Delivery....carry out..or dine in

[JAYP]

Guys
need your help, we are carry out only franchise in so cal. We have been open a year grossed 190k… lately sales been less than 3k a week. Price point for large pizza $ 4.00 Cheese,$ 4.60 one topping, $ 6.95 for up to 10 toppings. We had done door hanging, Advo, flayers, guys holding sing out side, customer app week pricing, school days. Sales have gone down due to Little ceaser across the street and other 10 compitions with one mile of store. My question to you is am I missing out on delivery dollars and how much…how many of you do carry out only or both[/u]… does any one is like me carry out only…any one have change to delivery from carry out only how much is it gone up… any bad part to go on delivery…all the suggestions and comments will help…
thanks for advise
j

 

[RobT]

Jay, What will it cost you to deliver (2) $4 pies… assuming you charge $2 for delivery… that brings the cost up to $10 for the order… If you have a driver making $7 per hour… and he takes that delivery in say (30 Minutes…)… cost you $3.50 to pay him (labor), $4 (food cost), What do you have left… if your getting $10 a pie, thats a different story. If you start to deliver, your taking on more expense & headaches…

 

[scootie]

I am carryout only as well. I don’t deliver because the town I’m in is very small and very rural. More people have asked for a dining room than for delivery.

 

[system]

I do all three, working for me,
Otis

 

[td_VP192]

RobT:

Jay, What will it cost you to deliver (2) $4 pies… assuming you charge $2 for delivery… that brings the cost up to $10 for the order… If you have a driver making $7 per hour… and he takes that delivery in say (30 Minutes…)… cost you $3.50 to pay him (labor), $4 (food cost), What do you have left… if your getting $10 a pie, thats a different story. If you start to deliver, your taking on more expense & headaches…

If you want to add delivery you’ll need to increase your prices. You can still run ‘carryout specials’ to stay competitive with the LC across from you. RobT is right, you can’t be delivering $4 pizzas and make any money.

You have 10 pizza places within a mile of your store ?? Maybe it’s time to move the store, establish a new identity(carryout only to DELCO) and rethink your menu pricing. If your sales continue to slide, it’s obvious there aren’t enough people in the area to support all 12 of you within that 1 mile radius.

 

[JAYP]

Thanks Rob
Like I said that we are just carry out pizza with franchise that would not let us deliver… we are in havey populated area of Los Angeles and lots of industrial and commercial companies with tons of housings and appertments… it is lower to middle class neighbourhood so price have to be a factor. Most of people walk or take bus to the work. It is Hispanic population base of 98%. I look it this way they dont have any mean of transportation that tells me they wont walk to my pizza place to pick up…thay want it to deliver at a mile or 2 mile or 3 miles where they live.

The pricing I have is on promotion and have to raise $ 1.00 across the board from January 08 which will be $ 5.00 cheese, $ 6.00 for pepproni, $ 7.00 for one topping, $ 8.00 for 2 toppings and $ 9.00 for Delux up to 10 toppings. I can keep this as my carry out pricing only…what do you think? As if I start delivery I will have Pepproni for $9.99, 2 topping for 11.99, Delux large for 13.99. Family pack which include large 2 topping, 10 pc wild wings, 1 topping large and 2 liter soda for $21.99. Delux up to 10 topping large and 1 topping for 18.99. Minimum order of $20.00 requirement and $ 2.00 for delivery. Does ths look good guys.

 

[lilian]

well you have ceazer pizza across the street and 10 more places competing with you i doubt that delivary is gonna do you good sorry
good luck