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
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
U.S. says Israel's use of U.S. arms likely violated international law, but evidence is incomplete
The Biden administration said Friday that Israel's use of U.S.-provided weapons in Gaza likely violated international humanitarian law but wartime conditions prevented U.S. officials from determining that for certain in specific airstrikes.
Swarm of 20,000 bees gather around woman’s car west of Toronto
A swarm of roughly 20,000 bees gathered around a woman’s car in the parking lot of Burlington Centre.
'State or state-sponsored actor' believed to be behind B.C. government hacks
The head of British Columbia’s civil service has revealed that a “state or state-sponsored actor” is behind multiple cyber-security incidents against provincial government networks.
Mother assaulted by stranger while breastfeeding baby in her car: Vancouver police
A person was arrested in East Vancouver Thursday after allegedly entering a car while a mother was breastfeeding her four-month-old boy.
More than half the Canadians once detained in Syrian camps for suspected ISIS family members have returned home
A total of 29 Canadians have been freed from detention camps in northeast Syria and brought back to Canada since human rights advocates began lobbying for their release years ago.
Rare severe solar storm Friday could bring spectacular aurora light show across Canada
A rare and severe solar storm is expected to bring spectacular displays of the northern lights, also known as aurora borealis, across much of Canada and parts of the United States on Friday night.
Canada abstains from Palestinian UN membership vote but supports two-state solution
Canada was one of 25 countries that abstained from a United Nations vote on Palestinian membership that passed with overwhelming support on Friday.
Amish youth experience a rite of passage called Rumspringa. It’s not what you might think
The idea of “Rumspringa” has a specific spot in the American imagination. A rite of passage for young people in some Amish communities, Rumspringa is seen by most outsiders as a wild time away from strict Amish rules, when teenagers can experiment with the modern vices of the world.