There are likely as many ways to compensate drivers as there are pizza companies. I’ve been with Dominos for about 24 years. Happily, I work for a GREAT franchisee. Our compensation is 6% of sales, and when you factor in hourly wage and tips, it’s no surprise that we have a dedicated group of lifers. I realize that my store is not like all Dominos franchises. One of my drivers moved to North Carolina a year ago. Two months ago, Shawn came back with tales of misery and woe at how cheaply, and poorly the store he worked for was being run.
I hear stories about the other deliver outfits in the area (Burlington, VT) that offer no compensation, or minimal compensation. Their turnover is unbelievable. When you pay your employees garbage wages, you’re ultimately going to have garbage employees. By paying more, you can be 1) more demanding, and 2) more selective. By offering a legitimate livable wage, you can actually cultivate career employees.
Our franchisee, and his children who are poised to take over when he retires, are guaranteeing the ongoing success of their family business. The ongoing success of the family business in turn guarantees the ongoing career position of the employee. Our store is a seasonally developed mix of long term family guys and college students who need to go home for the summer. By building a seasonally departing workforce, we can keep our labor in line during the slow summer months without cutting too deeply into the earnings of the lifers.
The bottom line with paying your drivers and insiders is that you’ll make tremendous gains in the long run by paying your people well. 40% of our crew has been on the job for 10 or more years and because of this, I don’t have to worry about how they’re treating customers, or how reliable they’re going to be. Reliablility, talent, and peace of mind in an often hectic environment are priceless. I’ve got a solid crew who knows what to do in pretty much any given situation, and that is a fantastic luxury from my perspective.