Applaud to Ontario for capping 3rd party delivery fees at 15% and they vow to limit overall fees to 20% in regions where indoor dining is prohibited. At present, those charges can be as high as 30% which is not feasible to the struggling food/drink/entertainment industry.
Ontario’s small and independent food/drink industry has taken the brunt of the economic impact from Covid-19. Ontario’s Associate Minister announced that “helping local businesses stay in business and providing a solution that will help our local restaurants when every little bit helps.”
Food-delivery services that don’t comply with the law could be fined as much as $10 million, according to the statement.
Restaurant Canada argued that “Third-party delivery services typically make more from a restaurant meal than the restaurant.“ This was a source of defeat for restaurants before the pandemic, but when they are restricted to takeout and delivery only, these fee’s needed to be reviewed.
Restaurants Canada said that provincial government consulted with the industry before proposing the new rules and are in support of this needed change.