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NY Liquor Authority adopts new rules on food delivery fees

Mount Equity Group Tokyo, Japan > News > Business > NY Liquor Authority adopts new rules on food delivery fees

Two years after threatening to crack down on food delivery companies like Grubhub and Uber Eats, the New York State Liquor Authority has delivered a ruling that has both restauranteurs and delivery companies hopping mad.

The SLA on Wednesday adopted new rules that will require New York restaurants with a liquor license to add up all the fees a delivery company charges them each year to ensure the they don’t exceed 10 percent of the restaurant’s annual revenue. 

If the fees exceed 10 percent of the restaurant’s annual revenues, the delivery company will need to be added to the restaurant’s liquor license.

The SLA adopted the new rules to address concerns that food delivery apps like Grubhub, Uber Eats and Doordash may be violating long-standing rules prohibiting businesses with a liquor license from sharing their profits or revenues with anyone not already on that license.

The only exception to this rule has been for landlords, who are allowed to take up to 10 percent of a restaurant’s or bar’s profits.

The NY state liquor regulators say delivery apps like Uber Eats must be named on a restaurant’s liquor license if their fees total 10 percent of annual revenues.REUTERS