Lloyd Gordon's Blog

The business economy today is not the same as that in 2008. However, as far as small business investment is concerned there are many hold-overs in thinking of lenders, landlords and in the business operators themselves. These are what I call ground-hogs who still adhere to the principles with which they operated pre-Great Recession. These folks are still operating in the dark and have not arisen on Ground Hog’s day to see the light of the facts of the Great Recession.

Those above ground all agree that we are in the midst of the Great Recession. All the pundits agree and all the media agree and all the economist agree. However, it seems that the only segments of our economy that don’t seem to agree are those that provide financial or site availability, especially in regards to food service. Surprising enough there are still ground-hogs today as landlords who still believe they can lease properties for the highest square footage price possible. While everyone realizes the economy is taking a hit, these ground-hogs sit with their accountants and determine how much money per square foot they need to cover their development, construction and overhead costs to effect a high profit and then they hold forth with those amounts for their space.

I repeatedly have asked the question of these landlords, “Isn’t it better to make a dollar than to make nothing with empty space?” Surprisingly. The answer is often “No.” Is that being rational in this tentative economy?

Lloyd M. Gordon suggests that you can receive more information on this subject be going to:

“How-To-Do” Answers for Specific Questions

Lloyd M. Gordon founder  and President says his company,  “GEC Consultants, Inc. has been serving the Hospitality Industry for nearly 50 years. We have an operating branch in New York, Manhattan that covers the eastern seaboard from Mass. to Florida. We boast of restaurant, bar, niteclub and catering clients. We appreciate and look for business from this area.
Mr. Al Joseph, our representative will be pleased to discuss providing any service you require. Please contact him at 860-910-6527. I believe this can be very beneficial to you.
Regards, Lloyd M. Gordon, President, GEC Consultants, Inc.”

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

So you started as a busboy or was it a kitchen helper?
Then you were promoted to a waiter or was it a set up cook?
Did you become a head waiter or was it a broiler cook?
Are you now an assistant manager or perhaps a sou chef?
Oh, well no matter…so you’re thinking of owning your own restaurant?
It’s a good idea–provided you know what it takes and have what it takes.

Starting a business is risky at best; but your chances of making it go will
be better if you understand the problems you’ll meet and work out as many
of them as you can before you start.

Okay, you are now on the pathway to a careful study of the nature of the restaurant business. Next is a questionnaire which will identify your chances of being a success as the proprietor of your own foodservice establishment.

SELF-ANALYSIS QUESTIONNAIRE

Under each question, check the answer that says what you feel or comes closest to it. Be honest with yourself.

Are you a self-starter?
__ I do things on my own. Nobody has to tell me to get going.

__ If someone gets me started, I keep going and I don’t stop.
__ I don’t put myself out until I have to.
How do you feel about other people?
__ I like people. I can get along with just about anybody.
__ I avoid getting into unnecessary arguments .
__ I have plenty of friends–don’t need anyone else. Most people irritate me.
Can you lead others?
__ I can get most people to go along when I start something.
__ I can give the orders if someone tells me what we should do.
__ I let someone else get things moving. Then I go along if I feel like it.
Can you take responsibility?
__ I like to take charge of things and see them through.
__ I’ll take over if I have to, but I’d rather let someone else be responsible.
__ There’s always some eager beaver around wanting to show how smart he is. I say let him.
How good an organizer are you?
__ I like to have a plan before I start. I’m usually the one to get things lined up when the group wants to do something.
__ I do all right unless things get too confused. Then I quit.
__ You get all set and then something comes along and presents too many problems. So I just take things as they come.
How good a worker are you?
__ I can keep going as long as I need to. I don’t mind working hard for something I want.
__ I’ll work hard for a while, but when I’ve had enough, that’s it.
__ I can’t see that hard work gets you anywhere.
Can you make decisions?
__ I can make up my mind in a hurry if I have to. It usually turns out O.K., too.
__ I can if I have plenty of time. If I have to make up my mind fast, I think later I should have decided the other way.
__ I don’t like to be the one who has to decide things.
Can people trust what you say?
__ You bet they can. I don’t say things I don’t mean. I try to be on the level most of the time.
__ Sometimes I just say what’s easiest.
__ Why bother if the other fellow doesn’t know the difference?
Can you stick with it?
__ If I make up my mind to do something, I don’t let anything stop me.
__ I usually finish what I start–if it goes well.
__ If it doesn’t go right at once, I quit. Why beat your brains out?
How good is your health?
__ I never run down
__ I have enough energy for most things I want to do.
__ I run out of energy sooner than most of my friends seem to.

Now count the checks you made.
How many checks are there beside the first answer to each question? _____
How many checks are there beside the second answer to each question? _____
How many checks are there beside the third answer to each question? _____

If eight to ten of your checks are beside the first answers, you probably have what
it takes to run a business. If five to seven are beside the second answers, you’re likely to have more trouble than you can handle by yourself. Better find a partner who is strong on the
points you’re weak on. If more than five checks are beside the third answer, not even
a good partner will be able to shore you up.

Mr. Lloyd M. Gordon, President of GEC Consultants, Inc. has an MBA from the University of Chicago. He has concepted more than 500 restaurants and has been consulting for over 50 years. He helps people enter the restaurant industry, points the way to profitability, and helps keep them successful. To discuss “1000 steps” he can at 847-674-6310 or e-mail experts@gecconsultants.com or on the web at www.gecconsultants.com

To receive additional information about opening a restaurant successfully,  see “How-To-Do” Answers for Specific Questions

A young trainee in a fast food chain was asked recently what did he believe was the best type
motivation for him. Be replied, “To motivate me, let me do what I like to do best.”

An apprentice cook replied to the same question by saying, “Being motivated, I believe, is
trying to achieve something useful.”

A training supervisor for a restaurant chain lecturing to a room full of trainee managers explains, “Motivation is a word derived from the two words “motive+action” which together mean “a reason for movement.”

A zoologist recently defined motivation as “the act of rational or reasonable movement from
point A to point B. For an organism to ‘act’ there must be some benefit derived by going from A to B or the creature would remain at point A.”

A business tycoon claims that, “the accurate definition of motivation is the progressive
realization of pre-determined personal goals.”

Each of these definitions captures some essential qualities of the meaning of motivation. But
for the restaurateur, motivation can be summed up simply as a method for increasing an employee’s efficiency.

Experience has shown, that workers who “want” to do a good Job, who have a “positive
attitude” towards their daily tasks and who “enjoy” coming to their place of employment every day are going to accomplish better work with less supervision than those who don’t have these attributes..

We can define an efficient employee as one that produces a greater output. In engineering terms they speak of —–

PRODUCTIVITY = OUTPUT / INPUT

In restaurants, if a worker produces more with the same or less input than before, we claim that the employee is “more productive.” Thus, productivity in our business increases when an employee with the same or similar effort can handle more customers, wash more dishes, can cook more orders or can clear end reset more tables; accomplishing all of these within a reduced time span.

Spectacular productivity results have been observed when groups of similarly motivated workers labor together on a Joint project. When normally efficient people cooperate to achieve a specified productivity goal, working together with close teamwork and giving each other helping hands, the results due are amazing. This is due to what production experts refer to as “reinforcement of effort.”

When people work well together they tend to develop good interpersonal relationships that
reduce bickering, back-biting and jealousies. Such an environment allows them to concentrate on the job at hand. This results in tasks being finished quickly, effectively and accurately.

To receive additional information on motivating employees 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