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Food delivery fees soon will be taking a smaller bite out of people’s wallets in Saskatchewan.
The provincial government announced Wednesday it was capping fees at 18 per cent of a customer’s pre-tax order if a food delivery service handles the order and 10 per cent on the purchase price if the customer themselves picks up the order from the restaurant.
The announcement comes a day after the provincial government ordered all restaurants and bars in the Regina region to close Sunday at 12:01 a.m., in response to rising COVID-19 cases in the area. Pickup and delivery remain options for those establishments.
The cap is to take effect Sunday and remain in place until April 30.
The provincial NDP and people in the restaurant industry had been calling for the move. In late February, NDP Jobs and the Economy Critic Aleana Young called for a 15 per cent cap.
The government said the move was made as a response to the effects of the pandemic on the industry.
“Our restaurant sector has been especially challenged by the economic impacts of COVID-19 and this is one more way we are working with industry to support this important sector and the jobs it provides,” Trade and Export Development Minister Jeremy Harrison said in a media release.
“These caps will mean more money remains with small businesses and I encourage all Saskatchewan residents to continue to support their local restaurants.”
The cap applies to third-party delivery providers that serve more than 50 restaurants across the province.
“This is terrific news for the industry,” Hospitality Saskatchewan president and CEO Jim Bence said in the release. “These are extremely difficult times for hospitality, especially in Regina right now, and further demonstrates the government’s unwavering commitment to our sector.”
