3rd party delivery...again

Domino’s has finally capitulated and will use UberEats.

I’m sure they get a better deal then we would, but I still do not understand how you can make ANY money using them or how their pricing makes any sense at all.

6% commission on pickup - okay, fair enough. Marketing spend wisdom is that marketing should be 5%-10% anyway. This is not an insane number.

15% commission on self-delivery - Why would I pay a higher commission on a service that costs me more money? This is essentially working for free.

30% commission on uber delivery - Assuming their delivery driver quality was equal (which they are not), perhaps a case can be made that at a certain threshold, paying the 30% is equal or less than to paying in-house drivers, non-owned auto insurance, etc., but it sees that would only be true for a shop with low sales and low ticket amounts. Am I wrong?

What am I misssing?

1 Like

I charge 30-40% higher on third party sites and have had no resistance.

I have read that DoorDash puts you at the bottom of the list if you don’t have “price parity”. Is that true? Does it matter?

I haven’t seen any impact and been doing it for years. I get an email from time to time about correcting my prices. But for reasons you have already listed there is no way I will sell product for a loss or near loss.

There is no way dominos would do that storewide, It has to be something you just saw on reddit. maybe some franchise??? That would be the beginning of there end.

on a side note

In richmond VA, the best run franchise is Papa johns(Pizza Hut the worst)(Dominos is corporate) . 3 years ago they stopped all calls to the stores, and sent them to India, Now online ordering is 80%.

For DoorDash, do you use your own drivers or doordash drivers?

My problem is I’m 57% online ordering. With DoorDash, Grubhub, Uber, etc… they want to canabalize my online orders by listing their site higher than my site. Orders which would have been 100% profit are now short the 6, 15 or 30%. I know they have buttons to order directly from the store but customers don’t utilize those. I feel that these stores are reaching for sales just to get their numbers to look good. After all corporate doesn’t worry about franchise profits they worry about THIER numbers looking good. Let them go, they went to college for this.

1 Like

This is my thought exactly. I would get a few orders, but quite a few orders that I already get would move over to their platform, making me buy back my own guests.

1 Like

I charge 10% more.
I can’t get drivers. I have 3 drivers now (very part time). I used to have 8-10 drivers with some of them full time. Before COVID,my deliveries were 40% of my sales. Now it is about 28% of my sales.
I use On Demand Delivery Solution.
They contract DoorDash for drivers.
They charge me $10.89 per delivery.
My cost per delivery actually is dependant on how much the guests tips. They get $4.50 of the tip and the rest is mine. per delivery
My cost per delivery in April was $2.62, in May it was $4.54, in June I made $1.83 per delivery.
You trade one problem for another some times. I don’t stress over drivers anymore. I am saving a lot on workmans comp ins.

I pay 15% on DoorDash delivery, 6% on pickup… My manager just signed with UberEats and could only get them down to 20%/6% so we will see how that goes. Doing about 22k a month with DoorDash now netting almost 19k (about 18% of sales). I’m down to 1 full time driver and 2 part time drivers (and a couple backup servers that can drive if needed)… compared to 15 year ago when I needed 8 drivers on Friday night. Delivery with my drivers is about 23% of sales.

How is there timing with picking up the deliveries? Does your product suffer due to them being on their own schedule(slow to pick up). We time all of our deliveries to be coming out of the oven when a driver is available so they get delivered as fresh as possible. I’d be worried that they would throw a huge kink in that.

1 Like

Doordash are usually here waiting on us when we get busy. The tablet allows you to specify estimated time and also click its ready if its done before the estimate.

1 Like

I don’t want to give into this criminal enterprise but might have to soon enough. Seems like all the drivers are delivering with these apps now. Once my drivers quit/leave I’ll just go all in with the apps and let them handle it. Hopefully customers will pickup the food if they have a bad experience. I think customers are more educated on the fact that 3rd party deliveries are responsible for any delivery issues. Where I’m the beginning they always blamed the restaurant. I keep thinking ina utopian world where I no longer have to worry about drivers and at some point only offer online ordering on slower weekdays and not even have someone up front to answer phones

I googled “On Demand Delivery Solution” but couldn’t find the company you are using. Do you have a link?

They are part of buying.com
Ask for Evelyn.
Her contact info is:
evelyn@buying.com
Work # 973-987-3528

If this works for you, tell her I refered you.
Thanks,

Wes Kronberg
Jim’s Razorback Pizza
479-841-1104

1 Like

Just so you know, they cannot legally keep those websites if you request them. We use owner.com and they helped us take all the 3rd party sites that were created back, and now they all forwarded to my website. No more grubhub funnels to their platform with my name on it.

Same with DoorDash, slice all of it

I have an appointment for this Thursday.

Do they bring their own hot bags?

Are you still having a good experience?

Anything I should know before the meeting or that I should ask about during the meeting?

Thanks!

Did you end of going with Buying? If so how is it working out? I am getting calls from Shipday and seriously considering thanks

I tried it out but there was not a high enough density of drivers in my metro to make it viable for me.