The B.C. government has introduced an emergency cap on food delivery services fees in an effort to help local restaurants across the province.
The government revealed the new Emergency Program Act (EPA) order on Tuesday, hoping that it will help provide some “immediate relief” for restaurants that are experiencing unprecedented challenges.
“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 Mike Farnworth, Minister of Public Safety and Solicitor General. “Capping foodservice 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.”
The order places a temporary cap on fees charged from food delivery companies to 15 per cent, according to Farnworth.
The Province says that an additional cap of five per cent is also included for other related fees associated with the use of the service, such as online ordering and processing fees, in order to ensure companies can’t 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 B.C. 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 government says that the emergency order, which was made on Dec. 22, will be in place until three months after the Provincial State of Emergency is lifted.
According to the province, exemptions to the order have been made for small delivery service businesses that are locally based.
The EPA order also highlights that delivery companies can’t reduce compensation or retain gratuities from their drivers during the cap, allowing workers to be paid their regular wages.
“In consultations, I was encouraged to hear from food delivery companies who expressed support for a fee cap that has no impact on driver wages,” Parliamentary Secretary for the New Economy, Adam Walker, said. “During this time, we all understand the need to strike a balance between supporting businesses in the new economy while still ensuring that delivery drivers are fairly compensated for the work they do.”
According to Ian Tostenson, president and chief executive officer of the BC Restaurant and Foodservices Association, the cap on food delivery services fees is “an early Christmas miracle” for the sector.
Although the order was announced on Dec. 22, the cap will not be implemented until Sunday, Dec. 27, 2020, to allow companies to adjust.
Graham Cox
