Fees charged to B.C. restaurants by delivery services capped permanently
A cap on fees charged to B.C. restaurants by food-delivery companies will be made permanent as the province looks to support restaurant and bar owners facing challenges brought on by the pandemic and inflation.
The new legislation is being introduced ahead of the temporary cap’s expiry date of Dec. 31. The 20 per cent cap first came into effect in December 2020, when restaurants were growing reliant on delivery services due to the pandemic and were being charged fees as high as 30 per cent.
In a statement released Thursday, Jobs Minister Ravi Kahlon explains the goal is to provide more certainty to the restaurant industry, as well as to delivery drivers.
“As the costs of food and labour rise worldwide, B.C. restaurants need to be supported to ensure prices are affordable and that delivery companies aren't charging unfair fees,” Kahlon says.
Ian Tostenson, the president of the B.C. Restaurant and Foodservices Association (BCRFA) says this measure was nearly five months in the making, and believes it will benefit both restaurants and third-party delivery services.
“Basically, the cap has come off for food delivery services as well,” Toleston says, explaining this permanent measure doesn’t apply to things like advertising. “Now, restaurants have to be offered a 20 per cent option to access basic services, but (apps) can charge more for things like marketing and more online presence.”
Before COVID-19, Tostenson says food-delivery services accounted for about 13 per cent of sales, whereas in the thick of the pandemic, that number ballooned to 80 per cent.
“Today, more people are using delivery services to order food at home because now they can get liquor too, so it’s probably going to be 30 to 35 per cent of our sales,” says Tostenson. “That’s why cost certainly is important. The market has expanded and I don't think it will go away any time soon.”
This is a developing story and will be updated.
CTVNews.ca Top Stories
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.