Took a position with a restaurant delivery business and thought I would pass on the interesting form of compensation they have. I am not sure this would help you owners, but I thought I would add to the knowledge base here. These online ordering/restaurant delivery companies are growing in the U.S. and will be a source of competition as customers have more choices in delivered foods.
The company I work for is behind the industry curve though they have been around over 20 years. They are quickly implementing online ordering but currently just take phone orders for pickup from restaurants. They get a cut from restaurants on each order.
Compensation: No hourly pay. I am an independent contractor. I pay them a $15 per month uniform and catering bag fee. The company I work for makes an unknown percentage off the restaurants I deliver for. I get paid simply from adding a delivery fee and tips, declare my own compensation and deductions for taxes, and pay self-employment taxes.
Lunch: $7.95 per delivery plus mandated 15% gratuity with minimum of $20. These are large orders mostly placed by drug reps to be delivered to medical offices. I pick up from the restaurant, sign the credit card receipt after adding my fee, deliver to the office, and set up. Usually averages $25-40 dollars per delivery. I usually get just one delivery but sometimes two.
Dinner: $4.95 per delivery plus optional gratuity. If it is an apartment or hotel, add another $1. If it is out of the area add another $4. I get a call, pick up the food, deliver, and return to restaurant to pay. In the week I have been doing this I have averaged per delivery 10 dollars in compensation, 10 miles in mileage, and 5 to 8 deliveries over 4 hours.
When they fire up online ordering, they will drop our compensation by a dollar a delivery. In return, they will prompt the customer for 15 or 20 percent gratuity and we will not have to return to the restaurant to “settle up”.
It is a pretty interesting “pure delivery” position though I will have to analyze the tax ramifications to determine how much better it is than PH. I definitely enjoy the work more as there is no in-store grunt work, and I yet to be stiffed.
Hope this has been interesting and informative.
The company I work for is behind the industry curve though they have been around over 20 years. They are quickly implementing online ordering but currently just take phone orders for pickup from restaurants. They get a cut from restaurants on each order.
Compensation: No hourly pay. I am an independent contractor. I pay them a $15 per month uniform and catering bag fee. The company I work for makes an unknown percentage off the restaurants I deliver for. I get paid simply from adding a delivery fee and tips, declare my own compensation and deductions for taxes, and pay self-employment taxes.
Lunch: $7.95 per delivery plus mandated 15% gratuity with minimum of $20. These are large orders mostly placed by drug reps to be delivered to medical offices. I pick up from the restaurant, sign the credit card receipt after adding my fee, deliver to the office, and set up. Usually averages $25-40 dollars per delivery. I usually get just one delivery but sometimes two.
Dinner: $4.95 per delivery plus optional gratuity. If it is an apartment or hotel, add another $1. If it is out of the area add another $4. I get a call, pick up the food, deliver, and return to restaurant to pay. In the week I have been doing this I have averaged per delivery 10 dollars in compensation, 10 miles in mileage, and 5 to 8 deliveries over 4 hours.
When they fire up online ordering, they will drop our compensation by a dollar a delivery. In return, they will prompt the customer for 15 or 20 percent gratuity and we will not have to return to the restaurant to “settle up”.
It is a pretty interesting “pure delivery” position though I will have to analyze the tax ramifications to determine how much better it is than PH. I definitely enjoy the work more as there is no in-store grunt work, and I yet to be stiffed.
Hope this has been interesting and informative.
Last edited: