This is topic Payroll vs Per Cap in forum Ground Level at Film-Tech Forum ARCHIVE.
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Posted by Jeff Akin (Member # 1198) on 03-20-2002, 10:47 PM:
Hello there! Long time lurker, first time poster here.We are all aware of the importance of a strong concessions per cap. Payroll, however, is also of serious concern. The juggling act that I am presented with every week is simple: How do I maintain my per cap, but keep payroll to a decent level?
What are some things everyone else does?
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2 Time ICWF Champion
2 Time ICWF Hardcore Champion
Posted by Jerry Chase (Member # 660) on 03-20-2002, 11:50 PM:
Boy, what a GREAT question. Unfortunately many circuit execs have no clue about the correct answer. This is a tricky balancing act, but there are some guidelines I've found through years of experience.At the average concession stand it is important that the customer gets to wait just the right amount of time before a sale. If, on a busy weekend night, your customers aren't having to wait you are overstaffing or have other problems. OTOH, if the customer has to wait too long, you will lose sales.
There is method to the madness. A customer who walks up cold to the stand has no time to review the menu board or selections. If that person is immediately approached by an efficient concession worker, they will make a safe fast decision -small coke, small corn- or -whatever I had last time- and be gone.
A customer who sees the sales exchange of at least one other customer is more primed to buy, especially if they have a tendancy to be a tightwad. They have a chance to see the items, see a sale, and have the time to think "hmmm, would I like a nachos with that?"
On average, a three customer line during peaks was the line that I found consistently had the highest per-cap. No lines signal "Other people aren't buying, the prices are too high or the food stinks." Too long a line sends the message "I'll be standing in line too long and miss part of the show."
How do you achieve the magic number? Concession payroll CANNOT EVER BE A FIXED PAYROLL EXPENSE. EVER! If a circuit demands this of you, quit and find another job. Concession payroll has a minimum that allows the stand to be open, and then a relationship based on the number of expected patrons and a relationship based on patrons per employee hour.
The exact concept takes far more explaining than is practical to attempt in a forum like this, but the system we worked out at TALP was the best system of payroll control vs/ concession sales that I have ever seen. I honestly think it beats every other system by a mile.
Posted by Dennis Benjamin (Member # 1137) on 03-21-2002, 06:16 AM:
The problem does go back to the executives that make the payroll budget. With most of the companies I have worked for - there is very little 'budget' to work with. If I remember correctly - for the longest time Regal's 'payroll percent' was 5%. If you think of the implications of that - 5% of the total revenue from the theatre goes to payroll (attendance goes into that equation somewhere). So it works out that they want you to spend .50 cents per patron that walks in the door (that is ridiculous). I hope they have changed thier ways. I now work for a company that not only pays the employees better - but they have a more realistic payroll budget. Less cashiers at the stand = less patrons buying concessions= small percap.
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"Running through life at 24 frames per second"
Posted by Paul G. Thompson (Member # 655) on 03-21-2002, 12:02 PM:
I think a well layed out and organized concession area designed to handle a high volume of customer traffic is part of the answer.Sometimes extra staff will actually get in your way and slow things down.
I have seen at times that removing one person in the concession area is like gaining two. They are not tripping over each other.
It is a balancing act trying to determine the correct number of personnel in the concession area under different circumstances. Proper supervision by the floor manager can also be an important key to maintaining a high Per Capita.
Posted by Mike Williams (Member # 1140) on 03-21-2002, 12:21 PM:
When we have had our free summer kid shows, we would put 9 concessionists to work between the two concession stands. This was for roughly 1900 kids all showing up at between 9 and 10am for a 10am show. (Interlocked in 15 theaters but thats another story) It is not the quantity of the staff, it is the quality. I always made sure I had the best concessionists working then.
My point is, efficiency and good training is more important than numbers.
Posted by Paul G. Thompson (Member # 655) on 03-21-2002, 01:00 PM:
Mike, I agree about the quality and proper training of the workers. I presumed this type of crew was behind the concession stand when I made my comments. Please don't forget about proper supervision of this crew. It is still needed. 
Posted by Jeff Akin (Member # 1198) on 03-22-2002, 01:34 AM:
These are all pretty good ideas. My problem is that I run an older 4-plex just a mile down the street from a brand new 11-plex. I have a grand total (myself included) of 15 employees. My average floor staff person gets 6 hours/week. I try and give my assistants as close to a full week as possible. The whole thing comes down to the point that I have very little attendence each week. As my patron count has dropped, I've had to cut hours. As I've cut hours, my per cap has dropped, but if I increase hours, and there is still no business, then a higher PC has just gone to pay for that extra staffing and I'm back at square one.
Yikes, eh?
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2 Time ICWF Champion
2 Time ICWF Hardcore Champion
Posted by Paul G. Thompson (Member # 655) on 03-22-2002, 12:08 PM:
Jeff, have your crew "upsell" if they are not already doing it.
Posted by Mike Williams (Member # 1140) on 03-22-2002, 12:45 PM:
Jeff,Do you work for a chain or is it an independent? That can make a big difference in what you can to do to bring in more customers.
Posted by Jeff Akin (Member # 1198) on 03-23-2002, 07:48 PM:
I work for a chain. A pretty big one at that. My employees do a great job of upselling too. As a matter of fact, we often lead our league in different conccession contests.
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2 Time ICWF Champion
2 Time ICWF Hardcore Champion
Posted by Adam Fraser (Member # 1074) on 03-24-2002, 01:56 PM:
I do not know if the proper labor is available in your area's market, but i have seen in our small theatre that fewer employees with better training and more hours seem to do better than more employees with only 6 hours a week. A person may get out of practice if only working 6 hours in a work week. Another incentive that may make employees get higher per caps could be to offer an incentive to the employee who sells the most candy per customer in a particular week. Say... some gift certificates to a nice restaurant to the person who sells the most candy/patron in a particular month.------------------
Adam Fraser
www.pinestheatre.com