The delivery business is a big business. Dominos, who only delivers pizza did $5.1 billion in 2007. Dine-in Delivery can deliver food from from every imaginable type of restaurant.
Local Dine-in Delivery operations sign agreements with local restaurants and then print and distribute menu guides in the area. Each guide is nothing more than a recreation of the participating restaurants’ menus. The guides are then mailed to every residence and business in the service area. Immediately after mailing out the menus, the phones will ring.
When someone calls to place an order, the order is conveyed to the restaurant and then to an independent contractor driver who picks up the order from the restaurant and delivers it to the customer.
How Do The Local Operations Make Money?
The drivers get the delivery charge and their tips. Because the average order is a lot larger than pizza. If a driver delivered 3 orders in an hour, with a $5 delivery charge he makes $15. Tips could also easily be another $10. Drivers will be very happy with $25/hour – just ask a pizza delivery driver!
The local operation makes money on the discount the restaurant gives you on the food, not from delivery charges. A restaurant can give you a large discount on the food and since the order is not served in the restaurant, they don’t need to count that part of their overhead.
If you’re thinking about starting a local delivery business, I’d talk to Dine-in Delivery first. Tell them that Dane sent you.