As a caterer, you have the option to charge a delivery fee at a flat rate or calculate it according to the order value or distance. Setting the right delivery fee is necessary for caterers to ensure they are able to profit from all their orders
Here’s everything you need to know about delivery fees to make your catering pricing system work better.
How does a delivery fee work?
The delivery fee is the cost of delivering food to the customer’s doorstep. It covers the cost of everything that makes it possible for catering companies to prepare the food in their kitchens and deliver it. You also have the option to put up a minimum order value. This is the minimum price of food that a customer must order for you to deliver it.
Typically, the fee includes all the operational costs, including vehicle costs, labor costs, and costs incurred for packaging the food for safe delivery. For instance, in case the customer places an order for individually packaged meals instead of a single order for safer delivery during the pandemic, the delivery fee charged should cover the cost of preparing these packages.
What is the average delivery fee I should charge?
There’s no standard fee, and it varies a lot from one caterer to the other. However, it is much higher than the delivery fees charged by restaurants. By charging a higher fee, you can ensure a better catering experience for your customers. For instance, if you receive a catering order for a corporate event that involves setting up a live counter as part of the buffet, then the delivery fee should include the cost of packaging for the safe transportation of food trays to the event. You may also need to rent additional equipment to set up the counter. These costs can all be made part of the delivery fee.
At CaterCurator, catering companies registered with us can decide their own delivery fees based on the delivery radius. In case you don’t deliver, we can take care of the delivery operations for you, in return for a CuratorDelivery Fee. You also have the option to list your outlet as ‘pick-up only.’
Will the customers tip in addition to the delivery fees?
The delivery fees charged by you are not meant for your delivery partners. They are only allowed to retain the tips received. You can add a note in the invoice that the order amount does not include any tips. In case you arrange deliveries through CaterCurator, we pass on the tips to the driver.
Since tipping is the best way to express gratitude towards the driver for seamlessly delivering the order to the customer, chances are your customers will not shy away from paying. On average, tips for catering orders are usually between 15 to 18 percent of the order value.
Catering delivery fees are a premium paid for convenience and providing an exceptional experience. Since the Coronavirus outbreak has made delivery the lifeline for most caterers, delivery fees are here to stay. Make sure to take all the factors into account before you work out your delivery fees.