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
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.