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Old 06-10-2011, 02:49 PM   #1
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Default pizza delivery fee-what is the story?

so, I just ordered a pizza from a national pizza chain, and their website notes that the 2.00 delivery fee they charge is not a tip for the driver-well then, what is it for (I've also seen language that says the delivery fee does not go to the driver at other pizza places)? I remember back when the big pizza chains began the delivery fee, they claimed it was due to higher gas prices. Do pizza delivery folks get paid for their mileage? if not, then how does the delivery fee not go directly to the driver for the wear and tear on their cars for bringing us our orders, which would be what a tip covers?

Isn't that why it is called a 'delivery fee' and not, say, a 'rising cost of vegetables fee' or some other fee that covers a completely different aspect of the pizza industry other than the actual delviery of pizza from store to purchaser? and if it goes to the company, and not the driver, then really, it isn't a delivery fee at all, but another way to trick us into thinking they're not raising prices.

Maybe I'm assuming too much about these fees, but I'm not cool on paying a 'delivery fee' when presumably 10 years ago it was no problem to build that 'delivery fee' right into the price of the products themselves. if the fee was going straight to the driver, then that would be fine, and I still would include a small tip on top of that. However, I hate 'hidden fees' that make you think you're paying one price, when in reality, it is a higher price.

There, my little rant is over. hopefully someone in the know can tell me the whys and whats of this fee, so I can have a better idea of what my delivery fee really pays for.
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Old 06-10-2011, 02:59 PM   #2
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I hate it too, but assume that the delivery fee goes directly back to the store and that the driver sees little, if any, of it. So I just build it into the price of the pizza and tip the driver separately. It's worth it to me, on days when I'm too lazy (or just too busy) to drive to the store myself.

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Originally Posted by butch View Post
so, I just ordered a pizza from a national pizza chain, and their website notes that the 2.00 delivery fee they charge is not a tip for the driver-well then, what is it for (I've also seen language that says the delivery fee does not go to the driver at other pizza places)? I remember back when the big pizza chains began the delivery fee, they claimed it was due to higher gas prices. Do pizza delivery folks get paid for their mileage? if not, then how does the delivery fee not go directly to the driver for the wear and tear on their cars for bringing us our orders, which would be what a tip covers?

Isn't that why it is called a 'delivery fee' and not, say, a 'rising cost of vegetables fee' or some other fee that covers a completely different aspect of the pizza industry other than the actual delviery of pizza from store to purchaser? and if it goes to the company, and not the driver, then really, it isn't a delivery fee at all, but another way to trick us into thinking they're not raising prices.

Maybe I'm assuming too much about these fees, but I'm not cool on paying a 'delivery fee' when presumably 10 years ago it was no problem to build that 'delivery fee' right into the price of the products themselves. if the fee was going straight to the driver, then that would be fine, and I still would include a small tip on top of that. However, I hate 'hidden fees' that make you think you're paying one price, when in reality, it is a higher price.

There, my little rant is over. hopefully someone in the know can tell me the whys and whats of this fee, so I can have a better idea of what my delivery fee really pays for.
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Old 06-10-2011, 03:02 PM   #3
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When I was working in the high-end office refreshment services biz (think Wall Street coffee service, gourmet cafeterias and stocking sports arena corporate boxes, etc.) there was a sudden change in coffee prices and it being an extremely competitive business to begin with, those in the industry had to scramble to justify increasing retail as the roasters were raising cost. They came up with a 'surcharge' and sent out letters explaining its necessity and how it wasn't realllllly a price hike because....it was a surcharge. See? Different?

Some of our clients looked around and found another distributor but their new source eventually used the surcharge thing too, so most clients over several years of several surcharges and subsequent market increases where that surcharge was absorbed into the increase and a NEW surcharge was added LOL, it became in essence a marketing ploy/technique. You're lulled into a sense that everything is okay...Still getting what you paid for....But the market/commodity is having a crisis and this little tax will pull all of us together cos we're ALL being screwed together.
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Old 06-10-2011, 04:44 PM   #4
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Let me put it to you this way. The consumer price index is manually adjusted to be lower than the real cost of inflation. the real purpose of CPI is not to show what inflation is, but to minimize the financial cost of COLA agreements in collective bargaining agreements and pension laws.

Therefore, when pizza delivery companies or other food purveyors are forced to add fees to normal prices to remain competitive on price and make a profit this is only a 2011 version of REAGANOMICS!
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Old 06-11-2011, 03:53 AM   #5
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Thanks for the input, folks. As a teen, I worked in a bakery, and one day the owner told me he was raising prices on many items. At the time, there was information in the news about some crop(s) being affected in a way that would insure less product to meet demands. He said that although the higher prices that would result wouldn't happen for months (the crop was not ready to be sent to market), because it was in the news now, he was raising prices so that customers would be more understanding of the price raises. Maybe this is OK, but I also wonder if he just didn't raise the prices again when the crop made it to market, since presumably the higher prices would have made news then, too.

I still tip the driver, but I tip less, which may be unfair to the driver, but considering I still tip at least 10%, it seems fair to me. If the pizza places want me to go back to tipping 15%*, they'll get rid of the bogus delivery fee.


*fwiw, I usually tip 20% at sit down restaurants
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Old 06-16-2011, 04:49 PM   #6
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The pizza places don't care how much you tip.

Tipping 10% is just flat out a nasty thing to do to the driver who lives on his or her tips. Basically what you're doing is screwing over the driver simply because the owner is raising his or her fees. The driver isn't seeing a penny of it. Tipping 10% is not in any way "fair" because it punishes a worker who had nothing whatsoever to do with a price increase.

"Collective bargaining and pensions" also don't have anything whatsoever to do with pizza delivery drivers who sure as heck don't get pensions and are not in unions. I'm willing to bet the delivery fee is nothing but a financial cushion to the owners/managers to subsidize the gas reimubursements to drivers who have to have their own vehicles and their own insurance. Pizza delivery workers are probably students or other workers who are moonlighting to pay bills; tip 20% if only for the good karma.
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Old 06-16-2011, 05:09 PM   #7
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The driver gets a small portion of the delivery charge... small portion. The drivers also know who tips, and who doesn't. If you tip well, 'somehow' your delivery usually gets bumped to the top of the list. Drivers will even try to maneuver to get that delivery also. If you're known as a very low tipper, your delivery will be delivered last and will probably wait at the store for as long as possible until the driver has enough deliveries to make the trip 'worth it'. You're paying for their service. If one doesn't want the fee and the tip, order carryout. :-P

I always make sure I overtip, at least 20%, so that they are knocking on the door before I've hung up the phone. When I'm hungry, I want to eat!
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Old 06-16-2011, 05:22 PM   #8
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The driver gets a small portion of the delivery charge... small portion. The drivers also know who tips, and who doesn't. If you tip well, 'somehow' your delivery usually gets bumped to the top of the list. Drivers will even try to maneuver to get that delivery also. If you're known as a very low tipper, your delivery will be delivered last and will probably wait at the store for as long as possible until the driver has enough deliveries to make the trip 'worth it'. You're paying for their service. If one doesn't want the fee and the tip, order carryout. :-P

I always make sure I overtip, at least 20%, so that they are knocking on the door before I've hung up the phone. When I'm hungry, I want to eat!
So on a $20 delivery, you tip $2? That's sufficient to bump you to the top of the 'preferred' list? Man, people must generally be really lousy tippers.

BTW, that is what I tip as well - about 20%. I just haven't considered it to be overly generous.
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Old 06-16-2011, 06:25 PM   #9
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On a single pie ($20) I tip $5; On a $50 order, I tip $10.
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Old 06-16-2011, 06:26 PM   #10
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Originally Posted by TraciJo67 View Post
So on a $20 delivery, you tip $2? That's sufficient to bump you to the top of the 'preferred' list? Man, people must generally be really lousy tippers.

BTW, that is what I tip as well - about 20%. I just haven't considered it to be overly generous.
Psst... isn't 20% on a $20 order... $4? I'm no math major.
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Old 06-16-2011, 06:32 PM   #11
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On a single pie ($20) I tip $5; On a $50 order, I tip $10.
That's how I tip too.
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Old 06-16-2011, 07:03 PM   #12
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I tip for delivery at 10% because there is less work involved than sitdown (especially since I don't believe drivers share the tip with the cooks or anyone else involved with getting me my pizza). If that makes me a bad tipper, so be it. Since I don't order carry-out that often, it really doesn't matter if I am at the top or the bottom of any list of delivery.

I tip at least 20% at a sitdown restaurant, which I feel is fair. I think they work a lot harder than someone who delivers food to my door, and my tip reflects that. Plus, delivery guys make at least minimum wage, and waiters don't, so I feel 10% is very fair.
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Old 06-16-2011, 07:55 PM   #13
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Psst... isn't 20% on a $20 order... $4? I'm no math major.
Nor, apparently, am I

Even worse, I'm a REALLY LOUSY TIPPER.
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Old 06-19-2011, 09:53 AM   #14
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I hate delivery fees. I refuse to order from any restaurant that charges one. Sometimes I will be at work starving and set up my whole online order. Once I see the delivery charge, I shut it down. I can't justify paying a 2.00 charge and a 4.00 tip. 6 bucks to drive a pizza and soda to me... No thanks!
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Old 06-19-2011, 12:35 PM   #15
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If I order a pizza, it's usually one that's less than $10. I can't imagine only giving the driver $2. If I have a problem with what a restaurant charges, I'll stop giving them my business.

I eat out at least a couple of times a week. I tip well and I always tip in cash. I don't even consider the bill total when tipping, but I'd guess that I average in the 30% range. I tipped $30 on an $88 bar tab the other night. I tip in appreciation of the pleasure that good service and a friendly smile brings to the experience. As far as I'm concerned, if I can't afford to tip, I can't really afford to go out in the first place. I figured out a long time ago that an extra $10 that means pretty much nothing to me can mean a hell of a lot to the person providing service, both in their pocket and as recognition of a job done well.
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Old 06-19-2011, 01:31 PM   #16
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I'm glad I live in a place where tipping isn't expected or required.
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Old 06-19-2011, 04:28 PM   #17
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As far as I'm concerned, if I can't afford to tip, I can't really afford to go out in the first place.
Congratulations, Connie Lynn - I think exactly the same as you. Tip well, and it will eventually result in better service. By the way, I was born in Martinsville.
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Old 06-20-2011, 05:09 AM   #18
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Congratulations, Connie Lynn - I think exactly the same as you. Tip well, and it will eventually result in better service. By the way, I was born in Martinsville.
I wish I wasn't so poor, and desperate for a job, so that I could tip 30% when I go out. Thank goodness McDonald's doesn't require tipping, or my broke fat ass would never get to experience the joys of dining out. Oh, and by the way, my grandparents lived in South Hill, if proximity to Danville has some importance to being able to post on this thread.
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Old 06-20-2011, 08:00 AM   #19
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Up here most places still advertise 'free delivery!' However, in a lot of cases if you go an pick it up in person, you get a 10% discount....so really the delivery fee is about 11% Much better to have a flat delivery fee, given that it costs them the same to deliver one pizza or five.

From the point of view of the stores, listing the delivery fee seperately lets them advertise lower prices, which of course is key.
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Old 06-20-2011, 09:16 AM   #20
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I wish I wasn't so poor, and desperate for a job, so that I could tip 30% when I go out. Thank goodness McDonald's doesn't require tipping, or my broke fat ass would never get to experience the joys of dining out. Oh, and by the way, my grandparents lived in South Hill, if proximity to Danville has some importance to being able to post on this thread.
With a Happy Meal you get a free toy too so it's a win/win to me.
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Old 06-21-2011, 07:10 PM   #21
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Congratulations, Connie Lynn - I think exactly the same as you. Tip well, and it will eventually result in better service. By the way, I was born in Martinsville.
I'm from Alabama / Georgia, so folks in Virginia consider me an import Been here 6 years and really enjoy the small town feel.
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Old 06-21-2011, 07:11 PM   #22
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Originally Posted by butch View Post
I wish I wasn't so poor, and desperate for a job, so that I could tip 30% when I go out. Thank goodness McDonald's doesn't require tipping, or my broke fat ass would never get to experience the joys of dining out. Oh, and by the way, my grandparents lived in South Hill, if proximity to Danville has some importance to being able to post on this thread.
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Old 06-21-2011, 07:21 PM   #23
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Originally Posted by penguin View Post
I'm glad I live in a place where tipping isn't expected or required.
Here the minimum hourly wage for employees who receive tips is $2.13 an hour (typically wait staff), compared to the normal minimum wage of $7.25 per hour. Tipped employees report their tips to come up to the $7.25 per hour. If they don't make enough tips to come up to that, the employer must make up the difference. In reality, if the employer has to make up the difference very often, you might be out of a job.

I'm a single woman with no children and no debt, an inexpensive apartment, and just minimal monthly bills. In general, I live a fairly frugal lifestyle. There is no way that I could live on $7.25 an hour, and I can't imagine a single mom doing it. So I tip well and tip in cash.
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Old 06-21-2011, 07:44 PM   #24
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I can appreciate the gesture of a tip as I receive them every-so-often with the service that I provide to my customers (... even my own mind went to the gutter on that one, I admit). I tend to tip generously, unless I feel the service that has been provided is sub-par. I believe that tips represent more than just the expectation to receive one for deliveries.

I'm on the fence about the blanket delivery fee. I understand that inflation has caused companies to charge more for the services they provide, but I also agree with what you have said, Julia. If it is a delivery fee, pay that directly to the delivery employee. If it isn't a delivery fee and it's extra charges for their product, keep it in the price of the actual product. I try not to allow my bias on that affect how I tip the driver.
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Old 06-21-2011, 09:06 PM   #25
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Originally Posted by ConnieLynn View Post
Here the minimum hourly wage for employees who receive tips is $2.13 an hour (typically wait staff), compared to the normal minimum wage of $7.25 per hour. Tipped employees report their tips to come up to the $7.25 per hour. If they don't make enough tips to come up to that, the employer must make up the difference. In reality, if the employer has to make up the difference very often, you might be out of a job.

I'm a single woman with no children and no debt, an inexpensive apartment, and just minimal monthly bills. In general, I live a fairly frugal lifestyle. There is no way that I could live on $7.25 an hour, and I can't imagine a single mom doing it. So I tip well and tip in cash.
Our minimum wage is a liveable minimum wage, not the minimum the employer can get away with, so that's where the difference lies. I'm also not a fan of the idea that I have to pay someone to reward them for doing their job - that's up to the boss, not me, and that should all be factored into the cost of the foods and services. I also like to know that the price I see is the price I pay, which is why I like having our taxes included in the cost of things, not added on afterwards.
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