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#360935 - 02/10/13 06:19 AM
Percentage of the tab
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Senior Member
Registered: 08/28/04
Posts: 2204
Loc: Louisiana, USA
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There is a restaurant near me and the guy will book me. It's very good food, not upscale, a bit rustic, very small town. "Quaint" comes to mind. Not cheap, not expensive, meals are generally $10 to $18, a big ribeye is $35. Serves wine and beer. Anyone have an idea on a "percentage of the tab" pay arrangement? What percentage? We discussed cover charge, tips plus he throws in whatever or a percentage. I think I'd rather play for "tips are suggested" instead of a cover charge (cuz I think the average person will tip more than a typical cover charge), plus something from him. This would be cover songs during dinner, then a songwriter showcase afterwards. I would likely bring in, say, 30-50 people. On a Saturday night. He's pretty dead on Saturdays after 8pm, Fridays are his big night. So, I'd be bringing real value to an otherwise dead time. (Probably start cover songs at 7pm and do songwriter showcase 8:30 to 9:45.)
His entire place seats 70, but right in front of where I'd play, about 40. It's a good spot for my acoustic shows. He was pretty fired up about it, he is looking for a regular. He even has his own PA. (Peavy 12's and a mixer.) But I have my own systems, as well.
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~ ~ ~ Bill
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#361004 - 02/10/13 06:12 PM
Re: Percentage of the tab
[Re: SemiLiveMusic]
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Senior Member
Registered: 12/08/02
Posts: 15560
Loc: Forest Hill, MD USA
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Bill, The net profit in the restaurant business is very small, much smaller than most folks would like to believe. The guy that has the big motor yacht behind me at the marina owns a couple upscale restaurants on the Florida Panhandle, employs a large number of people and told me that in order to pay an entertainer $200 for a 4-hour job he must make up an additional $900 to $1,200 in order to break even. That should give you some idea of what it takes. The only reason he owns a large motor-yacht is because he also owns a large real estate development corporation as well. Gary
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PSR-S950, TC Helicon Harmony-M, Digitech VR, Samson Q7, Sennheiser E855, Custom Console, and lots of other silly stuff!
K+E=W (Knowledge Plus Experience = Wisdom.)
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#361053 - 02/11/13 09:07 AM
Re: Percentage of the tab
[Re: travlin'easy]
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Senior Member
Registered: 01/02/04
Posts: 7285
Loc: Lexington, Ky, USA
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Gary is right. Upscale restaurants net about 3%. Average restaurants and franchises operate at about 5% net.
Rule of thumb for music is 5% of incremental business (business the place would not have-business as a result of the music draw).
That means, $100 in pay must generate $2,000.00 in business.
Likewise, rent or building overhead should be 5%, liquor cost-34%, food cost-40-47%.
Now, if the music is part of the ambiance of the place, the percentage of business required goes down, since it is absorbed in the general overhead.
I used to get a salary or 5% of the business, whichever was greater, and I liked that. Kind of makes you take a real hard look at the business and what to do better to "survive and thrive".
Russ
Edited by captain Russ (02/11/13 09:20 AM)
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