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Fees capped for food delivery services in BC to 15%

Restaurants and hospitality businesses experiencing unprecedented challenges during the pandemic received immediate relief from fees charged by food delivery companies.

“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 food service 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.”

An Emergency Program Act order has been created to place a temporary cap on fees charged to restaurants from food delivery companies to 15%.

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An additional cap of 5% is also included for other related fees associated with the use of the service, such as online ordering and processing fees ensuring companies cannot 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.

The order will be in place until three months after the Provincial State of Emergency is lifted.

“B.C. restaurants and hospitality businesses have suffered difficult losses during this pandemic and are in need of immediate relief and support. This cap on food service delivery fees is tremendous news for our sector and represents another tangible way that this government is helping restaurants weather the storm of COVID-19. On behalf of the entire industry and our over 190,000 employees, we thank the government for its proactive and common-sense approach. This is truly an early Christmas miracle!,” – Ian Tostenson, president and CEO, BC Restaurant & Foodservices Association.

In September, B.C. employment in food services and drinking places was 150,260, a 25% decrease from the same time last year and 20% below February of this year (188,470).

In addition, employment in food services and drinking places was 6.8% of total employment in B.C., compared to 8.4% in September 2019 and 8.1% in February 2020.

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