Is it significantly easier to run a delco over a full-servic

[system]

I’m looking to purchase a pizza restaurant and am split between purchasing a delco-- which i think would be easier to run, vs a more full service sit down restaurant type place with full pasta dishes and even some appetizers.

Anyone with experience and comments between the two would be greatly appreciated.

 

[j_r0kk]

Re: Is it significantly easier to run a delco over a full-se

My restaurant offers dine in, carryout, and delivery. What we’ve done is set it up almost like a del-co on the interior with the exception of the 500 square feet for dining (24 seating capacity) up front. When the customer comes in, they place the order at the counter. When it comes out the oven, we bring the pizzas (or whatever you want to serve) to the table. The Pepsi fountain machine is in the dining area with forks, knives, napkins, and plates. This way you don’t have to worry about a wait staff, but still get the benefits of adding that extra dimension. - J_r0kk

 

[Daddio]

Re: Is it significantly easier to run a delco over a full-se

I went with del-co for two reasons 1) I have fewer staff positions to fill. 2) I dont have the issues of a public washroom to contend with.

 

[pizzaguy]

Re: Is it significantly easier to run a delco over a full-se

I went from a delco to a quick casual concept we have 42 seats. You order at the counter and we bring the food to the table when it is ready. yes it is easier to run a delco but I also increased my business by 40% yes I do have some more labour costs and of course the building is bigger so there are more cost there as well but I am also making more money. I was doing well in the old location but was getting bored cause after 5 years it wasnt a challange anymore so I decided to go bigger and better. In fact tonight at around 7pm i went into the dinning area and there were only 5-6 seats empty and it got me thinking about why I moved! I was missing all that business before, is it worth the extra work? I like the challange so I say yes!

 

[system]

Re: Is it significantly easier to run a delco over a full-se

Tobe - What kind of experience do you have in the pizza business? That might be the best place to look. If you have never worked in a domiclone type delco, then you really should get out there and at least pick up a part time weekend job just to try it on for size.

I worked in delcos for years. By the end of about 11 years of that I was tired of talking on the phones to people I would never meet, so when I opened up my own shops I put in a dining room and a full bar. I still do delivery and CO, in fact 65-75% of my business is delivery, but it is really nice to have the ‘regulars’ come in and talk over a beer.

 

[system]

Re: Is it significantly easier to run a delco over a full-se

Of course, quick service is the best. Paper plates (no dishwashing) and no waitresses. But these are the most profitable, easiest to run and go quickly.

Unfortunately, the 2 best businesses that i have seen (highest sales volume at a reasonable price), is a delco and a eat in place with some use of regular dishes.

i just figure that with waitresses and use of real dishes, you are basically running a restaurant, especially since this place has appetizers and real pasta dishes. Plus you’d need busboys, cleaning the tables and floor every night-- a lot of duties.

Even the broker told me that the for the restaurant type places, that most people burn out after just 2-3 years. They just use the money they made to get out of the pizza biz and try to buy a fine-dining/ethnic/casual dining type place.

I have no experience in either, except that when i was younger i delievered for about 4 months for a takeout taxi type place (delivery service for restaurants).

Why exactly do most ex-corporate types who get in the business want out after just 6 months? I can definitely understand that running a full-service restaurant is hard work that can lead to a fast burnout rate. But what about delcos? Do people want out of them quickly as well? I understand that it gets really stressful at peak times trying to get everything out and delievered on time, as no one wants to wait like 1 hr and 15 minutes for their food though.

Thanks for your help!

 

[j_r0kk]

Re: Is it significantly easier to run a delco over a full-se

“Why exactly do most ex-corporate types who get in the business want out after just 6 months? I can definitely understand that running a full-service restaurant is hard work that can lead to a fast burnout rate. But what about delcos? Do people want out of them quickly as well? I understand that it gets really stressful at peak times trying to get everything out and delievered on time, as no one wants to wait like 1 hr and 15 minutes for their food though.”

I think I can speak for about 95% of the people here. That’s what makes us pizza guys. The rushes are what it’s all about. It’s about handling to the peak of your abilities, and then pushing it a little further. There’s nothing like getting totally blasted on a Friday night and handling the business.
I think my concept and Pizzaguy’s concept are pretty similar and it’s far easier to run than full service, but with the extra sales a normal full service will give you. My dine in business encompasses about 40% of my total sales. Without it, I’d be just another delivery/carryout shop. Been there, done that… no thanks.
One word of caution, though. And this is just my advice so take it for what it’s worth. Do NOT go into this business unless you know it’s the business for you. The pizza business is NOT for everybody. It’s long hours and you won’t get rich quickly. You’ve gotta have pizza sauce running through your veins and the only way to get it flowing is to get into someone elses store and try it on for size. I’d recommend Domino’s or Papa John’s, because they’re both relatively higher volume companies and have a fantastic system you can learn from. - J_r0kk

 

[PIZZAMAGOO]

Re: Is it significantly easier to run a delco over a full-se

I think full service is tough, and I think delivery is tough. I am going for quick service (counter) this time around, and I also have a separate entrance with reserved parking for pick up of carry out food. I am going with a very full menu, but I am also adding in family entertainment to make my location a destination. I agree with the others that what you need to do is make sure that what you want is really what you want! Go work in both types of places and just see for yourself. Then work on your business plan over and over again, and then go over it again! Then think long and hard about what you think you are doing because it is not easy. You may fail, you might buy (at a hefty price) yourself an $8 an hour job, or you might just beat the averages and make a great living! I wish you the best of success, and if you make it work you will love the feeling you get from making something out of nothing!

 

[system]

Re: Is it significantly easier to run a delco over a full-se

I have pizza experience in full service, delco and food court. I’ve found that the delco operation is the easiest of the three to run. However, even though it’s more work and harder to run I sometimes miss the sit down aspect of the pizza business. I average about 10 customers a week that come in and are looking for someplace to sit down and eat. I do lose those sales but it’s what you have to give up to avoid dealing with servers, dishes and long table turns.
I’m happiest making the pizza and dealing with my carryout customers. Hopefully, you make the right decision for you. Good Luck !

 

[system]

Re: Is it significantly easier to run a delco over a full-se

What I could tell you is that DO NOT attempt to do all 3 (dine in, carry out, & delivery) unless you are EXPERIENCED, have low blood pressure and a wife that is understanding.

After about 2 months of adding delivery I would advise you to focus on delivery as opposed to dine-in as the “easier” way to make more money in less time with less work…again thats based on mt experience and it is difficult to generalize such an open question

 

[pizzaguy]

Re: Is it significantly easier to run a delco over a full-se

As noted above in my other post I do all three but I use the quick casual concept we are not fast food but we do bring the food to you we dont have wait staff so you have to order it at the counter as for dishes we have plates, fork, knife, pizza trays and coffee cups thats it so clean up isnt a big deal. Yesterday was a pretty busy day with lots of delivery and take out and our dine in was about 18% of sales so I say if you can do it you will enjoy the extra business

 

[PIZZAMAGOO]

Re: Is it significantly easier to run a delco over a full-se

Perry, that was pretty funny! He has a good point though, it would be a lot to bite off if this is your first go at it. I think you could do very well going at it like Pizzaguy though. Maybe start out with five or ten tables with counter service, and if you have the room add more later if things are working out well. Then you could even add servers if you want, and the labor cost on servers is not bad at all. It would be a shame to turn away business, especially if they were a first time customer that you could hook as a regular. Good luck.

David McGuire

 

[system]

Re: Is it significantly easier to run a delco over a full-se

We run an all 3 operation with over the counter take away (you call it carry out), pain in the butt delivery and casual order at the counter dine in.

Our dine in caters for 24 at 6 tables where customers order at the counter and we serve up on aluminium pans (never been through the oven) with plates and glasses for drinks. This is an area we want to build as we only have a chinese restaurant and an average bistro type casual reataurant in the shopping centre we are located in. There is a six theatre cinema complex in the same centre (we all are based on the outside of the centre) and we want to capture some of this market away from the other two eateries.

Our counter order girls take the food etc to the tables so we do not have specific wait staff. We are not licensed for alcohol so serving is not a problem, but we are getting Bring Your Own licence.

The main part of business is take away from phone or over the counter orders with about 35% of sales being deliveries.

If I had my way I would drop deliveries likea hot potato.

Unlike the US we do not have the deep concentration of population in a small area and consequently our delivery radius is about 8 miles + (12km +). The high price of petrol makes it difficult to get drivers and to keep them despite paying the top rates in the industry - $10 per hour plus $2.00, $2.50 or $3.00 per delivery depending on what delivery zone they go to. We charge for deliveries by zone at $5.00, $6.00 and $7.50, where the franchises charge a flat rate of around $7.95 to $9.00 for a 4 - 5 km radius). Our drivers Delivery allowance is per order so they may take 3 orders and get up to $7.50 plus their hourly rate.

I find deliveries are the highest cost factor especially on quiet nights, despite the drivers having to work in the shop making boxes, cleaning, taking orders, doing prep for the kitchen etc etc. Deliveries are not constant enough over the whole week to bring in enough to cover the cost.

We have to pay the rates we do as the price of petrol is around $1.25 per litre (around $6.00 per gallon) and you cant keep drvers at lower rates. One local indy is offfering $150 as a sign on incentive to get drivers.

If I could really change the pizza world I would stop deliveries and do take aways and dine ins and make more money.

I know we are in a different pond to you but as some of the others have said if you do the sit down correctly the you can make it work for you. A full shop has the perception of being a good place to buy from so the more you can have bums on seats the more the passer by will probably give you a try as they will think it is a good pizza place. The noise of many people in the shop also adds to the atmosphere of the joint, especially if you music blaring out as well.

What ever you decide to do remember at all times, work on the KIS(S) principle - Keep it Simple (Stupid).

 

[j_r0kk]

Re: Is it significantly easier to run a delco over a full-se

I find deliveries are the highest cost factor especially on quiet nights, despite the drivers having to work in the shop making boxes, cleaning, taking orders, doing prep for the kitchen etc etc. Deliveries are not constant enough over the whole week to bring in enough to cover the cost.

Well I grew up in the pizza business with Domino’s, spending over 10 years with that company, so I am biased when it comes to delivery business. I understand that the costs are high to run the delivery aspect in your store and some days it would be cheaper NOT to have drivers on the clock at all, but let me ask you one question for curiosity’s sake. Are you promoting your delivery business? I know my advertising budget here is in the neighborhood of the 6% range and EVERY coupon but one promotes my delivery business.

I don’t know if I think backwards because I came up with Domino’s but I’ve always taken the stance that DELIVERY is first, followed by carryout, then dine-in. In the same breath, however, I understand that each is important in having a balanced operation.

Also, isn’t it cool how this post grew legs and started to run? LOL. EVERYBODY’S putting in their two cents. hehehe. -J_r0kk

 

[system]

Re: Is it significantly easier to run a delco over a full-se

j_r0kk:

I find deliveries are the highest cost factor especially on quiet nights, despite the drivers having to work in the shop making boxes, cleaning, taking orders, doing prep for the kitchen etc etc. Deliveries are not constant enough over the whole week to bring in enough to cover the cost.

Well I grew up in the pizza business with Domino’s, spending over 10 years with that company, so I am biased when it comes to delivery business. I understand that the costs are high to run the delivery aspect in your store and some days it would be cheaper NOT to have drivers on the clock at all, but let me ask you one question for curiosity’s sake. Are you promoting your delivery business? I know my advertising budget here is in the neighborhood of the 6% range and EVERY coupon but one promotes my delivery business.

We do promote delivery on our menus and on our signage but in Australia we do not have coupons to the extent that you do in the States. It is mainly Domino’s and Pizza Hut that do coupons, and they tend to push deliveries on them.

The biggest problem we have with deliveries is getting drivers. The whole Pizza industry is suffering here with not being able to get drivers. Pizza Hut, Domino’s and Eagle Boys (a like franchise to the other two) have posters in their windows as a fixture of their signage seeking drivers.

If I was in the situation of dense population in a concentrated area where drivers only did short delivery hops then I would push it a lot more. Unfortuantely we don’t have this so we have to be cautious with the delivery offer. We want to do our deliveries no more than 45 minutes on the busiest nights and to advertise deliveries would push this out to unacceptable levels of 1.5 hours as the local Domino’s is experiencing lately. They are advertising themselves as the “delivery experts - Hot Cells” in their coupons, on TV and in the papers, but they can’t get enough drivers.

I don’t want to lower my standards or jeopardise my business just to say we deliver. I would rather do fewre and do it good than to do a heap badly and get a bad name.

Dave