questions include:
What do you do about insurance? My current insurance company will not cover deliveries so I have been looking for a new company. The cost is about $2k extra. Does anyone have a good insurance company that has reasonable rates (I am in Michigan)?
A) Gallagher might be an option. $2k extra is cheap for many companies. They will also have policies as to who delivers for you.
What type of mapping system do you use? Could I set up an extra computer with google maps to assist drivers? Do you give your drivers a cheap gps unit?
A) There was delivery before computers / GPS. The purpose is to provide tools for your staff to maximize the speed of service and minimize the learning curves of the staff. There are POS systems who provide and your idea for Google maps is a good one as well. Personally? I would invest in GPS and have photos of a driver with one claiming “We Never Get Lost! Our Drivers Have GPS!” Mapping systems alone will not help you maintain control of cash and delivery drivers, they are just maps.
Is there software that people use that makes the delivery process easier?
A) There are many companies out there who have mapping / delivery driver management / cash management built in. 10 people will give you 10 answers as to which is best. Fortunately for you the Pizza Expo is right around the corner. You can personally see many in action in the same setting and compare. Speedline is considered top notch. There are others as well.
How much do you pay drivers? Are they like wait staff who work on tips and are paid a lower hourly or must they meet the minimum wage requirements (here in MI its $7.40)?
A) In my many years, I have never seen a company take a chance with paying drivers like wait staff (even with tip laws). The IRS definitions would also play into it. Every market is determined by supply and demand. Every operation has a different level of delivery sales volume.
Do you charge an extra delivery fee?
A) This is a chess game. Determine your identity first and make decisions accordingly. Free delivery with higher menu price or charge a delivery fee as an extra charge. I have seen success both ways. FIRST: Know your competitors. Know your customers. That will help you decide more than what others are doing. Market survey should be an action item if not yet done.
How far out should I deliver? 3 miles? 5 miles? 10 miles?
A) Again. This depends on your identity, your community and the competitors. A rule of thumb for years has been “10 minutes”. Time on the road is costly for all concerned. I believe it is better to offer premium / timely service within 10 minutes vs. serving more farther out. It is not miles… it is TIME that is the factor.
Are there other factors that I am not considering?
A) You are asking great questions. You might consider downloading my spreadsheet “breakeven analysis”. You can input the number pre-delivery and then post delivery to determine what the new breakeven will be and how margins change with delivery. http://rejuvenateyourrestaurant.com/Res … Forms.html
How to manage the day to day operations, cash, driver in and out, tickets, etc. The POS system choice will determine this. (or you can do it the old way with triplicate tickets, etc.)
Once you get it in place, letting people know you are ready to serve… that will be the constant challenge. But then, that is where magic comes in.
Go to the Pizza Expo! For the investment you have, having access to the workshops, the vendors, the samples… I think you will find it worth the trip. (just go for 1 or 2 days with a list in hand)
Hope this helps your new adventure!
Mike