Montreal desires to cap charges on grocery supply apps – Montreal

Just like thousands of restaurants across the province, Falafel St. Jacques took a hit amid the coronavirus pandemic.

Sales are in decline and COVID-19 measures have forced them to resort to take-away, pick-up and delivery. But owner Ronen Baruch says large delivery platforms take a big bite out of potential profits.

“They have between 25 and 30 percent commission that they take from the restaurant,” he said.

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Baruch says even though the fees are high, they need apps like Uber Eats and SkipTheDishes to offer customers a wide variety of options.

“There is a catch here, so to speak,” said Baruch. “We are in a position where we are without them. We can’t with or we can’t without. It is very difficult.”

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The Quebec Restaurant Association says Baruch is not alone – many troubled companies are in the same boat.

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Montreal restaurants struggling to survive the COVID-19 era

“Thirty percent of total sales in an industry where profit margins for a good year for a well-run company are about four or five percent – that makes selling pointless,” said Julie Couture, a spokeswoman for the Quebec Restaurant Association.

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In a statement to Global News, a SkipTheDishes spokesperson said: “All local, independent restaurant partners on the SkipTheDishes platform across the country pay less than 20% commission while their dining rooms are closed.”

And Uber Eats said: “They’re helping restaurants by driving demand through marketing campaigns, waiving activation fees, introducing daily payouts, and offering flexible options like 0% pick-up, 7.5% for online orders and 15% for restaurants with self-delivery Employee.”

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Ontario plans to cap delivery charges in COVID-19 hotspots that offer take-away restaurants

But the city of Montreal wants the province to regulate how much food apps can charge.

“We looked at what was going on in British Columbia and Ontario, where the governments were charging a maximum fee of 15 percent,” said Montreal city director of economic and commercial development Luc Rabouin.

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“So we’re asking the Quebec government to do the same to help the restaurants.”

On Monday, Quebec Prime Minister Francois Legault said he was open to looking at the legislation but believes it could be complicated.

“We can look at this, but I’m not sure that in practice it is realistic to put some rules in place and make sure they are followed,” he said.


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Coronavirus: Quebec retailers, restaurants concerned about extended lockdown


Coronavirus: Quebec retailers, restaurants concerned about extended lockdown – Jan 7, 2021

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