HomeMy WebLinkAbout048-R-20 Terminating the Limits on Third-Party Food Delivery Service Fees on July 13, 20205/28/2020
48-R-20
A RESOLUTION
TERMINATING THE LIMITS ON THIRD -PARTY FOOD DELIVERY
SERVICE FEES ON JULY 13, 2020
WHEREAS, the City of Evanston, Cook County, Illinois ("City"), is a home
rule unit of government and, pursuant to the provisions of Section 6(a) of Article VII of
the Illinois Constitution, may exercise any power and perform any function pertaining to
its government and affairs; and
WHEREAS, on March 13, 2020, the President of the United States
declared a national emergency concerning the Novel Coronavirus Disease ("COVID-
19") outbreak; and
WHEREAS, on March 9, 2020, the Governor of Illinois issued a disaster
proclamation for the State of Illinois concerning the COVID-19 outbreak; and
WHEREAS, on March 15, 2020, the Mayor declared a state of
emergency due to the COVID-19 outbreak pursuant to Section 9-9-3 of the City Code;
and
WHEREAS, the Evanston City Council has extended the state of emergency due
to the persistence of the COVID-19 outbreak; and
WHEREAS, in March and April 2020, the Governor of Illinois issued
Executive Orders mandating individuals living in Illinois shelter at home and requiring all
non -essential business activities and operations to cease; and
48-R-20
WHEREAS, in order to reduce the spread of the COVID-19 virus and
protect public health, the shelter -at-home orders prohibit restaurants in the City from
offering dine -in services, limiting restaurants to delivery, drive -through, and take-out
options only; and
WHEREAS, many consumers use third -party applications and websites
to place orders with restaurants for delivery and takeout, and these third -party platforms
charge restaurant fees; service agreements between some restaurants and third -party
platforms provide that the platform charges the restaurant 10% of the purchase price
per order, while some agreements provide for higher per -order fees; and
WHEREAS, restaurants and especially small business restaurants, have
limited bargaining power to negotiate lower fees with third -party platforms, given the
high market saturation of third -party platforms, and the financial pressures small
business restaurants are facing during the state of emergency; and
WHEREAS, the Evanston City Council capped the per -order fees of third -
party food delivery platforms at 15% in order to accomplish the legitimate public
purpose of easing the financial burden on struggling restaurants during this emergency
while not unduly burdening third -party platforms, but did not provide a termination date
for the 15% cap on per -order fees.
NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: The prohibition on third -party food delivery services charging
a covered establishment a fee per online order for the use of its services that totals
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48-R-20
more than 15% of the purchase price of such online order shall terminate on July 13,
2020.
SECTION 2: This Resolution 48-R-20 will be in full force and effect from
and after the date of its passage and approval in the manner provided by law.
Attest:
5-dito-e-do Gomez
Eduardo Gomez, Deputy City Clerk
Adopted: .tune 8 . . 2020
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Stephen H. Hagerty, Mayor
Approved as to form:
Kelley A. Gandurski, Corporation Counsel
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