The cap on food delivery fees, which the BC government enacted to help struggling restaurants during the pandemic, has been extended for an entire year.
Originally issued on December 22, 2020, the cap initially expired on December 31, 2021, at midnight. The new end date for the cap is now December 31, 2022.
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The restriction on fees limits how much companies can charge food establishments for delivery services, hoping that it would aid restaurants in recovery while still serving their communities.
In a statement, the BC Ministry of Jobs, Economic Recovery and Innovation said, “over the last two years, the restaurant industry has shown such resilience and tenacity as it has adapted to overcome immense challenges from this pandemic.”
“We know food delivery charges were hurting hard-working businesses and their bottom line.”
The cap limits fees charged to restaurants from delivery companies at 15%. An additional 5% will also be extended for other related fees associated with the use of the service, like online ordering and processing fees.
We know with rising case counts, people have relied more on food delivery to support their local restaurants.
— Ravi Kahlon (@KahlonRav) December 20, 2021
The ministry’s statement suggests that this will “ensure companies cannot shift their delivery costs to other fees.”
Small-delivery service businesses that serve 500 restaurants or less will be exempt from the order.
For drivers, the measure also ensures that delivery companies can’t reduce their compensation or gratuity, “making sure employees will continue to be paid their regular wages.”
Ian Tostenson, the President and CEO of the BC Restaurant and Foodservices Association, praised the move.
“This is great news for the industry and allows so many restaurants from across our province to continue to provide take-out options to their customers. We want to thank [the] government for listening to our concerns over these fees.”