Food delivery fee cap extended through 2022

In response to ongoing challenges restaurants and bars are facing due to the COVID-19 pandemic, the B.C. government is extending the food delivery cap.

The cap limits the fees delivery companies can charge food establishments to 15 per cent.

An additional cap of five per cent will also be extended for other related fees associated with the service, such as online ordering and processing. This will ensure companies cannot shift their delivery costs to other fees.

The measure also prohibits delivery companies from reducing driver compensation or retaining staff gratuity.

The food delivery cap was originally issued on Dec. 22, 2020 and set to expire on Dec. 31, 2021, but the B.C. Government’s extension of this measure ensures it will not expire until Dec. 31, 2022.

“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.”

Small delivery service businesses that serve less than 500 restaurants will be exempt from the order.