The Role of the Restaurant Consultant in
Today's Restaurant Economy

By Lloyd M. Gordon
President, GEC Consultants, Inc.
Skokie, Illinois

The consulting profession has evolved over the past three quarters of a century as an important segment of the general business economy. In the United States today there are over 4500 consulting firms doing over $75 billion in business last year.

The market for consulting services has exploded in the past ten years. Much of the rise in the need for consultants has been due to the rapid growth of use of computers by businesses of all kinds.

Consultants can be either full or part-timers, either as individuals or as firms. Firms can be tightly organized groups of key people with large cadres of staff assistants. Also, they can be Associations of key people loosely bound together in a cooperative atmosphere. In either form, Consultants must be experts who can sell their services and themselves. They are problem oriented, excel in recognizing new or unsatisfactory situations, visualize creative ways to handle them and implement necessary changes if needed.

In the Restaurant Industry, consulting began in earnest after the First World War when Prohibition prevented Hotels from serving liquor in their dining rooms. This disrupted the normal flow of profits for them, and they turned to Hotel accounting specialists to develop new methods and procedures to generate profits without alcoholic beverages. At the same time, G. L. Wenzel's American Menu Maker was developed as the "Last word" in help for the Chef and Restaurateur in menu and back-of-the-house cost controls.

Today's Restaurant Consultants have evolved from these two basic pioneer conditions and cover the entire spectrum of food service operations. They provide general services such as developing a basic food service concept to specific services such as training wait persons.

Why Consultants Should Be Hired

A consultant should be hired:

1. If expert know-how is needed.
2. If there is a lot of uncertainty about how to proceed on a project.
3. A problem has remained unsolved for a long time.
4. An operator feels a situation requires specialized knowledge he doesn't have.
5. A generally profitable idea needs fine tuning.
6. There is a need to confirm concepts about which an operator may have some doubts.
7. An unbiased or a fresh insight is required to solve an old problem.
8. A whole new food or beverage concept needs to be created.
9. An overhaul is needed on an existing concept.
10. There is a need to modify and individualize popular concepts to make them appear fresh and innovative.
11. Major expansion or diversification planning requires that management and food production techniques be translated from small size to large size. Consultants have insight into what works on a grander scale.
12. It's time to bail out a sinking enterprise fighting to survive.

Three Essential Qualities to Look For in a Consultants

The three essential qualities to look for in a consultant are:

1. They must have the time you as the client lack.
2. They should have the expertise the you haven't yet developed.
3. They have to give you motivation to "do what must be done."

Why Experienced Operators Should Consider Using Consultants

Experienced operators should consider using consultants because:

1. Consultant can see the forest for the trees.
2. Can objectively oversee a project.
3. Can give unbiased answers to sticky questions.
4. Has time and patience to work problems through.
5. Provides new view point and fresh perspective.
6. Can be an arbitrator between differing parties.

What services should be available to you?

Consultants are often thought of as people who "fix things." A food service consultant should offer help in planning, development and implementation of many restaurant services.

These may include:

How To Find a Consultant

It seems a universal truth that you keep bumping into people who are consultants until you really need one. When you do want one, how can you go about getting the right one for your needs?

Here are some places to look for a consultant:

• Word of mouth referrals from other food service operators.
• Articles in trade publications
• Brochures received in the mail
• Attending Lectures and Seminars
• Enrolling in Colleges providing restaurant courses
• Recommendations of trade associations.
• The phone book's "Yellow Pages."

How To Evaluate a Consultant Before You Buy Services

There should be a personal interview with the consultant where you can get to know facts about this expert and his/her philosophy of business.This initial meeting should hopefully determine if there is a feeling of trust between the consultant and yourself. Also does the consultant have the experience for the project at hand? Thirdly, does the consultant's personality and philosophy mesh with the yours?

You should plan to ask about the consultant's:

1. Knowledge in the areas desired.
2. Range of experiences with similar operations.
3. Approach- does the consultant appear to be unbiased, practical and realistic?
4. Originality and creativity of thought.
5. Ability to communicate easily and understandably.
6. Compatibility with in-house personnel with whom the consultant will work.
7. Enthusiasm.
8. Ability to complete the project within the anticipated time frame.

Ask for a written proposal and then examine it carefully when it arrives. It should contain a statement of work to be done and the methods by which it will be accomplished. This can give you insight about the consultant.

A thorough proposal will specify:

1. Project objectives.
2. Scope of service.
3. Qualifications and references.
4. Project management and staffing (including resumes of those actually doing the work).
5. Fees.
6. Reimbursable expenses.
7. Chargeable additions.
8. Invoicing.
9. Conditions for termination of services.

It is wise to check out the consultant's references. You want to make sure that the work done for others has been completed, that the consultant delivered what was promised, and that the fee charged was worth the results delivered.

You Too Have Responsibilities to See That Results Are Successful

What are your responsibilities to see that the final results of your project with the consultant are what you want them to be? You should be prepared to maintain ultimate decision making responsibility for the project. You must O.K. changes in the proposal if required. You must make sure your staff is comfortable with the project. At the same time, you must remain an active team member.

Have the consultant provide you with written progress reports and have periodic meetings. You must closely observe the consultant's progress and work it produces. Listen to what the consultant advises in good faith. You don't have to follow every detail but you should seriously consider them.

Be prepared to give the consultant all the facts and a lot of your time.

The consultant will want to ask many of these questions of you before starting the job:

1. What type of food is served?
2. What type of service if offered?
3. What type of atmosphere is offered?
4. What is the owner's definition of his business?
5. Are prices higher/lower than competitions?
6. Are similar or different foods offered?
7. What is unique about the operation?
8. Does the menu have a clear focus?
9. What is the theme?
10. Does the menu mirror the theme?
11. Does the restaurant have a market niche with a unique food or service?
12. Who are the customers?
13. What do they like and dislike?
14. What are the plans of competitors?
15. What are the profit margins?
16. What financial resources are available?
17. What human resources are available?
18. What is the degree of motivation of the owner?
19. What is the degree of team involvement by workers?
20. Can the business be moved towards greater success?

How can you expect the consultant to effect change and improvement?

• First, the consultant will develop and follow a plan of action step by step.
• Second, you will be motivated by the consultant to do what's recommended.
• Third, the consultant will have a strong intuitive insight into what you want and what you really need.
• Fourth, the consultant will have great sensitivity into how you would like to have the project implemented.

In summary, the consultant must be an analyst, an information source, a long-range planner, an unbiased observer, an educator, a link to the outside world, a sounding board, a psychologist and a diplomat. If this be true, don't you believe that a consultant can be worth the fee he/she is paid? If they do all of the above for you, you bet they are!

Mr. Lloyd M. Gordon, President of GEC Consultants, Inc. has an MBA from the University of Chicago. He has concepted more than 390 restaurants and has been consulting for over 44 years. He helps people enter the restaurant industry, points the way to profitability, and helps keep them successful. To discuss "The Role of the Restaurant Consultant in Today's Restaurant Economy" he can be reached at 847-674-6310.

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