B.C. extends cap on food delivery fees

Victoria – British Columbia has extended its cap that limits the total fees third-party delivery companies can charge food establishments to 15 per cent.

The temporary cap, which was set to expire at midnight on Dec. 31, 2021, is being extended until Dec. 31, 2022.

The cap limits fees charged to restaurants from food delivery companies at 15 per cent. An additional cap of five per cent will also be extended for other related fees associated with use of the service, such as online ordering and processing fees. This will help ensure companies cannot shift their delivery costs to other fees, the provincial government said in a news release.

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.

“This is great news for the industry and allows so many restaurants from across our province to continue to provide take-out options to their customers,” said Ian Tostenson, president and CEO of the BC Restaurant and Foodservices Association.

The food delivery service fee cap is being extended under the COVID-19 Related Measures Act. The original order was put in place on Dec. 22, 2020, under the Emergency Program Act and extended in September 2021.

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