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Raising delivery fees?

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Mrschleg79

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Thinking about raising the charge for delivery. Currently at $2.00 per run driver gets $1.50. With all these 3rd parties charging $4.99 and up for delivery they are squeezing us out on drivers? Thoughts on rising to $3.00?
 
I currently charge between 2-3.50 depending on the distance and I am considering raising mine as well. I also give the drivers all but .50 of the delivery fee.
 
I was charging the exact same as you and giving the driver the same as you also. I just went ahead and raised the fee to $5. It is what every major chain pizzeria charges so i just figured im not gonna short change myself. a couple groans from customers but it hasnt stopped them from ordering.
 
What’s your cut on the $5 now? Have their been any changes in tips/complaints from drivers?
 
I was charging 2.95 with $1 going to drivers. Dominos raised to $4 in my town so I went up to $3.95 and drivers still get $1. My drivers get paid $12/hr now with min wage going up to $13 next month so I have to increase again to $4.95. All my drivers make over $30/hr with tips so I do not feel bad in the least (no inside work)
 
I have never once thought about taking delivery fees up with what the competition does. Guess I missed out there. Same as a menu price I suppose. We’re 7.25 with rumors of 12 coming soon
 
So we just changed the fee about 6 weeks ago and currently I am still only taking .50 but told the drivers I may take $1. I probably wont as long as the delivery fee continues to cover the cost of insurance. Drivers are still making the same in tips and now there daily average is even higher because of the higher del fee and they absolutely love it. Like perry my drivers are averaging about $35 an hour currently. We also pay our drivers $12 an hour base pay.
 
I personally don’t believe there is any reason to short change yourself. If you are currently priced less than your competitors I would definitely raise prices, but that’s just my perspective.
 
I can’t imagine paying drivers 12/hr. That must sting. I know it’s coming though. How much did your prices go up to cover that?
 
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I just constantly raise prices every year as needed, we haven’t had any major jumps as we are almost always ahead of our competition on wages offered anyways. I think it was pizzapirates who posted it once but if you ever want to figure out how much to raise prices to offset wage you take the percent increase your looking at, so if your at 9.65 and your considering going to 12 its about 24% (12/9.65) then you take your current labor and multiply the two. so if labor is 25% you have .25*.24 =.06 =6% price increase. Of course that math only works if everyone is getting that raise and its a bit more nuanced if you are targetting only parts of the staff.
 
our drivers, when not delivering, are just inside workers. They answer phones, do dishes, do prep etc… One upside is less turnover because there other employment opportunities pay so much less. Funny anecdotal story, one of my drivers who is 21 and has worked for me a couple years now and works about 25 hours a week had his mom tell him it was probably about time to look for a real job. He replied ‘Mom I am making $850 dollars a week’ his mom was taken back because she works full time at a bank for $14 an hour and was just like, ’ well that’s way more money than I make so I guess just do whatever’.
 
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