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September 27, 2021

British Columbia extends food delivery service fee cap

Fees from food delivery companies to restaurants will continue to be capped at 15% until 31 December.

The Government of British Columbia in Canada has further extended its food delivery service fee cap, which limits the total fees charged by food delivery companies to restaurants in the province.

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The food delivery service fee cap was introduced by the provincial government on 22 December 2020 under the Emergency Program Act. It is set to expire on 28 September.

Under the Covid-19 Related Measures Act, British Columbia has extended the fee cap, which will immediately follow the expiry of the current temporary order.

With this further extension, the fees from food delivery companies to restaurants will continue to be capped at 15%.

The revised order is set to expire on 31 December and will be reviewed by British Columbia after considering the ongoing Covid-19 pandemic situation.

British Columbia Minister of Jobs, Economic Recovery and Innovation Ravi Kahlon said: “The restaurant industry has shown incredible strength and resiliency throughout the pandemic.

“In tough times like these, people look to each other to find support and guidance, and that includes government. This extension helps one of the hardest-hit sectors stay open as we slowly and safely emerge from the pandemic.”

An additional cap of 5% will also be extended for fees associated with the use of delivery services, such as online ordering and processing fees.

Small food delivery companies, serving less than 500 restaurants, will continue to be exempt from the order.

Delivery companies will also have to continue paying regular wages to their drivers and are not allowed to reduce compensation.

White Spot Hospitality president Warren Erhart said: “The extension of the food delivery service cap will have a significant positive impact on restaurants like ours that use delivery companies to service their customers.

“We appreciate the collaboration on this initiative as we work together to find solutions in these challenging times.”

Additionally, the British Columbia Government will continue to work with the restaurant industry in order to ensure a safe dine-in experience with the launch of the BC Vaccine Card.

Free Report
img

Meet emerging digital demand in the foodservice industry

Global digital pressures are making waves across sectors. The foodservice industry is seeing particular impact as consumers change the way they operate. It is therefore essential to know how to navigate the challenges that digital is presenting to the industry and its consumers. GlobalData’s free report explores the market outlook for the global foodservice industry, with insights into how foodservice operators, brands, and their suppliers can meet changing demands. Key features in this report include:
  • An overview of dine-in, takeaway, and delivery forecasts up to 2026
  • Areas foodservice industry players should be focusing on for digital investment
  • Consumer insight into attitudes towards digital convenience
  • Challenges facing foodservice, in terms of investment and logical considerations
  • Key examples of top industry players
Adapt and stay on top. Download our free report now.
by GlobalData
Enter your details here to receive your free Report.

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