Members Login
Username 
 
Password 
    Remember Me  
Post Info TOPIC: Labor, labor, labor


Member

Status: Offline
Posts: 5
Date:
Labor, labor, labor


Stop me if you heard this before. I'm running a 7.5 % labor and it's still not good enough. You want labor down more or a good service department, can't have both.

__________________


Moderator

Status: Offline
Posts: 586
Date:
Labor, labor, labor


Hi Chopper and Merry Christmas, I do feel your pain. The thing that always bothered me while in the trade is when Meat Gods relate everything to percentages. Labor, G.P., supplies ect.  Like in your particular case 7.5% labor is too high. I always ask this question. 7.5% of what? Its the same way with gross profit, always measured in the same way a percentage of what? Sure we all know the percentage established by each company is a percentage of meat department total sales. No one talks about tonnage anymore, or in the modern management terminology, through-put pounds.

When any meat department manager is given a quota of percentages to meet, that is about 1/32nd of what is really going on behind the scenes. Of course the met manager will never get to see the big picture because if he did, then he is on the same level as the Meat God. Let me give you a simple look how percentages can be deceiving. I will relate it to something that you sell every day in your market. Hot Dogs!

Lets say that your company would like to maintain a 30% margin on Hot Dogs at $ 3.00 per pound. That would mean your gross profit dollars on this price would be .90 cents.

But the next week Hot Dogs drop in price to $2.50 per pound. You must maintain the same 30% margin but now your gross profit dollars is reduced to .75 cents per pound. Same margin but lower gross profit return. Percentages are deceiving!

Now lets put the percentages to the total sales of a meat department. You say you are running a 7.5% labor. So lets say your department runs $100,000 in sales weekly. 7.5% of your total sales comes to  $7500 spent on labor. 

The next week you have a fantastic ad and your sales jump to $125,000 and you are still using $7500 in labor dollars. Now your labor percentage drops to  6%.

On the third week you have a lousy ad and your sales plummet to $85,000. You still have your $7500 in labor thus your percentage comes to almost 9%.

So what is your company asking for? If your 7.5% labor is too high then what would they like it to be? If they want a lower labor percentage, will they take into consideration the impact it will have on your department in the form of: customer service, quality workmanship, maintaining your food safety policies and other department policies.

"PERCENTAGES ARE DECIEVING"

 

 

 



-- Edited by Coalcracker on Thursday 15th of December 2016 10:39:00 AM

__________________

Phil ( coalcracker ) Verduce

Resourse Page Manager

photo avatar-1585712_zpstb6kixfv.jpeg



Member

Status: Offline
Posts: 13
Date:
Labor, labor, labor


yep,they want to get blood out of a rock.
A DM once told me I don't want 6 people doing the job of 6.
I want 3 people doing the job of 6.
I am so glad retirement might be in the cards for me next year.

__________________


Newbie

Status: Offline
Posts: 2
Date:
RE: Labor, labor, labor


If you're getting 7 1/2% you're lucky right now on running the department that I was over 100,000 a week on 240 hours with a full service counter but does $30,000 a week and they want me to cut another 40 hours out

__________________


Veteran Member

Status: Offline
Posts: 43
Date:
RE: Labor, labor, labor


i agree if you getting a 7.5% you are lucky. im running a shop with $50,000 a week avg. run on a 5.79% and its based on weekly sales projection. so the end of month is really tight.

have run shops in the past with high sales volume over $100,000 a week at 5.65 % wasnt as bad because the volume afforded you more bodys to carry the load .its the get ahead and stay ahead concept.

the gods dont understand when you live by the numbers the department suffers. some shops numbers need to balance for the month not week by week. that give you the hours to keep the department clean and well merchandised. at the end of the month when sales are soft it offers more time for extra cleaning. 

stuffing frozen cases and processed cases in preperation for the blast of business at the first of the month.running week to week you are always chasing your tail....

 



__________________


Moderator

Status: Offline
Posts: 586
Date:
RE: Labor, labor, labor


Hi Toby, after reading your post there is  no doubt you've seen the "Elephant", LOL>LOL>. Veteran soldiers during the Civil war  coined that phrase for green troops who survived their first taste of battle: "He has seen the elephant." LOL>LOL> The Best of everything to you for the New Year.

C



__________________

Phil ( coalcracker ) Verduce

Resourse Page Manager

photo avatar-1585712_zpstb6kixfv.jpeg



Veteran Member

Status: Offline
Posts: 43
Date:
RE: Labor, labor, labor


coal cracker i have seen a lot of elephants in the last 33 years. they dont seem to get lighter or easier to carry!

 



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse
Powered by ActiveBoard