The Dynamic Delivery Fees feature was created to help clients offer different delivery rates based on the customer's distance from the restaurant. This feature allows restaurant brands to set up distance tiers and charges for each tier.
This feature is confirmed as being compatible with the following POS partners:
- Toast
- Square
- Revel
- Incentivio Tablet
We are still working with other POS partners to confirm that this feature works without issue, and will continue to update this guide to reflect these changes.
Contents
Feature Overview & Need to Knows
The Dynamic Delivery Fee feature allows clients to set delivery tiers - each delivery tier will be composed of: a minimum distance and a charge amount/percentage. Clients can have an unlimited amount of tiers, but a minimum of 1 tier will be required. Each tier operates like the example below:
- Tier 1 = Customers that are farther than 0 miles from the restaurant; charge: $2.99
- This is the first delivery fee and will always be required.
- Tier 2 = Customers that are farther than 3 miles from the restaurant; charge: $4.99
- Tier 3 = Customers that are farther than 5 miles from the restaurant; charge: $7.99
- Tier 4 = Customers that are farther than 8 miles from the restaurant; charge: $10.99
Using the example configuration above:
- If a customer is 2 miles away form the restaurant, they will fall into Tier 1
- If a customer is 7 miles away from the restaurant, they will fall into Tier 2
- Any customers that are farther than 8 miles from the restaurant will fall into Tier 4
Note: This feature does not affect the delivery radius. This means if the radius is only 10 miles wide, and you set up a charge as "farther than 20 miles," then the radius will still remain 10 miles wide and the charge will be ignored in the delivery fee calculation at checkout.
Other Need to Knows:
- Dynamic Delivery will always have 1 fee that is 0 miles away from the restaurant. This allows clients to set a default delivery charge.
- Make sure, under the "Delivery" section of Store Ordering Setup, that the “Ignore Charge” field is enabled so customers are not charged double delivery fees
- For Canadian clients, they will need to convert kilometers into miles and CAD to USD
How to Setup Dynamic Delivery Fees
The Dynamic Delivery Fee feature will live on the Store Ordering Setup page under the Taxes & Charges section. To configure this feature, follow the steps below:
- In the Dashboard, navigate to the Location settings page and open Payment Settings
- In the Charge section. Select Add New Change. A drawer will appear where you can enter the Charge name.
- Toggle on Enable Dynamic Delivery. This will automatically Select Delivery as the Order Type.
- Additionally, update the Charge Type to Amount or Percentage.
- The first tier in this section will automatically populate 0 miles. This means that customers who are farther than 0 miles from the restaurant will be charged this amount.
For each tier, the "Farther Than" distance should be the minimum distance required to be charged that fee. For example, if a client wants to set up three tiers (0-5 miles, 5-8 miles, and 8-10 miles), you would set up two additional tiers - Farther Than 5 Miles and Farther Than 8 Miles.
To add a second charge tier, select the "Add Distance" button. This will allow you to set a minimum distance and charge amount for this tier, as well as the respective external charge ID. - Repeat this as many times as necessary
- For most point of sale systems, it will be necessary to link each tier to a service charge in their POS. Please refer to the below sections for instructions on setting up service fees in each POS.
Please note: If no external fee is setup and it is required by the POS, the delivery order will fail - not just for that delivery radius, but for all deliveries.
- For most point of sale systems, it will be necessary to link each tier to a service charge in their POS. Please refer to the below sections for instructions on setting up service fees in each POS.
- Complete the rest of the New Charge drawer. When you are finished, select the "Add" button at the bottom and the Dynamic Delivery Fee will be saved.
- Save the Location
Note: This feature does not affect the delivery radius. This means if the radius is only 10 miles wide, and you set up a charge as farther than 20 miles, then the radius will still remain 10 miles wide and the charge will be ignored in the delivery fee calculation at checkout.
External Service Fees
Toast
For Toast, you will need one Charge per Tier in Toast.
- On toasttab.com, navigate to Payments > Service Charges.
- Select + Add to create a new service fee.
- Enter the service fee Name and set the Charge Type to either Fixed Amount or Fixed Percentage, then enter the Charge Amount. The setting Apply After Amount Threshold should remain set at $0.00, meaning that all orders over $0.00 will be charged for delivery.
When naming the fee, it is recommended to name it in a way that specifies the delivery tier for clarity.
Note: If the client is using Toast Multi-Location Management (MLM), it is also necessary to set the Target and Owner of this service fee at this stage. - For the remaining settings, Assign to check owner (Gratuity)? should be set to No. Assign the fee to the restaurant. Whether it's taxed is state-dependent, so work with the client to determine if that applies to them. All dining options should be set to No, including Delivery.
This is because it will automatically apply any fees set to Delivery for orders using that dining option; since dynamic delivery fees require multiple fees to be set up, setting this to Yes would cause ALL of these fees to be applied to a single delivery order. - Repeat this process and create a new service fee in Toast for each tier.
- To link this service fee to the delivery tier set up in Incentivio, copy the service fee GUID that appears after saving this service fee:
- Paste this service fee in the corresponding External Charge in Incentivio:
- Repeat this with each tier.
Revel
No external service fee is needed for Revel clients. However, dynamic delivery fees have been tested and confirmed to work as expected, including mapping to the appropriate reporting in Revel, without linking to an external fee.
If you do want to map to a specific service fee in Revel, here is Revel's guide on creating service fees: Revel Systems - Service Fee Guide
Square
No external service fee is needed for Square clients. Square only allows the setup of a single service fee and does not support open amount/percentage fees. However, dynamic delivery fees have been tested and confirmed to work as expected, including mapping to the appropriate reporting in Square, without linking to an external fee.