Effective July 11, 2021, Saskatchewan entered Step Three of the Re-Opening Roadmap and the public health order relative to COVID-19 was lifted. All restrictions related to the public health order were removed as of that date.

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Food Service Delivery Cap

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.

Note: the delivery fees cap applies to businesses that provide 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 cap the fees they charge to restaurants at 18% for customer orders that will be fulfilled by the delivery service provider. They cannot charge a restaurant more than 10% for customer orders that use their online service, and that will be picked up by the customer or delivered by the restaurant. Restaurants may choose to purchase additional services from delivery service providers, that are not directly connected to a customer order, such as marketing.

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.

How long does the cap on food delivery services apply?

The cap on delivery service fees has been extended from May 1 to August 31, 2021, through The Supporting Saskatchewan Restaurants Act.

How are caps enforced?

The caps are enforceable with fines up to $7,500 for individuals and $100,000 for businesses that charge restaurants more than the maximums allowed under the Act. The caps are in effect until August 31, 2021.

Restaurants can make a complaint to the Business Response Team if a food delivery service has overcharged fees per customer order in excess of the cap, starting May 1, 2021. Similarly, food delivery persons may make a complaint if they notice a reduction in compensation on or after May 1, 2021.

Once officials receive your complaint, we:

  • will review the information to determine if it provides evidence that a violation of the Supporting Restaurants Act has occurred;
  • will determine what steps will be taken in response (including possible enforcement action);
  • may contact you if we require additional information, or if you are required to appear as a witness in a hearing;
  • use the information you provide to help us assess and respond appropriately to promote compliance with the act.

Restaurants and delivery persons with a complaint will be asked to first try to resolve the issue directly with the third party delivery company.

Who do I contact if I have a complaint or questions?

Complaints or inquiries regarding the caps are to be directed to the Business Response Team at 1-844-800-8688 by phone, or email at supportforbusiness@gov.sk.ca.

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