Province extends order cap fees charged by food delivery services
Restaurants facing unprecedented challenges from the COVID-19 pandemic will continue to be supported through the extension of the food delivery fee cap, which limits the total fees that food delivery companies can charge .
“The restaurant industry has shown incredible strength and resilience throughout the pandemic,” said Ravi Kahlon, Minister of Employment, Economic Recovery and Innovation. “In difficult times like these, people look to each other for support and advice, and that includes government. This expansion is helping one of the hardest hit sectors stay open as we slowly and safely emerge from the pandemic. “
The food delivery service fee cap is extended under the COVID-19 Measures Act and will immediately follow the expiration of the current temporary order put in place on December 22, 2020, under the Emergency Programs Act. The current order was scheduled to expire at midnight PST on September 28, 2021.
The order will continue to cap the fees charged to restaurants by food delivery companies at 15%. An additional 5% cap will also be extended for other charges related to the use of the service, such as online ordering and processing charges. This will ensure that businesses cannot shift their shipping costs to other costs.
“The pandemic has impacted all sectors of our economy,” said Adam Walker, Parliamentary Secretary for the New Economy. “The cap on food delivery costs has ensured the stability of local restaurants while ensuring that delivery drivers are fairly paid for their work. “
In addition to expanding the food delivery service fee cap, the government continues to work with the restaurant industry to ensure a safe dining experience with the launch of the BC Vaccine Card. More than three million people have signed up for the card since the requirement to show proof of vaccination at restaurants and other events and services came into effect this month.
“This is great news for restaurant owners in British Columbia,” said Mark von Schellwitz, Vice-President Western Canada, Restaurants Canada. “Over the past 18 months, take-out and delivery sales have become a lifeline for restaurants and will continue to provide a critical revenue stream on our path to recovery. We appreciate the Government of British Columbia for listening to our hard hit industry and for expanding this measure.
Small delivery service companies that serve fewer than 500 restaurants will continue to be exempt from the ordinance. The ordinance also prohibits delivery companies from reducing the remuneration of their drivers, allowing employees to continue to receive their normal wages.
“The extension of the cap on food delivery services will have a significant positive impact on restaurants like ours that use delivery companies to serve their customers,” said Warren Erhart, president of White Spot Hospitality. “We appreciate the collaboration on this initiative as we work together to find solutions in these difficult times. “
The revised order is due to expire on December 31, 2021, when it will be reviewed, taking into account the ongoing COVID-19 pandemic.