Government Introduces the Supporting Saskatchewan Restaurants Act
Today, the Government of Saskatchewan introduced The Supporting Saskatchewan Restaurants Act, which extends the cap on fees on food delivery charges, offering a longer period of support to restaurants who have had to shift much of their business to online delivery and pickup orders during the global COVID-19 pandemic.
"With difficult times for hospitality businesses, this is one more support our government can extend to restaurants to help them through the pandemic," Trade and Export Development Minister Jeremy Harrison said. "The sector has been especially challenged by the economic impacts of COVID-19, as restaurants normally relying on dine-in customers have had to pivot to orders for delivery and pickup."
The caps in The Supporting Saskatchewan Restaurants Act remain the same as those in the emergency order announced in March, where food delivery service providers can charge up to 18 per cent of the order price for services including delivery, and up to 10 per cent when restaurants use a third party ordering app but the restaurant fulfills the delivery or consumers choose a pickup option.
The caps apply to pre-PST order prices and apply for delivery services offered to restaurants regularly offering dine-in eating facilities. The cap does not apply to delivery fees for grocery stores or convenience stores. Provincial health orders have restricted dine-in capacity for restaurants requiring them to rely more heavily on delivery services.
"We are very pleased to hear of this new legislation capping the commissions of third party delivery services," Hospitality Saskatchewan President and CEO Jim Bence said. "We have been working hard with the government on these measures that will greatly assist our industry in the critical weeks and months ahead."
This cap will apply to third-party delivery providers that serve more than 50 restaurants across the province. The Act is in effect from May 1, 2021, to expire August 31, 2021.