Province proposing cap on third party delivery fees for restaurants prohibited from indoor diners

Many local restaurants paying up to 30 percent in fees

Queen’s Park is pushing a new piece of legislation that would impose a cap on third party food delivery companies working in areas where indoor dining is not allowed due to COVID-19.

The new legislation, called the Supporting Local Restaurants Act, would cap feeds charged by food delivery companies at 15 percent if passed. Currently, fees placed on restaurants by these third party companies like Uber Eats and Skip The Dishes, can be as high as 30 percent.

“Ontario’s small and independent restaurants have shouldered an outsized share of COVID-19’s economic burdens,” said Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction. “But through it all, they’ve continued to serve our communities, our families and have lifted our spirits. With this legislation, our government is helping local businesses stay in business, and providing a solution that will help our local restaurants when every little bit helps.”

If passed, the legislation would also impose a fine of up to $10 million for those food delivery service companies that do not comply with the new law.

The proposed law only applies to those companies and apps that deliver for restaurants in which indoor dining is prohibited, meaning any restaurant in the lockdown-grey tier of the province’s COVID framework. As of Thursday morning, that only included Toronto and Peel Region.