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re: Pizza Delivery Fee
Posted on 8/27/18 at 8:18 am to Cheese Grits
Posted on 8/27/18 at 8:18 am to Cheese Grits
quote:
hidden taxes on your bills (sometimes 20% to 25% of the bill) are all the move by corporate America
So government taxes are ways for corporations to make money? Interesting theory considering collecting and remitting taxes actually costs companies money.
1
Posted on 8/27/18 at 8:20 am to Cheese Grits
quote:
I get what you think it is but being old (and knowing the model was different) and actually knowing many who grew in the pizza business from the 70's to the 90's you are wrong.
A similar model was non Big 3 TV (ABC + NBC + CBS) and the shift of revenue streams for greedy corporations.
In the old days you had the Big 3 and they were free because they made all their money off advertising and none off the viewers.
Along came pay TV like HBO and such and you got commercial free TV but you had to pay for it.
2 distinct business models (one free and one charged)
However, over time, pay TV (cable, satellite, and now internet) not only charged the consumer but made money from advertisements. Younger generation just accepted this instead of dropping and forcing them to return to their roots. In essence they can now have their cake and eat it too.
Pizza delivery fees, bank fees, hidden taxes on your bills (sometimes 20% to 25% of the bill) are all the move by corporate America to give less real service and increase revenue at the same time.
tl dr, you are clueless.
Posted on 8/27/18 at 8:21 am to ByteMe
quote:
You should pay more for delivery than you do for picking it up.
Yeah if people can't figure this out they probably just need to throw in the towel on life
Posted on 8/27/18 at 8:26 am to LNCHBOX
quote:
So you think they made a business model based solely on delivery and didn't consider the cost to provide delivery in their price?
I was involved with Dominoes in the late 70's
quote:
I really hope you don't operate a business.
Retired, but yes I did operate successful business in my youth and did well enough to be retired now.
To me (being old) customer service is the best way to build a business and "free delivery" more than made up for the cost of the service in free "word of mouth" advertising. That you do not seem to grasp this concept may explain why we have let China kick our butt for the past decade or two.
Posted on 8/27/18 at 8:26 am to Donkeypunch
if this drivers work more than 30 hours a week the law require they be offered health insurance. (Thanks to Obama ...and McCain)
Do you think the company is just going to eat the cost of insurance, pizza boxes, payroll taxes, unemployment taxes etc.. They could just raise the cost of the pizza so what the difference*?
*The difference is the $5.99 large ad "looks better"
Do you think the company is just going to eat the cost of insurance, pizza boxes, payroll taxes, unemployment taxes etc.. They could just raise the cost of the pizza so what the difference*?
*The difference is the $5.99 large ad "looks better"
Posted on 8/27/18 at 8:31 am to Cheese Grits
quote:
To me (being old) customer service is the best way to build a business and "free delivery" more than made up for the cost of the service in free "word of mouth" advertising.
Nothing in business is ever free. The options are everyone can pay, say $.25 per pizza for the delivery fee whether you deliver or pick up, or the people that get delivery can pay $1.50 for that added service. These fees actually help the consumer. The added services have to be paid for somehow and the fee model let's the people that use it pay for it and the ones that do not don't. Under your outdated and stupid theory why would overnight shipping cost more than standard shipping? It has to be shipped either way.
Posted on 8/27/18 at 8:31 am to Mingo Was His NameO
quote:
So government taxes are ways for corporations to make money? Interesting theory considering collecting and remitting taxes actually costs companies money.
Look at most of your Fortune 500 companies and what percentage of revenue they make from government sales over personal sales. Like the key to having a best seller is having libraries and such buy books or the key to oil profits is selling gas to federal, state, local, and quasi governmental groups who raise that money by "hidden" taxes on what you buy instead of straight sales tax, income tax, or property taxes.
Look at some of your bills and see the added fees and taxes that were silently added in place of obvious tax increases.
Posted on 8/27/18 at 8:32 am to Cheese Grits
quote:
Look at most of your Fortune 500 companies and what percentage of revenue they make from government sales over personal sales. Like the key to having a best seller is having libraries and such buy books or the key to oil profits is selling gas to federal, state, local, and quasi governmental groups who raise that money by "hidden" taxes on what you buy instead of straight sales tax, income tax, or property taxes.
Look at some of your bills and see the added fees and taxes that were silently added in place of obvious tax increases.
None of this has anything to do with what I said.
Posted on 8/27/18 at 8:34 am to Mingo Was His NameO
quote:
This is a stupid argument in every tipping thread. All workers are required to make at least minimum wage. If a server or whatever doesn't make minimum wage after tips the business must make up the difference. That may not be a good way to keep your job, but every single employee at every single business is entitled to minimum wage.
This thread again. Chiming in with 20 yrs pizza peddlin exp here:
I can tell you with 100% certainty that Papa Johns drivers' hourly wage drops to $4/hr when they are dispatched on deliveries. It goes back up to Min wage(or slightly above depending on experience and inside skills like slapping dough/taking orders) when they check back in from deliveries.
As for the fee.
I can also tell you from the mouth of Area Manager of the BR area Papa Johns stores that the fee goes to fund 3 things:
1. Insurance(on top of drivers' personal liability).
2. Technology like the new systems introduced in PJs in 2015 that mimic what UPS and Fed Ex have used for years. The old days of drivers carrying a paper map/gps and winging-it are over as the algorithm involved in delivery planning based on order time/distance is pretty cool shite.
3. Discounted specials. The fees make up lost margin on deals of the month like $7 carryouts or BOGO specials.
Posted on 8/27/18 at 8:38 am to Donkeypunch
They saw an opportunity to make more money, and took it. Drivers get paid the same amount they always did. That amount from the pizza company is an hourly wage, not by the delivery. They do not get paid for wear and tear of their vehicles, or insurance costs like the pizza companies would like you to believe.
100% money grab
100% money grab
Posted on 8/27/18 at 8:44 am to Mingo Was His NameO
quote:
Nothing in business is ever free.
Says you, but how old are you?
Did you live through the 50's, 60's, or 70's?
quote:
Under your outdated and stupid theory why would overnight shipping cost more than standard shipping? It has to be shipped either way.
Because stress creates inelastic demand. Why do airlines offer most discounts with weekend requirements? Because business travel during the week is more inelastic demand (and subsequent inelastic pricing) and they make greater profits off weekday business travel than weekend recreational travel.
Did you never take an economics or business class in school?
If you really believe in "nothing is free" then you must totally believe nobody sells below the profit point?
Loss leader pricing model.
If I do not charge for delivery and you tip 10% to a driver where you normally tip 20% to a waiter / waitress you have paid less for the food you eat. Both get "waiter wage" which well below minimum wage.
Also, how often to you order a second full meal in a sit down restaurant vs ordering a 2nd pizza (to eat the next day) from delivery. Lots of deliveries go out the door with at least 2 pies for a reason. You (owner) trade free delivery for selling more product at better margins.
I guess the Wal Mart model escapes you on making up for lost margins by selling more units.
Posted on 8/27/18 at 8:52 am to PrivatePublic
quote:
Money does not go to the driver. Total money grab by the chain.
Driver gets $1 company gets the rest. I worked at Domino's in hs.
Posted on 8/27/18 at 8:53 am to Cheese Grits
quote:
Did you live through the 50's, 60's, or 70's?
Completely irrelevant.
quote:
Because stress creates inelastic demand. Why do airlines offer most discounts with weekend requirements? Because business travel during the week is more inelastic demand (and subsequent inelastic pricing) and they make greater profits off weekday business travel than weekend recreational travel.
Did you never take an economics or business class in school?
If you really believe in "nothing is free" then you must totally believe nobody sells below the profit point?
Loss leader pricing model.
If I do not charge for delivery and you tip 10% to a driver where you normally tip 20% to a waiter / waitress you have paid less for the food you eat. Both get "waiter wage" which well below minimum wage.
Also, how often to you order a second full meal in a sit down restaurant vs ordering a 2nd pizza (to eat the next day) from delivery. Lots of deliveries go out the door with at least 2 pies for a reason. You (owner) trade free delivery for selling more product at better margins.
I guess the Wal Mart model escapes you on making up for lost margins by selling more units.
You're saying a lot of things that don't add up. Walmart selling widgets at lower prices to move volume has nothing to do with selling pizzas. Completely different markets. Most of what you said happens, but it's not relevant to pizza delivery.
Posted on 8/27/18 at 8:56 am to TheDeathValley
So drivers didn't get paid by the hour before delivery fees? That's not true. It's extra money that the company saw an opportunity to make
Posted on 8/27/18 at 9:00 am to Hammertime
quote:
That's not true. It's extra money that the company saw an opportunity to make
Or maybe prices have gone up.
Posted on 8/27/18 at 9:09 am to Mingo Was His NameO
Clearly you read what you want to justify your point instead of listening to reality.
In Store sale
1 pizza for 10.00
minimum wage for staff, waiter wage for service staff (tip paid by customer), full operation cost for fixed and variable in store costs
10 - 33% food cost - 33% labor costs = 3.33 in income before taxes, profits, and overhead.
VS
Delivery sale
2 pizza for 20.00 (2nd pizza sold for consumption at later date)
minimum wage for staff, waiter wage for delivery (tip paid by customer), lower operation cost for fixed and variable in store costs
20 - 25% food cost (economies of scale) - 33% labor cost = 8.44 in income before taxes, profits, and overhead.
You even had a person in the business tell you the same a few posts up but you just do not listen.
To you maybe, but knowing there is different business models to choose from, very relevant.
In Store sale
1 pizza for 10.00
minimum wage for staff, waiter wage for service staff (tip paid by customer), full operation cost for fixed and variable in store costs
10 - 33% food cost - 33% labor costs = 3.33 in income before taxes, profits, and overhead.
VS
Delivery sale
2 pizza for 20.00 (2nd pizza sold for consumption at later date)
minimum wage for staff, waiter wage for delivery (tip paid by customer), lower operation cost for fixed and variable in store costs
20 - 25% food cost (economies of scale) - 33% labor cost = 8.44 in income before taxes, profits, and overhead.
You even had a person in the business tell you the same a few posts up but you just do not listen.
quote:
Completely irrelevant.
To you maybe, but knowing there is different business models to choose from, very relevant.
Posted on 8/27/18 at 9:12 am to Cheese Grits
quote:
2 pizza for 20.00 (2nd pizza sold for consumption at later date)
You keep saying this as if it's fact, but I have no idea if it is or not. It's a really big assumption you're making.
quote:
lower operation cost for fixed and variable in store costs
What makes it lower unless you're delivery only, which none of these places are?
Posted on 8/27/18 at 9:14 am to Cheese Grits
As to drivers
Historically they made below minimum wage because they were classified in the same labor pool as wait staff, where tips were part of their compensation.
Unlike wait staff, the driver pays the cost of vehicle (operating costs + insurance costs) so if they both get tipped, their net income is greatly reduced by increased costs. Insurance for delivery drivers (paid on their own policy) is greater if they disclose the vehicle will be used for delivery. While dome drivers may not disclose this and pay the higher rate, the insurance companies can use this falsified information to deny claims.
Historically they made below minimum wage because they were classified in the same labor pool as wait staff, where tips were part of their compensation.
Unlike wait staff, the driver pays the cost of vehicle (operating costs + insurance costs) so if they both get tipped, their net income is greatly reduced by increased costs. Insurance for delivery drivers (paid on their own policy) is greater if they disclose the vehicle will be used for delivery. While dome drivers may not disclose this and pay the higher rate, the insurance companies can use this falsified information to deny claims.
Posted on 8/27/18 at 9:16 am to Cheese Grits
quote:
While dome drivers may not disclose this and pay the higher rate, the insurance companies can use this falsified information to deny claims.
Oh so breach of contract by the insured let's the insurance company deny the claim? Makes perfect sense to me.
Posted on 8/27/18 at 9:18 am to Mingo Was His NameO
quote:
What makes it lower unless you're delivery only, which none of these places are?
Maybe in your market Dominoes and Papa Johns have sit down but in the markets I frequent (across several states) they are carry out and delivery only. They MAY have a table or two but mostly that is just to offer a place to sit while waiting for pick up, not for actual dine in.
Lots of dine in has liquor licenses and the food is a loss leader to sell booze (which has substantially higher operating margins). Does your local Dominoes or Papa Johns have a liquor license by chance?
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