This image reads "VROMO Case Study - A Hybrid Delivery Solution". The text is presented in the centre of the image and the word VROMO is incorporated through a large VROMO logo. The logos of the other brands involved in the case study - DoorDash and Papa Gino's - are situated to the bottom left and right respectively. All of the elements sit against a plain black background.
Papa Gino’s chooses VROMO for self delivery to drive efficiency and capture more customers

Share this post

Introduction

Having more than doubled in size in the past year, the restaurant delivery channel has become an essential part of any off premise strategy in terms of reaching customers and growing revenue 

With that, delivery now has a far greater impact on a restaurant’s profitability so it is critical to have an efficient solution in place that never compromises the customer experience

Although 3rd party delivery apps are an essential source of revenue, many restaurants also operate a self delivery model, prefering to manage their cost base and retain direct engagement with their customers. Operating these 2 solutions in parallel has rarely led to a profitable delivery solution, until now  

VROMO allows restaurant brands to work with multiple order sources while operating an optimised blend of self delivery and 3rd party delivery to maximise customer reach and delivery cost effectiveness

 

Background

 

The Customer – Papa Gino’s

Founded in 1961, Papa Gino’s Pizzeria is a proud New England staple with a heritage of serving high quality, handmade pizzas with fresh ingredients and an 80-year old Italian family recipe.  From a single restaurant in East Boston, Papa Gino’s has expanded over the years and now has nearly 100 restaurants in Massachusetts, Rhode Island, New Hampshire and Connecticut

 

The Problems

  • Significant increase in delivery volume having a detrimental effect on bottom line
  • Customer eager to prioritise self delivery to maintain relationship with the customer  
  • Forecasting driver requirement accurately and managing driver retention becoming increasingly challenging
  • Limited metrics to optimise fleet performance
  • Manual intervention when dispatching to various delivery partners is slow and labour intensive
  • Too many real-time decisions having to be made by in-house Ops team
  • Customer experience compromised by lack of visibility and inconsistent delivery times
  • Inability to achieve the desired unit economics for profitable delivery 

 

Resolution

Challenge Solution
Too much monitoring and effort required by GM’s in store to make real-time decisions on overflowing orders (or rejecting in some cases) Automated dispatch with rules in place to ensure in-house delivery team receive orders ahead of 3rd party delivery partner
No way of managing stacking, aside from having in-house team determine (with input from drivers) which orders could be batched based on Google Maps searches Dispatch solution capable of stacking multiple orders into a single delivery run
No reliable data available to track ‘on-time’ deliveries or total time from order to door Availability of data to analyse performance for both self and 3rd party delivery from all order sources, across all restaurant sites
No consolidated customer review/feedback options available that promote brand and ensure consistent ratings  Branded order tracking and B2C messaging to improve customer experience 

 

Rollout

  • Initial trial kicked off with 1 store for 3 weeks & 3 stores for 1 further week 
  • 10 additional stores added each week until full rollout achieved
  • Dispatch rules refined over initial 4 week period
    • Started out with overflowing orders to Dashers at certain times of the day
    • Progressed to overflowing when internal drivers were not available 
    • Settled on a hybrid solution based on dispatch efficiency taking into account factors such as kitchen readiness, distance to customer, distance between customers (stacked deliveries) and driver availability
  • Key metrics:
    • 79 stores across 4 states
    • Over 600 drivers onboarded using the VROMO driver app
    • Papa Gino’s drivers deliver all orders within a 2-3 mile radius (depending on store location) & DoorDash deliver all orders outside of that radius
    • 10s of 1000s orders per week coming directly from POS system (Toast)

 

Outcome

Using VROMO’s technology and ingesting all orders from Papa Gino’s POS system, the Papa Gino’s team have: 

  • Transparency and visibility of delivery times
  • The ability to measure driver and restaurant efficiency (internal and external)
  • The ability to prioritise self-delivery based on distance from restaurant
  • Less real-time decisions to be taken – automatically overflowing to DoorDash Drive (3rd parties?) when restaurant is at capacity or drivers are not clocked in
  • Access to the right metrics to measure driver efficiency (internal & 3rd party) and track customer feedback in real-time  
  • The flexibility to operate efficiently (and differently) on a store by store basis
  • Not cancelled any orders due to lack of driver availability
  • Predictability on 3rd party costs – weekly 22-30% of all orders are dispatched to 3rd party providers

 

What Papa Gino’s say

  • Enhancing guest experience

  • Efficiently leverages own drivers

  • Expanding delivery zones

  • Manage operations effectively

  • Predictability around external costs

  • Allows the delivery business to grow with the right support in place

More
articles

LOCATIONS

27a, George’s Court,
Georges Street,
Co. Waterford
Ireland

19 W 34th Street
Suite 1018
New York NY, 10001, United States

Get updates and stay connected
- Subscribe to our newsletter

By submitting your email, you agree to our privacy policy.