Lloyd Gordon's Blog

I suggest you take the time to come to my website and download The Marketing Blitz. You will find the information valuable as it is based on over 50 years of successfully operating restaurants and advising others.

As an entrepreneur you have many goals. The Marketing Blitz can set you on the path reaching these goals. You will learn how to out-maneuver and crush your competition. I know the “Blitz” works when it is organized,  operated and implemented with complete cooperation and determination of your entire staff and yourself.

Here is an inspiring story from my archives about cashing in on the result of using the methods of the Marketing Blitz:

Some years ago, I was asked to evaluate a fast food located in a store front on a very busy Chicago thoroughfare. The owner had operated at this location for 18 years. It was a very busy spot. Cars were double parked on the street and customers were steadily entering and leaving.

The owner wanted me to determine a fair price for this establishment. I asked him what he believed was a fair starting price to start a negotiation. He replied, “$350,000.”
I went to work and set up a business evaluation form. This form, (which I still use) flagged significant incomes and expenses and noted special features of the business.

The outstanding three features were—

If you didn’t get you order in 9 minutes it was free.
You could double park, cop free, for 12 minutes.
Your average check for sandwich, side, and beverage was under $7.00.

My well documented business appraisal was accepted in the negotiations and the business was sold lock, stock and barrel for over one million dollars. It is now a thriving international chain.

You are invited to bookmark the website, www.gecconsultants.com and to browse the many articles, books, pamphlets and products which have been accumulated to provide assistance to anyone operating a restaurant, bar, nite-club or catering enterprise.

I look forward to hearing from  you and helping you succeed in achieving your business goals.

Today the need for experts in the foodservice industry is growing as the recession lightens.  The need has developed because  operating a restaurant has become even more  evolved into the methodology of operating a complex foodservice effectively to maintain a profit under any economic circumstance. To be efficient, a facility serving food must adhere to ever higher standards of development, performance and efficiency in food, service and marketing. Achieving these standards requires management’s time and company money.  This  demand for high standards came about because:
1.    The marketplace has exploded, bigger was better.

2.    The customers was mobile and could  travel readily.

3.    Theme differentiation required elaborate ambiance.

4.    A wide diversity of foodservice outlets created overwhelming competition.

5.    Competition required allocating more funds, time and dedication to making marketing  work effectively.

But during this past major downturn in business, the maintenance of these  standards became  too cumbersome and expensive. TO THE RESCUE CAME GEC ONSULTANTS. We have developed three utterly new innovative programs for restaurant survival and financial solvency. GEC believes that restaurant operators who adhere to old established ideas will perish, while those with the foresight to take action now, will thrive and prosper. Newcomers to the industry indoctrinated in this new operating philosophy, also will prosper.

The initial program is “The Marketing Blitz” which was developed to maximize sales through aggressive marketing.

The second Program is “The Most Bang for Your Buck” which shows how intelligent purchasing can put money into the pocket of every foodservice operator.

The final Program in this series is “Learn to Enjoy Your Restaurant Again” which identifies how  stress  can strangle  a restaurant, bar, nite-club or catering enterprise by preventing the operator from functioning effectively. This Program suggests ways an owner or manager can overcome stress to regain leadership of the enterprise.

To see all of these Programs visit our website at www.gecconsultants.com  located on our home page. Examine them all, and then browse through our website for other useful articles, books, pamphlets and products which can be beneficial  to everyone in the Hospitality Industry.

© Copyright GEC Consultants, Inc. 2012
All Rights Reserved

Do You Need a Feasibility Study?

There is an ongoing debate among restaurant professionals as to which comes first the concept or the site. This means do you find a location and then swiftly develop a concept to fill it, or do you first develop the concept and then search out the best location to exploit your ideas?

Many fine restaurants have been developed from concepts rushed into shape after the operator discovered a “truly great location”. An equal number can be said to have had the concept gathering dust in some closet of the mind until one day the “perfect site” for the idea was located.

For the uninitiated, the development of the concept is going to take more time and greater mental effort than that of finding a place to develop it. Therefore, your time had best be spent refining your imaginary restaurant or catering place so that when that “once in a lifetime” piece of real estate is discovered you’re ready to speed the deal through.

When you find the site, you are ready for a feasibility study. Contact GEC for professional assistance in creating an effective feasibility study that can be used in Business Plans and with other development documents.

To receive additional information  on feasibility and the best methods to use,  see our website at www.gecconsultants.com and view other information available at modest costs.

Lloyd Gordon noted restaurant consultant announced that he is NOW offering a FREE subscription to his popular newsletter to everyone in the Hospitality Industry. He says, “ I call it the news of The GEC’s Insider’s Info Club. Subscribers will be kept informed of what’s happening in the industry as well as suggestions of what you can do about it. In addition, I offer you ways to save money.” You can take advantage of this FREE publication with no strings attached by clicking here. You should receive your initial copy in your e-mail within a week.

By Lloyd M. Gordon, President
GEC Consultants, Inc.
Skokie, IL 60076

Last summer I visited a fast food restaurant that had opened five years earlier.

My perception of the place was that the food was good, but not outstanding. The appearance was average and the service mediocre. All in all, it was nothing to write home about.

Last week I visited that same restaurant. The ownership was the same but business had skyrocketed with a lively new menu, attractive decor, neon signage and enthusiastic employees. The result was a restaurant full of customers.

“What happened?” I asked. The owner replied, “I bought into a new concept and it revitalized the business.”

That certainly is an easy way to cure what ails your business – change the concept for a better one.

If you are facing diminishing returns, lowered employee morale and see the shadow of creditors at your door, maybe you need to consider undergoing major reconstructive surgery.

To receive additional information on turning around your restaurant, bar or catering business and the best methods to use,  see “How-To-Do” Answers for Specific Questions

The US Government says it hasn’t figured it out yet after two years but the truth be told there was a plan to help small businesses fight the recession. In 2009 the SBA was authorized to improve the lending requirements so small businesses could borrow needed funds to outlast the Great Recession. They reduced the down payments, and the guarantees were raised but the loans did not appear. What went wrong? Well, the banks that lend money were restricted to 2¾ points above prime but the banks refused to loan money unless they could get an additional 2%. Therefor, of the 30 billions of dollars earmarked for small business development only less than 10% of those funds have been spent by the SBA to date.

The proposal, known as the Small Business Lending Fund, originally would have taken $30 billion from the Troubled Asset Relief Program and diverted it to smaller banks. The move was supposed to stimulate lending. But the Banks were hesitant to take government funds for fear of after-the-fact program changes. Banks also asserted that there was little demand for loans so they had no guarantee they could find ways to lend the money once they received it. This proposal was the centerpiece of the administration’s pre-election plans to boost small businesses, which have been among the hardest-hit sectors since the onset of the financial crisis.
Unlike large corporations, small businesses don’t have access to the capital markets. They don’t issue debt to investors nor do they raise capital on stock exchanges. Instead, they rely on banks for their funding. Small community lenders and regional banks are their primary source of credit.
So believe it when I say the are not telling the truth that they have no plan.

WHAT TO DO NOW THAT YOU KNOW ABOUT THE BIG LIE?
Rise up all you entrepreneurs and march to your local banks and insist that they provide you with the paperwork you need to get this SBA money that is languishing waiting for them to request it from the USA so they can distribute it to you.

Lloyd M. Gordon

Save when you eat at restaurants. “You can buy great meals at great restaurants for a pittance if you know how to find coupons and discounts for eating out,” said Annie Korzen, an actress best known for her regular appearances in Seinfeld and a self-proclaimed “Bargain Junkie.”

She points out correctly that restaurants commonly sell $25 gift certificates for $10–and they can sometimes be had for as little as $2. Here are 4 tips of where to get great deals at restaurants.

1. Sign up at Restaurants.com, where you plug in your zip code and peruse a menu of dozens of local restaurants willing to sell a $25 gift certificate for $10 and a $50 certificate for $20. These gift certificates often go on “sale,” and you can buy your $25 meal gift certificate for just $2.

2. Blackboard Eats.com is another site that offers coupon deals for restaurants. The deals range from providing huge discounts, such as 30% off your meal, to offers for free appetizers or entrees. Unfortunately, they’ve only got deals in Los Angeles and New York. But if you happen to live in (or visit) one of those two areas, it’s worth a look.

3. Groupon.com offers coupons on everything from vacation visits to restaurant meals. The typical deal will discount your meal from 30% to more than 75%. When you sign up, they’ll send regular emails of the daily deals in your area. You decide whether to buy or delete.

4. Chow Hound.com is a new and novel site where foodies talk to other foodies. This recent talk venue reveals where you can get restaurant meals for $5 or less. Doesn’t that sound great? But another great feature is “BYOB.” If you’re a drinker, call the restaurant where you want to eat and ask about their “corkage” fee. Most eateries will let you bring your own bottle and charge only a small fee to have the waiter serve it. Since restaurants typically mark-up a bottle of wine up to 400%, bringing your own can save a bundle.

There’s just one caveat: Make sure you read the fine print on all of the coupon deals because the certificates do expire and some can only be used for lunch or on certain days. Most also add in the tip before deducting the value of the coupon to make sure that the server doesn’t get stiffed on the deal.

Please don’t feel guilty using these coupons. The restaurant owners are grateful for the added sales volumes and usually the smart ones give very good service so that you will want to come back even without a coupon.

Lloyd M. Gordon

Sign up for ”Bargain Junkie: Living the Good Life on the Cheap” by Annie Korzen.

You as employees have an opportunity to make a great impression on your bosses and  your customer.

The most important part of your job is to enhance your customer’s service.

As a novice server, you may ask why it’s necessary to enhance the dining experience for your guest. Answer is “That is how you increase your tips.”

Teamwork between everyone means you think how you can enhance the service by  going the extra step with a co-worker..

Respect your co-workers. If they need it, help somebody out. A customer can observe this. They respect teamwork. Remember that it’s the thoughtful things that make the customer feel great.

So what people think about your restaurant will make you feel better too.
Even the “behind-the-scene” folks  say if customers  like the place that also makes them feel good . However, The busboy can truthfully say he likes it because he gets more money out of it.

Your work  seems easier if you can talk pleasantly with everyone so  treat everyone like they are eventually affecting your customer.

Even cooks like to keep the servers happy  staying on top of things as the server is their actual customer. They feel that “I serve the people that serve the customers so they are really my customers.”

Opportunity is always there to turn a  group of customers into  happy high tippers. The busboys can help make the serving experience better and that means bigger tips for you. (more…)