Quote:
Originally Posted by valo403
If he, the delivery driver, is incurring the costs then what costs are being borne by the establishment to provide delivery? If anything delivery should cost less if the model is to have the cost of doing the actual delivering put onto the employees. Where is the additional cost to delivery?
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Going back to my previous post about how drivers get paid, that delivery charge pretty much goes into paying the driver's salary. Adjusting for inflation and increases in minimum wage, that $5 delivery charge would about pay for the driver's wage.
So the difference in labour cost for the restaurant between pickup and delivery is paid for by that delivery charge. As I outlined earlier, getting paid a buck over minimum wage really wouldn't cover gas. But getting paid tips is what covers those extra expenses, and also makes the wage a little better than your average "minimum wage job." I actually know a few guys who 10 years later are still delivering pizza. They were people who were semi-retired and keep doing it because it pays OK.