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
Half of Canadians have negative opinion of latest Liberal budget: poll
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
'One of the single most terrifying things ever': Canadian couple among tourists on sinking sailing boat tour abroad
A Toronto couple are speaking out about their “extremely dangerous” experience on board a sinking tour boat in the Dominican Republic last week.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
An Ontario senior called Geek Squad for help with his printer. Instead, he got scammed out of $25,000
An Ontario senior’s attempt to get technical help online led him into a spoofing scam where he lost $25,000. Now, he’s sharing his story to warn others.
Accused of burglary at stepmother's home, U.S. senator says she wanted her father's ashes: charges
A Minnesota state senator and former broadcast meteorologist told police that she broke into her stepmother's home because her stepmother refused to give her items of sentimental value from her late father, including his ashes, according to burglary charges filed Tuesday.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.