B.C. to put cap on fees that delivery companies charge restaurants
B.C. is looking to permanently cap the fees that delivery companies can charge restaurants in the province.
During the pandemic, services like Uber Eats and SkipTheDishes became very popular. Those services got Virtuous Pie in downtown Victoria through tough times. Now, many of their customers continue to use the service.
"People are still only ordering delivery and not coming out to our restaurant," said Kelsey McInnes, general manager of Virtuous Pie.
Currently, fees charged to restaurants from those delivery services are capped at 20 per cent. That policy was set to expire on Dec. 31.
On Thursday, the province proposed legislation that would keep those fees at 20 per cent permanently.
"We’re also insuring that food delivery drivers are protected as part of this legislation by making sure compensation for drivers doesn’t decrease as a result of this legislation," said Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation, outside of Virtuous Pie on Thursday.
For the general manager of Virtuous Pie, this brings certainty to the business.
"Having a cap is really important," said McInnes. "It means we can keep our prices where they are for our customers."
BREAKING DOWN DELIVERY FEES
This is how the fees work.
If a business was to sell $100 worth of takeout, $20 would go to the delivery companies.
Menu prices at many restaurants have been built to reflect our new takeout habits. If delivery fees were to increase post-Dec. 31, menu prices could possibly climb as well.
(CTV News)
"Really, it’s a good thing," said Ian Tostenson, president and CEO of the British Columbia Restaurant and Food Services Association.
"It could have gone the other way where there is no cap and they could have flowed-up to 25 to 30 per cent, and that would be tough on us," he said.
Tostenson calls the proposed legislation a win for all parties.
Twenty per cent will give a restaurant basic services on food delivery apps. That includes being on the app, and the order being picked-up and delivered.
"So that keeps the economic side of the delivery whole," said Tostenson.
With this proposed legislation, restaurants will continue to be able to choose to spend a bit more, giving them a more prominent spot on the app.
"Some restaurants do that because they find that the third-party delivery company has become like a marketing department for them," said Tostenson. "They don’t mind paying a few extra percentages to do it."
It's an option Virtuous Pie has taken advantage of in the past.
"We’ve always seen great returns on that, even if it means just being visible to one more new customer," said McInnes. "That’s a great investment in our opinion."
It’s another way restaurants are attempting to get a piece of the post-pandemic pie.
CTVNews.ca Top Stories
BREAKING Average hourly wage in Canada now $34.95: StatCan
Average hourly wages among Canadian employees rose to $34.95 on a year-over-year basis in April, a 4.7 per cent increase, according to a Statistics Canada report released Friday morning.
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
This iconic Canadian song is turning 50
Andy Kim's 'Rock Me Gently' is marking a major milestone, as it celebrates its 50th anniversary.
Oprah Winfrey: I set an unrealistic standard for dieting
Oprah Winfrey said on Thursday evening that she has long played a role in promoting unhealthy and unrealistic diets.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Toronto police called to Drake's Bridle Path mansion for another alleged intruder on Thursday
Toronto police say a man who allegedly attempted to access Drake’s Bridle Path property was taken to hospital on Thursday after an altercation with security guards.
Flat tire on a highway? Here's why you shouldn't try to fix it
If you're cruising down a highway and realize you have a flat tire, you may want to think twice before stopping to fix it on the side of the road.
Storm-battered U.S. South is again under threat. A boy swept into a drain fights for his life
Dangerous storms crashed over parts of the U.S. South on Thursday even as the region cleaned up from earlier severe weather that spawned tornadoes, killed at least three people, and gravely injured a boy who was swept into a storm drain as he played in a flooded street.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.