I just have a question for everyone! We are a small family owned pizza business. We just implemented delivery. We currently charge a $3 delivery fee, then give the driver $1 plus tips and we take $2. At the end of the night I have the drivers give me their delivery tickets then add them up. Seems to be working fine so far, does anyone have any suggestions on improving our delivery process.
Thanks
Smith
We do a straight % based commission system, we do have a delivery fee but the driver does not get that fee. I use that fee to pay the insurance i am required to carry because of state laws. When customers ask about the delivery fee, we politely explain that the driver does not get that, and that it goes to covering the insurance to allow us to deliver to them.
Over the years i have used both straight dollar amount per delivery and percentage based. Each one has it’s ups and downs. With a straight dollar amount if you take alot of large orders, the drivers do alot more work for that dollar then just taking 1 pizza. And if they get stiffed at the door on a large order, well yeah you can see how a driver would feel. Atleast with a percentage base commission the driver knows that will get the extra compensation for doing more work, even if the customer does not tip.
I run two different price structures because i use the percentage system, i have my carryout pricing structure and then my delivery structure has the percentage built into it.
Personally i prefered the percentage system as a driver back when i drove (i worked as a driver under both systems). But it needs to be what works for you and your drivers. If everyone is happy under your system now then do not bother changing it 
Hmm… you have the drivers give you the tickets? I suggest that you have a more accountable system where you track the orders. One of these days tickets will go “missing”.
We pay drivers $6 per hour plus tips. Drivers using their own car get 6% of the deliveries as “mileage”. If they use our car (about 75% of our deliveries go in company owned cars) they do not receive “mileage”. We charge a $2.60 delivery charge. That goes to the store. It offsets about 60% of delivery costs of all kinds. Our drivers average about $5 per delivery in tips but it is often quite a bit more.
All the systems described work. The only one I would say be sure to avoid is to pay actual mileage… You get what you pay for. i.e. If you pay for miles that is what you will get… the longest way every time!
I always hear it from the kitchen staff that they do all the work and the driver gets all the tips does anyone work around this in any way or do they just keep getting the short end? We have too been charging 3.50 and paying $2 but I am just programing my new point of success system and think maybe I should make some changes right from startup…
Well i sometimes have to remind both sides that …
Drivers make less per hour, and make most of their money thru tips. So yes they can have good days, but then they can also have really bad days.
Insiders get paid more per hour then drivers, they do not have to leave the store and with the exception of the counter (phone staff) they do not have to deal with customers or buy gas to work.
We do have a tip jar on our counter that goes entirely to the kitchen crew. So atleast in my store, the kitchen crew does get tipped out every week.
Whenever my insiders complain about the drivers get all the tips I just tell them, if they would kindly pay half of the drivers gas and wear and tear on drivers car, they could split the tips. This quiets them immediately. Insiders get an hourly pay for making pizza, plus we have a tip jar next to the counter insiders receive. Also, I tell my insiders, who all have cars! They can all deliver pizzas if they would like! I am not a fan of tipping out. To me it’s a loser mentality.
Before we implemented our newest POS and used a standard register, we had our drivers cash out on all deliveries BEFORE they went on them. That prevents from someone over-looking an order and the driver pocketing the money. You could potential run into some issues with an untrustworthy driver who doesn’t hand in his tickets at the end of the night.
However, I suggest just getting a POS and it handles it for you!
EXACTLY, our drivers are HARD workers, and our delivery range is HUGE which means more gas more money out of their pockets!