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Delivery Management

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Restaurant Technology Field Guide:

Driving Delivery: A POS Technology Guide


INSIDE

EFFICIENCY

MAPPING

PERFORMANCE

ONLINE
ORDERING

MASTER
CHECKLIST

1-888-400-9185 | speedlinesolutions.com

Inside

Inside
INSIDE

Profitable pizza delivery: driving restaurant delivery operations.


For more than 80 percent of pizzerias, pizza and delivery go hand in hand. That means one of the
challenges pizzeria owners face on a daily basis is overseeing drivers and deliveries. Are you getting
deliveries to customers on time? If not, is the problem kitchen inefficiency, under-performing
drivers, or bad ready time estimates?

EFFICIENCY

If delivery is a big part of your business, it takes constant attention and a commitment to ongoing
monitoring. A point of sale system designed for pizza and delivery drives efficiencyfor a more
profitable delivery service.

MAPPING

Read on for tips, examples, and best practices in delivery management. Watch for the checklists at
the end of each sectionand the Master Checklist at the end for practical steps you can take to
reduce costs and improve delivery performance.

PERFORMANCE

ONLINE
ORDERING

MASTER
CHECKLIST

1-888-400-9185 | speedlinesolutions.com

TRAINING

Efficiency

Efficiency
Delivery Efficiency Starts with Driver Scheduling

Do you know how much it costs to deliver a pizza?

How many times have you had drivers sitting idle? Or been so busy that scheduled drivers couldnt keep
up? Your POS systems labor and forecasting tools can help you avoid nights like these.

In addition to drivers salaries and vehicle costs, your true delivery cost has to
factor in related expenses such pizza bags, boxes, and liability insurance.

An accurate forecast lets you create next weeks schedule based on historical sales and eliminate
guesswork.

Costs add up quickly, especially if you have slow times when you must keep a
driver on shift even though volume is low. If your delivery costs eat up all your
profit, you may need to review your prices and fees.

Look at historical sales and forecast by hour. Pay attention to the breakdown by day part and order type,
to determine the number of drivers you need to schedule per shiftand the length of shifts you need to
schedule to address peak demand for delivery services. Some point of sale systems, like SpeedLine POS,
can recommend staffing requirements based on forecasted sales.
Before you create a schedule, a glance at the numbers can show you where the problems are. You can
view the report and see youre having delivery issues from 10 p.m. to midnight, or at lunchtime, or
anytime throughout your day. And you can use this information to create more efficient, cost-effective
schedules.
The secret to delivery efficiency is schedulingand if you dont have enough drivers, your delivery
operation wont be successful.

From that
first month,
she has been
collecting an
extra $600 a
month in fees.

Delco owner Lexy Frautschy of Ians Pizza comments,


We started tracking the pizzas we sell most and
restructured our menu and pricing, he explains. Better
pricing meant more profit: Our food cost used to be
in the mid-thirties. Now, with SpeedLine, we got it
down to the low twenty percent mark.

Rather than implementing a price increase, some


operators, like Diana Cline at Dianas Cucina and
Lounge, prefer to apply a delivery charge to cover their
costs. Delivery zones allow them to set a fee structure for their deliveries and
apply the correct delivery fee according to where their customers live.
When she initially set up the POS to systemize delivery charges, Cline told us that
customer complaints about delivery order totals actually decreased. Customers
were happierbecause they were now being charged the same amount on
every order. And Cline was ecstatic because from that first month, she has been
collecting an extra $600 a month in fees.
You get the occasional customer who complains, Cline says, but I explain to
them it goes to the driver to cover the cost of insurance and gasoline. Customers
are welcome to come in and pick the order up if they feel its not a fair price, but
for the extra two bucks or so, they usually find its not worth the effort.
While the POS gives you the data to schedule more accurately, some wait time
between runs may be unavoidable. Another way to get more mileage per labor
dollar is to ensure your drivers are not sitting idle between runs. When our
drivers come back, we ask them to do dishes or tidy up the front of the house,
Frautschy says.
They may also cut slices or put finishing touches on a pizza. Drivers can take
out the trash, fold pizza boxes, or sweep your sidewalk. They can also help with
marketing activities such as preparing mailings, contributing to your restaurants
Facebook fan page or Twitter feed, or reviewing the days new customers in the
POS to make sure you have complete addresses for marketing.

1-888-400-9185 | speedlinesolutions.com

Expediting Dispatch

Efficiency
Expediting Deliveries
Want to make more money on delivery orders? Set up the dispatch options in your point of
sale system to manage delivery volume and expedite deliveries.
Visual alerts. Set visual alerts on the
Dispatch Screen for a clear view of orders
sitting too long in the kitchen, or drivers
running late on deliveries. Watch the
delivery performance stats throughout the
shift to identify quickly if you need to call
in another driver, or send one homeor
pull a driver aside for a chat about extra
stops along the way.

Control the drive factor:


The LiveMaps visual dispatch
system considers best route and
live traffic conditions in routing
and predicting delivery times.

Interactive visual dispatch. SpeedLine LiveMaps


includes an interactive visual dispatch system that
considers not only the best route, but also live traffic
conditions in routing and predicting delivery times.
Touch pushpins on the map to assign orders to a
driver.
Dual expeditor screens. If your POS system
supports it, add a second expeditor station for an
interactive map view of your ordersor a live digital
wall map on a large-screen TV for instant visibility
into delivery volume, and easy grouping of orders in a
neighborhood for speedy (and cost-effective) delivery.

Efficiency Checklist
;; Calculate your true delivery costs (including related expenses such pizza bags, boxes, and
liability insurance) before you set prices and delivery fees.
;; Set visual alerts for a clear view of orders sitting too long in the kitchen, or drivers running
late on deliveries.
;; Break down your sales forecast by hour and order type to identify driver staffing
requirements.
;; Consider in-store and out-of-store pay rates for drivers if local labor law allows.
;; Manage delivery costs by setting accurate delivery zones by drive time.
;; Control the drive factor with routing and delivery times based on current traffic.

Real-Life Savings:
Extra $40K per Year in Delivery Fees
Before we installed our SpeedLine system, we would guess where our
customers lived based on our knowledge of the area, explains Dianas Cucina
and Lounge owner Diana Cline, 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 every time. Customers
are happy because they do not get overcharged. And were ecstatic because
were collecting an extra $40K a year in delivery fees.

1-888-400-9185 | speedlinesolutions.com

Mapping

Mapping
Getting orders out the door efficiently is only half the battle: your drivers also need to make their
way safely and quickly to their delivery destination.
An in-depth knowledge of your delivery area, coupled with a good old-fashioned map, can get you
to most places in good time. But there are always those obscure addresses that can stump even the
most experienced driver.

Integrated Delivery Mapping


A POS system can integrate with mapping software, for easy mapping of deliveries and turn-by-turn
driving directions. The software can provide directions for a specific address or map the best route
for a run that includes multiple addresses. Some systems, like SpeedLine, can even send the driving
instructions to the drivers smartphone and use the drivers native mapping app for accurate, handsfree navigation.
Look for an online, always-current solution such as SpeedLine LiveMaps.
Integrated mapping helps speed delivery times and increase customer satisfaction. It makes it possible
to track actual mileage for deliveries based on the recommended route, and can be especially
valuable when training new drivers.
Delivery and pick-up represent 80 per cent of our business, says Ray Cantelo, manager of
operations at Beggars Pizza, a regional chain operating in the Chicago area. Im thankful we have
mapping integrated into our SpeedLine system, because it maps routes for us from point A to point B
and then back to the restaurant. Having mapping has helped us a lot when weve opened restaurants
in areas were less familiar with.

Driver Safety
Mapping software can also help increase driver safety:
zz If someone tries to give us an address that does not exist, the
computer will recognize that and flag it as an invalid address, adds
Coutu. If the system says an address is invalid, employees cant take
the order without a manager override.
zz And the POS system can use your delivery zones to restrict delivery
in some areas, or limit it to daylight hours, for example.

Expeditor Controls
A second expeditor monitor at your dispatch station provides a full-screen
interactive map view of deliveries. Use this visual view of your current
orders to monitor delivery volume and group deliveries for faster delivery
with live pushpins. A larger map view of current deliveries and zones on a
big-screen TV ca replace your old, out of date wall map with a live view for
the entire staff.

Heat Map Reporting


Some POS systems may also offer integrated map views of key customer
data. SpeedLine LiveMaps, for example, adds a new level of analytics, with
heat map views to give operators new insight into customer purchase trends
and market reach.

Mapping Checklist
;; Add an interactive expeditor map station to your POS setup to sort and group
deliveries.
;; Mount a large TV on the wall in place of your wall map for a live view of current
deliveries.
;; Geocode your delivery database to verify valid addresses (and warn you of potential
prank orders).
;; Use heat map views of customer data to identify hot neighborhoods and purchase
trendsand see areas where late deliveries are a poblem.

1-888-400-9185 | speedlinesolutions.com

Performance

Performance
Manage for Peak Performance

Whos cheating?

Tracking delivery performance can help you streamline operations and build better
schedules. Even the most experienced managers see the value in detailed
performance statistics from the POS system to spot problems and opportunities for
improvement early.

Certain employees will always try to cheat the system.

Our SpeedLine POS provides us with detailed delivery numbers, Frautsch


comments. Just by being aware of these numbers, we can often tell where we could
schedule one more person to really help us cut delivery times down.
Accurate delivery statistics also improve performance across a chain. Managers use the store-level
detail and regional or chain-wide comparisons to monitor performance and identify problems.
The system should track and manage key performance metrics, by driver and overall, such as:
99
99
99
99
99

On-time and late deliveries


Out the door times
On the road time
Wait time between runs
Quoted times

99
99
99
99
99

Delivery times
Driver mileage
Driver and delivery fees
Deliveries per run
Coupons and credits applied after delivery

Tighter Controls
Other features in the POS system can help you manage driver performance as well: Enter drivers
license and vehicle insurance expiration dates to keep drivers with expired insurance or licenses off
the clock (and off the road). Set controls to require drivers to drop cash, or even cash out on return
from a run for tighter cash control and better tracking of discounts and coupons applied to delivery
orders.

Some drivers feel its okay to snake deliveries from other drivers,
comments Two Guys Pizza owner Cory Medd, and find creative ways to do
it. Likewise, some managers cheat the system to make their numbers look
better. Security controls can block much of this but to be certain that
your numbers are an accurate reflection of whats really happening in the
restaurant, close attention to the driver reports is essential.
Look beyond the store metrics to your drivers delivery detail for a shift:
zz Any deliveries returned in lightning speed? Medd noted one common
cheat: drivers assigning an order to themselves, immediately
returning themselves, and taking two more pies to get around the
stores two-order delivery limit.
zz Are your out-the-door times in line from one driver to the next?
Some managers pressure drivers to assign orders to themselves
earlysometimes even before the pizza is out of the ovento meet
a tough OTD Time metric.
Reports showing these types of problems provide the documentation you
need to coach or terminate a cheating driver.

If labor code in your area permits, look at the POS systems payroll options for drivers. Some chains
pay drivers a lower tipped minimum wage while out of the store on deliveries, and a higher non-tipped
wage when theyre working in the store.
Some POS systems can track in-store and on-the-road times for drivers throughout each shift. Also
set up the POS systems mapping solution to provide actual mileage for deliveries. If youre paying
driver mileage, set the system to calculate reimbursement based on best route in current traffic.

Delivery Areas & Fees: Getting it Right


Restaurant operators leave thousands of dollars on the table each year in delivery fees charged
inconsistently, or set too low to recover expenses. SpeedLine for example, expands on the ability to set
delivery zones & fees by drive time, allowing operators to import zone details from a Google KLM file
or fine tune them by hand on a mapfor perfect fees that reflect the true cost of delivery. The result?
A more profitable delivery service.

1-888-400-9185 | speedlinesolutions.com

Promise Times

Performance
Managing Customer Expectations

Work Your Delivery Data

On time deliveries are a key factor in customer satisfactionand their perception of on time
begins with the delivery time your order entry staff promise them when they place an order.

When it comes to marketing, pizza and delivery restaurants have an


advantage over other restaurant concepts: the kind of competitive advantage
savvy companies use to eat up market share. Information is your secret
weapon, and guest intelligence is built into the point of sale system.

This same promise time is the basis of a number of related


delivery performance statistics as wellso its crucial that
your promised delivery times are accurate.
Most pizza POS systems provide some means of setting
quoted times for delivery orders. SpeedLine POS provides
both automatic settings and manual override options for
quoted times. Set the system to predict the quoted promise
time automatically based on order volume and kitchen load
for a high degree of accuracyand to warn when out the
door times approach a maximum limit that you predefine.

Set the system to predict


the quoted promise time
automatically based on
order volume and kitchen
load for a high degree of
accuracyand to warn
when out the door times
approach a maximum limit.

Automated Delivery Confirmations. When you assign orders to a driver, SpeedLine


automatically sends an email to customers informing them that their order is on its way, and provides
an accurate ETA based on current traffic. Your customers know exactly when their pizza left the
restaurant and when to expect it at their door.

For a profitable database marketing program, follow these steps:


1. Train staff to enter complete addresses: When employees entering
incorrect or incomplete information, you wind up wasting marketing
dollars mailing to bad addresses. So show staff what information you
need to collect and why its important. Make it a requirement for
raises or incentive payouts, and coach them on it regularly. Remind
them to also ask each return caller if any of their contact information
has changed.
2. At least weekly, run a New Customer report to verify that each
new address is complete and correct. If information is missing, assign
someone to look it up!
3. Delete customers who have not ordered in more than six months.
Since redemption rates for lazy customer mailings drop sharply after
120 days, deleting old records can help you keep marketing costs in
check.
4. Use SpeedLine LiveMaps or purchase a street database with accurate
streets and zip codes for your trade area. When new customers call,
the POS system checks the street database to auto-complete address
fields with accurate informationincluding the correct ZIP code,
which order takers often forget to enter.

Performance Checklist
;; Compare late deliveries with driver stats to identify problems or coaching opportunities.
;; Enforce driver cash out after every run for tighter cash control.
;; Set the right expectations with your customers: set the POS to auto-calculate delivery times.
;; Watch your delivery metrics for signs a driver or manager is trying to cheat the system.
;; Use cost-effective database marketing to recover lapsed customers and drive repeat business.
;; Automate delivery confirmations so your customers know exactly when their pizza left the
restaurant and when to expect it at their door.

1-888-400-9185 | speedlinesolutions.com

Online Ordering

Online Ordering
Web and Mobile Ordering Fuel Delivery

3 ways to build online ordering volume

Delivery and online ordering go together like pepperoni and cheese. Web and mobile ordering give
your customers multiple convenient ways to order for delivery or carryout. And easy online access lets
viewers browse all your menu selections. Thats why people spend more20 to 30% more on some
restaurant siteswhen they order online. At the leading pizza brands, web and mobile ordering today
represent more than 40% of sales.

People spend
more20 to 30%
more on some
restaurant sites
when they order
online.

Apps allow customers to place orders from their computers, mobile


phones, tablets, and social networking sites. Increasingly, your customers
are coming to expect online
orderingeven from their
local pizzeria.

The customer database in


your pizza POS systems
allows a tight integration
with your web ordering menumaking it possible to add
customers, edit customer information, add and recall orders,
and display information on stores, streets and zones.

1. Drive phone sales online. Ed Zimmerman of Real Time Ordering


(RTO) suggests, One key to successful online order volume is to
convert existing regular customers to use your online order system.
This frees phone lines and staff to service newer customers who dont
know your operation as well. Encourage staff to tell customers about
the online ordering site, and promote it in your hold messaging too.
2. Promote web ordering everywhere. Zimmerman adds, To attract
current customers to your website, print ORDER ONLINE
everywhere: on carry out menus, signs, flyers, box toppers, business
cardseverywhere ink will stick. Attract drive-by traffic to your site
too: hang a banner in front of the restaurant.
Sy Bor Wong from Brygid Technologies agrees: When I speak with
restaurant owners, I remind them that it is critical to promote and
advertise to let their customers know they have a restaurant website
and offer online ordering. Even something simple like: Order Online
Now! Mobile Ordering Available! can be very effective. Wong adds,
Social media and email marketing are also very effective means to
reach a wider customer base.

But pizza orders can be complexso both the online


ordering site or app and the POS system receiving the
order must be able to handle half-and-half portions, createyour-own combinations, and complicated coupons. Some
SpeedLine users support more than a hundred coupons on
their websites, requiring a depth and flexibility that can only
be provided by a fully integrated POS system with smart
coupon controls.

3. Use incentives to move sales online. Wong also shared this tip: We
have also seen many restaurants provide incentives to encourage
customers to order online, such as offering 10% off their order or
a free soda or breadsticks or even free delivery as an example. By
freeing up your phone lines and your staff, you can handle more orders
at lower cost, while reducing ordering time, errors and time answering
the phones.

Drive Delivery Online


;; If you dont already offer web and mobile ordering, start!
;; Choose a web ordering solution that integrates with your POSand gives you all the
features you need.
;; Make sure your web ordering providers pricing model suits your order volume.
;; Promote your web ordering site in all your advertising and printed materials.
;; Offer incentives to get customers to try your online ordering services.

The Click Away Factor


Not offering online ordering yet? Consider this: web and mobile ordering for
pizza delivery today has become so prevalent that many consumersespecially
in younger demographicswont consider picking up the phone to place an
order anymore. If your local restaurant location doesnt have a convenient
web ordering site, and one thats easy to use, theyll click away and take their
business elsewhere.

1-888-400-9185 | speedlinesolutions.com

Master Checklist

Master Checklist
20 Steps You Can Take To Increase Delivery Profitability
Efficiency

Mapping

;; Calculate your true delivery costs


(including related expenses such pizza
bags, boxes, and liability insurance)
before you set prices and delivery fees.

;; Add an interactive expeditor map station


to your POS setup to sort and group
deliveries.

;; Set visual alerts for a clear view of


orders sitting too long in the kitchen,
or drivers running late on deliveries.
;; Break down your sales forecast by
hour and order type to identify driver
staffing requirements.
;; Consider in-store and out-of-store
pay rates for drivers if local labor law
allows.
;; Manage delivery costs by setting
accurate delivery zones by drive time.

;; Pay mileage based on best route in current


traffic.
;; Mount a TV on the wall in place of your wall
map for a live view of current deliveries.
;; Geocode your delivery database to verify
valid addresses (and warn you of potential
prank orders).
;; Use heat map views of customer data to
identify hot neighborhoods and purchase
trendsor areas where late deliveries are
a problem.

More Restaurant Technology Resources

Performance

Online Ordering

Orders Upsized

;; Compare late deliveries with driver


stats to identify problems or coaching
opportunities.

;; If you dont already offer web and


mobile ordering, start!

Labor Savings: Its About Time

;; Choose a web ordering solution that


integrates with your POSand gives
you all the features you need.

Employee Management Field Guide

;; Enforce driver cash out after every


run for tighter cash control.
;; Set the right expectations with your
customers: set the POS to autocalculate delivery times.

;; Make sure your web ordering


providers pricing model suits your
order volume.

;; Watch your delivery metrics for signs


a driver or manager is trying to cheat
the system.

;; Promote your web ordering site in all


your advertising and printed materials.

;; Use cost-effective database marketing


to recover lapsed customers and drive
repeat business.

;; Offer incentives to get delivery


customers to try your online ordering
services.

1-888-400-9185 | speedlinesolutions.com

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