to thank County Executive Daniel McCoy, Chairman Andrew Joyce, and Legislators Sam Fein and Dustin Reidy as well as Mayor Kathy Sheehan for spearheading this effort.”

Reidy echoed those sentiments, stating, "Given how much businesses currently rely on delivery services, for fees to go up as high as 30 percent is a huge burden. This is money being taken away from resources these establishments need to stay open.  Instead corporations based in other parts of the country are trying to make a profit. This needs to be reigned in. It’s in our best interest to support our businesses and to keep that business as local as possible.”

The Legislature has been working with the New York State Restaurants Association and local officials over the last few weeks to address the issue.

“We applaud Albany County Executive Dan McCoy and the Albany County Legislature for taking proactive steps in helping the restaurant industry when it needs it the most,” said Melissa Fleischut, President and CEO of the New York State Restaurant Association. “With limited indoor dining capacity, restaurants across the region have been relying on takeout and delivery more than ever. The delivery and marketing fees some third-party delivery companies charge can dramatically cut into the profit margin of every order, sometimes taking as much as 30% away from the local restaurant. Capping these fees will allow owners to keep more money in the restaurant, giving them a better chance of making it through this difficult time.”

Albany Mayor Kathy Sheehan stated, “This pandemic has been difficult for all of us, but it has been especially difficult for our local restaurants. Our local eateries are struggling to make ends meet because of a reduction in business that has been compounded by third-party food delivery services that charge exorbitant fees. That is why it is so important we do all we can to protect both our restaurants and our consumers through the capping of these predatory delivery fees. I commend Albany County Executive Daniel McCoy, Albany County Legislature Chairman Andrew Joyce, and Albany County Legislators Matthew Peter, Dustin Reidy, and Sam Fein for taking these concurrent actions and helping small businesses not only in the City of Albany, but across Albany County.”