The study is based on company-specific sales and cost analyzes that the DFV (German Butchers Association) has been offering its members for many years. It relates to the developments in the first half of 2020.
Are under analysis
- Sales developments,
- Share of sales according to operational channels,
- Costs and
- Operating results
contain. If you compare the figures for 2019 and 2020 with each other, inconsistent and sometimes erratic developments become apparent.
All that glitters is not gold
There is a tendency towards the positive development of the counter business. In the wholesale / delivery area, losses had to be accepted above all in the party service. The DFV examined 5 anonymous companies based on their total operating costs and sales.
While one of the companies analyzed recorded good sales overall, another had to deal with losses in all areas. This could have been due to the location of this business, among other things. The supply of farm or weekly markets also influences the increase or decrease in sales in the area of deliveries.
The people in the butcher shops
Last but not least, the staff also influences sales. Companies with increased sales have not increased their workforce. This resulted in lower personnel costs. Conversely, this means that companies that wanted to keep their employees or hired new ones had higher costs or were unable to reduce them sufficiently.
Many entrepreneurs complain that the amount of work and the resulting income are out of proportion to each other. The families were even harnessed for the party service on weekends. Due to the pandemic, however, this item has largely been eliminated – an important pillar for butchers.
At the counter it’s all about …
… at least if the butchers have not put their counter business behind in favor of the party service. Because many respondents noticed that in the analysis. Even before the Corona crisis, there was a drop in sales due to the lack of advice in the party service area. The reasons for this could be the following:
- inconsistent handling of customer requests
- high personnel costs not covered by income
- Calculation from a partial cost point of view instead of from an overall operational point of view
As long as the catering is only offered at a simple level, this may not have a negative effect on sales. However, the deficits in the party service were often cross-subsidized by counter sales. Often the employees wanted to please the customers and did not pay attention to costs and effort.
Costs and benefits in the balance
The effort for the standardization and systematisation of orders in the catering / party service is regularly underestimated by butchers. Another problem: The various sales channels are not separated from one another consistently enough. Are there unprofitable sales channels? This is exactly what is then no longer apparent from the operational figures.
And the bottom line?
This year the bar emerged as the strongest horse in the stable. With the sales and income generated from it, it has even been possible to compensate for deliveries to the ailing catering trade. It remains to be seen how consumer purchasing behavior will develop after the pandemic. Is there a return to old patterns? We will continue to observe …
And the bottom line? It can be said that butcher shops by and large have come through the crisis well so far. In the first three months of this year, the Federal Statistical Office (Destatis) reported a 2.9% increase in turnover in the butcher’s trade. In the individual companies, however, the developments range from serious losses to flourishing profits.
Bring the ship into safe waters with Ehlert
How it works? As a supply chain specialist and expert in all matters relating to the meat processing and food-producing industry, we are always at your side with advice and action. Because we not only supply you with all the goods you need for the production of food, but also provide you with a lot of valuable information and news about the meat industry. So you are well equipped for all storms and crises.