GECs Inside Info Club

The Problem is not the Oil in our fryers

2008-08-15T17:43:14Z

THE PROBLEM IS NOT THE OIL IN OUR FRYERS

By Lloyd M. Gordon
GEC Consultants, Inc.

The Restaurant Operator is heavily affected by crude oil prices. We see a drop off in customer patronage by those using autos for destination dining due to the over $4 price of a gallon of gasoline.

The ineffective attempt to solve the problem of rising oil prices by sacrificing the corn crop to the manufacture of ethanol has caused wheat farmers to plant corn as a money crop instead. Our industry is now suffering from the shortage of both corn and wheat for food production. Prices of flour have sky rocketed. All products, and there are loads of them, that contain corn in one form or another have seen a significant price rise.

Therefore, not only is our Industry losing sales potential as customers eat at home, but the cost of a host of products are rising rapidly, and we are now faced with a “delivery tax” added to our invoices by the vendors who deliver these higher priced products.

National security hawks say the quick fixes touted by the campaigns of U.S. Sen. Barack Obama (D-Ill.), the presumptive Democratic nominee, and his Republican rival, U.S. Sen. John McCain (R-Ariz.), miss the bigger picture: America needs a comprehensive plan to wean itself from Middle Eastern oil, and fast.

McCain advocates allowing states to open up offshore sites previously closed to drilling. Obama wants to reduce replenishment of the strategic oil reserve, the Energy Department's emergency stash.

Both candidates also tout more comprehensive policies, but they back these interim solutions as a way to address painful gasoline prices hovering at $4 per gallon.

Such salves are meaningless without long term planning.

We should not be interested in interim solutions, the long-term position has to be to become independent; we must get off of this dependence on foreign oil.

Priority One
The first priority should be to enact legislation to require America’s eventual transition to the manufacture of cars that run on alternative fuels.

Continued dependence on foreign oil subjects the United States to the potential threat of a cut-off in supply. An Iranian blockade of the Straits of Hormuz, through which much of the Middle East’s oil must travel, would have immediate and catastrophic consequences.

Likewise, President Hugo Chavez of Venezuela could follow through on threats to stop oil sales to the United States, though the prospect is unlikely given that Venezuela is as reliant on America’s oil purchases as America is on Venezuelan oil sales.

Both major U.S. political parties should stop politicking and instead of work out a comprehensive plan with real teeth..

"Congress is still dithering about drilling, refining and building nuclear power plants," a former oil executive said. "'We can't drill our way out of this,' many chant. No, we can't. But we can drill, refine, generate, reuse, reduce and recycle.

Priority Two
Remove a tariff of 54 cents per gallon on importing sugar ethanol from South American and Caribbean nations. The tariff satisfies American farmers producing corn ethanol, but sugar ethanol has proven much more efficient to manufacture, as well as less damaging to the food supply.

The tariff makes little sense given the exigencies of petroleum security, said Ami Greener, an energy policy specialist. Brazil, which is friendly to the United States, is a major sugar producer while Venezuela, which has cozied up in recent years to Iran, is a major oil supplier. We are
penalizing a friend and aiding an enemy. I'd rather see our money going to Brazil than Venezuela.

Priority Three
There are a number of alternatives, including tax credits for using alternative fuel, research into more efficient coal use, the use of windmills and natural gas, and the development of electric cars.

That doesn't necessarily count out drilling off-shore or in Alaska, but it must be done in context.
Reliable sources say we have 2 to 3 percent of the world’s oil reserves, but we use 25 percent, and it won't reduce the difference by drilling or with political slight of hand.

While I take environmental issues seriously, some groups have made environmental concerns the determining issue when formulating energy policies and considering which energy-related legislation to support.

It is the responsibility of every human, from every walk of life to protect the environment for ourselves and for the generations to come. There is an urgent need for promoting domestic energy security, increasing fuel economy and supporting the development of new methods of renewable energy.

I agree with those who have long opposed drilling in Alaska's wildlife refuge. Politicians have used it as a political straw man, throwing it out there knowing it's not going to happen.

Even government figures show that the drilling would have a negligible impact on prices.

In Florida, one of the states that could authorize offshore drilling should it receive congressional sanction, U.S. Rep. Debbie Wasserman Schultz declared her opposition in a recent mailing to constituents. "I am interested to know what you think about this topic, especially now that energy prices are increasing," she wrote.

Edwin Black, whose book on the topic, "The Plan," is due to be published in September, said the key is a better educated public. "We have a confused public and an uninformed media that doesn't know what questions to ask and politicians delivering malarkey and false promises," he said.

It is time for restaurant operators to vote their financial interests. The next few months should be spent deciding which congressmen and women will truly represent you in 2009 and beyond.

Best wishes for a prosperous business year,

Lloyd M.. Gordon
GEC Consultants, Inc.

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New view on Sugar for Diabetics

2008-06-07T13:22:45Z

GOOD MORNING!
I THOUGHT THIS ARTICLE WOULD BE OF INTEREST TO FOODSERVICE OPERATORS
AS WELL AS THOSE WHO VALUE DIABETICS AS CUSTOMERS.
REGARDS,
Lloyd M. Gordon
=========================================================================
HEALTH WATCH
Dispelling the myths about diabetes and diet
Diabetics can't have sugar. Diabetics must buy and eat
special foods. These misconceptions linger despite changes
in nutrition guidelines. Now some new books are spreading the word.
By Janet Helm
Special to the Tribune
May 28, 2008

Diabetes has become a full-blown epidemic in this country-and it's getting worse.
Every day in the U.S., 4,100 new cases of diabetes are diagnosed. The Centers for Disease Control and Prevention predicts that one in three Americans born in 2000 will develop diabetes.
These alarming rates have sparked new educational campaigns to help prevent type 2 diabetes, the most common form of the disease, which is closely tied to being overweight.
The growing problem also seems to be shaping the food aisles.

In the past four years, nearly 6,000 new sugar-free products hit store shelves, according to Lynn Domblaser, a new-product analyst with Minte!, a market research company in Chicago. Beyond sugar-free, new diabetes-friendly foods are showing up in supermarkets, including snack bars, shakes and cereals that are promoted to people with diabetes.
Despite the growing popularity of "diabetic foods," however, some experts believe the marketing simply perpetuates a myth.
"What is a diabetic food?" asked dietitian Hope Warshaw, a certified diabetes educator and author of "Diabetes Meal Planning Made Easy" (American Diabetes Association, $14.95). "There are no special foods that people with diabetes need to eat. We do a disservice to people by having them think they need to run out and buy special foods."

Warshaw said the nutrition recommendations for people with diabetes are the same as the general public-no rigid diet and no need to limit your selections to sugar-free foods.
Sugar? Yes, people with diabetes can still have sugar. The no-sugar myth is one of the biggest misconceptions about diabetes, according to a new book" 16 Myths of a Diabetic Diet" (American Diabetes Association, $14.95), by registered dietitians Karen Chalmers and Amy Campbell. This informative and easy-to read book busts the most common myths about diabetes and cleverly compares the old and new methods for managing diabetes.
"Gone are the days when sugar is strictly off limits," said co-author Campbell in a phone interview. "All carbohydrates break down into glucose in the same way. Your body doesn't recognize whether the carbohydrate is a cookie, slice of bread or a potato."
New views on sugar
Sugar has always been intrinsically linked to diabetes. In fact, the disorder was once called "sugar diabetes" and people mistakenly believed that eating too much sugar was the cause.

For years, people with diabetes were advised to avoid sweets because they were thought to overload the blood with glucose much faster than starches. Now researchers recognize that sugar has an impact on blood glucose that is similar to other carbohydrates. It's much more important to keep track of total carbohydrates than to focus on avoiding sugar, Campbell said. "Totally eliminating sugar is unnecessary and impossible."
Even if all carbohydrates affect blood glucose levels in similar ways, they do differ nutritionally. Experts still advise choosing more starches or "complex" carbs-whole grains, fruits, vegetables and legumes-in place of concentrated sweets or "simple" carbs.
Sugary foods and beverages can add a lot of empty calories and make it more difficult to manage your weight. Sweets also are typically high in fat, which can aggravate heart disease risk.

However, instead of feeling guilty about eating sugar and trying to avoid it at all costs, Campbell encourages people with diabetes to find ways to fit reasonable portions into their eating plan-and enjoy them. Sugar-free options (particularly beverages) may help with calorie control, but they're no longer a mandate for diabetes. Some may not even provide a significant advantage, said Chalmers.
Many sugar-free candies, cookies, cakes and ice creams contain nearly the same amount of calories and carbohydrates as their real sugar counterparts. That's particularly true for sugar-free foods made with polyols or sugar alcohols (such as sorbitol, mannitol and xylitol).
Although it has been many years since the nutrition guidelines for diabetes have changed, people still hold on to the belief that sugar is forbidden. Even some physicians still tell newly diagnosed patients to "stay away from sugar," said Chalmers. Unfortunately, that's often the only message they're left with, she said.

Instead, Chalmers encourages people to sit down with a certified diabetes educator and get the updated facts. She said the goal is to "fit diabetes into your lifestyle rather than fitting your lifestyle into your diabetes."

Finding ways to fit in favorite foods is the new mantra. Even the concept of a "diabetic diet" is a thing of the past. Now experts say people with diabetes should follow the same healthful eating plan as the rest of us-with an emphasis on whole grains, fruits and vegetables, lean protein and "good" fats.
Moving beyond the myths, according to Campbell and Chalmers in their book, is the best way to manage diabetes and ensure you continue to enjoy the pleasures of the table.
ctc-goodeating~tribune.com
Copyright � 2008, Chicago Tribune

Best wishes for a prosperous business year,

Lloyd M.. Gordon
GEC Consultants, Inc.

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Oil prices affecting restaurant economy

2008-05-23T09:27:11Z

New Oil Resources are needed to return oil prices downward.
All restaurant operators must condemn the unwillingness of
Saudi Arabia to increase its oil production despite a personal plea from
the President of the United States. This marks the second rebuff to a plea
from the President this year and is a slap in the face to this country that
has provided special arms deals and other concessions to the Saudis.

Despite the U.S. support and friendship to this totalitarian regime, the
Saudi government sees no reason to return the favor and contribute to a
strengthening of this important sector of the U.S. and world economies
which are faltering in the face of rapidly increasing fuel prices.

Given the recalcitrance of the Saudis to help increase oil production, the
United States should spur its NAFTA partners, Canada and Mexico, to double
their oil production at this time. While NAFTA was negotiated and intended
as an economic advantage to all three countries, the United States is not
getting its due from its partners, who are capable of doubling their oil
production to protect the economic interests of all three of the NAFTA
partners.

Canada and Mexico must be made to shoulder their responsibilities under
NAFTA and double their oil production. U.S. oil supplies cannot be held
hostage to the whim of the Saudis, who are friends neither to the U.S. nor
to Israel. Contact your representative in congress to act on this issue.

Best wishes for a prosperous business year,

Lloyd M.. Gordon
GEC Consultants, Inc.

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Survival during a recession

2008-02-26T15:11:33Z

Greetings! This is my first Inside Info Club document to you for 2008. What a year this will be! Let it be a successful one for all of you.

HOW TO OPERATE DURING A SERIOUS RECESSION
By Lloyd M. Gordon, President
GEC Consultants, Inc.
Skokie, Illinois

Every year after the leaves fall and frigid winds begin to blow in the evenings, and frost covers the ground every morning, we know the Winter Season is heading our way. Even though Winter snows are beautiful and the air seems to smell pure and fresh, we know that snow, sleet and frigid temperatures can play havoc with the business of serving meals to our customers.

This year 2008 brought an additional negative dimension to our worries about the weather and that was the troubled economic times with the housing market in disarray, the dollar dropping in value everyday, unemployment up in many areas, investment money is hard to come by and the consumer confidence level is at a fifteen year low.

We experienced other slow downs of the economy in 2001-2002 after the 911 attack but the economy quickly recovered.

Now we have entered in to another period of economic softness that could really presage a serious recession. Everyone in government knows its here but we really haven�t a clue as to what Congress plans to do. How should we plan to operate in these times?

You must start with the premise that you want to survive by producing the largest profits possible during this winter of recession. Period!

In order to make a profit you must have income greater than expense. If sales are slipping, you must cut costs appropriately, attempt to re-stimulate sales, or do both.

Start cutting costs by reviewing your menu. Feature menu items that are low food cost and that are popular. Revise your presentation to feature and draw attention to those items you want to sell because they are good food cost items. Tighten up on receiving, control portioning. and evaluate plate waste. See if you are giving customers things on their plates they aren�t eating. You can save by eliminating these from the plate presentation.

Check purchasing methods. how you order. how you determine restock amounts. who you order from. what each vendor charges. and examine how things are stored so things don"t spoil. Reduce your inventory and put the money saved into your Safety Fund.

Tighten your personal supervision of production and evaluate how things are prepared. You can strengthen efficiency by tight production scheduling and controls so that fewer people can produce more and better food. This may require buying some labor saving equipment. (Remember your Safety Fund.)

Evaluate how you schedule labor hours. Examine the hours you are open. How many of these hours generate negative cash flow? How many are non-productive (hours when nothing is produced) and how many hours are both non-productive and negative cash flow? Can any these be eliminated?

Now look at the hours when you are not open but may be losing potential income by being closed. What are your competitors doing? After close examination. are there certain days and parts of days that you"re not open when you should be?

If you suspect that some of these hours could effect sales and positive cash flow. you can determine this by using sales management strategy. This strategy is creating a plan of how to maintain or generate sales in a "down" market?

If you are interested in my method for developing a sales strategy, email a reply to me and I will respond with my strategy for sales improvement during a recession period.
Thank you,

Lloyd M. Gordon

Best wishes for a prosperous business year,

Lloyd M.. Gordon
GEC Consultants, Inc.

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Survival during a recession

2008-02-26T15:08:04Z

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A positive look at the New Year

2007-01-17T13:56:22Z

This year 2007 may be the best year in many for restaurant operators. Although the increase in the minimum wage by a Democratic Congress bugs many business people, the economy itself is strong and growing. This means that there will be more money available for meals away from home. Possible wage tax credits may lighten the burden for foodservice operators. Take heart. Remember you can always raise prices slightly by 2-5% if necessary. But the best plan is to operate more efficiently.

You have probably heard this before, but you ask "How can I do this in real time?" There are books, pamphlets and articles in our trade journals that address this situation. But it all boils down to "think smart." Reading will provide you with a wealth of ideas. But remember, the best idea in the world is as nothing if its never acted upon. Ok, so what actions can you take. First, is to sit and ponder a definite course to follow. Write your ideas down. Second, decide which ones are the most critical to achieve. Third, of these decide on the most effective way to implement them. This takes into consideration how much you can do yourself and what can be done by others. For those actions upon which you must depend on others, spend time preparing an action-plan spelling out your goals, then tell your suggestions of how to get there, plan monitoring pauses at times when you will check on their progress, and finally help them put the end-plan into action.

You may need some outside advice and assistance at various steps in your action program. If you need it, ask for it! Don't be ashamed, embarrassed or discouraged if you encounter difficulty. Help is at hand. Some immediate help may be free, while other aid may come at a price. The immediate minor cost is not of consequence, but the long term benefits of your plan for greater efficiency can bring in a flood of new dollars in income.

Best wishes for a prosperous business year,

Lloyd M.. Gordon
GEC Consultants, Inc.

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NEWSLETTER:The lesson hard learned

2006-08-11T16:32:06Z

Hi, it's been a long time since I managed to send out a newsletter. The only excuse is that I have been recreating GEC Consultants so that information will flow faster and more efficiently in both directions from here to you and back again.

I want to tell you a story if you have time. Years ago in a large town I lived in, a young man saved up his money and opened a restaurant. He hired a top chef and a great troop of wait people and came up with a menu that everyone in the town loved. He was busy, busy, busy. All his neighbors and friends complimented him on the great job he was doing. Everyone "knew" that he was really cleaning up. Six months after he opened, the town's population was shocked to discover one Friday evening that the restaurant was closed.

"What happened? What went wrong? WHY IS THE PLACE CLOSED?" The cries and lamentations arose as a groundswell and became a deafening roar. WHY?

The truth when it was told was although he was raking in the action, it seemed that there never was enough to pay the piper...the meat man, baker man and the chief! Where had the money gone? After I was called in to answer those questions, my report showed that it had siphoned into the pockets of many of his "trusted" employees. They had been his unrecognized partners.

Your food facility like many others can be a hot-bed of philanthropic activity without you even knowing it. We all have known for years that due to employee mistakes, mis-allocation and plain old out-right theft, we have unseen partners in our business. Fortunately, those days can be over forever!

I have always advocated finding the best products and systems available for solving such problems and have recommended them to my select group of clients. But after polling restaurateurs all over the country, I decided that my consulting company, GEC, should provide information of this importance to everyone.

Beginning this month, August 2006, GEC�s website: http://gecconsultants.com has a new service area entitled �Products.� In brief, we are featuring for your attention the following:

Insight Commander System to control losses
Low cost Text Marketing for Restaurants
Equipment leasing made easy
Provide Employee Benefit Services at no cost to you
Get the Best Rates for your Merchant credit card service
Buy or Sell underused Equipment with a small cost

I invite you to check out this new section on our web site ( http://gecconsultants.com/products/index.html ) and learn for yourself how GEC�s new service can benefit you today.

Best wishes for a prosperous business year,

Lloyd M.. Gordon
GEC Consultants, Inc.

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