Film-Tech Forum ARCHIVE: Payroll percentage of gross sales

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Posted by Tony Monje (Member # 2775) on 10-25-2004, 07:23 PM:

This is my first post. I was happy to learn of this forum for sharing information.

I am working on a payroll target % of gross sales for a 10 screen, first-run cinema. What I am working with so far is trying to hit an 11% of total gross sales for payroll, including all salaried personnel, but not counting any incentive bonuses. Does the 11% number sound low, high, or just about right?
Any feedback on this issue is greatly appreciated.

Posted by Jason Black (Member # 684) on 10-25-2004, 08:04 PM:

Tony,

I think that you will find 11% a number that you can work with. Our total p/r % was at 13%, however, mine also included my contracted janitorial service.

I now operate closer to 9% with an attendance nearly 40% less than that of last year. (Competition)

Payroll is a definite budget killer. Don't fall into the false sense that more employees equals better service. WRONG. I can take three GOOD employees and outwork 6 warm bodies any day. Reward those who make money for you. They will appreciate it and you'll find that their dedication rewards you in so many more ways than I can explain here.

Posted by Dave Williams (Member # 299) on 10-25-2004, 08:10 PM:

You want to hear a sick and twisted number??

Try 30 %!!!

Century operates thier labor at up to that level.

They own thier own buildings so they don't have rent, the extra money goes to labor if necessary.

However, I usually could get all labor including incentive bonuses to under 12 percent on a routine basis. It takes creative show timing, and hard work on the entire staffs part, but it is doable and well, unless you own the building with no mortgage, kind of optionless.

Ciao

Dave

Posted by Daryl C. W. O'Shea (Member # 1303) on 10-25-2004, 09:48 PM:

That's not sick and twisted, that's comfortable!

Sick and twisted is running a theatre at under 2% and catching hell if there were problems to deal with and you went over even slightly.

Posted by R. Andrew Diercks (Member # 1725) on 10-26-2004, 11:20 AM:

I hover around 10-12%. You should really pay close attention to dollars paid out as well. During very slow times you may get to 18% but still cut $1000-$1500 off the total payroll.