Delivery app commissions in Ontario: the 2020 pandemic cap, where it stands and how to protect your margin

Delivery apps reach customers you could not reach alone, and take a large slice of each order. Ontario's rules on that slice are less settled than British Columbia's, and the right response for an owner is the same either way: know your numbers, and decide which orders you want. This guide explains what the province did in 2020 and what to check today.

What did Ontario do in 2020?

In late 2020, during restrictions on indoor dining, the province passed the Supporting Local Restaurants Act, 2020, to limit what the largest delivery platforms could charge restaurants. It was a temporary, pandemic-era measure, and it applied only in areas where indoor dining was prohibited. Do not quote the 2020 percentages to a platform or build a price around them.

Is the cap still in force?

Treat it as not applying to you unless the province tells you otherwise. The measure was tied to indoor dining restrictions, and you should not rely on it to limit your fees today. Check the Ontario e-Laws site (ontario.ca/laws) for the Act and any amendments, and ask your platform which fee schedule applies to you. An old news article does not describe your current contract.

How does this compare with British Columbia?

British Columbia has a permanent law, the Food Delivery Service Fee Act, which the provincial government describes as a permanent cap on fees charged by food delivery platforms that serve 500 or more restaurants. Ontario's measure was tied to indoor dining restrictions. If you operate in both provinces, treat them as separate.

How do you work out what a delivery order really earns?

Take your five best sellers and subtract everything:

Item	Where to find it
Menu price on the app	Your listing
Commission and fees	Your platform statement
Payment processing	Statement or contract
Packaging	Your supplier invoices
Food cost	Your recipe costing
Kitchen labour	A share of the hourly cost
Refunds and remakes	Platform reports

A dish with a healthy gross margin in the dining room may earn a thin margin once commission, packaging and the odd refund come off. If it does not earn what you need, change the price on the app, trim the delivery menu or push direct orders.

Can you charge more on the app than at the counter?

It is legal in principle, but your contract may have a clause that prevents price differences, sometimes called price parity. Read it. If you do charge more, be honest with customers in your listing or on your website, and avoid hidden fees.

What are your alternatives?

• Direct ordering on your own website or by phone, with pickup, which avoids commission but not payment processing.
• Your own drivers for a small radius, or a courier service you pay by the run.
• Neighbourhood sharing with nearby businesses to pool drivers.
• A smaller delivery menu of dishes that travel well and earn well.
• Pickup discounts, a modest saving that pushes regulars to order direct.

How do you keep your own customers?

Customers who order through an app are the platform's customers first. Put a flyer in every bag that tells them how to order direct, offer a small reason to switch, and ask for consent to contact them. Under Canada's anti-spam law, you need consent to send commercial messages, which is covered in another guide.

What about the legal fine print?

Platform contracts can be long. Look for exclusivity, minimum terms, early termination fees, price parity, chargeback rules, menu data ownership and who owns customer data. If something is unclear, ask in writing, and keep a copy of the answer.

What about the customer data from delivery orders?

Orders through an app create customer data, but the platform usually keeps most of it. Check your contract for what you receive: names, phone numbers and addresses may be hidden or limited. Under Canadian privacy law, personal information must be collected with consent and used for the purpose stated. If you gather details for direct orders, say what you will use them for, keep them secure and let people opt out. A small, honest list of customers who agreed to hear from you is worth more than a large list that you are not allowed to use.

What should you do this month?

1. Pull three months of statements.
2. Work out your effective commission rate.
3. Cost your top five dishes.
4. Decide which dishes to keep on the app.
5. Start a flyer or message to convert regulars to direct orders.

More guides for your business:

• AODA website rules for Ontario restaurants: who must meet WCAG 2.0 AA and what to fix first
• Ontario food handler certification: the one-per-hour rule, who qualifies and what a fine costs
• Ontario health inspections for restaurants: what public health inspectors check and how to keep a clean record

More in the Canadian guides for food businesses.