Jersey City restaurant owners first started to collaborate on ways to rally against third-party delivery services for lower fees for the businesses and the customers, better worker safety laws, and a handful of other issues years ago. At one point, a dozen Jersey City restaurateurs even banded together to build a local delivery platform to compete with their corporate counterparts. But, in February 2024 a city ordinance was presented that proposed major changes to the way these adversaries engage with each other. On August 1st, that ordinance is going into effect. Read on for more about these changes and what to expect.
About the Ordinance
Councilman James Solomon is a local councilman who has expressed his support for restaurant owners in the Ward E downtown Jersey City district, lobbying with corporate companies such as Uber Eats and GrubHub on behalf of small businesses for years.
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The compromise comes in the form of this legislation, which was sponsored by Councilman Solomon but built with input from the restaurant community. In essence, it will place rules on three major issues:
- How delivery workers are paid and tipped
- How restaurants are charged for using third-party delivery apps
- Safety measures for workers
Below is more information on exactly what changes are coming August 1st. You can read the official ordinance here.
How Delivery Workers Are Paid + Tipped
The ordinance implements consistency in how delivery workers are paid, with four new rules.
- Third-party platforms are required to pay delivery workers at least weekly.
- Delivery companies cannot take a share of the deliverers’ tips, which was happening previously.
- Delivery workers must be notified (via the app) when a customer increases or decreases their tip, as well as exactly how much they’ll be paid.
- Third-party delivery apps must outline the anticipated travel time for delivery and allow them to decline any deliveries without penalty.
How Restaurants Are Charged for Using Third-Party Delivery Apps
While delivery workers will feel more protected, restaurants will feel major relief in three ways.
- With this ordinance, delivery companies are required to offer tiered marketing service offerings based on the best fit for each business. This includes the delivery fees customers see and pay, placement on search, and access to customers who have a subscription (Grubhub+, Dashpass, etc)
- Regardless of the tiered marketing plan restaurants choose, there is a 15% delivery fee cap on each delivery. This means restaurants will no longer pay over 15% for an order to be delivered via a third-party platform.
- Delivery companies will also be restricted from charging additional fees for menu items or listing the restaurants’ menus without the restaurant’s approval, which was a common issue before this legislation passing.
Safety Measures for Workers
Similar to an ordinance passed in Hoboken earlier this year focusing on pedestrian safety, Jersey City restaurants and delivery companies that employ delivery workers using bicycles, e-bikes, and electric scooters will be required to offer safety courses. The course will be developed by the city, and the worker will receive a certificate of completion required to be carried when working similarly to a license.
The legislation requires bicycle, e-bike, and electric scooter-riding delivery workers to wear retro-reflective or high-visibility jackets/vests, as well.
The enforcement mechanism is that they can have their license to deliver food rescinded.
Restaurants must also allow workers to use the restroom facilities during a delivery.
What The Jersey City Community Is Saying
The push for this legislation to pass has been a collaborative effort. From restaurant and business owners to street safety organizations to neighbors showing up to hearings at City Hall throughout the process. Below are some thoughts from the community on the ordinance passing:
Jersey City Ward E Councilman James Solomon:
“Mom-and-pop restaurants were an economic engine of Jersey City during the pandemic. My legislation to protect them from crazy fees charged across the city was a common-sense, joint effort with community leaders and my City Council colleagues that I was proud to pass.”
Melanie Rudin, founder of the Jersey City Restaurant Owners Coalition:
“As the apps became the go to, not only as a convenience, but as marketing platforms for restaurants, they became crucial for businesses trying to attain and retain an audience. The apps began looking for new ways to increase revenue through premium placements and services, but then fees shot up to 30%+ after a Covid fee cap (16%) was lifted. The marketplace [customers] demand restaurants’ presence on the apps for visibility, but the cost to the businesses (paired with high food costs, difficulty in finding staff and higher taxes) was crushing restaurants that were struggling to begin with. This bill, while not a silver bullet, is a start and will help restaurants remain on a more level playing field in terms of marketing and visibility.”
Morgan Kulessa and Bryan Lewis, founders of of Wing Bar JC:
“This ordinance is a win for local business. It’s about putting money back into the local businesses that cultivate community in their respective neighborhoods. We’re proud members of the Jersey City Restaurant Owners community and look forward to seeing this ordinance benefit all of the restaurants in Jersey City.”
Andrew Martino, owner of gtk:
“Simply put, this ordinance will keep more money in our community, and help independent restaurants keep their doors open.”
See More: A List of Montclair Restaurants That Deliver
Julian Muscio, owner of Luna Bar & Restaurant:
“We are very happy that the city was able to help small businesses regulate what these large corporations are capable of doing. Things have been changing in the Restaurant and delivery industry over the past few years and it is very important that we keep things under control on all fronts. The most important thing in this whole process continues to be that customers are aware of the effects that third-party delivery apps can have on a business and they should always check to see if there is some form of direct ordering a business offers before using one of the major delivery apps.”
The Hoboken Girl has reached out to Uber for comment, but has yet to receive a response. We will update this piece with any additional details.