Min. Delivery

Does anyone have a minimum amount for a delivery, say $15?

The Papa John’s that I work at has no minimum price, but a minimum order of at least 1 pizza or three ‘sides’ such as wings, chicken strips, bread sticks, soda etc.

I am currently at $15 before taxes for my minimun delivery. Remember that I am in Canada and the prices here tend to be a bit higher than most parts of the USA.

$ 12

OMG they’ve started to accept $'s in England?

No, but I know how you lot struggle with math, so thought I’d do the conversion for you :slight_smile: Only joking !

$25 plus delivery fee of $5.50, $6.50, %7.50 or $8 dpending on delivery zone. For what it is worth Domino’s, PH and an Aussie franchise charge $8 or $9 with a $20 min order and their delivery zone is about 4km radius of the store (franchise boundaries)

Our $7.50 and $8 fee is more distance than that.

Dave

I’m a driver/shift manager in the midwest and our minimum is $10 before the $2 delivery charge and tax. So the minimum afterwards is $12.76. The store I work at doesn’t do this, but when I open my own store (hopefully in a couple years), I’m going to add a gratuity charge for orders over $80 or so. I’ve personally taken too many deliveries over this price without getting a tip, and I would like to make sure my drivers are reimbursed for their labor. Also, if you own the delivery vehicles, you obviously won’t have to pay out a delivery charge to drivers. Currently at the store I work at drivers get $1.25 of the $2 delivery charge.

What makes a $80.01 order different than a $79.99 in terms of reimbursing your (future) drivers for their labor?

I know you still have the cost of labor involved…but if you are all ready charging a delivery fee why should there be a minimum delivery amount?

Wow, I’m going to sound like Gregster…

If you want to make sure your drivers are reimbursed for their labor - then you make sure you do the reimbursing.

As Wizzell said above, why (using your terms) do you want to make sure your drivers are getting reimbursed for their labor on a $85 order, but you don’t want to make sure on a $50 order?

The delivery fee doesn’t come close to covering the cost of the service. If I were to deliver an order that I get $5 plus a $2 delivery fee less food costs at 30%

I have $7-$1.50=$5.50.

In my case I use a contract delivery service that charges me $5 a delivery.

$5.50-$5=$0.50

I still have to pay for labor at 15%

$0.50-$0.75=($0.25)

I am in the hole and all of the fixed costs involved in the operation still have to be covered.

I’ve done delivery for way too long to be frustrated about it anymore, but the majority of places I’ve worked for have charged $1.50 to $3.00 for delivery. As a driver, I never saw the full $3.00–just a portion. A delivery fee of $2 or more, and I very rarely saw a tip. I always used to be of the opinion that if you are in the delivery business, why charge a delivery fee? With today’s gas prices, that’s almost impossible to do these days. Back in the day, I delivered for 32 cents a delivery, and the delivery was free. Because the delivery was free, we did have a minimum order of five dollars–and that makes sense. I ran an ad for drivers that read: Now Hiring Delivery Drivers, above average expectations, above average pay. I paid $7.30 an hour, minimum wage, but the majority of pizza shops in the area were paying between $5 and $6 an hour. I charged a $1.50 for delivery, and the driver saw that entire $1.50. My insurance costs for the entire year were right at $900 (the rates have gone up since then, and I’m quoted at about $1400). I had applications up the wazoo, and was able to pick through who I wanted. I did have a guy show up for an interview who I don’t think had showered for several weeks. He did not get the job, by the way.

I’ve also always been of the opinion to cross train all of the drivers. In fact, this store I’ve been trying to open in the hotel all I hired was drivers and told them they were required to work inside the store a few nights a week too–that they wouldn’t be driving all the time.

A realted, but different angle to what Daddio said, and what Steve brought up. Delivery Business. A PART of my business is deliveries. About 40% of my non-catered business is delivered, and nearly 30% now is dine-in. What that does is create disparity of cost load across different service types. By having no delivery fee, I would have to raise pricing across ALL services, including catering, in order to recover the delivery costs. So, the guy sitting at home waiting for his pie would pay the same as the guy who came into the store and generated far less cost for his order.

Makes no business sense to me at all. We made a decision several years ago to place the costs where they are generated whenever possible. I would not raise pizza prices because chicken costs extra to produce what with oil price increases and all. Weak analogy, but it sort of gives a similar idea.

It costs me significantly more money to have a driver on payroll, BE HONEST WITH WORKER COMP auditor about primary role, maintain insurance for driver liability, and extra liability insurance costs . . . . than to run a take-out and dine-in place. No whining at all . . . just assigning costs where they belong. We almost envision the different service types as different ‘departments’ in a business. Shared labor costs for kitchen staff and management, then gotta shake out where added costs and revenues come from. The unfortunate reality is that 1. my profitability goes up as my ratio of deliveries:‘all other services’ goes down and 2. Delivery is a necessary expectation of the marketplace for pizzas.

$1.50 delivery fee . . . $1.00 to driver . . . $0.50 to the house as a minimal offset to added expense of driver service. that is paid out per order number, regardless of how many times they leave the shop. When it comes time to hire another driver, we will revisit the delivery fee and raise it to accomodate the increase in labor costs with new wages and increase in insurance rates.

To tag onto Daddio . . . let’s assume that I pay a driver $8 per hour to deliver pizza for me.

If he/she is a high functioning and motivated driver, then I can count on UP TO 6 deliveries per hour. That’s a perfect storm with lots of drops in the same neighborhoods, good order clustering, and constant stream of deliveries with no delays. That means that each delivery order costs the business AT LEAST $1.25 in labor costs over an above the cost of production ofthe product. That is the business cost over pick-up. The reality is closer to an average of 3 deliveries per hour for me . . . so our cost is $2.75 actual, real wage cost per order in order to provide delivery service. I leave out the far, far away joke of sitting at an agreed site and waiting for a customer. (I also leave out all the tax & insurance additional costs)

The $5 and $10 orders were dragging my deliverable orders per hour wayyy down. As Daddio ilustrated, sending out a tiny order delivered, even on a dead night COSTS THE BUSINESS MONEY out of pocket. Only winners are customer, driver, and tax man. T obe more blunt than I need to be . . . I am not in business to pay out my money so everyone else can win. I will send a break-even prospect on a tragic slow shift . . . but refuse to spend my own money in order for a customer to have a convenience service. Gotta draw that line somewhere.

Profitabilty on delivery service really is about like running a buffet. You have to move lots of volume in order for it to feed itself and overcome the inertial costs that it demands.

Spot on Nick !!! Love every word you said.
No such thing as a free lunch.

Dave

We used to have a minimum. We found that it does not come up often enough to present a problem or be worth expending brain power on managing the issue. Why piss off the occasional customer that just wants something small when bringing it to them could make them a loyal customer? If it happened too often, I would re-think this, but the once or twice a month this comes up is not worth "managing’ the issue to me.

I get kids trying to order $5 pizza in the afternoons when school is out on a regular basis. For my store it is worth managing.

Daddio, if that were the case for me, I would think differently about it too… but then we don’t have $5 pizza and we sure don’t deliver slices. Every market is a little different.

The store where I work has a $7 minimum in town and $10 out of town.