[gizmo686]

The question is, how much do those restaurants charge themselves in a delivery fee? It wouldn't suprise me if they spend more than 5% the value of the purchase on making the delivery; in the same way that I expect more that 5% of a typical dine-in meal to go to fund the in-restaurant eating space.

[Mikeb85]

> The question is, how much do those restaurants charge themselves in a delivery fee?

Usually not much, if anything. They keep the employees on the clock, and factor in labour cost much like a dine-in restaurant factors in the cost of your server.

[gizmo686]

They may not have a literal line item on an internal spreadsheet corresponding to how much of each bill goes towards delivery, but they are still paying for performing the delivery. When they outsource this service, they pay a third party for doing it, but save on the costs of doing it themselves. When you consider how expensive the third party is to the restaurant, you also have to consider how much they would be spending if they do it in-house.

[Mikeb85]

Yes, and 30% is way higher than internal FOH or driver labour cost.

[gamblor956]

The delivery driver is an hourly employee, so the % they pay depends on how many pizzas (or meals, if not a pizza joint) that driver delivers.

For this reason, most mom-and-pop restaurants limit their delivery radius to places their delivery drivers can reach within 10 minutes or less of driving (so the driver can make at least 2 deliveries an hour).