Pizza Usa Pizza Delivery Case Study

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Gregory Long March 5, 2015 MG 390 Operations Management (20696) Professor Kim Roberts Pizza USA, Pizza Delivery Introduction Pizza USA is a pizza chain that current offer pizza in the dine-in or take-out modes. Pizza USA customers have shown a great interest in the pizza chain offering pizza delivery. Pizza USA customers are overall satisfied with their dine-in and take-out service, but ultimately would enjoy the benefits of not having to leave their home to enjoy a delicious pizza. Expanding their services to accommodate delivery will be a challenging task. There is a lot of information needed to be successful in the new adventure from hiring a delivery driver, driver’s pay, delivery charges, to customer complaints. (1)…show more content…
If not there is a good chance that the customer will receive the wrong order. Wrong orders translates to dissatisfied customers. As stated by Parpal (2014), “be sure you have an accurate order-entry system, such as proper Point of Sale (POS) software, as well as a staff who understands how to complete their tasks correctly and efficiently the first time.” Delivery Charges Most pizza delivery companies charge between $0.50 and $3.00 to deliver. With the rise in energy cost, these charges seem to be a method to supplement costs with raising menu prices. A large portion of this money goes to the drivers, a way to tip the drivers. Customers often believe that this charge is for the driver and will tip the driver less in return. Discounts To stay competitive with other pizza delivery businesses, Pizza USA should offer a 30 minute on time guarantee. If the customer don’t receive their pizza within 30 minutes it’s free. With discounts like this Pizza USA should expect at least 10% of its pizzas to be late. But the overall goal should 100% on time pizzas. By putting in that expected 10% lateness the company can estimate its losses up front and adjust

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