The Independent Restaurant Coalition is advocating for transparent, fair, and competitive terms in the third-party delivery market, on which independent restaurants increasingly depend.
Third-party delivery has become a permanent feature of restaurant operations, and for many establishments, it represents a meaningful share of revenue. The terms under which independent restaurants participate, however, bear little resemblance to a conventional commercial relationship. Restaurants supply the food, the kitchen, the labor, and the brand. Platforms determine the fees, control the customer relationship, govern the restaurant's visibility, and in some cases list restaurants without their agreement.
The economics are well documented. Platforms charge independent restaurants commissions of 15% to 30% per order, in addition to fees for premium placement, marketing, and payment processing. Large chains negotiate lower rates on the basis of order volume, an option unavailable to the independent operator. As a result, delivery is frequently a restaurant's least profitable line of business. In testimony before the House Small Business Committee in April 2026, IRC board member Rosa Thurnher documented that a meal generating a 15% margin in the dining room can produce a negative margin when fulfilled through a delivery platform. [Full Testimony Available Here]
Over the period in which these platforms grew substantially, the independent restaurant sector contracted, losing thousands of locations while chain restaurants expanded. The IRC is pursuing reform through two channels.
Support for the FTC rulemaking. In April 2026, the Federal Trade Commission opened a rulemaking on unfair and deceptive fees in online food and grocery delivery. The IRC submitted comments in support of stronger fee transparency and is urging the Commission to proceed to a proposed rule. Such a rule can require that diners and restaurants see the full price of an order in advance, with all fees clearly identified. The IRC has asked that any rule target third-party platform conduct rather than impose new obligations on restaurants operating their own ordering and delivery. Fee transparency is necessary and overdue. It does not, however, address the underlying commercial terms, as a fully disclosed 30% commission remains a 30% commission.
Federal legislation. The structural terms of the delivery relationship require legislative action, which the IRC supports:
- A cap on delivery commissions at 15% of the order total.
- A requirement that platforms enter written agreements with restaurants before listing them, ending the practice of restaurants discovering themselves on platforms they never authorized.
- Restaurant access to the customer data generated by their own sales, so operators can address service failures and build customer loyalty.
- Restaurant control over menu pricing, and a clear process to correct or remove unauthorized listings, misrepresented menus, and ghost kitchen operations.
The IRC does not seek to reverse the growth of delivery, which is projected to nearly double over the coming decade. The IRC seeks a commercial relationship comparable to those governing every other restaurant vendor: agreed terms, transparent pricing, and an equitable division of the value created.