delivery info, to deliver or not?

I have just entered the sub/pizza biz for the first time, bought a lot in a good high traffic location close to college and major hospital built a brand new 1800 sq ft bldg set up equip and pos system, our menu consists of subs, salads and pizza. been open 1 month now, with no advertising our sales started from nothing to about $3000 per week now. We are open 10:30 to 8:30 sun thru wensday and 10:30 to midnight on thurs,fri and saturday.
Now that the crew is better trained I am about to start my advt. am starting with doorhangers within a 2 mile radius. right now we show stronger sales for subs during day and pizzas in the evening, mind you we are only eat in and takeout at the time.
]My question is to operators that deliver. what percentage of your pizza sales constitute takeout vs eat in vs delivery[/u]? also do you know of any source detailing issues dealing with delivery people, salary plus tips, provide own vehicle, insurance and liability issues etc I have been in a different field for years 1hr photolab but the decrease in film usage and people going digital plus the added competition from the majors has made that business only marginaly profitable. I keep tight reins on food costs labor cost vs sales etc but would like some imput from people that are in the know in the pizza biz.
eli the photoguy, oops now eli the pizza guy!

eli the pizza guy:

Congratulations on the good start. I think you’ll find that when you start delivery business it will add a few extra sales to the tune of about 25% of your total business (which will increase your total sales 33.3%). Once you put “We Deliver!” on all your advertising and get the word out, you’ll find that your delivery sales will actually capture between 50% and 75% of your total business, thus increasing your sales to $6000/wk , with a potetial of $12,000/wk.

Here’s how drivers are usually compensated:

  1. Hourly pay - from minimum wage to around $1 over minimum
  2. Tips - paid by the customer (usually to the tune of $1-$3 per delivery)
  3. Mileage - paid by you. There are different ways to account for the mileage paid out by pizza stores but I personally pay my drivers $1.35 per delivery and charge the customers $1.50. If the drivers take a “double” (two at one time) they are paid $2.70.
  4. You must have insurance provided by your insurance company that umbrellas the driver’s insurance. This is not to take the place of your drivers insurance, as they are to keep a minimum of liability insurance coverage on their personal automobile.

Make sure you order car top signs before you start this process. It is imperative that you make the practice of having lit signs on your driver’s cars a requirement, as it will also increase your delivery sales.

Good luck with everything and if you need any help, don’t hesitate to put up a post. There are some very good operators that frequent this site and they’re more than willing to lend a helping hand. -J_r0kk

drivers tend to be lazy. They just want to stand around and take deliveries. Give them other responsibilities ( making boxes, fill soda case, sweep, mop at closing) are some of the things ours do. they’re best at wining though. I pay mine $5 per hour plus tips, that’s it. They average around $15 per hour total . We charge .75 per delivery which goes to the store. for us delivery is 2/3 of our business with eat-in/take-out as well. welcome to the jungle…sounds great for just opening, just keep plugging

Thanks for the info,great help will implement delivery as soon as I get all my ducks ia a row.

How old does the delivery driver have to be? We originally thought it was 18 and now we are being told 19.

we have to carefull when you pick a delivery driver… the older the better I think… find somebody who is responsible and not a 18 year old kid that is going to call sick on a friday so he can go to a cage party… not that all 18 yr old kids are that way but you have to agree most of them are… a delivery driver has to be dependable…good luck

Delivery 46%
Pick up 25%
To go 18%
eat in 11%

We pay drivers 7-9 per hour plus 1.00 per delivery in town and 3.00 for out of town Drivers keep their tips. They use their own car and must have the insurance. They avg about 14.00 per hour

We do about 30% delivery on sales of about 1.1M. I employ 3 adult drivers (32 hrs ea p/wk). They are paid 6.50 p/hr and each driver averages another $7 per delivery from a combination of tips and a delivery fee ($3 per delivery). They usually average 2.5 deliveries per hour for avg hourly gross income of $24. After gas, ins, vehicle wear and tear, etc, etc. they net a nice wage (and so do I). In addition to my 3 drivers, I drive as a backup at peak times and view it as a great opportunity to interact with my customers.

I do very little one way or another “because of what my competitors do”. My drivers get the whole delivery fee to help them offset gas expenses and the RIGHT TYPE Of DELIVERY INSURANCE to covers our butts “just in case”. It’s not cheap. Most owners think that just because they have a non-owned policy they are covered. They are not! They have as much as a 10,000 deductable if the driver has any prior moving violations and/or does not have insurance that specifically covers “Pizza Delivery” in writing. My guys/gals and I have it and we pay to get it with the delivery fees we collect. We all sleep better with the right insurances.

Many owners are focused on the small picture… Pizza Sales with no delivery charge, and/or deliverey fees that are kept by them or split. Well like they say…you can pay the man now or pay him later… but you will pay him. In the end they will wind up broke because they got sued and a driver wasn’t covered properly. They also believe that the only people who need to earn a decent living are themselves. I’ve gone the opposite ways and the result is I have a hardworking, happy crew, that shows up for work ready to work and will do what ever is needed.

It’s VERY IMPORTANT to be sure you are insured properly and to have enough drivers so you are are never forced into a position where you can’t maintain the very service you started. Offending 30% or more of your customers is a surefire way to lose your reputation and your business.

I suggest that you pay your drivers a fair base wage well and let them earn well in exchange for being very well covered. Focus on making you money from PIZZA. Remember…Pigs get fat / hogs get slaughtered!

thanks guys

what a great forum, a wealth of info from experienced operators. We are on week 6 sales are now at about $4200 a week, have not done any advt yet. crew of 6 is fairly well trained and am about to launch on advertising and begin doing delivery. My location is excellent on a high volume, high visibility street, free standing building with good access and good parking. Located half mile from college with 5k enrollment in a growing town of 40k. am going to invest about 2k a month for the next 4 months. to this point I have invested over $275k in property, equipment, starting inventory. I must be at 10K a week by our 6th month or the 7th month it goes up for sale. Breakeven point is 5k a week ( assuming 35% food cost and all other expenses factored in) What I would like from experienced operators is with a budget of 2k a month in your experience what is the best way to advertise that will get the highest response and bang for the buck. what have been your best promotions. All responses will be greatly appreciated

Re: thanks guys

you can see all mine at :smiley: