PMQ Pizza Magazine

Jimmy Johns "Hidden" Delivery Charges.

Discussion in 'The Think Tank' started by Integraoligist, Apr 28, 2013.

  1. Integraoligist

    Integraoligist New Member

    Ok so i'm thinking about starting delivery for my sandwich shop... as Jimmy Johns is right across the street from us, most people assume we are just like them and deliver everything. I can't tell you the amount of calls we get asking if we deliver.

    Anyway I'm checking out all the places in the area for delivery charges and the such... all the pizza places are around a $10 min. with a $2.50 delivery fee... however Jimmy Johns has the oddest setup i've ever seen.

    They have the same menu for pickup and delivery but the prices are different. $4.50 minimum for delivery.

    Pickup Delivery
    #1 Sand. $4.75 $5.50
    Med. Drink $1.39 $1.75
    Chips $.99 $1.50

    So basically a standard meal is up-charged $1.62 i.e. a delivery fee... even though they advertise "Free Delivery"

    Is it that people dont pay attention to the prices? Or is it that they dont care?
    Is it wise for us to structure our delivery system after them instead of charging a regular fee?

    One of my employees use to work at a Jimmy Johns, so I asked her how many people called back about that, she said once in a great while someone would call and they would just explain that it's different pricing for delivery and that was it. No issue.
  2. royster13

    royster13 Active Member

    Sounds like a "Class Action" to me......
  3. Integraoligist

    Integraoligist New Member

    Let me change my previous statement... as I just went there to confirm it... they do NOT say "Free Delivery" anywhere... it's the the people that you talk to that have ordered that say it's Free Delivery, even though it's not. The receipt just does not show a Delivery Fee like the pizza places do.

    The only place that shows their Delivery prices is on their website.
  4. famousperry

    famousperry New Member

    so they are not hidden afterall. This is the same approach we take. Our menu clearly states delivery charge applies - Driver tip not included in delivery charge (They use our cars and we pay for gas). We quote a total with delivery charge every time we take an order

    It suprises me that in this day and age people are still offering free delivery. How can any reasonable person expect to get a meal delivered to the comfort of their home for FREE? Or better yet why would an owner penalize their pick-up/dine-in customers by charging the same price (building in the cost of delivery to everyone)

    does not make any sense to me
  5. Integraoligist

    Integraoligist New Member

    No, a delivery fee is the norm now... i'm asking about how Jimmy Johns approaches theirs...

    The fine print of their website says:
    "All prices subject to change at any time. There will be an additional charge for delivery orders. Please confirm prices when placing your order with your preferred Jimmy John's store."

    Their delivery "fee" is is tacked on to each individual item. It's not just $2.50 straight like a normal pizza shop... it's an extra $.75 for this, $.50 for this.... so to feed a family of 4 their "delivery charge" is around $7. That just blows my mind and is just outstanding.
  6. JohnAndrew

    JohnAndrew New Member

    I don't believe you are looking at the complete picture.
    Pickup Delivery
    #1 Sand. $4.75 $5.50
    Med. Drink $1.39 $1.75
    Chips $.99 $1.50

    These delivery prices also include the sales tax. The pickup prices don't have the tax added yet. If you order a delivery from them, you will have a breakout of the fee and the tax on the receipt.
  7. December

    December New Member

    I worked at a pizza place and they didnt charge for delivery what we did was we would add the sales tax to the item and then round up to the nearest quarter here are some examples

    Small fries: $3.00 comes to $3.27 with tax. delivery price $3.50
    Lg cheese pizza: $10.00 comes to $10.90 with tax. Delivery price $11.00

    Now we did this so when we cashed out the driver it just made the math a little easier you dont really make any additional money with this system.

    Once in a while someone would call back and say something like I just did the math and I was charged .18 cents more then I should have been we would explain prices werr rounded up to the nearest quarter. Theyed act like that was tottaly unfair but call back the next week.

    Anyway Id go with the straight delivery charge method seems most upfront and best and it helps with costs
  8. Integraoligist

    Integraoligist New Member

    So what still aggravates me is the fact that if you charge a customer a Delivery Charge for their order, I was say at least 80% or people around here still assume that is the drivers tip... even thought it expressively says that it is not (on the majority of pizzerias websites and the such). So most of the time the drivers to not get tipped.

    However when we had Free Delivery at our other shop, the majority of people were very generous and gave the drivers a nice tip.

    So when a company charges more for food (which includes tax and roundup like Jimmy Johns and Decembers post) but does NOT add a "Delivery Charge"... would the Drivers still make more tips as in the Free Delivery situation?

    I did ask my employee whom use to work at Jimmy Johns about the drivers tips... she said they did not make much at all... and a normal drivers "shift" was from 11am to 2pm or earlier if it was not busy, which usually consisted of 6 Drivers. With the exception of 1 driver staying all night and maybe a 2nd driver coming back in at 4:30pm to 6:30pm.
    She does not know exactly how much $ they were tipped, so wether or not they "made good money" is relative as most of them only worked 3 hours a day aparently.

    And another question is, how do you keep good employees if they only work for 3 hours or less?
  9. chalet7

    chalet7 New Member

    It seems from your responses to people offering their opinion, you're pretty stuck on NOT charging the same way Jimmy John's does, but it makes the most sense - especially if they are your nearest and biggest competitor. If your store charges a flat fee for delivery, get used to hearing "but Jimmy John's doesn't charge that much" -click-.

    I'd imagine the majority of delivery orders for sandwiches consists of only 1-2 meals, so a flat $2.50 fee (half the cost of the sandwich!) is a bit much. In my area, there are a few sandwich shops offering delivery -- JJ's is the only one I see pulling up to my office at lunchtime. There are a couple other delis that just deliver orders over $35-45. That may be an option for you too.

    Every time I order pizza online, intending to have it delivered, I change it to carry-out after seeing the order sub-total because I can't stand the thought of being charged a $2.50 delivery fee PLUS a few bucks for a tip when I can just pick it up. Implementing the cost of delivery right into the prices eliminates the shock factor of an obvious delivery fee and is very smart, in my opinion.

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