Question

In: Operations Management

Case: You are the owner of YumRunner, a food delivery service that allows customers to order...

Case: You are the owner of YumRunner, a food delivery service that allows customers to order food from their favourite restaurants and have it delivered to their homes through your app. Your company has been in operation for five years, and you service the Mississauga area only. YumRunner is a locally-owned and operated business. You’re eco-friendly in that your delivery persons ride bicycles and motorized scooters (as opposed to driving cars). You pay your delivery persons competitive wages and emphasize the importance of excellent customer service. As a result, YumRunner regularly receives positive online reviews, and has built up a steady clientele over the past five years. When you started YumRunner in 2015, you charged restaurants a 20% commission for each delivery order that was placed through your service (e.g. if a customer ordered a $10 meal from a restaurant through your app, YumRunner would earn $2 on it). Now, due to inflation and rising costs in labour, you have decided to raise your commission rate to 23%. This higher rate is in line with what many other food delivery services charge. You must now write to all of the restaurants who use your company’s delivery service to let them know of your commission rate increase. Your task: Write an indirect negative news letter to Jerry Capra, manager of Jerry’s Pizzeria, in which you explain your need to raise your commission rate. Your letter should clearly explain the reasons why your commission rate is increasing, while highlighting any alternatives or other reader benefits that you can. It is important that your letter maintains goodwill, as Jerry’s Pizzeria is a big client. You will need to invent an address both for Jerry’s Pizzeria and for YumRunner’s headquarters. Your letter should be between ¾ page and one page long, and follow all the proper formatting for an indirect business letter. Use formal writing style, and include a formal greeting which includes the receiver’s honorific title and last name, as well as a formal sign-off. Include all elements of a business letter (see p. 217 of your textbook for a sample). Use graphic highlighting to emphasize key information. Your message should be clear and well-written, and promote goodwill on behalf of your organization. Before you begin, consult the marking rubric on p. 2. *Tips: Do not copy the wording from this case; it would not be appropriate in your letter. You will need to invent several details to make the scenario more realistic, and to give your reader all the information he needs in order to understand why you are raising your commission rate (and to prevent him from cutting ties with YumRunner altogether). You wish to avoid having him email you with follow up questions (this wastes time), so be thorough in your letter! Remember the GOALS of a negative letter: • Help your reader understand and accept the bad news by making your message clear and fair. • Project a positive, professional image of you and your organization. • Convey empathy and sensitivity. Don’t sound accusatory! • Maintain goodwill.

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Expert Solution

July 25,2020

Headquarter,

YumRunner

................

Mississauga

Jerry Capra

Jerry Pizzeria

...............

Mississauga.

Sub:- Regarding Commission

Dear sir,

As we are continously working with your organization from last several years. During these year our relations have school new heights, As we are a locally manged food delivery organization but the customers satisfaction remains our top priority. At the se time we also pay competitive wages to our employees. We not only run behind profits but recognize our response towards the environment by using bycycle and motorized scooters that are eco-friendly. Because of our excellent customer services our ratings are slaw positive and encouraging.

In last several years we not only rated positively bon regular basis but also developed a committed clientale. But due to the rising inflationary and increased labour cost it is very difficult to provide excellent services at previous rate of commission. We request you to increase the commission to 23% which will help us maintain continuous delivery of excellent services at the same time contributing towards the society. We know that it is higher than other delivery services but we are much effective than others . As an effective delivery services and positive reviews lead to reordering at the same time maintain a committed customer base .The contributing made by us towards environment maintain a goodwill and being your delivery partner it adds to the value of your organization. All these things will not only boost sale and profit but also improve the trust of customers and provide a better public image.

We hope you will understand and considering the effectiveness of our services you will increase the commission and continue to use our services. We are very thankful and hope for new heights in our relations.

Thank you.

Yours Sincerely

James August

Owner

YumRunner


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