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Is your delivery service profitable? If you're not sure, you need to evaluate costs and delivery charges. Charges should cover gas, insurance, and driver labor for each neighborhood you deliver to. Customers value convenience, and most are willing to pay a bit more for it.

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One of the best ways to ensure delivery service is profitable is to use delivery zones. Creating multiple zones keeps prices more affordable for customers ordering from locations close to the restaurant, and helps you recover the higher costs for delivery to customers further away. Even if your trade area is small, setting up delivery zones can automatically deal with differences in regional taxes, allow managers to approve out of area orders, and increase driver safety. 

Automate Profitable Delivery

SpeedLine can automate charges and fees for all the zones you deliver to, and vary charges based on time of day.

In a case study, Diana’s Cucina & Lounge owner, Diana Cline, suggested setting up delivery zones: “Before we installed our SpeedLine POS, we would guess where our customers lived based on our knowledge of the area,” explains Diana, “and then charge them something we thought would work. But fees changed all the time. When we installed [SpeedLine], we set up delivery zones and charges in the computer. All we have to do is press Delivery, and the computer charges the right amount. Customers are happy because they do not get overcharged. And we’re ecstatic because we’re collecting an extra $40K a year in delivery fees.”

Here are some of the things you can automate using delivery zones:

Minimum Order Value

If it’s not profitable to deliver a $10 pizza to your furthest delivery zone—don’t. Set a minimum charge for distant delivery zones to ensure that you make money on deliveries. Staff are blocked from entering delivery orders for less than the minimum amount without a manager override.

Delivery Charges & Driver Fees

Fuel prices and tolls can make some areas substantially more expensive to deliver to. You can specify a different delivery charge for each zone, and draw zone boundaries to outline more expensive areas. Increase driver fees for areas with longer drive times to help retain quality staff. 

Time-Based Changes

Let’s be honest: even in the nicest cities, there may be some places you aren’t comfortable sending deliveries late at night. You could have:

  • One zone entry with a start time of 8 AM that has no minimum charge, and a quoted time adjustment of 10 minutes and,
  • A second entry for the same zone with a start time of 9 PM, a minimum charge of $20, no quoted time adjustment (because there’s less traffic), and a restriction that requires a manager override for late deliveries to the zone (because it’s a higher risk crime area).

Regional Taxes

If your trade area spans two or more tax jurisdictions, use delivery zones to charge the correct tax based on where the delivery is going.

Out of Area Orders & Orders for Other Stores

If using LiveMaps, you can create a zone without a boundary that covers the area outside your usual delivery area. Use this zone to allow managers to approve large orders to addresses you might not normally deliver to.

Are you part of a multi-store operation with other locations nearby? Import or draw in the delivery zones for the nearby stores, and then identify them with the Store ID. When an order for another store's area comes in, a pop-up with the phone number makes it easy for staff to redirect the customer.


Free Pizza Marketplace White Paper: Processing Payments at the Door

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Improve credit card security and cut fees with delivery payments at the door.