Currently, Donut shops need delivery systems, and the easiest way they can provide delivery systems is by using third delivery parties, like Ubereats, Doordash, and Grubhubs. However, is that beneficial to the shops?
The change in the donut shop expense is based on the presence of the delivery system. If the donut shops use the delivery system provided by the third delivery system, they have to provide 30% of their income to the delivery system. However, if they make their delivery system, they just have to give 15% to the delivery system to advertise their products, or they can make their delivery system, where they can earn more profits.
If the donut shops are trying to make their own delivery system and want to hire some people who can deliver the foods to the customers, they have to give the salary each week. If the donut shops want delivery drivers to work 15 hours per week, they have to pay at least 76.80$ to drivers. This cost is made because of the federal minimum wage that is 7.25$ per hour.
But 7.25$ is not the actual minimum wage of the delivery man. If the tip system is applied to the wage of the delivery man, donut shops can lower the wage until 2.13$ per hour. However, in this case, if the total wage of the delivery man is lower than (7.25)x(hour they worked), then the employer has to give additional money to the delivery man to meet the expectation of the federal minimum wage law.
If donut shops look at how other restaurants are paying delivery men, they would be able to know more about how to pay delivery men. Domino’s Pizza provides delivery workers about 7 dollars per hour with the tip system, and Papa John’s delivery drivers get 4.25 dollars per hour and apply the tip system too. Walmart pays its drivers about 9 dollars per hour without tip system applied, and Uber eats drivers get paid about 9 dollars per hour, with tip system.
Until now, it was about people who are starting fresh. But if shops hire experienced workers, they have to pay more. Amazon provides about 20 dollars per hour to the delivery drivers, and Kroger drivers get paid about 16 dollars per hour.
If we assume that donut shop owners earn about 40000 dollars every year, donut shop owners will get about 780 dollars per week, and if they hire drivers with 15 work hours each week, they just have to pay about 78 dollars, which is 10% of the profit donut shops earn.
Compared to the deduction of 30% of the entire salary by using the third delivery system, using your delivery system is much more profitable. Therefore, if you are able, try to find the delivery driver who can deliver donuts to the customers safely!