Restaurant deliveries hit hard by gas prices

The price a consumer pays at the pump for a tank of gas continues to increase, but there's an up side to the situation for Carly Wilson, manager of Papa John's in Cape Girardeau.

Thanks to the rising cost of fuel, the pizza restaurant is reaping the benefits of an erratic economy.

Normally, the summer months mean less revenue for her business. However, this year Wilson has noticed a trend of more customers spending their money at home instead of taking the usual summer vacation to the beach, theme park or mountains.

"Usually the business is dying down this time of year," Wilson said. "But this year, we haven't seen a drop-off in business.

"People are using their normal vacation funds to spend money at places like ours," she continued. "We've stayed as busy as we do in the winter, which is our most profitable season of the year."

On a normal evening shift, Wilson employs between four and seven delivery drivers. Before the surge in gas prices, Papa John's instituted a $1 delivery charge per pizza, which Wilson said was unrelated to fuel costs. In addition to tips, drivers earn 75 cents per delivery to cover fuel costs.

"My drivers are telling me that the majority of customers are tipping more they did a year ago," Wilson said. "The customers realize that because our drivers are paying more in fuel, they are tipping more to make up for that loss."

A recent survey released by the Washington, D.C.-based National Federation of Independent Businesses found that business owners across America are facing tough choices on how to absorb the costs.

The survey found 49 percent of businesses that use vehicles in their operations did not change much of anything in the past year to counteract the higher price of gasoline. Of those who did, the most frequent changes were changing delivery routes, using vehicles less frequently and purchasing more energy-efficient vehicles.

John Mehner, executive director of the Cape Girardeau Chamber of Commerce, said that increasing delivery costs is a measure businesses are taking to survive in today's economic climate.

"Obviously some businesses are passing along increased fuel costs to users in different ways, whether it be transportation or food," Mehner said. "Just like consumers, businesses are doing what is necessary to give a good value to customers while turning a profit."

Although Papa John's is seeing a rise in tips, not every business mirrors that good fortune.

Ryan Austin, general manager of Imo's Pizza in Cape Girardeau, has noticed his customers are tipping less, which equates to not as much take-home pay for delivery drivers.

"I realize that a lot of places have been hit hard, but it hasn't been horrible for us yet," Austin said. "Hopefully prices will stay close to where they are, but the reality is, it [may] continue rising for quite some time."

If gas prices continue to increase, Austin fears he may have to increase the delivery charge for each order.

Like Imo's Pizza, delivery drivers for Jimmy John's gourmet sandwiches in Cape Girardeau are receiving less in tips because of the gas prices. Jason Flohrs, owner of the sandwich shop, said while he does not charge a delivery fee, his drivers depend on tips for their salary.

"The gas situation has made people not want to drive, which has been good for customers because we drive to deliver their food to them but bad for my delivery guys," Flohrs said. "I hear my drivers complain a lot about areas of town that do not tip well. Whenever they get to a place where the customer only tips them 25 cents and they are paying more than that to fill up their tank per order, it doesn't add up in the end for them."

Flohrs said each driver receives 5 percent of the cost of the orders they deliver each shift. This week that percentage may increase to 7 percent.

For customers who use food delivery, Flohrs offered one piece of advice.

"If you don't want to spend money on gas to use services like ours, that's fine because we appreciate your business," he said. "But just make sure that you take care of the guy who delivers your food by not forgetting to leave a decent tip."

bblackwell@semissourian.com

335-6611, extension 137