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Richmond South Centre MLA Henry Yao says an early Christmas gift is coming for Richmond restaurants with extension of delivery fee cap.
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Local restaurants won’t face delivery fee spike
Published 12:21 PST, Mon December 20, 2021
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Richmond South Centre MLA Henry Yao today served up some good news for local restaurants.
At least until the end of 2022, those food establishments will not be facing an increase in delivery fee charges.
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,” says Yao. “I encourage everyone to continue safely supporting their favourite local restaurants as we build Richmond back better.”
As a result, fees charged to restaurants by food delivery companies will remain capped at 15 per cent. An additional cap of five per cent 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 Dec. 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 more: https://news.gov.bc.ca/25987
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