delivery pricing

[DFW_PizzaMan]

Anonymous:

wow!!!such hostility…ha ha
you say there are 5000 in your town,1 competitor,i would start del.i live in a town of 4500.we have 4 pizza del. stores,2 caseys,the supermarket,1 pizza p/u place,all doing pizza+9 other food shops.
b.romano

I don’t know if you are the same “guest” as who posted the prior post(s), but I will always show hostility to someone who attributes false quotes to me. Especially when that someone doesn’t even have the stones to hide behind an anonymous but unique screen name, rather they have to hide behind a generic anonymous name. That way they can keep posting dumb stuff time after time and we don’t know who we are dealing with.

 

[system]

and when they get in an accident…DFW what do you do…

I sleep better doing things on the up and up.

 

[DFW_PizzaMan]

Anonymous:

and when they get in an accident…DFW what do you do…

I sleep better doing things on the up and up.

I’ll deal with that when I have to. My first concern was dealing with the fact that I could not keep/find drivers. I have now done that.

 

[paul7979]

With the theory that delivery driver pay gets attributed to strictly delivery orders, who attributes the rent/buildout for the square footage of the dining room specifically to dine in orders? Who charges a dine in charge, as there is clearly costs associated with these orders that should be paid for in surcharges by these customers just as delivery fees are charged to delivery customers.

 

[DFW_PizzaMan]

paul7979:

With the theory that delivery driver pay gets attributed to strictly delivery orders, who attributes the rent/buildout for the square footage of the dining room specifically to dine in orders? Who charges a dine in charge, as there is clearly costs associated with these orders that should be paid for in surcharges by these customers just as delivery fees are charged to delivery customers.

There are points that can be made here, but the big picture is still missing.

If I do 100 deliveries tomorrow, have 100 pickups, and 100 people dine-in, my costs for those deliveries will be higher than my costs for the pick-ups or dine-ins and by a wide margin. As most people here state, they do not charge a delivery fee that recoups all of their delivery expense. They are just getting some if it back. Another way to look at it, they are essentially keeping the costs consistent no matter how the customer gets their food.

 

[system]

DFW,
Maybe the turnover problem is a result of the hostility you carry!

 

[billy_romano]

boy did we get way off on this one,i lost track of what the heck we were trying to do.either way you must staff for each of the other.if you offer del
you should charge accordingly.you are providing a service,they should pay.
i charge 2.00. for del. and .50 for each carry out order.

 

[system]

DFW PizzaMan:

paul7979:

With the theory that delivery driver pay gets attributed to strictly delivery orders, who attributes the rent/buildout for the square footage of the dining room specifically to dine in orders? Who charges a dine in charge, as there is clearly costs associated with these orders that should be paid for in surcharges by these customers just as delivery fees are charged to delivery customers.

There are points that can be made here, but the big picture is still missing.

If I do 100 deliveries tomorrow, have 100 pickups, and 100 people dine-in, my costs for those deliveries will be higher than my costs for the pick-ups or dine-ins and by a wide margin. As most people here state, they do not charge a delivery fee that recoups all of their delivery expense. They are just getting some if it back. Another way to look at it, they are essentially keeping the costs consistent no matter how the customer gets their food.

A $20 delivery sale brings the same amount of profit, as a $20 dine in sale, as a $20 carryout…because you have to pay your employees either way. Take a look at one of your profit and loss statements…if you could have made one more $20 sale(delivery,dine in, or carryout), the added profit would be exactly the same…sales price minus food cost.

John

 

[Registered_Guest]

DFW PizzaMan:

I don’t know if you are the same “guest” as who posted the prior post(s), but I will always show hostility to someone who attributes false quotes to me. Especially when that someone doesn’t even have the stones to hide behind an anonymous but unique screen name, rather they have to hide behind a generic anonymous name. That way they can keep posting dumb stuff time after time and we don’t know who we are dealing with.

I’m not sure which “quest” you are talking about - I think there are probably at least 3 different people posting frequently as guest.

Therefore, to avoid confusion and to appease those that think people should register - I have registered now.

I am “Registered Guest”.

:lol:

 

[pizzaguy]

Otis I have to say you have really opend up a can of worms on this one! and all you wanted was a simple answer. Well here it is. Like snowman said perception is a big thing I think that is why one of the big chains here in Canada that said “free delivery but 10% off pick up” changed their ways. I have always charged delivery and in almost 8 years have never had someone not order because of it I have had people come and pick up but never a cancelled order. Any one that doesnt charge for deliveries is crazy I just finished my year end and noticed my delivery charges were over 13000.00 for the year imagine if I had free delivery! Every place will have their different demographics and different cost to deliver pizza. In my small town of 5000 houses we can do 5-6 deliveries an hour if they are all in town so my cost is not that much. My drivers get paid 7 per hour plus 1 per delivery plus tips. They average about 14 per hour when you add it all up in fact last friday my main driver made 19.75 per hour! not bad for a school kid with a part time job!

 

[system]

billy romano:

boy did we get way off on this one,i lost track of what the heck we were trying to do.either way you must staff for each of the other.if you offer del
you should charge accordingly.you are providing a service,they should pay.
i charge 2.00. for del. and .50 for each carry out order.

dont you get alot of crap for charging for carry-out?
I would think carry-out is the most profitable, so why discourage it?
that would never fly in my market so if you can make some extra cash that way good for you!
PS we charge $1.50 delivery charge…when drivers use their cars its all theirs…when they use ours(we pay gas, etc) we keep it

 

[system]

DFW PizzaMan:

Guest:

Could not agree more! DFW talks in here as such a wise and “successful” businessman, and then comes out with the “under the table” statement which explains how he can do EVERYTHING cheaper than anyone else.

Delivery drivers are the only thing I do that is not 100% legit. And the reason I do it is not to save on taxes. Around here, I could not keep drivers when I paid “above the table” Everyone else paid under, and for the driver that means more cash in their pocket. I was tired of the turnover, so I caved.

Also, I don’t subtract their expense from net income for IRS purposes. So while I am not paying those payroll taxes, I am not taking the expense deduction either. So I am paying more in income taxes than I should be.

So while not the right way of doing things, I am actually giving more to Uncle Sam from this arrangement than you would be. So why don’t you get the facts before you criticize.

Dont get on his case…DFW is 100% correct that by paying under the table is actually to his detriment besides the insurance implications that hopefully will never arise…IRS talk is stupid

What pisses me off is why I cant pay drivers the same minimum as waitstaff? My guys average $5.00 per run (includes $1.50 per order when they use their vehicles…minimum 3 usually 4 per hour) plus their hourly rate (approx $7.50 vs waitstaff $5.50 per hour). Do these guys really need to be making $25 an hour as opposed to $23?

 

[DFW_PizzaMan]

A different guest:

DFW,
Maybe the turnover problem is a result of the hostility you carry!

I no longer have a turnover problem. And I do not have any hostility unless someone puts words in my mouth and attributes a quote to me I did not say.

 

[DFW_PizzaMan]

john:

DFW PizzaMan:

paul7979:

With the theory that delivery driver pay gets attributed to strictly delivery orders, who attributes the rent/buildout for the square footage of the dining room specifically to dine in orders? Who charges a dine in charge, as there is clearly costs associated with these orders that should be paid for in surcharges by these customers just as delivery fees are charged to delivery customers.

There are points that can be made here, but the big picture is still missing.

If I do 100 deliveries tomorrow, have 100 pickups, and 100 people dine-in, my costs for those deliveries will be higher than my costs for the pick-ups or dine-ins and by a wide margin. As most people here state, they do not charge a delivery fee that recoups all of their delivery expense. They are just getting some if it back. Another way to look at it, they are essentially keeping the costs consistent no matter how the customer gets their food.

A $20 delivery sale brings the same amount of profit, as a $20 dine in sale, as a $20 carryout…because you have to pay your employees either way. Take a look at one of your profit and loss statements…if you could have made one more $20 sale(delivery,dine in, or carryout), the added profit would be exactly the same…sales price minus food cost.

John

You are wrong. I have some drivers on call. No deliveries means I don’t pay them because I never call them in. Additionally, no deliveries may mean I send my regular drivers home early. I do not need waitstaff, so the drivers wages are a pure extra for me that I DO NOT NEED TO PAY if there are no deliveries. Your telling me to look at my P&L, but what you want me to look at is gross profit (sales - COGS). Gross profit is of little concern to me. My biggest concern is the bottom line number, which includes wages. My wages would be higher under the all delivery example.

I did mean to say or in between deliveries, pickups, and dine-ins in my post above. Maybe that was where we had a disconnect, because my cost for only deliveries is much higher.

Another point though, a lot of people here pay their drivers per delivery. So of course there costs are higher for deliveries.

 

[DFW_PizzaMan]

Registered Guest:

DFW PizzaMan:

I don’t know if you are the same “guest” as who posted the prior post(s), but I will always show hostility to someone who attributes false quotes to me. Especially when that someone doesn’t even have the stones to hide behind an anonymous but unique screen name, rather they have to hide behind a generic anonymous name. That way they can keep posting dumb stuff time after time and we don’t know who we are dealing with.

I’m not sure which “quest” you are talking about - I think there are probably at least 3 different people posting frequently as guest.

Therefore, to avoid confusion and to appease those that think people should register - I have registered now.

I am “Registered Guest”.

:lol:

Thank you. By the way, I can care less if you register or not. But if you want to attack, you need to leave something to identify yourself otherwise you are a coward. Kinda like “guest”.

 

[DFW_PizzaMan]

Perry:

DFW PizzaMan:

Guest:

Could not agree more! DFW talks in here as such a wise and “successful” businessman, and then comes out with the “under the table” statement which explains how he can do EVERYTHING cheaper than anyone else.

Delivery drivers are the only thing I do that is not 100% legit. And the reason I do it is not to save on taxes. Around here, I could not keep drivers when I paid “above the table” Everyone else paid under, and for the driver that means more cash in their pocket. I was tired of the turnover, so I caved.

Also, I don’t subtract their expense from net income for IRS purposes. So while I am not paying those payroll taxes, I am not taking the expense deduction either. So I am paying more in income taxes than I should be.

So while not the right way of doing things, I am actually giving more to Uncle Sam from this arrangement than you would be. So why don’t you get the facts before you criticize.

Dont get on his case…DFW is 100% correct that by paying under the table is actually to his detriment besides the insurance implications that hopefully will never arise…IRS talk is stupid

What pisses me off is why I cant pay drivers the same minimum as waitstaff? My guys average $5.00 per run (includes $1.50 per order when they use their vehicles…minimum 3 usually 4 per hour) plus their hourly rate (approx $7.50 vs waitstaff $5.50 per hour). Do these guys really need to be making $25 an hour as opposed to $23?

$7.50 per hour plus $1.50 per delivery? Where do you live Perry? I would have a line of applicants 5 miles long if I offered that here, myself included.

 

[j_r0kk]

Okay,

1. DFW - Let it roll off your shoulders. I understand what you meant and you understand what you meant. The “registered guest” is just trying to push your buttons.
2. Otis - You don’t need a gimmick. If you’re going to deliver, put a delivery fee in there at the beginning. It so much easier to start with one at the onset rather than introducing one after you’ve opened. Let the quality of your pizzas and the quality of the service do the talking for you.

If you want to give special incentives to carryout customers, no problem: every time you put out some advertising make sure you have a “carryout special” included in your coupons. If you have customers who would rather pick the pizza up, this “carryout special” will give them incentive to do so.

I charge $1.50/delivery and pay my drivers $1.35.

Average round trip delivery…8 miles
Average mpg for delivery cars…20 mpg

20 mpg / 8 miles per delivery = 2.5 deliveries per gallon
2.5 deliveries per gallon x $1.35/run = $3.38 in mileage paid to driver per gallon of gas used.

Price of gas = $2.35

This leaves an extra $1.03 per gallon of gas used by the driver to pay for wear and tear on the vehicle.

-J_r0kk

 

[DFW_PizzaMan]

j_r0kk:

Okay,

1. DFW - Let it roll off your shoulders. I understand what you meant and you understand what you meant. The “registered guest” is just trying to push your buttons.
2. Otis - You don’t need a gimmick. If you’re going to deliver, put a delivery fee in there at the beginning. It so much easier to start with one at the onset rather than introducing one after you’ve opened. Let the quality of your pizzas and the quality of the service do the talking for you.

If you want to give special incentives to carryout customers, no problem: every time you put out some advertising make sure you have a “carryout special” included in your coupons. If you have customers who would rather pick the pizza up, this “carryout special” will give them incentive to do so.

I charge $1.50/delivery and pay my drivers $1.35.

Average round trip delivery…8 miles
Average mpg for delivery cars…20 mpg

20 mpg / 8 miles per delivery = 2.5 deliveries per gallon
2.5 deliveries per gallon x $1.35/run = $3.38 in mileage paid to driver per gallon of gas used.

Price of gas = $2.35

This leaves an extra $1.03 per gallon of gas used by the driver to pay for wear and tear on the vehicle.

-J_r0kk

I think I will take your advice. This has been a very long week. I think I’m bringing some of my frustrations with me to my posts,.

 

[wa_dave]

As I have stated many times before, if I had my way I would drop deliveries full stop.

Customers have unrealistic sense on how long a delivery may take especially on Friday and Saturady nights… They have difficulty accepting 45 minutes when competitors are quoting double that. They think we should drop everything and get it to them in 15 minutes.
When they haven’t go their delivery in a reasonable time they phone and fume"I ordered 1 1/2 hours ago. Where"s my f*****ng pizza" Check the orderand see it was 45 minutes ago and they shut up quick smart.

In Western Australia unemployment is at an all time low (3%) and staff is hard to get and keep. PH and The Dots on the Box have large banners in their windows seeking drivers all the time. One local “Dots” outlet is quoting 2 1/2 hours on busy nights for delivery because they can’t get enough drivers. We pay our drivers $10 per hour plus $2, $2.50 or $3.50 depending on what delivery zone (delivery costs are $5, $6, $7.50 per zone).

I do not contribute to the cost of drivers being a fixed cost as their return is only equitable on the delivery orders taken. They are paid more than kitchen & customer service staff, but are expected to do work in the store when not delivering. Funny thing is that they need a toilet break every second delivery, always find excuses to slowly enter in their delivery, plus various other manners of only doing deliveries. We push them all the time to get them going. At the moment 70% of mine are great but the other 30% need pushing all the time. Unfortunately we can’t get rid of them because replacements are hard to find.

When a driver goes on delivery and are away 15 minutes then that is a cost of $2.50 plus what we pay them in delivery allowance. We took out far reaching deliveries as often they would only do that single delivery and it would cost us around $9.50 to $11 dpending on how long the driver was away and we only got $7.50 delivery charge.

At least with customer service and kitchen staff they are at it all the time with phone and counter orders, table sriceand cleaning, box folding, prepping, making pizzas etc. They are more cost effective and you can more easily account for their costs as you know pretty close what your sales will be on any given night. Deliveries fluctuate from 20% to 50% of orders taken.

Oh, by the way just in case I have said it before. I HATE DELIVERIES

 

[wa_dave]

j_r0kk:

Price of gas = $2.35

-J_r0kk

Luxury !!!

We are currently paying AU$1.18 per litre which is about AU$5.50 per gallon or U$6+ per gallon.

Our drivers only just break even on petrol let alone have much left for running expenses.

Yet some customers expect us to deliverfor free!!!

Dave