In a delivery operation, driver pay, fees, mileage, and worker’s compensation premiums can add up to a significant part of your labor cost. This post looks at three ways you can use little-known tools in your POS to cut delivery costs.
1. Calculate driver fees and delivery zones based on distance driven.
Does your POS system allow you to choose how to calculate delivery fees? One popular way to pay driver fees is to make them proportional to distance driven—this method scores points with drivers because it compensates them fairly for extra time and vehicle wear and tear on longer routes. If you’re using an integrated online mapping solution like SpeedLine LiveMaps with your POS, route mileage is calculated by the mapping provider. This provides consistent rates and minimizes driver abuse—and if you pay mileage in addition to a driver fee, the mapping solution can provide a double-check for self-reported odometer readings.
SpeedLine LiveMaps User? Take delivery efficiency one step further, and set your delivery zones based on drive time from the store. That way, you can set both driver fees and delivery charges based on how long it actually takes to deliver the order, so you can be sure you’re covering your actual costs.
2. Apply a tipped minimum wage when drivers are on a delivery run.
Do you pay drivers a tipped minimum wage? If you’ve been struggling with how to separate tipped “out of store” time from non-tipped time, your POS may be able to help. A delivery POS system should track when drivers are out of the store and give you the option of changing their pay rate accordingly. When you choose this option, SpeedLine automatically applies the alternate pay rate you set when a driver is dispatched, and changes the rate back when they return to the store.
3. Separate out-store earnings to reduce worker’s compensation premiums.
In-store versus out-store tracking tools in your POS can have other benefits as well. In many jurisdictions, workers’ compensation premiums are based on the type of work performed, with delivery driving often subject to higher premiums than in-store work (as much as 5 times more). The pay reports in your POS can show how much delivery drivers earned for time spent in the store versus out of the store on deliveries. This makes it easy to apply the lower premium rate to pay earned in-store.
SpeedLine User? Enable on-site/off-site tracking, and then check your Pay Period or Pay Period Details report for In Store Pay and Out Store Pay (a simplified report new in version 7.1).
Have some secret strategies of your own for cutting delivery costs? Please share them in the comments!
A 2013 study by GlobeSpan, BBMG, and SustainAbility, found that nearly 86% of global customers rank ingredient transparency as “very important” or “important.” Consumers want to know what’s in their food, and as we move into 2015, this trend will see even more mainstream attention. Many people are consciously eating healthier, and restaurant operators are adjusting menu offerings to accommodate them. Read more
High employee turnover is prevalent in the restaurant industry: the National Restaurant Association (NRA) estimates that the average turnover rate is 75%. The associated expense is often accepted as the cost of doing business—but a long term strategy for reducing it can have a major impact on a restaurant’s financial performance.
When you factor in the cost of recruiting, hiring, training, and shoring up employee morale, you may be surprised at the cost of high turnover. So what can you do to reduce it? Read more
The customer database is one of the most important tools for restaurant companies to keep up to date and accurate. It is the core of a delivery POS system, and with loyalty programs, even more important for overall customer satisfaction.
What is a typical customer worth to your business? You’d be surprised at how much of your profit can be credited to your repeat business. Read more
Customer service is integral for repeat business. If sales are down and morale is low, problems with customer service could be to blame. Here are 5 ways you can use the technology you already have to improve service, and keep your guests coming back. Read more
In 2011, hackers stole thousands of credit card numbers from the point of sale systems in pizzerias across the United States. This June, another major breach targeted customers of a national casual dining chain. Just last week, the Delaware Restaurant Association warned merchants of the cause of a series of attacks on restaurants in that region, and the first news of a breach at a national quick-service chain hit the wires.
The common threat?
Remote access software—the tools typically used for point of sale technical support, and sometimes by restaurant operators to manage menus or reporting off-site. Read more
From time to time, we like to take a look back. One the top reads at On Point is a post that goes back to 2010 about detecting employee theft. Studies show that employee theft is a contributing factor in a third of restaurant closures. So while admitting it could happen to you and discovering it can be disheartening, it’s necessary.
Can you afford to absorb employee theft in your restaurant? You’re probably shaking your head right now, but what may surprise you is how costly employee theft can be—and how easily it can be missed. Read more
With the breakneck pace of change in new technology, choosing the right POS system requires you to look into your future. No one wants to risk a technology investment that could limit their options as they grow.
While innovation is a gamble, it is becoming a necessity in this business. Your restaurant guests are driving the need to innovate—in many cases, starting with web and mobile ordering. Read more
Pizza operators understand: cheese is a killer to your bottom line, and when portioning isn’t controlled on the make-line, waste adds up quickly. Controlling food costs with proper portion control takes longer than free-handing, but the cost savings are worth the time—and your POS system can streamline the process. Read on for more about controlling food costs with portion controls.
Restaurant margins tend to be slim, so cost control is critical.
By standardizing recipes, restaurant chains protect their margins and deliver a consistent product across multiple locations. For any pizzeria, portion control is a significant factor in controlling food cost and delivering a consistent product to your guests—and your profitability relies on guest satisfaction as much as operational cost control.
So what can you do to control portioning? Read more
This month, we introduce SpeedLine user Red’s Savoy Pizza. With 10 locations in Minnesota and 2 more in Nebraska and Wisconsin, “Red’s” has been serving great tasting pizza since its first location opened in back in the ‘60s.
An Interview with Reed Daniels, Director of Marketing, Red’s Savoy Pizza on the growing chain’s expansion plans with SpeedLine POS: Read more