The video discusses a fundamental assumption in the pizza delivery business: that customers always want their pizza as soon as possible (ASAP). The speaker proposes a change to this model, suggesting that Pizza Hut and other pizza delivery services should alter their default delivery times. Instead of defaulting to ASAP, they should offer a default window of 40-50 minutes. Furthermore, the speaker suggests framing delivery not as a delay, but as a specific arrival time, asking customers, "When do you want your pizza to arrive?" (e.g., 8:20, 8:25, 8:30). This approach allows customers to plan their orders, such as wanting the pizza to arrive at a specific time like halftime. The core benefit of this strategy is the creation of a 10-30 minute buffer in order fulfillment. This buffer enables delivery drivers to consolidate multiple orders from the same area, significantly improving efficiency. For instance, instead of using two bikes for two orders, a driver could deliver six pizzas with two bikes by waiting for multiple orders from different parts of town. The speaker emphasizes that delivery costs are a major component of the pizza delivery business. A trial of this new model at Pizza Hut, where defaults were changed, resulted in a 50% increase in customer satisfaction. The speaker hypothesizes that this increase is due to the reduced stress associated with waiting when delivery is framed as a scheduled arrival time rather than an immediate, undefined ASAP delivery.

Financian

Everything about pizza delivery, the whole business about the pizza delivery business assumes that everybody wants their pizza as soon as possible. And we said to Pizza Hut, we said when you ring up a pizza place, they assume you want it immediately. If you go to the app, the default is ASAP. If you go to the website, the default is ASAP.

We said two things. Change the default so that it's 40 minutes, 45 minutes, 50 minutes. And try expressing it not as a delay in which shorter is better, but express it as a time of day. When do you want your pizza to arrive? 8:20, 8:25, 8:30? Because then people might go, "Well, actually, I'm going to get it to arrive at half time."

Now, the reason this is really important is if you can create a 10, 20, 30 minute buffer in pizza orders. You can put more than one pizza on a bike. You wait for three orders to come in from the east part of town and three orders to come in from the west part of town. You've now delivered six pizzas with two bikes rather than two. Most of the cost in pizza delivery is in the delivery, by the way.

We tried it. We changed the defaults. And what happened? Customer satisfaction went up by 50%. Maybe because when you project something as a time of delivery rather than as soon as possible, it makes waiting less stressful.

How Pizza Companies Make More Money By Delivering Your Pizza Slower

Everything about pizza delivery, the
whole business about the pizza delivery
business assumes that everybody wants
their pizza as soon as possible. And we
said to Pizza Hut, we said when you ring
up a pizza place, they assume you want
it immediately. If you go to the app,
the default is ASAP. If you go to the
website, the default is ASAP. We said
two things. Change the default so that
it's 40 minutes, 45 minutes, 50 minutes.
And try expressing it not as a delay in
which shorter is better, but express it
as a time of day. When do you want your
pizza to arrive? 8:20, 8:25, 8:30?
Because then people might go, "Well,
actually, I'm going to get it to arrive
at half time." Now, the reason this is
really important is if you can create a
10, 20, 30 minute buffer in pizza
orders. You can put more than one pizza
on a bike. You wait for three orders to
come in from the east part of town and
three orders to come in from the west
part of town. You've now delivered six
pizzas with two bikes rather than two.
Most of the cost in pizza delivery is in
the delivery, by the way. We tried it.
We changed the defaults. And what
happened? Customer satisfaction went up
by 50%. Maybe because when you project
something as a time of delivery rather
than as soon as possible, it makes
waiting less stressful.

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How Pizza Companies Make More Money By Delivering Your Pizza Slower

Transcription