The BC Government has announced that it will be extending the cap on food delivery fees for at least another year.
The temporary cap of 15% temporary was set to expire on December 31st. It was put in place in December 2020 to aid restaurants and bars still struggling during the pandemic.
The temporary legislation 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.
In addition to the extension, delivery companies can continue to charge up to an additional 5% for related fees, such as online order processing.
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.
Small-delivery service businesses that serve less than 500 restaurants will continue to be exempt from the order.
“The extension of the food delivery fee cap is great news for the restaurant industry,” said Warren Erhart, president and CEO, White Spot and Triple O’s restaurants.
“This cap allows us to deliver meals to people on a more financially viable basis and continue to support our staff. We appreciate the extension of the cap as we continue to navigate these unique and challenging times.”
In 2021, the province also amended BC’s liquor- and food-primary liquor licence to allow restaurants to sell and deliver sealed, packaged liquor products alongside the purchase of a meal for off-site consumption.
In addition, any restaurants, bars and tourism operators with liquor licences were able to purchase beer, wine and spirits at wholesale prices permanently.
The province also approved more than 2,000 temporary patios to become permanent under amended provincial liquor regulations.