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Papa Johns and Tipping

Discussion in 'The OT' started by Stewart Vernon, Nov 27, 2012.

  1. Dec 9, 2012 #101 of 153
    bleggett29

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    I certainly agree about drivers not being fairly compensated as shown in a letter I wrote to several local, state and federal officials:
    But the part why the DC was implemented is totally accurate. I have been in this business for 15 years as a driver, Assistant Manager and RGM. I got out of delivering when the price of gas rose past $2/gallon. At that time drivers were paid at least minimum wage and 6% net sales of their deliveries. Raises of $0.10 - $0.25 were expected every 3 months. Drivers were able to make a fairly decent living at this time.
    Once the price of gas started pushing $3+ per gallon is when delivering as a living went down hill......fast. Liability insurance premiums for the stores nearly doubled overnight. The first thing that happened was the implementation of the DC. Then their compensation rate changed from a percentage of net sales to a per delivery scheme. Drivers started to see their tips and compensation reduced. When the recession hit, the raises stopped. When the minimum wage increased, veteran drivers were able to keep their current wage if it was above MW but new hires were stuck at MW. Within the last 18 months, all drivers were transitioned to a split pay scheme. MW while in store and below MW while on the road.
    As a RGM, I have very little sway regarding increasing compensation and wages. The Area Supervisors and OP have taken that out of our hands.
     
  2. Dec 9, 2012 #102 of 153
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    I cannot think of a for profit business where their employee compensation is not paid for by the fees that they charge customers (or their insurance companies if it is a service covered by insurance). EVERY company expects their customers to cover their employee wages, plus the other costs of the product and services provided, plus profits to pay the owners.

    The "creative fee" charging for the extra service is just like the satellite and cable companies charging for DVR service. The companies can offer a rational explanation for the fee but at the end of the day it is an "industry norm" that everyone charges ... a "because we can" fee - or "because everyone else is doing it".

    If one does not like the DVR fee one can not lease/own a DVR from the satellite/cable company and buy or build a DVR from another source. If one does not like the pizza delivery fee one can pick up their pizzas from the restaurant. Sure, a non satellite/cable DVR may be more trouble to connect and use than paying for an integrated unit ... and picking up your own pizzas may be more trouble that paying for delivery. At least Papa's and others have made delivery fees a choice.

    Perhaps they should have just raised the rates on every pizza by $1 - with 50% of their sales being delivery that would have been a break even. But that hurts non-delivery customers. (Then again, perhaps they need to be "hurt" because they generally don't tip.)
     
  3. Dec 9, 2012 #103 of 153
    kick4fun

    kick4fun Godfather

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    But then this goes back to the tip. The driver needs the tip to survive. If they only get a buck or two then the driver suffers.. Even worse, no tip then it costs the driver to have a job. So to educate the customer, these drivers depend on a tip..
     
  4. Dec 9, 2012 #104 of 153
    Richierich

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  5. Dec 9, 2012 #105 of 153
    Lord Vader

    Lord Vader Supreme Member

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    Is there something wrong with founding your own company and building into something that makes you money? Should he have not started his business? Should he have given his pizza away for free and not earned money?
     
  6. Dec 9, 2012 #106 of 153
    kick4fun

    kick4fun Godfather

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    Really? He does give his pizza away and then stiffs his employees over health care..

    Here is an example of 2 very succesfull companies.. 2 VERY DIFFERENT APPROACHES.. Costco vs Sam's Club (Walmart) http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?_r=3&pagewanted=all
     
  7. Dec 9, 2012 #107 of 153
    Lord Vader

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    If he gives his pizza away, how does he make money? Moreover, if he gives his pizza away and therefore cannot make any money, how can he provide health care for his employees?
     
  8. Dec 9, 2012 #108 of 153
    dpeters11

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    It comes out of the marketing budget. I believe they advertised 2 million free pizzas during Football season, not including the standard redeeming of points. Plus half off the day after the local NFL team wins.
     
  9. Dec 9, 2012 #109 of 153
    kick4fun

    kick4fun Godfather

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    And he can overpay for a stupid car he sold in the 80's..
     
  10. Dec 9, 2012 #110 of 153
    Lord Vader

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    So? Who cares? Why begrudge a person from legally making money?
     
  11. Dec 9, 2012 #111 of 153
    kick4fun

    kick4fun Godfather

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    Because he politicizes the pricing structure and continually takes $$ away from employees. THATS WHY!!
    Having been personally affected by the process, I believe I have a right to speak up.. Do you have an objection to my view?
     
  12. Dec 9, 2012 #112 of 153
    Lord Vader

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    Oh, he does, huh? Do you have proof that he "takes money away from the employees"? If he did, he'd be under investigation, and his employees would walk.
     
  13. Dec 9, 2012 #113 of 153
    kick4fun

    kick4fun Godfather

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    YES> as a matter of fact, having worked there, my paychecks became smaller and smaller as a result of the tip and driver fee structure.. Papa Johns is under civil suit for this very thing.. Have you been paying attention?
     
  14. Dec 9, 2012 #114 of 153
    Lord Vader

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    Then let it play out in the courts before accusing him of "taking money away" from you. Did you ever stop to think that your checks become smaller because of all the onerous taxes imposed by the government, especially the new ones and the ones yet to come?
     
  15. Dec 9, 2012 #115 of 153
    kick4fun

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    Had nothing to do with that but rather how drivers went from getting a straight wage plus raises every so often to a cut in wages and a stop on raises.. Blame the government all you want, but when a driver makes minimum wage and then it goes down to $3.85 when they are on the road, I think it's criminal.. I will let it play out in the courts, but I find it very insulting to have read the many letters from some high up telling employees its for their benefit to accept a cut in pay..
     
  16. Dec 9, 2012 #116 of 153
    kick4fun

    kick4fun Godfather

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    Did you read the article regarding the different approaches from the CEO of Costco vs Walmart?.. Same economy, 2 very opposite thoughts on how to treat their employees..
    http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?_r=4&pagewanted=all&
     
  17. Dec 9, 2012 #117 of 153
    fluffybear

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    Yes do!

    This is going to seem rather cold but here goes anyway.. I'm a consumer and really do not care what PaPa John pays his employee's. That is between the owner of the store and the employee. If the employee is not happy with what they are getting paid then they should have negotiated a better wage. I call and order a pizza, I pay my $2.00 delivery fee and all I really care about is getting my order. I should not be expected to tip a driver and if I choose to do so, how much I choose is what I feel the service was worth and the driver should smile and say Thank You. End story..

    Since you were a delivery person, how much of that tip money did you hide? You know exactly what I mean. Go out on a run and get $12 in tips but only come back to the store with $4. I know quite a few people as well who use to work pizza delivery and have heard a number of stories about tip miscalculations!
     
  18. Dec 9, 2012 #118 of 153
    fluffybear

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    and so are Dominos, Pizza Hut, & others. It's a class action lawsuit and what does that mean. Lawyers getting rich and Papa John's and the others being made to compensate drivers from a fund. Don't plan on the beach house just yet, you might just find yourself only getting a free Pizza.
     
  19. Dec 9, 2012 #119 of 153
    kick4fun

    kick4fun Godfather

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    Ok, you got me.. :) But I figured it evened out because I got stiffed as well. But you're right, it really only matters between the employee and the boss. I'm sure I went off on a rant and really don't harbor bad feelings toward Papa Johns, other than the political rant about heath insurance.. Because I didn't need it and my wife makes a great salary, i didn't care. I took my tips, paid off my debt and quit when I needed to.
     
  20. Dec 9, 2012 #120 of 153
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Oh no ... every delivery person is a fine upstanding citizen who would NEVER lie to the government or even threaten to harm their customers if undertipped. :rolleyes:

    And if you have that free Pizza delivered, don't forget to tip the driver.
     

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