Cost of supplying a delivery service

Here we go with the first topic.

With the new Federal Govt “Fair Wage” has anyone worked out the full cost of supplying a delivery service?
Wages, penalty rates, workers comp, vehicle allowance (drivers using own cars) far outweigh the delivery fee most outlets charge for delivery. Some outlets don’t charge for delivery at all !
The question is, can delivery service be sustained under the huge cost burdens listed above, and can Independents change the customers expectations and raise delivery fees to $9 such as charged by the chains?
We are in competitive markets but can Independents continue to provide a delivery service below the cost recovery price point? Do everyone know what their cost recovery is or do you just provide a service just because it always has been there in the past?

Dave

Agree with your point. This question comes in my mind so often. There is so much competition in the market. Everyone is rushing and struggling for success. I also doubt that will independents be able to provide delivery services in future too? I think it would be hard for them. Let’s see how far it will go.

Hi glad to see another person on board the Oz version of TT
Be interesting to re-visit this subject in 12 months and see where it has developed
With ATO doing blitz’s on small businesses I wonder how many pizza shops will get caught out for underpaying, paying “cash”, not paying superannuation etc
If you pay “by the book” it makes it very difficult to sustain a delivery service at a low fee. Our fee is $5.50 for close suburbs, $6.50 and then $8 for outlying areas, with the latter on a capped distance. On 90% of our deliveries we lose money after paying drivers hourly rate and car allowance.
Dave