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Cap on food delivery fees extended

Restaurant body welcomes move with up to 30 per cent of business now take-out sales

  • Food delivery fees capped at 20 per cent in total
  • B.C. restaurants welcome the move
  • Sector sees vaccination card as key to rebuilding

The provincial government has extended the order which caps fees charged by food delivery services to 15 per cent and five per cent for related processing costs.

The move, announced Sept.26, is being welcomed by restaurants who are hopeful things are turning a corner for a sector very hard-hit by the COVID-19 pandemic.

“This extension helps one of the hardest-hit sectors stay open as we slowly and safely emerge from the pandemic," Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation said, in part, in a media release.

B.C.’s restaurant industry sees the extension of the cap as part of their efforts to dig themselves out of a long, tough situation.

“We’re pleasantly surprised [by the announcement],” Ian Tostenson President and CEO of BC Restaurant and Food Services Association (BCRFA) told Kelowna 10. “Take-out sales were about 15 per cent [of business] pre-pandemic and are now around 25 to 30 per cent.”

Tostenson explained delivery companies such as Uber Eats, DoorDash and SkipTheDishes were charging around 30 per cent before the government cap was introduced in late Dec. 2020. He said efforts to negotiate a win-win arrangement on an agreed fee structure with these global companies has not materialized and he’s hopeful the government may even extend the cap permanently as they have in places like New York and San Francisco.

Rebuilding around vaccination card

As for the months ahead, Tostenson is optimistic there will be an uptick in the hospitality sector as the vaccination passport gains traction.

“We’re in a little bit of a bumpy area right now getting all your ID lined up, but once that’s done it’s easy …we’re ready to go,” he said, noting the majority of restaurants are onboard and over three million people have downloaded their vaccine card.

“This time last year we couldn’t have Christmas parties. Our advice is: book your Christmas party and anyone in the office who isn’t vaccinated either should stay home or get vaccinated."

He hopes the industry can start to rebuild around the vaccination card.

“I’m getting lots of email from people saying, ‘I’m so happy we’re doing this because I now feel safer and I can go to a restaurant and hang out with people I know are vaccinated.’ I’m looking forward to the next three months, I think it’ll be good.”

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

The revised order is set to expire on Dec. 31, 2021, at which point it will be reviewed, taking into account the ongoing COVID-19 pandemic.

Published 2021-11-03 by Glenn Hicks

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