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Post Info TOPIC: your payroll %


Founder of The Meat Cutter's Club

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Posts: 5562
Date:
your payroll %


What % does your market operate on 6 or 8% or other amount



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Leon Wildberger

Executive Director 



Veteran Member

Status: Offline
Posts: 730
Date:
RE: your payroll %


depends on volume of course, but also depends on sales mix-the higher ratio of pre-pack packaged items to hard-labor fresh items (sold) the lower the payroll%, conversely, the higher ratio of high labor, fresh meat items, to package meat sales, the higher the payroll %

Independents usually have a higher ratio payroll % because they sell more high labor fresh items (to packaged items)

also, other factors, a low payroll can reflect low experience= low margin
it's all connected

A high margin meat dept, can afford a higher labor percent- if you pay your cutters very well, they can make some money for you-

the effort to keep lowering the meat dept payroll % is the major reason chain stores have lost thier meat image thru the years.

if chains desire a low payroll percent and low average hourly rate- they can do it-but they have to be careful, because the store across town can steal the quality meat image for the area

just my two cents


payroll % are all over the board-depending on volume, full service/self-service, pay scales, specialty items, case ready items, unions, how man weeks vaca in a dept,

many chain stores doing 50,000-80,000 have a 5-8% payroll

many independents doing less may be 10-12% payroll, but the meat dept needs to shine in an independent to compete with chain stores-

just my 2 cents



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Newbie

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Posts: 1
Date:
RE: your payroll %


I think in all most every company payroll% is based on the  payroll scale. Even i think its also related to the pay amount.

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Member

Status: Offline
Posts: 21
Date:
RE: your payroll %


Our company operates on just a little over 6% .

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Veteran Member

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Posts: 643
Date:
RE: your payroll %


I run 10-14% depending on what I have on Sale and what meat we are cutting for our restaurants

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Joe Parajecki

Operations Manager/ Partner

Kettle Range Meat Company, Milwaukee WI

Member Meat Cutter Hall of Fame and The Butcher's Guild

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