Setting up a new shop and considering no delivery, anybody here dropped delivery with no regrets ?
Have not dropped delivery, but my % of delivery vs carryout has been declining. I have a smaller shop and more people seem inclined to come in and carryout then get it delivered these days.
But on the plus side, the average $ per order for delivery has gone up. So i have been making more money on less delivery’s and tips have generally been higher for my drivers. Working out a marketing campagin to try and get my delivery % back up, but we shall see.
We haven’t dropped delivery, as we never did it, but we have no regrets on that!
I asked a similar question a few weeks back as I just opened a new store in March and we are only doing about 10-15% delivery right now. There are a number of reasons I can think to rationalize why this might be…it is summer in Michigan (after an especially hard winter), most of our advertising so far has been in close proximinity to our store, no car top signs yet (on order coming hopefully by week’s end), etc. Our new business is doing well right now despite that, but we would be doing SO much better without delivery right this moment, the extra wages to keep drivers at store at all times is eating up any profits. It has been less than 4 months and again it is summer so I am not ready to pull the plug on things yet, but I am keeping a watchful eye on this trend. I am able to keep things a float for a while, but if we are stilll facing same ratios in December, then it may be a no brainer. Right now, it kind of feels like I would be evaluating the success of an ice cream store in the winter if I did not let fall and winter play out. Our store is designed as a delco, so no in store seating.
John, would your new store have seating? Is anyone else thriving doing just carry-out? No delivery, no seating?
There were a number of great responses to carry-out versus delivery trends on my previous post as well, but I would love to hear from people more on this topic. It is very relevant to me.
about 75 seats
this was us for the first 25 yrs of our place…best thing that ever happened that a new guy opened accross the street from me in a small shop with only delivery. This pissed me off so I started delivery even though I vowed never to do it. We expanded to 150 seats and it is VERY challenging but once you have your systems in place it is great to not have to care about weather affecting sales (intact, we actually get busier with delivery spike and hope for bad weather). I never believed a guy when he said that he preferred delivery over takeout or dine in, but I am a believer. It is the highest growing segment of our business and we do NOT offer free delivery. We do have a fleet (4) of wrapped Honda Elements that is all of our advertising. The hardest part is getting it off the ground and getting the orders to justify the labor but once you built your client base it keeps you busy all the time. I guess if you don’t have to do it and you are always slammed as it is great, but I want to be as busy as possible the 6 days I open so I can close on Sundays and this allows me to do that
I agree with famousperry, I hated delivery and never offered it… I regret not doing it from the start! Cold rainy winter days can be just as good as beautiful sunny summer days!
When we experimented with delivery in out small town we realized that it was a break even proposition and ultimately discontinued it. What we did enjoy was the advertising from the car top sign. That was EXCELLENT advertising and may be worth the stress of delivery alone!