I should have guessed but was pleasantly surprised that an entrepreneur produced a GPS enhanced software that managed a crew of delivery drivers and integrates with several POS. A 21-unit Pizza Hut franchisee just purchased a system.
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Outsourcing delivery has got to be the most efficient model. If the delivery company handles deliveries for several restaurants, there should be software like this to route the deliveries and food pickups most efficiently. Am I wrong? I don’t think people really care if the food is delivered by an employee or outsourced worker.
Obviously, there are still good ideas out there and outsourcing delivery is a good idea if it is cost effective for the franchisee and the franchisor approves. Just recently Quiznos decided to let its franchisees decide whether or not they wanted to offer delivery service and this was a smart move by Corporate —-because, of course, in some neighborhoods, etc… delivery service might not be cost effective for some of the franchisee owners because it might involve hiring extra help and more insurance costs etc.. that the franchisee would have to bear. Again, it might increase the gross sales upon which the franchisor grows his profits but might reduce the profits of the franchisee because of the increased overhead expenses.
Obviously, by permitting the franchisees to choose whether or not they would provide delivery service, Quiznos corporate continues to protect themselves from liability for the operations of the restaurants and the conduct of employees and contractors who do business with the franchisees.
Tongue in cheek. It might have been a good will gesture for Quiznos to mandate delivery services but to contract with delivery firms and pay the costs and the insurance, etc.. for their franchisee owners. Ha! Ha!