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NewsAugust 27, 2003

If two of the nation's largest pizza chains add delivery fees, it is likely to have a forked effect -- it would bring in more dough for the revenue-seeking restaurants, but it also might make some of its customers and employees crusty. For years, Domino's and Papa John's have trumpeted free delivery as a way to entice some customers to the phone with wallet in hand. But in the past year, both companies have been quietly testing delivery fees of up to $1 in some stores across the country...

If two of the nation's largest pizza chains add delivery fees, it is likely to have a forked effect -- it would bring in more dough for the revenue-seeking restaurants, but it also might make some of its customers and employees crusty.

For years, Domino's and Papa John's have trumpeted free delivery as a way to entice some customers to the phone with wallet in hand. But in the past year, both companies have been quietly testing delivery fees of up to $1 in some stores across the country.

Some experts say it's risky and could alienate customers, and delivery drivers say it would eat into their tips, but those at both chains say they have to look at ways to increase sales that have been falling for years.

Domino's spokeswoman Holly Ryan at corporate headquarters in Ann Arbor, Mich., said that they are testing the fee in 350 of its 4,800 restaurants in the United States. The market test will help the industry giant decide whether to implement the delivery charge in all its chain stores.

She said they have to look at the fee as a way to address the rising cost of cheese and the cost of making and delivering the pizza.

Ryan said it was either that or raise pizza prices across the board, skimp on ingredients or fire employees -- none of which Domino's wanted to do. At Papa John's, neither local nor national company representatives returned phone calls Tuesday, though other news accounts cited the company offering the same explanations.

Ryan pointed out that Pizza Hut is still the country's largest pizza chain, even after it implemented a 50-cent fee two years ago.

Danny Lynn, who owns the two local Domino's restaurants in Cape Girardeau -- as well as four in St. Louis -- cautioned that adding delivery fees is far from a done deal.

"Mostly, they're looking at it on the West Coast where there's a lot more overhead, a lot higher rents," he said. "I don't see us doing it in the next year at least. It's hard to predict past then."

While it would be up to each franchise to decide whether or not to add the fee, Lynn, who recently celebrated 20 years in business in Cape Girardeau, said it's too soon to say whether he would do it locally.

"It's something I'd look at from a business standpoint," he said. "I'll just have to make that decision when it comes about."

Workers for the pizza chain, however, were unified in their opposition to the fee. Drivers said it would confuse customers and some would think the drivers are the ones getting the extra fee. There's even a national group, the Association of Pizza Delivery Drivers, who came out against the fee, citing the same reasons.

"I don't like it," said Saki Ligonis, assistant senior manager for the Domino's on North Sprigg Street. "It's not necessary. It would hurt tips."

Ligonis said a dollar delivery charge is logical for certain other eateries in the area that cater more to sit-down diners, but not for the pizza business.

"Delivering -- it's what sets us apart," Ligonis said

Tony Edwards, a delivery driver for Domino's, agreed Tuesday during the lunch hour as he delivered two large bacon cheeseburger pizzas to a business on Frederick Street. He said it would hurt tips, but he also had other reasons.

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"I'd feel bad about it," said the 28-year-old driver who has worked at Domino's for five years. "Cape's so small. I would only be in favor of it if we had to drive somewhere far out of our area. Otherwise, it doesn't seem fair."

Customers who got pizzas delivered during the lunch hour were equal parts understanding and opposed.

"If the cost of doing business is increasing and you've got to add a dollar charge, people aren't going to get too upset," said Eric Brown, who was the recipient of the two large pies.

Courtney Trentmann of Cape Girardeau wasn't so understanding.

"Pizza's kind of expensive anyway," she said. "I wouldn't mind it if it were going to the delivery driver, but if it's not, I don't think it's OK. I wouldn't like it."

John Cherry, a marketing professor at Southeast, said that while customers don't like cost increases, they are understanding.

"They don't like being nickeled and dimed to death," he said. "But they understand it's sometimes a fact of life. They especially may not like stealth charges like this."

Cherry compared it to ATM use, which initially was free and then became costlier and costlier as fee after fee was added.

"But this doesn't have to be the same thing," he said. "I would just advise the companies to be forthright. They need to tell every customer that there's a dollar charge for delivery."

As for the unhappy delivery drivers who are looking to lose money? Cherry said have frank discussions with them and maybe offer other incentives for delivering pizzas.

Customers can be appeased with promotions like coupons for free sodas.

"Those things cost next to nothing, just pennies, but it might mollify some of the customers," Cherry said.

Regardless, Cherry said that, in the end, it might be a move Domino's and Papa John's both regret.

"There will definitely be a number of customers they annoy," he said. "It's hard to replace good customers."

smoyers@semissourian.com

335-6611, extension 137

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