What is the Emergency Order Food Delivery Service Cap?
Provincial health orders have restricted dine-in capacity for restaurants requiring them to rely more heavily on delivery services. To provide some relief, the Government of Saskatchewan is temporarily capping delivery and online ordering fees charged to restaurants.
Delivery fees are capped at:
- 18% of a customer's pre-tax order if the food delivery service provider completes the delivery; and
- 10% of pre-tax purchase price if an order is placed through a third party service but the customer picks up from the restaurant or the restaurant provides the delivery.
The cap includes all fees associated with the use of third-party online ordering and/or delivery services for a customer's food order. The order applies to businesses that provide these services to 50 or more restaurants.
Does the cap apply if a restaurant uses its own delivery services but uses a third party app to take orders?
Yes. There is a 10% cap on fees if an order is placed through a third party service but the customer picks up from the restaurant or the restaurant provides the delivery service.
Does the cap apply to delivery services for virtual kitchens, grocery, liquor and convenience stores?
The cap on food delivery fees applies to delivery of food and beverages that would normally be consumed upon purchase in a restaurant or cafeteria (whether ordered and served to a table or ordered at a counter and brought to the table by the consumer). It is not intended to include liquor, grocery or convenience stores. However, the cap may apply if delivery is offered for meals that would normally be consumed upon purchase. For example, if a convenience store includes a fast food restaurant service.
Can food delivery service providers charge for services other than those related to the actual order and delivery of food?
Delivery service providers must provide an option capped at 18% for orders that will be fulfilled by the delivery service provider. They can also charge a restaurant up to 10% for customer orders through their online service, that will be picked up by the customer or delivered by the restaurant. Delivery service providers may offer additional services such as marketing and charge for those services provided they are optional.
How long does the cap on food delivery services apply?
The cap on delivery service fees is in effect from March 28 to April 30 2021.
Can delivery service providers keep the tips I give a driver or pay drivers less to make up the difference in what they were previously charging?
No, delivery service providers may not reduce the pay structure given to delivery employees or independently contracted drivers. If the delivery service provider collects payment intended to be used as tips or gratuities for drivers, they must be paid to the driver.