Drivers are tipped employees and receive minimum wage, just like in the years before 2001 when there was no delivery fee. Hourly pay for drivers did not go up when stores began the delivery charge. In fact, there has been a recent trend since 2008 by national chains to reduce drivers to sub-minimum wage while increasing the delivery charge. Delivery charges were in the $1-$2 range by 2007, but by 2008 they grew into the $2-$3 range. A company will pay the driver $4 an hour, have a $2.50 delivery charge, not give the fee to the driver, and expect tips to make up the difference. The fee is not called a "driver charge" but we know the phrase "delivery charge" is very misleading.
The surcharge covers the rising cost of ingredients, hourly wages, the store's automobile insurance for non-owned vehicles and all other business expenses. When Domino's began their delivery fee in 2002, spokesperson Holly Ryan said, "The cost of food in general, combined with the cost of gas, utilities, labor and insurance, called for a price increase by Domino's."1 Ryan said the company had a choice about how to make up for its expenses: charge a delivery fee, raise pizza prices across the board, skimp on ingredients or fire employees.1 Domino's and other national chains operate under the same conditions and chose the fee.
In national chains like Pizza Hut, Domino's, and Papa John's, the delivery charge does not go to the driver's tip. It is a disguised price increase for the store. With inflation, we're sorry to say it costs the store $2 more to produce your order. It's too bad they didn't tell you in the menu price. Pizza companies like to retain the appeal of low prices. They deceitfully snuck in a surcharge and hoped you didn't notice.
Drivers are tipped employees and receive minimum wage, just like in the years before 2001 when there was no delivery fee. Hourly pay for drivers did not go up when stores began the delivery charge. In fact, there has been a recent trend since 2008 by national chains to reduce drivers to sub-minimum wage while increasing the delivery charge. Delivery charges were in the $1-$2 range by 2007, but by 2008 they grew into the $2-$3 range. A company will pay the driver $4 an hour, have a $2.50 delivery charge, not give the fee to the driver, and expect tips to make up the difference. The fee is not called a "driver charge" but we know the phrase "delivery charge" is very misleading.
The surcharge covers the rising cost of ingredients, hourly wages, the store's automobile insurance for non-owned vehicles and all other business expenses. When Domino's began their delivery fee in 2002, spokesperson Holly Ryan said, "The cost of food in general, combined with the cost of gas, utilities, labor and insurance, called for a price increase by Domino's."1 Ryan said the company had a choice about how to make up for its expenses: charge a delivery fee, raise pizza prices across the board, skimp on ingredients or fire employees.1 Domino's and other national chains operate under the same conditions and chose the fee.
Posted 2010-09-10 and updated on Oct 10, 2010 6:26am by pizzaguy