Thegonagle
Diamond Member
- Jun 8, 2000
- 9,773
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I know a little bit about the business, at least locally.
'Round here, ALL pizza places kick $.75 to $2.00 per delivery to the driver for wear and tear and gas. Many of those places don't have a delivery charge (local joints in competition with each other), but a lot of them do (mostly the Domino's, Papa John's, and Pizza Huts). The important thing is that they all pay some small amount per delivery for "mileage."
Corporate-owned Domino's stores in the area the worst. They charge every delivery customer $2 or so, and pay a different amount per delivery based on how many orders the driver takes out the door per trip. For example: $1.25 for the first order, $.85 for the second, $.60 for the third, $0.00 for any additional orders. But they still keep the $2. On every order. So, suppose the driver has 4 orders to deliver, Domino's is collecting $8, but paying out $2.70. Ouch! AFAIK, Domino's is the only one in town that does that tiered thing, but Papa John's and Pizza Hut certainly collect more in delivery charges than they pay out in "mileage."
Other places with a delivery charge probably collect $1-2 from the customer, and pay 100% of it back to the driver in "mileage."
And places without a delivery charge usually pay around $1 per delivery in "mileage."
Conclusion: The restaurants that collect a delivery charge are simply shifting what is traditionally the restaurant's expense over to the customer. (And some are making an additional profit from it. Either way, the delivery charges flow to the restaurant's bottom line, not the driver's.)
'Round here, ALL pizza places kick $.75 to $2.00 per delivery to the driver for wear and tear and gas. Many of those places don't have a delivery charge (local joints in competition with each other), but a lot of them do (mostly the Domino's, Papa John's, and Pizza Huts). The important thing is that they all pay some small amount per delivery for "mileage."
Corporate-owned Domino's stores in the area the worst. They charge every delivery customer $2 or so, and pay a different amount per delivery based on how many orders the driver takes out the door per trip. For example: $1.25 for the first order, $.85 for the second, $.60 for the third, $0.00 for any additional orders. But they still keep the $2. On every order. So, suppose the driver has 4 orders to deliver, Domino's is collecting $8, but paying out $2.70. Ouch! AFAIK, Domino's is the only one in town that does that tiered thing, but Papa John's and Pizza Hut certainly collect more in delivery charges than they pay out in "mileage."
Other places with a delivery charge probably collect $1-2 from the customer, and pay 100% of it back to the driver in "mileage."
And places without a delivery charge usually pay around $1 per delivery in "mileage."
Conclusion: The restaurants that collect a delivery charge are simply shifting what is traditionally the restaurant's expense over to the customer. (And some are making an additional profit from it. Either way, the delivery charges flow to the restaurant's bottom line, not the driver's.)
