Today, Toronto City Council unanimously approved Councillor Michael Ford’s (Etobicoke North) motion to request the Province of Ontario to implement a temporary cap on commissions for food service delivery companies.
The City of Toronto does not have the municipal authority to regulate food delivery service companies or cap the fees that they charge.
The motion, deemed urgent and seconded by Mayor John Tory, is just one of the ways the City is working to protect small businesses and the restaurant industry which has been severely impacted by the pandemic.
Restaurants Canada estimates that without the necessary support, up to 40 per cent of independent restaurants might go out of business beyond March 2021 due to the pandemic. The impacts are often felt most among small family-owned business owners and operators, as these food delivery commissions are often highest.
Temporary caps on fees charged by food delivery service apps have been implemented in some North American cities including Chicago, Los Angeles, New York and more.
For more information on the City Council decision visit the City website.
“Throughout the pandemic we have been urging food delivery companies to substantially help their restaurant customers so they can stay in business. While some companies have stepped up to help, we have heard from restaurants that more needs to be done right now which is why we are advocating for this emergency action. We will continue to do everything we can at the city to help restaurants get through this pandemic.”
– Mayor John Tory
“Today’s unanimous vote from Toronto City Council sends a strong message that we are serious about supporting small business in the City of Toronto. COVID-19 has had huge financial implications on many sectors in our economy, but the restaurant and hospitality industry has been particularly impacted. I have heard from many restaurant owners that their margins are razor thin due to high commission fees from food delivery service companies. During these difficult times, this is one critical piece of the puzzle in supporting our local “mom-and-pop” restaurants.”
– Councillor Michael Ford, Etobicoke North
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