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
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.