Delivery Charge increase vrs tip decrease

As my drivers struggle (central Fla.) w/rising fuel prices, I’m considering increasing the delivery fee…

We currently are @ $1.50 for a 4-5 mile radius…

We pay $7.50/hr & everyone is pretty much cross-trained to make-it/bake-it/take-it…

I’m curious how an increased delivery fee would be off-set by lower tips given to the drivers…

PJ charges $1.75/2.00 and a few independents are higher…

Your thoughts???

If you are going to do it, then do it. Raise it to $2.50, and split the difference. Your cheese and flower has gone up just as much as gasoline. The customers you would anger with a .25 increase are the same ones you will anger with a $1, and the rest won’t notice or care as much.

It really depends on your delivery area though. If you are in a low income area where sales always go up around welfare day, then tips will go down, if you are in a college town where tips average 23 cents, well, the probably will stay at the “keep the change” level. In an affluent neighborhood, less people will bat an eye.

Keep in mind that EVERYONE knows gas prices are high, and although they don’t like paying more for stuff, they will understand your move (at least on some level), and the ones with the entitlement feeling of free delivery are the ones you don’t want any way.

We’ve rasied our delivery charge twice over the past couple of years.

I’ve never noticed any difference in tips when I’m taking deliveries, and I have never heard a complaint from my drivers (at least not about tips going down… ).

I don’t think there is anything to worry about.

we went from no delivery charge to a $2.90 delivery charge. we did not see a decrease in tips but did see an increase in carry out instead of delivery. this helps the store out but the driver still makes less because less deliveries = less tip potential. after about 4 months we lowered the delivery chg to $2.oo, which increased the deliveries back to where they were and everyone is happy.

After agonizing for quite some time about raising our delivery charge we finally did. We used to charge $1 now it is $2.

NOT ONE SINGLE NEGATIVE RESPONSE! It has been 2 weeks. Odd to think we were so “scared” to do it. Most people don’t even ask about it and when they do they just say ok.

Just raise it, if people want to come get it they will.

Kris

Kris, that has been my experience too. We added a delivery charge about 4-5 years ago. We went from no charge to 70 cents to 90 cents to $1.00 to $1.50 and now are at $2.00 and thinking of going to $2.50. There have NEVER been any comments when we made the change.

A few people ask if there is a charge and what it is, but do not have a problem when we tell them. The local national chains and other indis (except one clueless shop) all have delivery charges.

At the chain I currently work at, every little delivery increase usually sees a short wave on complaints or mild irritation from the customers, but it dies down. But then again, the place I work at nickels and dimes to death (Little tiny increases all the time).

What worries me, as a driver, is when the delivery charge starts going past $2 or even $3

Many customers assume the driver is getting all of it, some cheapsakes declare “I’m never tipping again!”. But my worry is that, while currently most DCs are still under $2, so even if the driver were theoretically getting that whole thing, the customer doesn’t view that as an adequate amount, and still tips.

If the Delivery Charge gets to $2.50, $3.00, or higher, I think that more and more customers will start thinking that the delivery charge is so high that the full tip to the driver must now be included.

Again, I don’t think we’ve reached that point yet, except with a few cheapskates here and there, but there will be a certain point where massive amounts of people start to have this thought.

Funny thing about getting nickel and dimed: My company not too long ago, to cope with rising fuel costs, Increased the delivery charge by 10 cents, and the driver commission by 5 cents per order. So in essence, since most customers say “Keep the change” on a cash order, if the total was $19.50, it is now $19.60. The change decreased from .50 to .40, and the commission went up 5 cents. So the driver actually get 5 cents less as a result! I know this is just nitpicking, but funny nonetheless.

Since I posted above we raised our delivery charge to $2.20. The 20 cent bump covers the last dollar increase in the price of gas. Our drivers still average a $4 tip.

When gas approached $4 a gallon, we increased our delivery charge from $2 to $2.25. We hear an occasional grumble, but nothing bad. When we went from $1.75 to $2, that seemed to affect tips for about 2 weeks and then the customers went back to tipping as usual. They all realize that gas is expensive and we have to compensate our drivers to keep providing this service.

If they’re that adamant about not paying a delivery charge, they can always pick up their order and burn their gas.