Pizza Today - August 2019 - 46

and retaining quality staff. Post, in fact,
immediately ruled out in-house delivery
at Il Vicino because of the insurance and
labor costs involved.
"It was just too much to take on," he
says.
The added financial, operational and
technological implications of in-house
delivery, Bocca says, make it imperative
managers understand their current and
future delivery sales data and analysis.
"While in-house delivery services
might boost sales and revenue, it may
not necessarily equate to increased
profitability if the execution is costly," he
reminds.
LARGELY FUELED BY CONSUMERS'
HUNGER FOR CONVENIENCE, third-party

delivery from the likes of Grubhub,
Uber Eats, DoorDash and Postmates
has exploded in recent years. And not
surprisingly, some pizzerias are riding the
wave.
Whereas Rocco's delivery area at
Bexley Pizza Plus only extends about two
miles from his front door, his delivery
partner goes up to seven miles away,
which has extended his pizzeria's reach
and propelled brand awareness.
"I look at this as business I would
never have otherwise," Rocco says of
his third-party delivery service, one he

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carefully selected because they wear
uniforms, carry hot bags and are prompt.
Post similarly views third-party
delivery as a means to capture share of
stomach with customers who "were going
to order food delivery anyway." That's
why Il Vicino initially outsourced its
delivery to Grubhub, which operates in
each of its four markets - Albuquerque,
Santa Fe, Colorado Springs and Wichita.
Going with a third-party delivery
service enables operators to escape
concerns around implementing and
managing in-house delivery service,
thereby freeing the eatery to focus on
bringing value to its customers and
keeping its own house in order. Most,
in fact, see third-party delivery as rather
clear-cut carryout business.
To be certain, the Grubhubs of the
world get a cut of the action that eats
into a pizzeria's profit margins. To offset
that cost, some restaurants add fees,
but as delivery becomes increasingly
ubiquitous, will customers continue
to pay a premium for that expected
convenience?
"Restaurants may have to explore ways
to offset the costs of third-party delivery
to remain profitable," Bocca notes.
Quality control lingers as an important
issue as well. For instance, food that
arrives late or damaged, while potentially

the fault of the driver, most often reflects
poorly on the restaurant, which can
hamper customer loyalty and public
perception.
"If the driver is late, the customer holds
us responsible, not Grubhub," Post says.
At high-volume pizzerias and during
peak times, meanwhile, third-party
delivery orders can sometimes prove
overwhelming, demanding additional
staff or, worse, distracting from dine-in
customers.
There can also be time-sucking
redundancies and added potential
for errors. At Bexley's Pizza Plus, for
instance, staff review incoming thirdparty orders on a tablet. They then
re-enter those orders into the store's
adjacent POS. If an order doesn't hit the
kitchen, however, a driver arrives with
nothing to pick up.
"This takes coordination and
awareness," Rocco says.
REGARDLESS OF ONE'S APPROACH
TO DELIVERY, it's critical operators dig

into their data and consider delivery's
operational impact.
Bocca suggests "crunching the
numbers" from inventory and workforce
management perspectives to understand
if "in-house and/or third-party delivery
services would be worth the big spend"
or, rather, detract from bottom-line
earnings. Such analysis should also
help leadership determine how they
might adjust their budget, operations
or technology systems to create a more
profitable venture.
On the third-party front, key elements
to assess include fees, POS integration,
reliability, online ratings, driver
availability and quality controls. Rocco
urges operators to favor trial runs over
long-term contracts.
"Inch your way into it, and cut it off
if it doesn't work," he says. "You want
delivery to be as seamless as possible." n

Chicago-based writer DANIEL P. SMITH has
covered business issues and best practices for
a variety of trade publications, newspapers,
and magazines.
http://www.PIZZATODAY.COM
Pizza Today - August 2019

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