Restaurant owners in B.C. will soon have more certainty about their business costs when it comes to working with food-delivery companies.
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On January 1, 2023, Canada’s first permanent cap on fees for restaurants from companies such as DoorDash and Uber Eats goes into effect.
“We all have a favorite local restaurant, somewhere we go to celebrate as families and friends, eat our favorite foods, or get a taste of home,” said Brenda Bailey, BC Minister of Employment, Economic Development and Innovation he said.
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“When restaurants were being charged unreasonably, our government acted swiftly to implement a temporary cap on delivery-service charges. We’re excited to bring a permanent cap into the new year that will provide more support to restaurants.
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The Food Delivery Service Fee Act was passed in early November as a response to delivery companies charging up to 30 percent of the order’s value during the pandemic.
According to the BC government, the new permanent cap fees delivery companies can’t charge exceeds 20 percent of the value of the order.
“We’ve seen a dramatic increase in app-based delivery work in recent years,” said Janet Routledge, parliamentary secretary for Labour.
“But we need to make sure workers are treated fairly. It was a priority in this legislation to include protections for food-delivery workers that prevent the costs of the delivery-fee cap from being downloaded onto them.
Drivers are also protected in the new act, as delivery companies are barred from charging extra costs from drivers.
The BC government has also implemented several other changes to support the industry:
- Bars and tour operators with a liquor license can permanently purchase beer, wine and spirits at wholesale prices.
- Authorization of thousands of temporary courtyards.
- Expanding access to the small-business corporate income tax rate by raising the threshold from $15 million to $50 million in taxable capital