BC temporarily caps fees charged to restaurants by food delivery services
Some big news for BC’s restaurants and hospitality businesses was announced by Minister of Public Safety and Solicitor General, Mike Farnworth, during a press conference on Tuesday afternoon.
Farnworth said that through a new order under the Emergency Program Act, the provincial government will be enacting a temporary cap on fees charged to restaurants by food delivery companies.
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Farnworth said this temporary cap will provide immediate relief for struggling restaurants and cafes so they can stay focused on remaining open and to keep the staff within this sector on the payroll.
“The order includes an additional cap of 5% for unrelated fees such as payment processing and online ordering fees to ensure that delivery costs will be shifted to other fees for restaurants using these services,” he said. “We have also added provisions to protect the drivers to make sure that they’re retaining their regular wages and gratuities.”
The 15% cap will be in place from December 27 until “as long as the state of emergency is in place, plus an additional three months,” Farnworth added.
Currently, third party delivery services can charge as much as 30% of the total cost of orders.