AUSTIN, TX (May 18, 2021) – Today, the Texas House gave final approval to SB 911 by Senator Hancock and Representative Burrows, which creates common sense transparency protections for restaurants and consumers who use third-party delivery services to enjoy their favorite meal. The Texas Restaurant Association (TRA) worked closely with DoorDash, Favor, Grubhub, Uber Eats, and other stakeholders to craft SB 911 when delivery became especially important for restaurants trying to survive the COVID-19 pandemic. With the negotiated framework in SB 911, Texas consumers can continue to enjoy the convenience and innovation provided by third-party delivery services while they help their favorite restaurants recover.
“With SB 911, Texas has shown once again that we’re willing to be creative and work in a collaborative fashion to solve the public policy challenges of the day,” said Kelsey Erickson Streufert, Vice President of Government Relations and Advocacy for TRA. “When restaurants were ordered to close their dining rooms, pickup and delivery became essential, and it became clearer than ever that restaurants and consumers need basic transparency and fairness protections in this evolving market. We immediately set to work with third-party delivery companies to draft SB 911, improving competition and fairness for all parties.”
The protections in SB 911 include:
- Prohibiting third-party delivery services from using a restaurant’s trademarks in a misleading way to suggest the restaurant sponsors or endorses the service;
- Prohibiting third-party delivery services from charging a restaurant any fees unless they are agreed-to in writing;
- Requiring third-party delivery services to remove a restaurant from their services within 10 days of receiving a removal request; and
- Requiring third-party delivery services to provide consumers a clearly identified mechanism to express concerns with an order directly to the delivery service.
SB 911 also provides regulatory certainty to the third-party delivery market by prohibiting cities and counties from enforcing local regulations to the extent that they conflict with contractual agreements between third-party delivery services and restaurants.
“DoorDash is proud to partner with the Texas Restaurant Association and Texas policymakers on helping get this valuable public policy developed and passed,” said Alexi Madon, Senior Manager, Government Relations, DoorDash. “The protections afforded in this legislation will help to set restaurants up for success, especially as we look ahead to the future. We know that the odds of staying open during the pandemic are eight times more likely for restaurants on the DoorDash platform, and believe the commonsense guidelines outlined in SB 911 will only strengthen the work done by DoorDash and others in the space to bring value to merchants, Dashers, and customers throughout Texas.”
“We look forward to continuing to work with the Texas Restaurant Association and all of our industry partners to deliver important progress and support for restaurants across the Lone Star State,” said Amy Healy, Head of Government Affairs at Grubhub.
“Uber Eats applauds Chairmen Hancock and Burrows for their common sense approach to establish third-party food delivery regulations in Texas that will allow this emerging industry to continue to grow,” said Chris Miller, Senior Manager of Public Policy for Texas at Uber. “This legislation would not have been possible without the tireless work of the Texas Restaurant Association, which continues to be a shining example of restaurant advocacy in the United States.”
“Today is a great day for Texas restaurants, which need workable third-party delivery options to fully recover from the pandemic,” said Streufert. “We’re grateful to Chairman Hancock, Chairman Burrows, the Texas Legislature, DoorDash, Favor, Grubhub, Uber Eats, and all of our other partners for recognizing the importance of this issue and working with us to pass SB 911.”
About the Texas Restaurant Association
The Texas Restaurant Association was formed in 1937 to serve as the advocate in Texas and the indispensable resource for the foodservice industry. Today, as a leading business association, TRA represents the state’s $70 billion restaurant industry, which is comprised of more than 50,000 locations and a workforce of 1.3 million employees. Along with the Texas Restaurant Association Education Foundation, the Association protects, advances, and educates the growing industry.
DoorDash is a technology company that connects consumers with their favorite local and national businesses in more than 4,000 cities and all 50 states across the United States, Canada, and Australia. Founded in 2013, DoorDash enables local businesses to address consumers’ expectations of ease and immediacy and thrive in today’s convenience economy. By building the last-mile logistics infrastructure for local commerce, DoorDash is bringing communities closer, one doorstep at a time.
Grubhub (NYSE: GRUB) is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as 33 million active diners. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub features over 300,000 restaurants and is proud to partner with over 280,000 of these restaurants in over 4,000 U.S. cities. The Grubhub portfolio of brands includes Grubhub, Seamless, LevelUp, AllMenus and MenuPages.
About Uber Eats
Uber Eats is an on-demand app and website that helps bring millions of people around the world the things they want, at the tap of a button. We partner with over 600,000 restaurants and merchants in more than 6,000 cities across six continents. From specialty local favorites to national brand names, groceries to household essentials and more, Uber Eats has what you want when you want it—with an average global delivery time of 30 minutes.