Fees charged to B.C. restaurants by delivery services capped permanently

The Uber Eats app is seen in an undated image from the company.

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.