Restaurants struggling with the added cost of third-party delivery programs got the promise of a small break Friday, as both the B.C. Liberals and NDP vowed, if elected, to cap the fee those delivery applications can charge at 15 per cent.
A number of restaurants have opted to expand delivery and takeout options in the face of reduced restaurant dining capacity during the pandemic, but many have complained that some delivery companies charge as much as 30 per cent for their service.
The NDP has called on applications like Skip the Dishes to cap their fee at 15 per cent, saying if they don’t, the cap will be imposed.
The Liberals say they would simply cap the rate at 15 per cent.
“People are trying to stay safe and stay home, and we thank them for that. Struggling restaurants shouldn’t have to be charged exorbitant delivery commission fees by third-party apps,” said NDP candidate David Eby.
Restaurants also got a bit of good news from Ottawa on Friday, as the federal government announced it intends to provide rent assistance directly to businesses, a top-up of the emergency rent subsidy and an extension of the Canada Emergency Wage Subsidy until June 2021.
“Providing rent assistance directly to businesses is a key ingredient for restaurant survival,” said Restaurants Canada chief executive Todd Barclay. “We appreciate the federal government acting on this critical recommendation, among other new support measures announced today, to help our sector pull through the ongoing pandemic.”
Restaurants Canada estimates that without continued support, 40 per cent of independent restaurants might not survive beyond March 2021. The organization estimates 10 per cent of all Canadian restaurants have already permanently closed.
