Food service delivery cap extended for another year

NORTHERN BC- The province has announced the temporary cap on food service delivery, which limits fees charged to restaurants from food delivery companies at 15%, has been extended. An additional cap of 5% will also be extended for other related fees associated with use of the service, including online ordering and processing fees.

Initially, it was supposed to expire on December 31 of this year, but it has been extended until December 31, 2022. It was implemented to help restaurants continue to operate and build their own recovery.

“The food delivery fee cap extension is like unwrapping a new gift just days before Christmas,” Ian Tostenson, president and CEO, BC Restaurant and Foodservices Association. “This is great news for the industry and allows so many restaurants from across our province to continue to provide take-out options to their customers. We want to thank government for listening to our concerns over these fees and continuing to take action to support our industry through these incredibly challenging times.”

Small-delivery service businesses that serve less than 500 restaurants will continue to be exempt from the order. The measure also prohibits delivery companies from reducing compensation for their drivers or retaining staff gratuity, making sure employees will continue to be paid their regular wages.