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HomeMy WebLinkAboutAgenda Item 4.13 SB343September 15, 2020 SB 343 Senate Bill 343 mandates supplemental materials that have been received by the City Clerk’s office that relate to an agenda item after the agenda packets have been distributed to the City Council be available to the public. The attached documents were received in the City Clerk’s office after distribution of the September 15, 2020, Regular City Council meeting agenda packet. Item 4.13 CITY MANAGER’S OFFICE MEMORANDUM DATE: September 15, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Item 4.13: Urgency Ordinance Establishing a Temporary Cap on Commission Charges by Third-Party Food Delivery Services on Dublin Restaurants During the COVID-19 Pandemic Following the September 1, 2020 City Council Meeting, Staff conducted a survey regarding the use of third-party food delivery services. The survey was sent out to 159 restaurants/food establishments with a 16% response rate (25 responses). The survey closed after the September 15, 2020 meeting packet was published, and a summary of the results of the survey are attached. Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 16.00% 4 24.00% 6 52.00% 13 4.00% 1 0.00% 0 0.00% 0 4.00% 1 Q2 Type of food service: Answered: 25 Skipped: 0 TOTAL 25 Fast Food (Quick servi... Fast Casual (Counter... Casual Dining (Table servi... Fine Dining (Formal... Coffee Shop/Cafe Bar/Pub Other (catering, f... 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Fast Food (Quick service i.e. counter service or drive-thru, food served in disposable containers/wrapping, $) Fast Casual (Counter service, casual atmosphere, $-$$) Casual Dining (Table service, casual atmosphere, $$) Fine Dining (Formal atmosphere, $$$-$$$$) Coffee Shop/Cafe Bar/Pub Other (catering, food truck, etc.) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 8.00%2 40.00%10 8.00%2 16.00%4 32.00%8 Q3 How long has the business been in operation in Dublin? Answered: 25 Skipped: 0 Total Respondents: 25 Less than 2 years 2 to 5 years 6 to 10 years 10 to 15 years 16 or more years 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Less than 2 years 2 to 5 years 6 to 10 years 10 to 15 years 16 or more years Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 100.00%25 20.00%5 60.00%15 88.00%22 8.00%2 Q4 Do you currently offer: (Check all that apply) Answered: 25 Skipped: 0 Total Respondents: 25 Takeout Direct Delivery Outdoor Dining Delivery by a third-party... Catering only 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Takeout Direct Delivery Outdoor Dining Delivery by a third-party food delivery service company Catering only Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 32.00%8 8.00%2 12.00%3 16.00%4 32.00%8 Q5 How can customers place an order? (Check all that apply) Answered: 25 Skipped: 0 TOTAL 25 #OTHER (PLEASE SPECIFY)DATE 1 phone, website, doordash, walk in at counter 9/11/2020 4:34 AM 2 all the above 4 options 9/4/2020 7:12 PM 3 call in or 3rd party app 9/4/2020 11:55 AM 4 All of the above, it wasn't letting me select multiple items 9/3/2020 7:57 PM 5 All the above 9/3/2020 7:20 PM 6 In person, Call, website, third-party app or website 9/3/2020 5:58 PM 7 All of the above 9/3/2020 5:37 PM 8 Not allowing me to choose. I select Call bus., Bus. website, 3rd party app.9/3/2020 5:31 PM Call business On the business's... On the business's app Through a third-party ... Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Call business On the business's website On the business's app Through a third-party app or website Other (please specify) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 92.00% 23 8.00% 2 Q6 Do you currently use a third-party food delivery service company? Answered: 25 Skipped: 0 Total Respondents: 25 Yes No (If no, then after... 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Yes No (If no, then after clicking the "OK" button, scroll to bottom of this page and click on the "NEXT" button to skip to question 13) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 12.00%3 0.00%0 56.00%14 12.00%3 0.00%0 0.00%0 0.00%0 20.00%5 Q7 What third-party food delivery service companies, if any, did you use prior to the COVID-19 pandemic (i.e. prior to March 2020)? Answered: 25 Skipped: 0 TOTAL 25 None Caviar DoorDash GrubHub PostMates Seamless UberEats Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES None Caviar DoorDash GrubHub PostMates Seamless UberEats Other (please specify) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey #OTHER (PLEASE SPECIFY)DATE 1 DoorDash, GrubHub, PostMates, UberEats, EZCater 9/4/2020 8:36 AM 2 DoorDash and GrubHub, it doesn't let you select multiple 9/3/2020 7:57 PM 3 ChowNow, DoorDash, Grubhub, Postmates,Grubhub,Ubereats, EzCater 9/3/2020 6:24 PM 4 DoorDash, GrubHub & UberEats 9/3/2020 5:38 PM 5 Again can't select multiples. I select: Doordash, UberEats, Postmates.9/3/2020 5:31 PM Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 0.00%0 62.50%15 8.33%2 4.17%1 0.00%0 4.17%1 20.83%5 Q8 What third-party food delivery service companies do you currently use? Answered: 24 Skipped: 1 TOTAL 24 #OTHER (PLEASE SPECIFY)DATE 1 DoorDash, GrubHub, PostMates, UberEats, EZCater 9/4/2020 8:36 AM 2 DoorDash and GrubHub 9/3/2020 7:57 PM 3 ChowNow, DoorDash, Grubhub, Postmates,Grubhub,Ubereats, EzCater 9/3/2020 6:24 PM 4 DoorDash, GrubHub & UberEats 9/3/2020 5:38 PM 5 Can't choose multiples. I select: Doordash, UberEats, Postmates.9/3/2020 5:31 PM Caviar DoorDash GrubHub PostMates Seamless UberEats Other (please specify) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Caviar DoorDash GrubHub PostMates Seamless UberEats Other (please specify) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey Q9 Does your agreement include additional services such as marketing, etc? Answered: 24 Skipped: 1 #RESPONSES DATE 1 No 9/11/2020 1:02 PM 2 no 9/11/2020 4:34 AM 3 no 9/9/2020 11:38 AM 4 No 9/7/2020 8:10 AM 5 no 9/5/2020 10:00 AM 6 N/a 9/4/2020 10:24 PM 7 no 9/4/2020 7:12 PM 8 No 9/4/2020 4:40 PM 9 no 9/4/2020 11:55 AM 10 Yes 9/4/2020 8:36 AM 11 We are not affiliated with any online delivery platforms, but we are a highly requested restaurant so sometimes they take customer orders anyways and place the orders with us. So they host our menu without any contract or partnerships with us. This has been the case with DoorDash and grub hub. 9/4/2020 12:50 AM 12 yes 9/3/2020 11:44 PM 13 Yes 9/3/2020 9:14 PM 14 No but it is an option if I want it 9/3/2020 8:12 PM 15 Yes, marketing and ads 9/3/2020 7:57 PM 16 Yes 9/3/2020 7:42 PM 17 Don’t know 9/3/2020 7:21 PM 18 no 9/3/2020 7:07 PM 19 Yes 9/3/2020 6:24 PM 20 Marketing is not included in fees. Marketing is charged separately when used.9/3/2020 6:24 PM 21 No 9/3/2020 6:03 PM 22 yes 9/3/2020 5:38 PM 23 These are optional, I do choose to give discounts, free delivery to aid with attaining new customers. 9/3/2020 5:31 PM 24 No 9/3/2020 5:28 PM Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey Q10 Has your experience been positive or negative? Please explain and include delivery partner’s name if you use more than one service. Answered: 24 Skipped: 1 Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey #RESPONSES DATE 1 We pay 30% commission fee. Very high.9/11/2020 1:02 PM 2 neutral, negative at first due to excessive error charges, but they actually have been pretty good about reversing the charges, it just takes a LOT of time on our part. We also have increased the prices so that we can cover their fees, which is a bummer because the end customer ends up paying a lot more 9/11/2020 4:34 AM 3 mostly positive 9/9/2020 11:38 AM 4 doordash is consistent 9/5/2020 10:00 AM 5 Positive 9/4/2020 10:24 PM 6 sometimes the drivers are late or do not show up which result in food wastage.9/4/2020 7:12 PM 7 Positive 9/4/2020 4:40 PM 8 neutral to negative. Commission fees are too high.9/4/2020 1:38 PM 9 mostly positive, DoorDash takes care of customer refunds and my main contact is super helpful even when its not her area of management. Also tried getting in touch with Postmates and Uber Eats for other businesses, they have been helpful in the beginning but the system after they get you signed on is very vague and distant. sometimes feeling a bit abandoned. 9/4/2020 11:55 AM 10 Mixed 9/4/2020 8:36 AM 11 Negative. Entirely negative. DoorDash added us to their platform without a contract from us, so they in turn would call us and place the orders. The problem lies in the fact that they would send drivers to pick up well before our quoted wait times and their drivers would take the frustrations out on us. They would also send drivers who were wearing pajamas, wreaked of marijuana and would behave blatantly disrespectful to my staff and our guests. It was not okay. Because we were unaware this was happening many times we would get frustrated customers calling us and looking for their orders. But unfortunately when they placed it with a third party app like that, we have no controls over what misinformation they receive/d and the liability really does not lie with us. grub hub did not frequent us as often but also refuse to remove us from their “place and pay” program that we never agreed to be part of. I had to submit the request for them to stop adding us to that customer request platform called “place and pay” (which they use for frequently requested restaurants who are not their partners). It took many months and several repeated requests before they removed it from it. 9/4/2020 12:50 AM 12 negative (charged too much and always have problem with an order)9/3/2020 11:44 PM 13 Good service but high commission 9/3/2020 9:14 PM 14 in general it's been positive but not where their commission is concerned 9/3/2020 8:12 PM 15 Positive is the amount of business they help bring with delivery, negative is the fees and commissions are high 9/3/2020 7:57 PM 16 some positive but mostly negative 9/3/2020 7:42 PM 17 Door dash positive 9/3/2020 7:21 PM 18 the service fee is too high delivery no consistent 9/3/2020 7:07 PM 19 Positive because it brings in those orders 9/3/2020 6:24 PM 20 Every partner has it's plus and minus. Technology is mostly good and reliable. Satisfaction w/drivers will vary. Merchant services are responsive. Most customer can resolve their issues directly. DD is most used for their delivery services, Postmates has least traffic. Generally all are good outside the the high fees they charge. 9/3/2020 6:24 PM 21 Positive 9/3/2020 6:03 PM 22 mostly positive 9/3/2020 5:38 PM 23 Positive to us. It opened up a section of business that was not available to us. Doordash, UberEast and Postmates. 9/3/2020 5:31 PM 24 Neutral 9/3/2020 5:28 PM Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 4.17%1 4.17%1 25.00%6 41.67%10 25.00%6 Q11 What is the average fee/commission you are charged? Answered: 24 Skipped: 1 TOTAL 24 #OTHER (PLEASE EXPLAIN)DATE 1 I am not sure 9/5/2020 10:00 AM 2 20-25% and 28% depends on exclusivity and other perks 9/4/2020 11:55 AM 3 See answer above. As we were not a partner and did not sign a contract, we did not get charged a commission. 9/4/2020 12:50 AM 4 Fees vary and have increased since contracts started - 30%+ at this time.9/3/2020 6:24 PM 5 29% for us to be exact.9/3/2020 5:31 PM 6 GrubHub does not charge businesses either does Postmates. They make their money from charging more for the food on their websites. 9/3/2020 5:28 PM 10% 15% 25% 30% Other (please explain) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES 10% 15% 25% 30% Other (please explain) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 26.09%6 73.91%17 Q12 Is this amount more than you agreed to in your contract? Answered: 23 Skipped: 2 Total Respondents: 23 Yes No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Yes No Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey Q13 If you are not in contract with a third-party food delivery service, why? Answered: 8 Skipped: 17 #RESPONSES DATE 1 we are in contract 9/4/2020 7:14 PM 2 Their fees are astronomical. We are already so extremely high volume, we cannot set aside designated employees just to transfer their order to our point of sale systems. DoorDash partnerships require you take a tablet from them and then you have to transfer the orders to your system when they come in. I don’t have the time to do that. We need up to 7 people on average just to man the phones, bagging orders and delivering curbside. That’s not including kitchen staff. If I had to transfer orders from their tablet to our system, that would require I have more bodies. Aside from that, we are so high volume and we would never be able to keep up with the order demand that would come barreling through once we open for service. It would be unmanageable even with the tools they offer to manage the number of orders coming through and the estimated wait times. Our customers are loyal and do their own takeout directly through us. 9/4/2020 12:59 AM 3 NA 9/3/2020 7:58 PM 4 I am 9/3/2020 7:22 PM 5 n/a 9/3/2020 6:25 PM 6 N/A 9/3/2020 6:05 PM 7 N/A 9/3/2020 5:39 PM 8 N/A 9/3/2020 5:36 PM Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 9.09%1 18.18%2 18.18%2 18.18%2 45.45%5 Q14 Do you have interest in entering into a contract with one? Answered: 11 Skipped: 14 Total Respondents: 11 #COMMENT (OPTIONAL)DATE 1 we only use Doordash, it is very complicated to manage just the one 9/11/2020 4:37 AM 2 Absolutely not. Not ever.9/4/2020 12:59 AM 3 NA 9/3/2020 7:58 PM 4 We are open to new providers if they provide delivery.9/3/2020 6:25 PM 5 We already are in contract.9/3/2020 5:36 PM Maybe Yes No Not sure Comment (optional) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Maybe Yes No Not sure Comment (optional) Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey 83.33%15 0.00%0 16.67%3 Q15 Do you think the City should implement a temporary 15% cap on food delivery service fees charged to restaurants in Dublin related to the COVID-19 pandemic? Answered: 18 Skipped: 7 TOTAL 18 Yes No Not sure 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ANSWER CHOICES RESPONSES Yes No Not sure Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey Q16 Are there any other comments you would like to share regarding the City implementing a possible COVID-19 related limit (or cap) on fees charged by third-party food delivery companies? Answered: 15 Skipped: 10 #RESPONSES DATE 1 Livermore more has a cap at 15% which helps the local businesses profit margin. Please help your local businesses so we don’t loose customers to Livermore. 9/11/2020 1:04 PM 2 They have done this in Livermore, and it has helped us a lot. Our weekly fees with doordash exceed $2000 at our Dublin location now. 9/11/2020 4:37 AM 3 reduce delivery fees to $5 9/4/2020 7:14 PM 4 it would def be nice to have a 15% cap, but then they would charge extra for many services we might be receiving for free/included... 9/4/2020 12:14 PM 5 15% is already a lot. If it can be less or little to none, it would be ideal. Although we have a loyal following that’s keeping us afloat, most others do not. We have many friends in the industry that are struggling greatly just to stay afloat. They need ALL of their revenue to stay in house. 9/4/2020 12:59 AM 6 Yes 9/3/2020 9:16 PM 7 I'm all for it. During this pandemic it is necessary. Once the pandemic id over, the commissions can go back to where they were pre-covid 9/3/2020 8:15 PM 8 No 9/3/2020 7:58 PM 9 no 9/3/2020 7:44 PM 10 No 9/3/2020 7:22 PM 11 Commission and service fee paid are almost 25-30%9/3/2020 6:26 PM 12 The third party partners early on offered some relief, which was appreciated. For the long term, the 25%+ fees compound our loss in sales. Food, rent and utilities have had no relief, so even the best of business are running inefficiently. It is difficult to control and cover all costs. We work hard to avoid impacting our employees and quality of products we offer to our customers, but we cannot maintain high fees while sales are unstable due to the crisis. 9/3/2020 6:25 PM 13 /A 9/3/2020 6:05 PM 14 Since 3/16/2020 our sales via 3rd party delivery service have increased by 75% compare to before COVID. The strongest of the 3rd party delivery companies in our Tri-Valley area is Doordash. Since start of COVID their sales/market share have increased substantially. 9/3/2020 5:36 PM 15 I usually try to avoid third party companies. They cause bad reviews. Sometimes the delivery company orders wrong or takes too long and the business ends up getting a bad review. 9/3/2020 5:28 PM Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey Q17 Please review the City’s #DublinEats webpage and let us know if there are any edits/corrections to your restaurant’s listing or if you wish to remove delivery partners from your listing. Answered: 7 Skipped: 18 #RESPONSES DATE 1 looks good, thank you!9/11/2020 4:37 AM 2 None 9/4/2020 7:14 PM 3 Ok 9/3/2020 9:16 PM 4 Okay 9/3/2020 7:58 PM 5 Add STE F to the address: Add CHOWNOW, UBEREATS to 3rd party 9/3/2020 6:25 PM 6 N/A 9/3/2020 5:36 PM 7 It's good 9/3/2020 5:28 PM Dublin Restaurants Survey about Food Delivery Service Providers SurveyMonkey Q18 Do you have other COVID-19 related questions or concerns and would like to talk to Staff from the City's Office of Economic Development? Answered: 10 Skipped: 15 #RESPONSES DATE 1 no 9/11/2020 4:37 AM 2 the rent is too high 9/4/2020 7:14 PM 3 No 9/3/2020 9:16 PM 4 Financial help with tents during the rainy season would be extremely helpful 9/3/2020 8:15 PM 5 No 9/3/2020 7:58 PM 6 No 9/3/2020 7:22 PM 7 No 9/3/2020 6:26 PM 8 Lease rent relief - directly appealing to commercial landlords to be a partner. Remove all city fees and permits needed for temporary signage. We are desperate to get the word out that WE ARE OPEN at a street level. 9/3/2020 6:25 PM 9 N/A 9/3/2020 5:36 PM 10 I do not 9/3/2020 5:28 PM