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paul7979:
Would anyone here think that it would be acceptable if the burger place that locates here adds an additional drive through fee to their customers that opt to use the drive through as a way to recoup the $6000 per month expense the drive through costs them. If you don’t think this would be acceptable, why would you think customers of a pizza delivery company would find it acceptable to pay an additional delivery fee?
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Paul, I see where you are going . . . and I see it as not quite the same thing. That said, I would think that a convenience fee would be quite acceptable to borderline brilliant. However, it could bite the operator in the foot since the purpose of the drive-in is to increase volume capability and fees might tend to drive down use of that window. Depends on how he works with it. Gotta be absolutley on top of times and service levels. Keep the prep and “ready food” pars meticulouly accurate by time of day. He would be better served to have thw world’s best efficiency and procedures in place to be able to drive volume through that store as it is the only way he can survive.

OR change the paradigm and serve higher dollar meals through that window. Prime Rib, lobster, whatever. 2400 sq ft is awfully small for a higher end dining room, but it could be done. Scrupulously fresh and well prepared food for a premium price. Even if it only on weekend specials or something.
 
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NicksPizza:
However, it could bite the operator in the foot since the purpose of the drive-in is to increase volume capability and fees might tend to drive down use of that window.
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Seems like the same purpose of delivery, and regardless of what some may think, fees do tend to drive down deliveries.
 
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Let me say it again… markets and customer expectations are different. What works for you could be the kiss of death in another market.

Delco and traditional pizza businesses who offer delivery are not even the same species of business.

Costs do not translate across national borders without understanding the relative costs of living between each country.
 
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paul7979:
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NicksPizza:
However, it could bite the operator in the foot since the purpose of the drive-in is to increase volume capability and fees might tend to drive down use of that window.
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Seems like the same purpose of delivery, and regardless of what some may think, fees do tend to drive down deliveries.
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I think we agree to some point that both are tools to generate sales volume. The drive-in I envision as a tool to move customers through the line faster than standing in line. Not quite so in lots of places. In my little world, delivery isn’t about maximizing the number of customers I can serve in an hour so much as it is about capturing customers who seek a convenience service of not having to leave their house . . . . and may not really want to pay for the cost of that convenience. What the ‘fee’ people are saying is that it should be clear and specified . . … the “built in” people aren’t arguing that people shouldn’t pay for the service, just that everyone[u/] should pay, and that it should be hidden in the menu price. Sounds different put that way, huh? 🙂

BTW, the landlord is pricing his real estate base on demand side economics. He sees the drive-thru property as a desireable property to prospective tenants. As such, he is demanding a higher market price. We have the same opportunity with delivery service if we as an industry can just make it happen. Delivery is a desireable service that propective customers are willing to pay for; they do it all over the world. We just have to be willing to stand up, say our service is worth paying for, and set a fair price for it.

We are just barely past the $10 pizza theshold, and corporate pizza guys are trying to drive us back there!! We borke through the delivery fee barrier, so let’s stay the course and not be affraid of it. Use it wisely and respectfully, but use it.
 
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paul7979:
I have argued with many people here in the past who throw the “why should the carryout customers subsidize the delivery cost” argument to which I have countered with the absurdity that most would see in adding a sit down fee to cover the extra occupational costs associated with having seating.
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You mean like the tip, where at least 15% is considered all but mandatory these days? The tip goes to the server, but we in exchange get to pay them $2.13 per hour. So I would say there is a fee associated with dining-in and is indirectly charged by the restaurant.

I only do 10-15% delivery and have no interest in doing more - I’m more into being a sit down restaurant. If I did upwards of 90% delivery however, I would probably scrap the fee and build it into the price. Delivery service is actually quite expensive for me to run so yes, the customer pays partially for the service - less than half of the actual cost that it takes for me to deliver their order.
 
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Dough Boy:
right now drivers make $7.50 /hr + $2.00 a delivery
i’m thinking of paying $7.50 / hr + $1.00 and offering free delivery
if they are using there own car is that enough? the thing is right now they get $2.00 but we hardley get any deliveries and the ones that do deliver don’t tip because the assume that the fee is the tip
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On a busy friday night, how many deliveries does your best driver take? 7.50 plus the 2.00 plus tips and the use of a company car? When can I start?

Our guys gets $3.00 an hour, $2.00 per delivery plus tips and they are standing in line wanting to work. When all is said and done some guys leave after a friday dinner rush with $125.00 in their pocket for 4 hours of work. So that equates to 31.25 per hour and they had to pay for the $15.00 in gas they used in their own car.

Tony
 
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This is a very explosive topic. Everyone has their own idea on pay scale, benefits, tips, fees, etc… The big problem is that the US as a whole does not have a standardized and accepted level of compensation for this type of service. It really is what each market will support and allow. I am not saying take advantage of the customers, but as a business owner you have to make money on the sale to survive. The really sad thing is that most people do not realize that the indie pizza shop does not have the volume like the big guys for the most part and can not survive at their price levels. They only notice all of this when you are out of business and they have to order from PH or PJ’s and get to taste the difference. I stand by my thoughts of building part of the delivery expense into the base pricing and then a moderate delivery fee to cover the rest. Oh, and I hope the driver gets a decent tip too. I was a pizza driver back in HS and that supported my lifestyle. Where’s gregster on this one…not like him to be quiet? 😛
 
qcfmike:
Where’s gregster on this one…not like him to be quiet? 😛
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Probably saw what I paid my drivers and started migrating here :lol: 😛

NOTE GREGSTER _ IT WAS A JOKE !!!

Dave
 
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Business decisions about delivery fees and customer providing driver tips are two different issues, though. Totally diffeent.
 
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They really are one in the same. If you live in an area where people do not tip as well… your drivers are going to need a higher base pay and per deliver fee to cover their expenses and yours. If they make a lot on tips than the impact of eating a little of ther fuel cost in their own cars is less likely to cause a big problem. It’s all about money. Just give it a few more months and I am sure that our great Executive branch will have a pizza price plan all set for everyone and then it won’t matter what you charge. :cry:
 
I’m with Paul 100% here. Our industry thrives on the word FREE yet one of the biggest things we do we make an explicit charge for! crazy!

In my market (non US) there is:
  1. no tipped wages
  2. very little tipping
  3. FREE delivery
Is it FREE? is anything FREE? nope, IMO very little is ever free!

In my case my ‘FREE’ delivery its built into my main menu costs. I’m 60% delivery by order count. Why do the other 40% choose to pick it up? Well if you’ve followed my posts you’ll know its because I offer some very good collection specials which I have chosen as they offer a good incentive for some to come and pick up but which also remain competitive to me as well. Having lots of customers in the shop (delco) is a great advert for new customers.

Some people also don’t understand the difference between ‘it’ll be ready to collect in 10-15 minutes’ and ‘it’ll be delivered in around 30 minutes’ (although most are there around 22mins). If someone’s in a real hurry I’ve had plenty come and pick it up although they have to them driver home, unpack etc.

Its all about your market. IF one of the big 3 suddenly decided to do FREE delivery again then the rest would probably follow suit and then I bet you’d all have to change pretty quickly as well. :twisted:

Wiz
 
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Wizz,
I like that you specifically said you are 60% delivery count. I also love that you make assertive pick-up specials. That makes a lot of sense to me . . . as a customer I would ask “why am I paying the same thing the delivered customer is paying?”. You have a perfect answer in the specialsfor pick-up. I would most likely not be paying the same to pick up.

I also appreciate your mention about market differences. No matter what you, I and the hundreds of other doobers on this forum say, the decision will ultimately come down to knowing each of our market atmospheres and making a considered business decision. Knowing the tipping habits of your market dfinitely means the wage tip credit is less meaningful to businesses there.

You hit the nail on the head that if some econo-high.production pizza machine showed up, they can pretty much muscle the marketplace in a LOT of places. If somehow the big corporate guys find a way to take that delivery fee out, then we would all find ourselves re-evaluating delivery fees. Corporate places hardly ever eliminate revenue streams once established, so I predict that the fee is here to stay for a while whether we like it or not.

With food prices holding and labor/wage costs higher than 3 yrs ago . . . gonna take a leap of faith off the $5/$10 pizza game for them to go back.
 
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NicksPizza:
. . . as a customer I would ask “why am I paying the same thing the delivered customer is paying?”.
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Nick - YOU might ask that because you are in the biz - but I’d bet money that any other customer would never think of such a question. It wouldn’t make sense to ask that from their point of view since they would think that delivery was “free”.

I’ve only heard pizza store owners bring that point up.

Has anyone here (that had free delivery at the time) ever have a pickup customer ask why his pizza costs the same as the person who used delivery?
 
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nope because I discount certain collection specials. It also allows me to complete with the much cheaper competition I have. People know I have better pizza but some do not want to/can not afford the price I charge. So offering a discount for collection allows me to play the games with some of these guys.

We can not be ‘all things to all people’ but I’m trying to get to as many as I can some way or another.
 
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Registered Guest:
Has anyone here (that had free delivery at the time) ever have a pickup customer ask why his pizza costs the same as the person who used delivery?
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I am glad you asked that question. At least 2 times a night I had customers ask if they get a discount for picking up when I offered free delivery. The only thing I could tell them is they would have their order sooner. There were several times I wanted to say “If you got a discount for picking up the order the the delivery wouldn’t be free.”
 
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Wizzle Wassell:
We can not be ‘all things to all people’ but I’m trying to get to as many as I can some way or another.
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A true small business man trying to expand his service market 🙂

We get/got people asking for all sorts of discounts and special considerations, including the discount for pick up (before we had a fee).

I have asked that question more than a couple times even before I was in the business. Free delivery meant a 1 hour delivery time from a store we could see from our balcony in Atlanta, so if it was cheaper, I’d pick it up. Never was (PJ). I was also a poor college kid at one time, and looked for every discount I could wrangle. Now I’m a poor pizzeria owner. The more things change . . . .
 
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The new Eagle Boy’s Pizza chain that open 100mts from us had an small opening advert hidden the obscure middle/back pages in our local free paper yesterday and what stood out was their “pathetically soft” opening special and a highlighted box that said “Just add $9 for delivery”. They only deliver to a 4km radius to their shop and for us at the maxium of this radius our fee is $6.50 and the closer ones $5.50. Boy am I going to do some work on that cost of theirs :twisted:

Dave
 
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Pakula's Pizza:
Dave-
If a driver is making 15/ hr and delivery costs $9.00 are you getting $108.00 for a cheese pie??
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Sorry you lost me on that one ???

We aren’t getting $9 for delivery. That is the new shop just up the road. Yes we pay our drivers $15 per hour

Dave
 
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dave-
im sorry i must have read that wrong. Even Still I can’t imagine a pizza being $13.00 and delivery is $9.00 from you or anyone else. How much is a pizza by you??
 
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