NDP MLA Henry Yao says early Christmas gift is coming for Richmond restaurants with extension of delivery fee cap

RICHMOND – New Democrat MLA Henry Yao says local restaurants and bars will not face a spike in delivery fee charges in the new year, as the province is extending the food delivery fee cap until December 31, 2022.

The cap, which was previously set to expire at the end of 2021, limits the total fees delivery companies can charge food establishments, and helps restaurants continue to operate during the ongoing COVID-19 pandemic.

“Extending the cap on delivery fees charged to restaurants provides stability and certainty for the restaurant industry and people who work for the sector, and helps keep takeout affordable,” said Henry Yao, MLA for Richmond South Centre. “I encourage everyone to continue safely supporting their favorite local restaurants as we build Richmond back better.”

The order will continue to cap fees charged to restaurants by food delivery companies to 15%. An additional cap of 5% will also be extended for other related fees associated with use of the service, such as online ordering and processing fees. This will ensure companies cannot shift delivery charges to other fees.

The order also prohibits delivery companies from reducing compensation for their drivers or retaining staff gratuity, making sure workers will continue to be paid their regular wages.

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

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

Learn Morehttps://news.gov.bc.ca/25987