Why Do Pizza Places Charge a Delivery Fee Per Pizza and Not Per Delivery?

In most other countries, its a per delivery fee and not per pizza. I think Dominos charges an extra $5 or so per delivered pizza compared to pick up. It doesn't cost the company any more to deliver 2 pizzas compared to 1, so why?

Comments

  • -7

    I don't even understand why you'd ask something so stupid, however….

    Dominos charge 7 dollars for delivery of anything you order.

    • A lot of their coupons are per pizza. $7.95 pickup or $12.95 delivered etc.

      If you don't use those coupons it's a set fee. Although I daresay most people would use 'set-deals' such as 3 pizza's for $27 etc.

      • -2

        no one in their right mind orders multiple pizzas at 12.95 delivered.

        that's if you're ordering one pizza and the delivery price has been factored into the pizza price already.

        http://www.lifehacker.com.au/2013/10/pizza-hut-offers-free-d… <— that explains how delivery works

        • +1

          Actually you can only use that coupon if it's for multiple pizzas as the minimum order for delivery is $22

        • +2

          Most are min ~$20, you can't order 1 pizza delivered for $12.95.

          https://www.dominos.com.au/coupon-voucher/nsw-adamstown-9814…

          $31.95 for 2 pizzas, garlic bread & coke delivered. Makes $12.95 a pizza not look so bad.

          "a pepperoni pizza, two cans of soft drink and a garlic bread will set you back $25.90 at Domino’s"

          Oonly a moron would order $12.95 a pizza, yet you link to an example where someone would pay $26 for 1 pizza, two 50 cent cans of soda drink and a garlic bread? Hmm.

        • -4

          @Forenti: did you read the link buddy? i guess not

        • -2

          @rochow: the link is an example from 2013 about how it works, ffs

          and what i said was "no one in their right mind orders multiple pizzas at 12.95 delivered."

          so stop being stupid

    • +2

      Huh? Their coupons are always +$5 or so per delivered pizza.

      • Industry quirk. Similar to every airline charging a cancellation fee even if you cancel minutes after booking. If say, a doctor tried to do that, you'd tell them to go shove it.

        All the major players do it so it's just "a thing". Pretty sure if you call & order (no coupon) then it's menu price + fee like you'd expect.

        Nearly all I've seen have $12.95 each, or a 3 for $30 type thing, the idea I daresay would be to get you to spend more than you wanted to get 'a good deal'. It's not expected on the most part to actually order a bunch of them at the 'delivery included' price.

        • But the menu price is a total ripoff as it's about 50% more expensive compared to the actual price (with coupons).

          Dominos charges about $13 for the menu price of a traditional pizza IIRC and the usual coupon price is $8 if you pick it up.

          Most other countries simply have the regular menu price, don't do the massive coupon discount thing and charge a flat fee for delivery.

        • @Question: That's an Australian/Western thing. "You can't pay full price!".

          Is Harvey Norman ever not "50% off?" etc? In other countries supermarkets might have a dozen things on sale and all that's changed is the price tag. Vs Woolworths/Coles/IGA that have banners everywhere, fifty coloured labels and so forth.

          EB Games is an embarrassment: http://edge.alluremedia.com.au/m/k/2015/06/310.jpg

          I daresay it follows the same principle. People feel like they're cheating the system and getting a great deal when they pay $7 for a $13 pizza, vs paying $7 for a $7 pizza.

      • -2

        if you're buying pizza at the normal price then you pay 7 dollars for delivery with Dominos and Pizza hut is free

        if you're using discount coupons and what not, the delivery fee is built into the cost of the one pizza.

        how is this so hard for anyone to understand

        example from a few years ago:

        Pizza Hut’s decision to abolish home delivery fees seems commendable on the surface, but there’s a significant catch: the offer is only available for orders of $25 or over.

        While this is great for parties and families, it makes ordering somewhat difficult if you happen to live alone and practically forces gluttony. Allow us to explain.

        Domino’s Pizza factors the delivery cost into its online menu, which translates to a costlier total. For example, a pepperoni pizza, two cans of soft drink and a garlic bread will set you back $25.90 at Domino’s, whereas the same items from Pizza Hut costs $18.90 — a saving of $7.

        However, because this falls below the minimum order policy, Pizza Hut wont actually deliver the food to you. Domino’s minimum delivery order is $24, which covers the above order.

        In other words, you’re forced to order additional items from Pizza Hut’s menu to reach the $25 price point, which means you’re likely to exceed what you originally planned on spending (adding an additional pizza brings the total to $28.90, for example.)

        While the Pizza Hut deal does get you more food, we’re not sure this particularly advisable when you consider the high fat content of pizza. We suppose you could freeze the unwanted food for later, but this still translates to another unhealthy meal in your near future.

        In other words, the “free” delivery option only works if you buy more pizzas; which comes at the expense of your waistline. Food for thought!

        • +2

          Mate, keep up with your own argument.

          Dominos Pickup
          1 x Supreme $10.95
          1 x Peri Peri Beef $10.95
          1 x Spicy Harissa Pulled Beef $10.95
          = $32.95

          Dominos Delivery
          1 x Supreme $19.95
          1 x Peri Peri Beef $12.95
          1 x Spicy Harissa Pulled Beef $12.95
          = $45.85

          The price is increased PER pizza like OP said, rather than being menu price + set delivery fee.
          Coupon or no coupon, the prices are different for pickup or delivery.

          Before you start telling people their comments are stupid, how about you have half an idea what you're talking about.
          How is to so hard to understand?

        • @rochow: apparently very hard for you to understand

          *The displayed prices are local prices at your selected store. You can change your local store here or visit Domino’s Online Ordering
          10% Surcharge applies on Sundays in ACT & Regional NSW. 15% surcharge applies on public holidays. $2 surcharge applies for each additional topping, half ‘n’ half pizzas. $2.95 surcharge applies for "Cheesy Crust", "The Edge", "Gluten Free" Pizzas. No half ‘n’ half allowed on the Value Range, Extra Value Range or Chef's Best Pizzas. No substitute toppings allowed on Value Range or Extra Value Range. Chicken and Prawn Pizzas $2.95 more than Traditional Range. **Pepperoni is made from pork and beef blend. Minimum order amount for delivery $22. Prices for delivery higher than pick-up, and varies by Store. Drivers only carry $20 in change. All offers not valid with any other coupon or offer. Only available at selected stores. Prices include GST. DOMINO’S, the Tile Device, the slogan PEOPLE, POWERED, PIZZA are trade marks or registered trade marks of Domino’s IP Holder LLC in Australia.

          Prices for delivery higher than pick-up, and varies by Store.
          Prices for delivery higher than pick-up, and varies by Store.
          Prices for delivery higher than pick-up, and varies by Store.
          Prices for delivery higher than pick-up, and varies by Store.
          Prices for delivery higher than pick-up, and varies by Store.

        • +1

          @Makoto: Geez mate. There is no such thing as $7 delivery for dominos, the article you linked to even says dominos include delivery in the prices.

          If you want delivery, the prices are inflated PER pizza, as per OP's original question as to why (which as I mentioned, is more an industry quirk; every other takeout I've seen is order off the menu + fixed fee)

          I even took the liberty of making 2 fake orders - 1 pickup, 1 delivery, to show you exactly how their pricing works. Given you're clearly wrong, and I have referenced real facts - not just some article that actually agrees with me not you - I'm not sure why you're even trying to make this a debate. This isn't my opinion vs your opinion, these are the prices straight from the source.

  • Prolly some marketing thing, people think cant easily work out what the extra is for delivery cause built into the price, if they saw that delivery explicitly shown as 12 bucks on a 45 buck order ( 30 percent) they might wanna go pick it up

  • Not very polite thread
    A simple marketing question was asked and all sorts of insults and personal attacks.

    The price of all pizzas 1 or 50 have two tiers.
    The cost to dominos
    To make 1 pizza is different than 5
    But to deliver 1 pizza is the same as 5.

    so why the markup per pizza when it doesnt cost more per pizza to make it into a delivery order? And because it costs the same to the store to send a driver with 1 or 20 pizzas.

    Reasons
    People LOVE free delivery
    Each delivered pizza come with a higher guarentee hot and on time or its free.
    physical limits deliveries per hour.

    End off story no pizza so wants to deliver pickup is best value to them. Typically they can sell 30 orders an hour pickup.
    But only 6 deliveries per hour per $20 driver

    • Yea people love free delivery but they don't love the fact that delivered pizzas cost $5 more PER pizza.

      To give an example, a pizza chain called Canadian Pizza offers free delivery if you order 2 or more pizzas. This brings in a lot of extra orders because it's free delivery and the pickup price is the same.

      Of course the downside is that it costs more to deliver the pizzas rather than for the customer to pick them up, BUT at the same time the store is getting a lot more orders as more people want pizzas delivered rather than pick them up. With pickup, the store gets a lot more competition because customers are more likely to pick up from the closest pizza place, but with delivery they don't care as long where the store is as long as it arrives on time.

      So the store gets customers from places farther away rather.

  • They make more money charging per pizza- duh!

    I also think it has to do with what it physically takes to deliver a LOT of pizzas vs. one or two. If the shop only has 1-3 drivers, & the drivers get four orders at once of 5+ pizzas, with drink bottles + extras, it would take multiple trips back & forth to first load the car. They are then supposed to get it out quickly & hot.

    I suppose it's partly to cut down on some deliveries while still offering it as a service if needed. Generally speaking, I find the best "deals" on are pick-up, which also supports my theory that they need to limit deliveries (as drivers can also work & are needed in-store for the busy "pick-up" times).

    Imho

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