You don't have to like it. You don't have to pay it. Go and buy pizza anywhere you wish. If the other guy is better than me, then you SHOULD go there.
All I ask is a fair shake. I am not "evil". I do not "gouge" my Customers.
Just do me one favor. If you are going to punish me for having a delivery fee, just make sure you are not rewarding my competition for doing the same.
I happen to own a Domino's store. First, let me say that there is no one answer. Every place is different. I'll answer your question, but I do need to preface it a bit.
I am a LOCAL business. I own the shop, I live in the same town. My kids go to school here. I work 50 hours a week in the shop and quite a few more doing the "business owner" thing. My "local" competition couldn't find his own store without a GPS. All 3 competitors are owned by investors that don't live in this town. One doesn't even live in this state, owns 20 or so pizza shops.
Back 25 years ago, we had "free" delivery. My friends, the price of delivery was in the pizza. In 1988 a medium pan pizza was introduced for $8.99 with 1 topping. Today we have the new pan pizza with 2 toppings for $7.99. Using the CPI if you paid the same for a pizza today as in 1990, a large cheese would be about $16.
And while we're on the topic of expensive, take a menu from your local Domino's (Or Pizza Hut, or whatever chain). Next time you are at a restaurant that sells pizza, actually compare the prices. I have yet to find a place with a lower menu price than mine. Even the bar across the street charges more to warm up a frozen pizza than I do to hand make, bake fresh, and deliver a pizza.
In my experience most local shops charge for delivery. The difference is that Domino's (at least mine, and most that I know) tell you up front. Back before we ever had a delivery charge, people thought we did anyway.
Who gets the delivery charge? Well, again, not the simple answer you may want. In my case we charge $2 for delivery. I do not give the $2 directly to the driver. I pay the drivers by the mile. In my case, that works out to be (on average) $2.12 per run. So while the fee does not go directly to the driver, they get more than that. I know of some that pay per delivery and may pay the driver $1.50 of the $2 charge. (Oh, and Domino's Corporate gets their share of the delivery charge through royalties and advertising fees that are a percentage of everything we charge.)
Again, I charge $2. $2.12 for mileage to the driver. Average run is 25 minutes $3.05 for labor (assuming they never stand still, If you count the time drivers are waiting for your delivery you can up that to about $4-5) Insurance has not gotten cheaper. Work comp rates hare higher on drivers than cooks, 35¢. Auto insurance 15¢.
$5.67 JUST to deliver a pizza (and that is on the low side)
Something else about us "evil chains". I know many independent places that pay under the table. They pay cash. They don't pay taxes on those wages, they don't pay work comp. They don't even pay minimum wage. They hire 16 year olds to drive (which by the way is illegal). If a chain tried what they do, it wouldn't take long to be shut down. If the government doesn't the franchisor will. (Of course, there are many independents that follow the laws and are great places to work too.)
I am a chain, I am local. I am not rich, I am not gouging my Customers. I treat my employees well, and I push myself hard to give the best service to my Customers every day. I have worked hard for many years. If I told you how little I actually make you would not believe me, so there is no point.
At this point in my life, all I can do is put the facts out there. If people still chose to not order because of me charging $2 for a $5.67 service, I guess I just have to accept that. Everyone wants to be compensated fairly for their work. Pizza shop owners and delivery drivers are no different.
(One last comment, some will say that delivery fees hurt driver tips. There were studies. I even did my own. When delivery charges were introduced, driver tips increased. Yes, there is the occasional person that doesn't tip because of the delivery charge. But there are far more that tip a percentage, and also a sub-set of people that the delivery charge made them conscious of the driver's tip. Whatever the reason, the data, the facts, over thousands of orders of data in multiple locations shows tips increased.)