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
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.