Restaurant owners facing ongoing economic challenges from the pandemic, supply chain disruptions and inflation are getting some relief as a cap on fees companies like Uber Eats, Door Dash and Skip the Dishes can charge for food delivery is made permanent.
“Transforming the temporary delivery fee cap into a permanent model is a game-changer for the recovery of our industry and setting restaurants up to be able to thrive in the future,” Ian Tostenson, the president and CEO of the BC Restaurant and Foodservices Association, said.
“So, when prices are going up all over the place and inflation, we know that there is a 20 per cent option on the services that deliver food,” explains Tostenson. “And that’s a good thing, because pretty much everything else we’re doing right now is subject to the markets and inflation.”
The province has introduced legislation that would limit the fees that core services delivery companies, like Skip the Dishes and Door Dash, can charge to 20 per cent of the dollar value of an order.
“When you have three companies only that can really do this, then you’ve got an oligopoly and what this allows us to make sure is that the oligopoly doesn’t get carried away, “said Tostenson.
The province originally put the 20 per cent cap in place during the pandemic and will now continue the policy permanently.
If passed, the measure will also prohibit delivery companies from reducing the amount of money a driver is paid.
As many restaurants and bars needed to increase their reliance on food delivery companies to serve their customers early in the pandemic, the temporary 15 per cent cap on food and five per cent cap on additional fees were introduced in response to fees as high as 30 per cent being charged to restaurants.
Junya Nakamura, who owns and operates Wasabi Ramen and Izakaya in Kelowna, welcomes the new legislation.
“It would motivate me to stay with this service. Ten per cent is a lot of money, especially with the restaurant because we need product to sell,” Nakamura said.
Dan Bronswyk, who co-owns Bread Company Kelowna, is on the fence and would rather not have governments intervene.
“I understand, I mean, it does help the restaurant industry, but on the other side … I just don’t like it when government gets too involved with business. Leave free enterprise to free enterprise,” Bronswyk said.
Global News reached out to Door Dash and Skip the Dishes for comment but did not hear back from them in time for publishing.
The temporary cap, which was extended in September and December of 2021, is set to expire in December of this year.