You’re partly correct on delivery radius. When opening a new location we establish the delivery area by setting each corner( NW, SW, NE, SE) as 5 mins from the store. All areas are different however. Some towns one JJ’s covers the entire town. In cities, you’ll see 4-5 JJ’s opened up to handle all the residents/business with 5 delivery areas. And in large cities like SF and Chicago, the downtown areas only deliver by bike or skateboard due to lack of parking like The Loop in Chicago for example. A delivery area for a store in The Loop is 3-4 blocks in each direction. In this case, all the people are upwards in huge 40-75 story office buildings rather than spread out over miles. All orders are to be out of the store in less than 4 mins. You’re literally eating your food in less than 10 mins after you placed your order and with little effort from your own self.
With pizza, I made my delivery area small as well and only go where my drivers can get to in 10 mins or less. There’s 88,000 people in my delivery area. Having faster delivery with a good product will leave you with zero competition. People don’t want to wait 60-90 mins for their pizzas, if they can get a similar or better product from someone else in 30-45 mins They’re hungry now! My competitors in SF are terrible at delivery management. I’ve researched each place on Mon/Wed/Fri/Sat/Sun nights for delivery times. I called each one every day for a month and simply asked how long the delivery time is. During the week the avg wait time was an hour, with the fastest time quote being 45 mins. On weekend nights, avg wait time was 1 hour 20 mins with the fastest time quote being 1 hour and one place was even 2-2.5 hour wait on Fri AND Sat.
Speed is a big deal and a great niche market. Takes a lot of time, effort, proper execution, and disciplined employees. Everyone wants faster everything. Internet, phone service, shipping, speed limits, cars, you know name it. Own that small delivery area and run it like a well-oiled machine. Before you know it, you’ll have everyone in that area calling and you’ll be flush to open up another location.