Fee cap put on food delivery companies

The B.C. government is capping the fees charged to restaurants by food delivery companies at 15 per cent.

“Local restaurants and businesses play a vital role in our communities, and they have experienced a significant decline in sales and traffic due to the COVID-19 pandemic,” Mike Farnworth, minister of public safety and solicitor general, said. “Capping food service delivery fees is another way our government is providing immediate relief to our local businesses to ensure they can focus on retaining staff and keeping their business running.”

Another five per cent cap will be on other related fees, such as online ordering and processing, to ensure the companies can’t shift their delivery costs to other fees.

The order, made under the Emergency Program Act, will be in place until three months after the provincial state of emergency is lifted.

Following consultation with stakeholders, the province has ensured the order will exempt small delivery service businesses that are often locally based. The EPA order will also ensure that delivery companies cannot reduce compensation or retain gratuities from their drivers, allowing workers to be paid their regular wages.

“This cap on food service delivery fees is tremendous news for our sector, and represents another tangible way that this government is helping restaurants weather the storm of COVID-19. On behalf of the entire industry and our over 190,000 employees, we thank the government for their proactive and common-sense approach. This is truly an early Christmas miracle,” Ian Tostenson, president and CEO, B.C. Restaurant and Foodservices Association, said.

In September 2020, B.C. employment in food services and drinking places was 150,260. This is 25 per cent below September 2019 (200,110) and 20 per cent below February 2020 (188,470).