COVID-19 creates prohibitive costs for restaurants - Ensemble Montréal wants the provincial government to cap delivery service fees

MONTRÉAL, Jan. 12, 2021 /CNW Telbec/ - While it's true that the present COVID-19 crisis affects every aspect of the Montréal economy, it's obvious that the restaurant sector is currently one of the worst hit.

The curfew imposed by new government measures on top of the existing lockdown will not make life better for Montréal restaurant owners. They've been forced to partner with third-party delivery platforms which charge them fees ranging up to 30% of the customer's bill. Their financial peril is escalating as their profit margins melt before their eyes.

Motion by the Official Opposition (CNW Group/Ville de Montréal - Opposition officielle à l'Hôtel de Ville de Montréal)

"We need to provide more help to restaurant owners; that's why we're asking the City of Montréal to pressure the Québec government to impose a 15% ceiling on the fees charged by delivery platforms, such as UberEats, DoorDash and Skip the Dishes, until the pandemic ends", declared Mr. Lionel Perez, Leader of the Official Opposition and instigator of the motion.

Many restaurants that didn't offer delivery before the pandemic have been forced to do business with one of the delivery industry's major players in order to generate income now and avoid bankruptcy. However, this kind of service costs them a fortune.

"It's completely unfair; restaurants have been taken hostage: we have no choice but to pay to survive the crisis", declared Mr. Fabio Broccoli, Manager of the Fishbone and Elefanté restaurants in Old Montréal.

10,000 Canadian restaurants are believed to have closed permanently in 2020, and it's also estimated that 75,000 jobs are presently on ice in the region's restaurant and hotel sector, with tens of thousands of Montrealers awaiting a reopening to return to work.

"In this exceptional situation of the pandemic and now the curfew – where free market rules no longer apply – limiting the costs charged to restaurants would constitute prompt, direct action toward a straightforward solution. "We have to help them keep their heads above water if we want the Montréal we know and love to be there when the pandemic is over", added Mr. Perez.

Cognizant of various proposals that have been circulating across Canada over the past few months, the Official Opposition is particularly inspired by the Ontario government's recent adoption of similar measures in response to a request from the City of Toronto municipal council.

"We're also asking for delivery companies to be prohibited from compensating for the loss of income caused by our measure by either reducing the salaries of their delivery people or increasing other administrative charges", stated Mr. Aref Salem, Official Opposition spokesman for economic development.

Ensemble Montreal, which has maintained continuous contact with the food service industry since the start of the crisis, sees a clear consensus building around its motion, particularly following a call last week from Restauration Québec for the provincial government to limit delivery fees.

"If measures similar to those we're proposing are already in place in Ontario, New York, San Francisco, Chicago and Los Angeles, then why not in Montréal?", concluded Mr. Perez.

The motion will be debated at the next Municipal Council session on January 25, 2021.

SOURCE Ville de Montréal - Opposition officielle à l'Hôtel de Ville de Montréal

For information and interview requests: Marc-Antoine Audette, Press Attaché, Office of the Official Opposition, [phone]

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