GEC
Restaurant
Consulting Services
The 21 Service Modules
This is a very detailed list of the hospitality industry
consulting services provided by Lloyd Gordon and GEC Consultants. From
restaurant business plans to restaurant and hotel site selection review
to providing expert witness testimony, the restaurant consultants at
GEC can become your most valuable business advisor.
We also have advanced "do it yourself" information available in Book and Pamphlet format.
Please visit our Bookstore. Our
books and pamphlets contain the distillation of knowledge gained from
40 years of research and experience in the food service consulting
business.
GEC Consulting Activities Listed by Modules
Module 1 - Fact 'N' Act©
A unique, quick and effective low cost method for a client and Lloyd
M. Gordon, president of GEC Consultants, Inc. to exchange information
concerning problems, procedures, concepts, methods and technical applications
in the food service industry.
This session takes from three to five hours. The "facts" are presented
by the client to Mr. Gordon. Once Gordon and the client reach an understanding
of what issues need resolution, Gordon spends the rest of the time
steering a directed course for ultimately solving the issues brought
to the table at this session.
The Fact `N' Act is a very intense, fast-moving interaction of Gordon
and the client, usually resulting in the creation of a track for the
client's project to "run on."
A one-time fee for this service is payable by check or cash at the
conclusion of the session. If the session is held outside of the Chicago
area additional costs for expenses and travel may be added.
Module 2 - Expert Witness For Legal Proceedings
Lloyd Gordon through experience and training is qualified as an expert
witness in legal proceedings involving plaintiffs or defendants in
Hospitality Industry legal actions.
Mr. Gordon will first analyze the facts presented to him and then
assist the attorney in structuring the "best plan of action to achieve
the legal settlement sought."
Mr. Gordon will render what in his expert opinion is the truth of
the matter involved and substantiate this opinion as necessary. Mr.
Gordon does depositions and on stand testimony and has never been contradicted
in fact under cross-examination.
Module 3 - Theme Concepts
GEC will develop your theme with your menu. The menu should reflect
the theme that you wish created. It would be designed and used to reinforce
your theme. Each potential menu item must be scrutinized in two ways:
does it fit into the theme, and is it a good profit item?
With your cooperation and input GEC will make the presentation of
your foods and beverages reflect the theme as much as possible. Standardization
and definition will permit the theme to be incorporated into food and
beverages. The portion sizes, how foods are placed onto plates, how
they are garnished, what is served hot and what is served cold. These
are the things that make the theme work.
Your pricing policy must be carefully developed. Your theme has intrinsic
pricing parameters that will contradict the theme if they are not obeyed.
A formal theme with exotic decor and foods, would be suspect, if the
prices were below those of a coffee shop. Likewise, if your prices
are as high as those charged by a haute cuisine continental cafe, customers
will be turned off if you are in a lesser stratum.
Module 4 - Business Plans
All data developed from the Proforma and Feasibility studies along
with other business data on the project will be developed into a business
success story. As a written document, this will provide prospective
investors, landlords, and other parties with data upon which to make
positive commitments to the project.
This document should be designed to set the ground work for meeting
the legal and technical requirements of raising funds for the business
venture.
By mutual agreement, it may include some or most of Modules 3, 5,
and 6. The fee for every Business Plan depends on the amount of data
included from these other modules.
Module 5 - Proforma Profitability Studies
All available sources of sales and cost projections of like type restaurants
will be analyzed with the purpose of providing data to be examined
to see if the project can be profitable in the first year. From these
figures a break-even evaluation will be made. Although this data may
be rough, a general picture of financial feasibility can be deduced.
In the initial scenario, sales for the first 12 months will be projected.
These will be compared against projected costs and a simulated profit
(loss) will be determined. Secondly, a break-even cash flow from sales
will be developed from these figures. In both scenarios, return on
investment will be projected.
GEC will develop working budgets by use of our computers, developing
realistic estimates of costs such as food, utilities, supplies and
so forth. These will be upgraded as the project advances.
Module 6 - Feasibility Studies
This includes the preparation of those items which allow us and the
client together to determine the scope and economic feasibility of
the project i.e. product flow diagram and inventory storage, preliminary
layouts and calculations, order-of-magnitude capital cost estimates,
preliminary manning charts, operating costs estimates, 3 year projections,
project tracking schedules, and development narrative.
From the above analyses, GEC will develop working budgets by use of
our computers, developing realistic estimates of all start-up costs
such as equipment, construction, food, utilities, supplies and so forth.
These can later be upgraded if and when the project advances.
Together with our client, GEC can determine if the project is worthy
of pursuing. If it isn't, GEC will report to the client why the project
should be abandoned. If it looks feasible, GEC will provide reasoning
for a positive action choice.
Must include Modules 3 & 5
Module 7 - Profitability Studies
Once a Proforma and Feasibility Study are undertaken, a useful guide
that bankers and investment "gurus" enjoy being furnished is the Profitability
Study. This contains data from the Proforma and the Feasibility Study
and tracks the projections over a three (3) year period.
GEC produces this study in close cooperation with the client-operator
from examination of current economic studies and evaluation of current
food industry trends.
The resulting cash flow reports over an extended time period are included
in all further documentation presented to bankers and/or investors
and governmental lending agencies.
Module 8 - Financial Planning
Strategies will be developed which include the business plan as its
basic document to seek and secure all capital required to complete
the project and keep it viable for a six month period.
These strategies will be designed to meet all legal requirements for
the type of financing sought.
Fees are negotiated with a financial funding expert on an individual
basis.
Module 9 - Business Appraisal
GEC will evaluate your business to determine its value. This value
may be "Fair Market", "Replacement" or "Intrinsic" or some other value
format depending on the circumstances and the reason for the appraisal.
The purpose of the appraisal determines the method GEC will use. GEC's
appraisals have been used in real estate transactions, legal considerations
and partnership and estate value determinations.
The initial on site activity will require at least a half, to a full
day working with you at your facility. Photos of your present operation
will be taken. Three bound copies of the Appraisal Document will be
furnished to you. Additional copies may be secured at $15.00 per copy.
Module 10 - Restaurant Site Selection (Review only)
GEC will:
- develop a close working arrangement with you, acting as general
consultant and developing the criteria for your restaurant facility.
- review sites you are considering, for:
- Over all acceptability
- Feasibility
- Practical features that could influence your decision such
as size, cost and location.
- Environmental impact assessment.
- Determine site improvement and construction considerations.
- Submit a final report of our findings.
Note: Cost of soil tests and other EPA requirements are not included.
Module 11 - Lease Negotiations
Your lease can either strangle or help your business thrive. If you
are renting the premises, the business lease is as important as the
physical facilities of the enterprise.
A restaurant lease is more complicated than other business leases.
This is because you make large investments in the mechanicals such
as plumbing, ventilation and lighting. A restaurant must be okayed
by the zoning commissions, local building and health departments, and
local, county, state and federal licensing agencies.
A restaurant lease is one of the most significant documents you will
ever sign and you must be sure that everything in the document is in
writing.
The responsibilities of each party must be spelled out in unambiguous
language. Restaurateurs are in the business of providing food and may
have little experience in creating lease documents that are favorable
to their business survival. GEC can give you professional advice on
lease negotiations.
Module 12 - "Hotel Restaurant" Renovation (Review Only)
GEC will plan renovation together with client to develop strategies
to:
- accomplish aesthetic goals,
- develop PERT chart of time line,
- review FF&E requirements,
- oversee work progress.
Module 13 - Recipe and Menu Cost Analysis and Evaluations
GEC is prepared through use of our computer and wide database to create
all menu items to achieve pre-determined goals of simplicity of preparation,
good customer acceptance and cost controls within budget parameters.
Each recipe is costed-out so the client knows not only what ingredients
are used, but how they are used following proper instructions, how
much each ingredient costs and the total recipe cost. The yields in
portions, weight or volume are also furnished.
Each menu is costed-out so the client knows not only what ingredients
and recipes are used in creating it, but how they are combined using
detailed instructions and how much each factor costs, the total cost
of the menu item and what the price should be to maintain a pre-determined
margin of profit.
Estimates based on menu evaluation @ $20 per menu item.
Module 14 - Facility Remodeling And Modernization (Review Only)
GEC, together with our Architect associates, or any architect of your
choice will assist you in selecting a suitable contractor. We will
help you review the construction program offered by the contractor
so as to secure highly experienced workman to effect a rapid build-out
of your facility at the most favorable cost, in the shortest possible
time. We will be available to consult with the Architects on construction
activity and advise you on authorizing costs payout.
Note: Costs of architects, plans, permits, labor and materials
are not included.
Total price is subject to uniqueness and complexity of the job. Retainer
required.
Module 15 - Facilities Planning And Design (Review Only)
GEC will review determinations of square footage available and allocation
of space for storage, preparation, service and dining prepared by another
vendor(s.) GEC will create product flow, work flow and employee flow
diagrams for most effective layout of equipment and resources.
GEC will review Decor treatment and theme presentations offered by
other vendors.
GEC will review with you the interior designs and required renderings,
elevations, and Display Boards of all surface materials and color treatments
presented by interior designers. GEC will assist in coordinating the
purchase and installation of decor products to effect the desired end
results.
Total price is subject to the uniqueness and complexity of the job.
Retainer required.
Module 16 - Kitchen Efficiency Planning (Review Only)
GEC believes that a well thought out kitchen is a key to a successful
restaurant. Factors we will review in the planning a kitchen include:
- What equipment is needed to produce the menu?
- What are the space limitations of the kitchen?
- How will employees function in the kitchen environment and how
will they be using the equipment?
- What is the cash budget for the kitchen?
- How does product flow through the kitchen from initial delivery
by vendors, through storage, preparation , cooking and serving to
the customer?
- How are waste products moved back through the kitchen to prevent
contamination?
- How easily can the equipment be cleaned?
- How easily can the kitchen be cleaned?
Module 17 - Restaurant Business Brokerage
Lloyd M. Gordon is a licensed Business Broker in the state of Illinois
and can negotiate the purchase or sale of any type of business for
a resonable fee, usually less than 8% of the sale price.
Module 18 - Operating Manuals
GEC will furnish you with an Operations Manual. The Operations Manual
might include the following:
- How to manage our facility.
- How to manage our employees.
- How to prepare our foods.
- How to serve our guests.
- How to be hospitable.
- How to keep our equipment clean
- How to keep our equipment working.
GEC will develop for your attention, manning charts, employee schedules,
job description, wage administration and personnel policies. GEC will
develop a "working mangers" manual which will be and effective short
course for managing your restaurant.
Module 19 - Management Development
GEC will prepare a special Management Operations Manual for you which
includes additional material which may not exist in your Operations
Manual. It will include specific rules and regulations for management
at all levels to follow to operate the facility. GEC will also propose
varies strategies for dealing with bonus and incentives and benefit
package options.
Module 20 - Marketing And Merchandising Techniques
GEC believes that marketing is attracting the attention of the potential
marketplace to the client's products and services. To accomplish this,
GEC suggests that the four techniques of marketing be employed as follows:
- Advertising - create attention-grabbing ads in various media to
let the public know "who, what, where and why" of the client's operation.
These ads are created by our advertising specialists.
- Merchandising - create point-of-sale interest once the patrons
enter the establishment to entice them to buy. These point-of-sale
concepts are created by our marketing specialists.
- Promotions - create interesting and appealing programs to get prospective
customers to make a decision to patronize the client's restaurant.
These promotions are created by our team of marketing people.
- Public Relations - keep the best features of the client's restaurant
in the public's eye. Developing programs of participation of the
client with the community are also functions of P.R. These activities
are handled by our P.R. specialists.
GEC will recommend suitable marketing and merchandising promotions
that will seek to accomplish the following - Here are some examples:
- Attract the interest of new customers.
- Re-create awareness of your products and service.
- Stimulate carry-out business where feasible.
- Institute catering off-premises where feasible.
- Show you methods to improve your visibility in the community.
- Develop low cost/hi-interest promotions that really bring people
in.
Note: Artwork, media charges, and cost of materials not included.
Module 21 - On-Going Consulting Service
GEC can provide on-going consulting service of at least five or more
hours by phone consultation per month plus a meeting in your office
and on-site inspections on a month to month retainer basis. Fees depend
on your location and nature of your operation.
For further information, please see our inquiry page.
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