I sold my business a few years ago and I have not managed a meat dept. since I sold my Meat Market, I am helping a friend with his new super market and training the cutters, the market is doing about $25,000.00 a week. I new what it took to operate my business but have no idea how super markets like Win Dixie, Publix, Whole Foods arrive at a number to control wages in the market.
I was told it was a % of sales in the meat dept., is this correct?
Any help would be appreciated.
Thanks
Gary, beargrass@embarqmail.com
-- Edited by Arnie on Wednesday 17th of July 2013 10:30:27 PM
We run off of payroll percent. Payroll dollars/sales. Its little bit more complicated. It depends on your location and your store director. The store has to meet there payroll percent and unfortunately the meat dept always gets the short end of the stick. You know how it is, highest paid dept always has a target on their back. I run similar sales. Mine is under 7%. Dont get me started on Ft/pt ratio.
I do not know how payroll works but recently I got a $1 per day raise.... not complaining.
All kidding aside, I have a 20-year meat-clerk and his wife who is a nurses-aid, with one used car, who between their rent and their two kids couldn't afford shoes for him to wear to work.
He is dynamite at his job. He'll never be a meat-cutter. Some guys just do not have it.
Just saying because I do not know how payroll works. I cut for two stores six days per week. I am in a department that does pretty well for itself. A $60-million dollar sales store. And the other department is MUCH slower. One of those places where you can cut for two hours at an easy pace and coast the rest of the day. (I never coast... I get out and clerk, check for codes, make signs, go into the deli, or take over the rotisserie chicken operation, do the load, doing the order, and keep the place tidy by scrubbing cooler floors, et cetra. I notice other cutters hardly leave the block). Both are the same chain.
I suspect my wage is tied to the slower stores in the chain because other guys (younger guys with more experience than me) NEVER want to cut at my home store, where we can cut balls to the wall for 6 or 8 hours fueled by extra thick ice cold black coffee. I suspect I might be a sucker coming in at 5 A.M. to clean the cases.
in a supermarket-a high volume meat department,,,payroll budgets are based and projected from history and company guidelines
my last payroll budget as a meat manager for a chain supermarket was 5.7%
but there's alot in the mix many chain stores- most of the sales come from pre-packaged products- price and fill...wrappers can do this,,,at less of an hourly rate than a meatcutter
it also depends if you have full service cases, or all self service
the "sales per man-hour" is also used.. also called a processing dollar
take the amount of sales and divide by hours used,,,again this will vary depending on the operation
in independents...usually the payroll is around 10%
take total sales x .10= payroll dollars but again very subjective- depends on full service case/self service case, pre-packed chicken vs bulk chicken, etc.
you also have to factor gross margin in the mix- are you targeting a 25% gross, a 30% gross?? - this depends on competitive marketplace, also how many gourmet/added-value items you do (marinades) etc. and shrink control/recovery
not everything can be put on paper,,if you have very good cutters/you need to pay them well, a good meat manager/cutter with give you better margins
the chain supermarkets are now lying in the own bed they made thru the years,,always trying to cut payrolls/cut average hourly rates...so now theyve lost their meat image...
but to try to answer your question,,,10-14% payroll is a good guideline and 150-200.00 for sales per man hour(25,000 sales divided by 150, = 167 hrs, 25000 divided by 200 = 125 hrs for payroll % 25000 x 12% = 3000.00 weekly payroll dollars 10% would be 2500, 8% would be 2,000 but this is subjective (again) to full service cases/self service , and competence of who you hire-how much pre-pack you display (high volume chain stores may have a 4-500, sales per man hr, or higher) all depends where the sales derive from
if its specifically a meat market,,,the payrolls may be higher- you want high competence and need to pay for it-you need to be a destination, and have a reputation, and meatcutters with excellent customer service skills
if you do bare minimum "what can we get by on" then it can be lower,,,but you will also have a low producing meat department
-- Edited by Mainemeatman on Saturday 20th of July 2013 08:51:08 AM
