Victoria – Restaurants and hospitality businesses that are experiencing unprecedented challenges during the COVID-19 pandemic will be provided with immediate relief from the fees charged by food delivery companies.
The EPA order will be implemented on Sunday, Dec. 27, 2020, to allow companies to adjust to the new rules.
This applies to Door Dash, Skip The Dishes, Hello Fresh and others in the same vein.
“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 (EPA) order has been created to place a temporary cap on fees charged to restaurants from food delivery companies to 15%. An additional cap of 5% is also included for other related fees associated with use of the service, such as online ordering and processing fees. This will ensure that companies cannot shift their delivery costs to other fees.
Surrey Board of Trade Pleased with BC Government Decision to Cap Delivery Service Fees For Restaurants
Two weeks ago, a private members’ bill was introduced during the BC Government Legislature session. The purpose of the bill was to temporarily cap fees that third-party companies can charge restaurants to deliver food. Immediate relief was needed to place a cap on fees that third-party delivery companies are permitted to charge restaurants to deliver food. The Surrey Board of Trade supported the bill and urged the government to cap the fees. Today, the BC Government listened.
“We are pleased that the BC Government listened to the business community and acted on this issue,” said Anita Huberman, CEO, Surrey Board of Trade. “Restaurants, and in general the food and beverage industry, continue to be negatively impacted by understandable health & safety orders, reduced seating capacity, and additional costs of personal protective equipment.”
Details of the cap:
· An Emergency Program Act (EPA) order has been created to place a temporary cap on fees charged to restaurants from food delivery companies to 15%.
· An additional cap of 5% is also included for other related fees associated with use of the service, such as online ordering and processing fees. This will ensure that companies cannot shift their delivery costs to other fees.
· The EPA order be in place until three months after the Provincial State of Emergency is lifted.
· The order will exempt small delivery service businesses that are often locally based.
· The EPA order will also ensure that delivery companies cannot reduce compensation or retain gratuities from their drivers, allowing workers to be paid their regular wages.
· The EPA order will be implemented on Sunday, December 27, 2020, to allow companies to adjust to the new rules.
