Province caps third party delivery service fees at 20 percent per transaction in lockdown zones

Rate cap comes into effect first thing Saturday morning

The province is imposing a cap on delivery fees restaurants pay in areas affected by a COVID-19 lockdown.

The Supporting Local Restaurants Act will come into effect as of 12:01 a.m. Saturday, restricting the amount third-party delivery services can charge restaurants to 20 percent for each transaction, with no more than 15 percent per commission.

“This new cap will provide needed support for small and independent restaurants in communities weighed down by the devastating effects of COVID-19,” said Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction. “We’re all in this together. Food delivery companies, consumers and communities are all part of the solution.”

This cap applies to areas where indoor dining is prohibited as per the lockdown-grey tier of COVID response. It is expected this move will help restaurants stay in business while depending on third-party delivery services. Should any other region move into the lockdown-grey tier after this Act takes effect, it will apply to those regions as well.

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