Can I survive if I quit delivering?

[ACA_PIZZA]

I have recently added seating(40) to my shop.I want to quit delivers and go with eat-in and pickups.My sales are about equal in each category.I recently got a liquor license (no room for a bar}.I have been in business for 10 years.Has anyone ever gone through a change like this?Ideas wanted.
thanks

 

[system]

whew…tough call.

What’s the del situation in your area? Are you the only one, are the big chains there, other indies?

How many carryout customers ONLY carryout? How big is your delivery base? How many repeat customers who ONLY get del? How about schools, corporate accounts, churchs, drug company reps…

IOW, what would you LOSE if you stop delivering, aside from headaches of insurance, labor, accountability, delivery times, etc?

If you’re a lone wolf in the area, maybe it won’t hurt. I know one area where the only indie started delivery, then the local PH started it, but both ended up stopping delivery. Then, several years later, Dom’s moved in, and they really aren’t doing all that much with it either!

 

[ACA_PIZZA]

Theirs lots of independent and chains with abig delivery area.I have lots of repeat business for my deliveries and my pickups. I would lose 30 to 40 percent of my sales if none of my deliver customers would pickup or eat in. Lots of schools churchs businesses.

 

[royster13]

What is your reason for quitting deliveries?..Do you think there is too little profit in it?..Is your space too small to support dining in and deliveries?..Are deliveries a big pain in the ass?..RCS…

 

[system]

Yes, there’s no question that deliveries are a pain in the ass.
If 30-40% of your orders are delivery, assume you will lose 20-30% of your volume (the other 10% may convert to pickup). Run the numbers - can you live with the $ on the bottom line if you lose 20-30% of your volume. Of course, you will gain some $ with your new dine-in.
I don’t know what’s worse - deliveries, or waitresses!
Tym

 

[ACA_PIZZA]

Yes, delivers are a pain. Sometimes I think I would be more profitable with out them. The shops that dont deliver seem like they can make a better profit .

 

[Bucky]

ACA PIZZA:

Yes, delivers are a pain. Sometimes I think I would be more profitable with out them. The shops that dont deliver seem like they can make a better profit .

I went to delivering 2 nights a week Friday and Saturday night The two best nights for delivery and scrapped the rest.

It has worked for me i would scale down and see from there that way you have not gone completly out of it and keep your customer base. That way if it does not work out you can go back to full time deliverys

Andrew

 

[system]

I have never tried it, but a friends shop back in the states got fed up and quit delivery all together in a delco that did 90% deli. As far as hard numbers go, he lost 20% of sales. That means about 75% of his deli customers came in and picked up their pies.

Cut out insurance, milage and driver pay, and he is more profitable on smaller sales, not to mention the hassle of dealing with drivers.

Aca - What type of a market are you in? If it is college town or low income area, then stopping deli will have a bigger effect on your sales. Upscale residential, probably less.

Also, With no bar are you mixing up drinks in the kitchen? One of my best events was “Cold Pizza & Cold Beer” on Sunday mornings. We delivered 10-20 pizzas to the bar next door on Sat night, and they ran the special Sunday morning 11-4. $6 all you can drink and eat. That one again probably won’t work too well at all if you aren’t near a college campus though.

 

[paul7979]

Keep in mind that you risk losing more than the 40% of sales that are delivery sales now. You may have customers that both pick up and get delivery, and if you are not able to take care of the delivery aspect, the may search out another place to do that. If the other place gives them an acceptable product, you may lose their portin of carry out sales as well.

The same is true with the dine in, in the sense that it will add carry out customers as well. It’s going to just take a judgement call from your end. Please keep us posted on the results if you try this.