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Just rewards

Despite the perceived costs involved, pizza operators say drivers and other employees need incentive programs.

September 15, 2004

Longtime pizza operators and delivery drivers will tell you driver incentive programs aren't what they used to be.

"Back in the 1980s, when I got started in this business, all the big chains had them," said J.W. Callahan, president of the Association of Pizza Delivery Drivers. "I know of a driver who won $10,000 from Pizza Hut for being that company's best."

The lead from this 2000 press release on Domino's Pizza's Web site serves as a reminder of such salad days gone by: "Sixteen outstanding Domino's Pizza Delivery Experts from across the United States have been nominated for the company's National Safe Driver of the Year Award. Each individual has earned an all-expense-paid trip on May 22 to the company's annual worldwide rally in Las Vegas, where they will compete in the final qualifying events for $5,000 cash."

George Ralph, national director of safety and security at Domino's said the company discontinued its national "driver rodeo" some time ago, but he would like to see it come back.

"That was very motivating and fun for drivers, and it gave us an opportunity to listen to what they had to say about their jobs," said Ralph, who declined to say why Domino's stopped the

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contest. "We're looking at some programs connected to our affiliation with NASCAR and its focus on safety, because safety is what we're most interested in. But there's nothing firm right now."

Domino's is not alone in canceling its driver safety reward/incentive program. At least a half dozen independents and chains contacted by PizzaMarketplace have either abandoned their programs or never had one. The one-two punch of the margin-crushing price war and the soaring cost of driver-liability insurance has made such programs prohibitively costly, some said, while others contend that safety should be the goal irrespective of any reward. In other words, what driver would want to threaten his car, his health or his boss's business by driving dangerously?

"Safety is one of those things that, if the rules are broken, a driver might lose his job here," said Mike Rangel, co-owner of Asheville Pizza & Brewing Company, in Asheville, N.C. "I'm sure it makes me sound overly strict to say this, but I've fired the last seven drivers who got speeding tickets. ... People already have the impression of pizza drivers as driving at breakneck speeds. And seeing a cop car pulled up behind one of our cars — with our car topper on it — just reinforces that."

Kevin Heagle, director of training at Hungry Howie's Pizza agreed that safety is a given, but he said some of the chain's franchisees see rewarding drivers as a great way of reinforcing good behavior. Drivers at one group of Hungry Howie's stores earn a gallon of windshield wiper fluid and new wiper blades for 250 incident-free deliveries. At 2,000 deliveries, they get a free oil change, a car wash and a $10 gift certificate to an auto parts store. And when drivers log 10,000 safe deliveries, they get a free set of tires and an oil change. A different Hungry Howie's franchisee tracks safe hours worked rather than deliveries. At 3,000 hours (basically a year and a half's full time work) drivers there earn an oil change and $250 cash.

"We try to keep the rewards auto related to reemphasize the need for drivers to maintain their vehicles," Heagle said. The franchisee who awards drivers for the number of hours, rather than the number of deliveries, Heagle added, does so to keep drivers from scrambling for more deliveries.

At Papa John's, spokesperson Karen Sherman said drivers at its 550 corporate stores participate in a Safe Driving Awards program that also tracks incident-free hours. Based on the numbers racked up, drivers get Wal-Mart gift certificates in increments of $25, up to a maximum of $100 dollars.

"What we found out from team members is that (this type of reward) was more meaningful to them if it wasn't directly related to their jobs," Sherman said. "Delivery drivers are in their cars all the time. So this lets them get something that goes beyond that. They can splurge on themselves or another person if they like."

Four-unit Flyer's Pizza makes a team contest out of its delivery incentive plan, said Mark Ulrey, vice president of marketing for the Columbus, Ohio, company. It uses its POS system to track deliveries per driver, and posts those totals for all to see. When a driver reaches 1,000 deliveries, he receives a $10 bonus and a free lube and oil change at Goodyear; at 2,000 it's $20 and more Goodyear grease. When one reaches 7,500 deliveries, the same cash and maintenance formula — $75 and a trip to Goodyear — applies.

"That's based on deliveries without incident," said Ulrey, meaning that accidents and traffic tickets aren't the only reasons for drivers being penalized. "If they forget something, like a 2-liter on an order, they get dinged five deliveries against their total."

AP&BC's Rangel ties delivery rewards to positive driver performance, especially in regard to customer service. The pizzeria's management does regular

We do some bartering with movie theaters, Dairy Queen and some other restaurants. We also reward our order-takers the same way. After 1,000 orders taken, they get some free movie tickets. -- Mark Ulrey, Vice President, Flyer's Pizza

customer callbacks to check on drivers out in the field, and if they hear positive reports, the driver is likely to get a stroke, such as a free tank of gas.

"With the way gas prices are, it's a better deal for them than getting a $20 bill. We do that a couple of times a week," Rangel said. "Drivers are our ambassadors, and (call backs) help us see how they're doing when we're not there."

Harry Bond, president of 50-unit Monical's Pizza in Bradley, Ill., said the company doesn't reward just drivers for working safely.

"Every quarter they can win the Silver Bandage Award for not having any accidents," said Bond. "There's a plaque hung up in the restaurant, and they can get their names on that. ... We reward them with food from our suppliers, so there's a variety of desserts or candy bars they get to choose from."

The barter system

If a driver incentive program appears too costly, consider a trade-out with operations whose goods and/or services are valued by your drivers. PizzaMarketplace spoke to several operators who traded food and drink for auto-care basics, though Ulrey said Flyers goes a few steps further.

"We do some bartering with movie theaters, Dairy Queen and some other restaurants," he said. "We also reward our order-takers the same way. After 1,000 orders taken, they get some free movie tickets. ... And since drivers also take orders at the beginning of their shifts, they can participate in this, too."

Ulrey said a key to an incentive program's effectiveness is making it fun for participants. Most people are naturally competitive and they like seeing how they measure up to their peers. Above all, operators said, employees respond best to rewards they find enjoyable and useful, not just recognition alone.

Additionally, if you offer performance-centered contests for one part of your staff, ensure some incentive is offered for all staffers. Reward servers or order-takers for selling specials, and stroke the pizza makers when they lower ticket times. If you've got a dish crew, consider incentives for reductions in glass and china breakage or silverware loss. Bottom line, said Rangel, everyone wants to play.

"One of our senior drivers sent us a note saying that the front of house and the back of house had contests, but nobody does anything for the drivers," he said. "It was a well-written note that got us focusing more on that part of the business and the need they had to feel appreciated."