The 15% cap on food delivery fees will remain in BC for at least another year to further aid restaurants and bars still struggling during the pandemic.
The temporary legislation was set to expire on December 31st but is being extended until the same date next year (2022).
It limits the total fees delivery companies can charge food establishments, helping restaurants to continue to operate and build their own recovery.
“Over the last two years, the restaurant industry has shown such resilience and tenacity as it has adapted to overcome immense challenges from this pandemic,” said Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation.
“We know food delivery charges were hurting hard-working businesses and their bottom line. That’s why we are here: to provide a helping hand by extending the cap to put more hard-earned money back into the pockets of people working in the restaurant industry.”
An additional cap of 5% will also be extended for other related fees associated with use of the service, such as online ordering and processing fees. This will ensure companies cannot shift their delivery costs to other fees.
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.
“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 the government for listening to our concerns over these fees and continuing to take action to support our industry through these incredibly challenging times.”
This year, the province also amended B.C.’s liquor- and food-primary liquor licence to allow restaurants to sell and deliver sealed, packaged liquor products alongside the purchase of a meal.