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Fees have been capped at 15 per cent for food delivery companies, helping reduce the financial burden on restaurants and hospitality businesses.
Food delivery service fees capped
Published 4:12 PST, Tue December 22, 2020
Last Updated: 2:13 PDT, Wed May 12, 2021
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Restaurants and hospitality businesses that are experiencing unprecedented challenges during the COVID-19 pandemic will be provided with immediate relief from the fees charged by food delivery companies.
"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," said Public Safety Minister Mike Farnworth. "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."
An order has been created to place a temporary cap on fees charged to restaurants from food delivery companies to 15 per cent. An additional cap of five per cent is also included for other related fees associated with use of the service, such as online ordering and processing fees. This will ensure that companies cannot shift their delivery costs to other fees.
"The pandemic has had a significant impact on the restaurant industry, leaving many owners to find safe and sustainable ways to keep their business operating," said Ravi Kahlon, minister of jobs, economic recovery and innovation. "This includes moving their menus online to accommodate the surge in home delivery. To help support BC restaurants, this temporary cap on food delivery fees is further action our government has taken to aid local restaurants and keep more British Columbians employed."
The order will be in place until three months after the provincial state of emergency is lifted. Following consultation with stakeholders, the order will exempt small delivery service businesses that are often locally based. Delivery companies cannot reduce compensation or retain gratuities from their drivers, allowing workers to be paid their regular wages.
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