Mamdani Orders HungryPanda to Pay $580,000 Fine to Immigrant-Owned Restaurants

An investigation in New York City ended with a multimillion-dollar fine against HungryPanda, a popular delivery app.

The platform HungryPanda will have to pay more than $580,000 in compensation to restaurants—most of them immigrant-owned—after improper charges were confirmed during its operations.

Why it matters: The case sets a precedent in regulating delivery apps and strengthens protections for small businesses operating with tight margins.

HungryPanda to pay multimillion-dollar fine to restaurants in NY

The agreement announced by New York authorities exceeds $875,000 in total.

More than $580,000 will be allocated to compensate over 380 affected restaurants.

Another $294,000 corresponds to fines and civil penalties.

HungryPanda New York Fine: $580,000 Fine to Immigrant-Owned Restaurants – PHOTO: Shutterstock

According to the Department of Consumer and Worker Protection (DCWP), HungryPanda violated local laws that limit the commissions these platforms can charge.

Mayor Zohran Mamdani emphasized that the measure aims to return money to businesses that faced illegal charges while trying to stay afloat.

How illegal charges affected immigrant-owned restaurants in NY?

The investigation revealed practices that directly impacted restaurant revenues.

These included:

Grouping multiple fees into a single charge

Frequently changing the names of fees

Presenting additional charges as “promotional discounts”

These tactics made it difficult for restaurant owners to identify the real costs.

The DCWP concluded that, in some cases, businesses paid thousands of dollars in improper commissions under the HungryPanda fine New York case.

A law to limit abusive fees in New York

New York has clear rules for these types of platforms.

The Fee Cap Law establishes that:

Apps can charge up to 15% for delivery services

Up to 5% for basic services

Up to 20% for enhanced services under specific conditions

A maximum of 3% for electronic payment processing

The goal is to prevent platforms from further reducing restaurant profit margins.

This case represents the first time the city has enforced this law against a delivery company for such violations.

HungryPanda New York Fine: $580,000 Fine to Immigrant-Owned Restaurants – OTO: EFE

Impact on immigrant-owned restaurants

HungryPanda is an app primarily used by Asian immigrant communities in New York.

This made the impact greater on family-owned businesses and small neighborhood restaurants.

Local authorities noted that these businesses:

Operate with reduced profit margins

Depend on digital platforms to reach customers

Have fewer resources to defend themselves against improper charges

Deputy Mayor for Economic Justice Julie Su emphasized that the agreement returns money directly to those affected.

New obligations for the platform

As part of the agreement, HungryPanda must change its practices.

Among the required measures:

Strict compliance with fee limits

Providing clear and transparent information about charges

Implementing internal compliance policies

Submitting annual certifications to authorities

These conditions aim to prevent the irregularities identified in the HungryPanda New York fine case from happening again.

HungryPanda New York Fine: $580,000 Fine to Immigrant-Owned Restaurants – PHOTO: Shutterstock

A message from local government to the entire sector

The case sends a clear signal to other delivery platforms.

Authorities and lawmakers agreed that:

Apps must operate under clear rules

Hidden or excessive charges will not be tolerated

Oversight of the sector will be strengthened

It was also noted that this is not the first time HungryPanda has faced penalties, as it previously participated in a settlement related to payments to delivery workers.

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What’s next

New York City will continue monitoring delivery platforms to ensure compliance with the law.

This type of action could extend to other companies in the sector if similar practices are detected.

For restaurants—especially immigrant-owned ones—the agreement represents financial relief and a sign of institutional support in a competitive and challenging environment.