Getting Your Project Started PDF

Getting your Project Started Carmen M. Pérez, DrPH, MHSN, RDN, LND Objectives ü Identify preliminary planning steps for foodservice businesses. ü Create a business plan and feasibility studies. ü Calculate projected sales and expenses. ü Identify types of designers and consultants, and understand ho...

Getting your Project Started Carmen M. Pérez, DrPH, MHSN, RDN, LND Objectives ü Identify preliminary planning steps for foodservice businesses. ü Create a business plan and feasibility studies. ü Calculate projected sales and expenses. ü Identify types of designers and consultants, and understand how to work with them. ü Determine the scope of work and fees for your project. ü Explain professional and ethical considerations. Quality Service Menu Concept and Market Food Location Price Atmosphere Management Concept Potential Success Work in the location you have chosen. Generate sufficient sales to realize a profit. Have a certain amount of staying power no matter what the economy does. Demographics Office and/or school area? Strategic position Drive-by features: access, visibility Site-problems Location Out-of-theway Vehicle Traffic Patterns Concept Saturation Competitors Hospital School Correctional Facilities Military Bases Nursing Homes Daycares Cruise ships Airports and Transportation Terminals Membershipbased facilities (clubs) Concept Potential Success for Noncommercial Foodservices Major Points Foodservice Planning Process Business Plan Executive Summary Industry Analysis Competitive Analysis and Advantages Brief Description Target Customers Marketing Plan Mission Statement: vision and values Key Performance Indicators Team SWOT: strengths, weakness, opportunities, threads Goals Operations Plan Financial Projections Feasibility Studies Market Financial Defines the target A realistic projected customer, analyzes budget with a the competition, and forecast of all startlooks closely at the up costs, operating trade area around income, and the facility. expenses. research to justify the implementation the concept Market and Financial feasibility studies Projected sales Projected expenses Financial Portion of Business Plan Number of clients per day Average check (each client) Projected Sales THE DINING EXPERIENCE Figuring Average Attendance and Average Check “Chez Ralph” has 140 seats. In most restaurants, each seat is occupied two times for lunch and one time for dinner. (We’re going to keep this simple and assume that Chez Ralph is open daily for both lunch and dinner.) So, the daily customer count is: Lunch 140 ! 2 " 280 # Dinner 140 ! 1 " 140 Total guests per day " 420 How many guests per week? Multiply 420 by 7 (days per week) for a total of 2940. How many guests per month? Multiply 420 by 30 (days per month) for a total of 12,600 guests. How many guests per year? Multiply 12,600 by 12 (months per year) for a total of 151,200. Now let’s look at how much money these people spend at Chez Ralph. This is a very simple estimate, based on the price of the average entrée. Since you’re probably not far enough along to have created and priced a menu of your own, you could average the prices of your direct competitors. In Chez Ralph’s market feasibility study, the direct competitors’ average check is $10 per person. DAILY SALES: Average check " $10.00 ! Daily number of guests " 420 Sales per day " $4200 WEEKLY SALES: Average check " $10.00 ! Weekly number of guests " 2940 Sales per day " $29,400 MONTHLY SALES: Average check " $10.00 ! Monthly number of guests " 12,600 Sales per month " $126,000 ANNUAL SALES: Average check " $10.00 ! Annual number of guests " 151,200 Sales per year " $1,512,000 Projected Expenses (costs) Beverages 10-12% Food 30% Labor 33%* Prime Costs *2-4% fringe benefits Projected Food and Beverage Sales Food Sales 85% Beverage Sales 15% Total Sales 100% restaurants, cafeterias, food truck, among others no cocktail bars, sport bars Chez Ralph estimates labor costs will be 33 percent of its total sales. This means: Daily Labor Cost $3360 (daily total sales) ! 33% (0.33) " $1108.80 Monthly Labor Cost $1108.80 (daily labor cost) ! 30 (days per month) " $33,264 Annual Labor Cost $33,264 (monthly labor cost) ! 12 (months per year) " $399,168 THE DINING EXPERIENCE Calculating Food and Beverage Costs FOOD SALES: $3360 (daily total sales) ! 85% (0.85) " $2856 FOOD COSTS: $2856 (daily food sales) ! 30 (0.30) " $856.80 BEVERAGE SALES: $3360 (daily total sales) ! 15% (0.15) " $504 BEVERAGE COSTS: $504 (daily beverage sales) ! 12 (0.12) " $60.48 Multiply these totals by seven to obtain your weekly cost estimates: FOOD: $856.80 (daily cost) ! 7 (days per week) " $5997.60 BEVERAGE: $60.48 (daily cost) ! 7 (days per week) " $423.36 Multiply these totals by 30 to obtain your monthly cost estimates: FOOD: $856.80 (daily cost) ! 30 (days per month) " $25,704 BEVERAGE: $60.48 (daily cost) ! 30 (days per month) " $1814.40 Multiply the monthly totals by 12 to obtain your annual estimates: FOOD: $25,704 (monthly cost) ! 12 (months per year) " $308,448 BEVERAGE: $1814.40 (monthly cost) ! 12 (months per year) " $21,772.80 $1108.00 (daily labor cost) x 7 (days per week) = $7756.00 weekly labor cost Space In most foodservice projects, the most expensive square footage is the kitchen and food-related spaces. $450+ per square foot (median cost) = total construction and equipment cost $125 - $150 (median cost) = other common building uses A qualified designer/consultant Designer/Consultant Initial Interview Foodservice operational and design background How make the facility function according the needs Works or exposure to a service facility How select and size the equipment Approach to a new project Services charge, not included, additional fees Ensure to reasonable accurate in providing what is needed Liability insurance for the projects & types Service payment terms Ways to reduce labor and operational costs in design process/equipment selection Value delivery that competitors may not Great Consultant-Client Relationship Consultant must: Bring commitment. Be willing to share information. Inspire confidence. Go the extra yard and give more than expected. Meet deadlines and respond quickly. Be sure not to promise what may not be able to deliver. Respect the client’s knowledge and experience. Great Consultant-Client Relationship Client must: Work hard to meld the consultant into the team. Be totally honest and open about the operation and its problems. Respond quickly and fully. Respect the consultant’s requirement and experience. Pay on time. Scope of work, example ! Consultant!shall!prepare!a!preliminary!program!of!the!space!and! provide!it!to!the!owner!on!or!before!11/10/17.!Immediately!following!of! the!approval!of!the!program!from!the!owner,!the!consultant!shall!begin! schematic!design!along!with!other!members!of!the!design!team!until! such!a!time!that!a!final!design!is!agreed!upon!by!all!parties!(no!later!than! XX!date).!! ! Upon!approval!of!the!final!design,!the!consultant!shall!provide!all! design!drawings,!MEP!(mechanical,!electrical,!plumbing)!schedules,! equipment!cut!sheets,!specifications,!and!other!required!documentation! to!the!architects/engineers!and!owner!as!well!as!the!final!contract! documents!that!will!be!used!for!bidding!the!project.! ! Upon!substantial!completion!of!construction,!the!consultant!shall! visit!the!facility!and!provide!a!final!inspection!of!the!facility!and! equipment!and!submit!a!punch!list!for!any!missing!or!unsettled!issues!to! the!owner.!The!consultant!shall!plan!for,!in!their!fee!proposal,!XX! number!of!faceItoIface!meetings!and!XX!number!of!site!visits!during!the! planning,!design,!and!construction!of!the!facility.! ! Consulting Fees for the Project No single rule for determining a fair fee 2% of the construction cost Example ü $1.5 million to build a restaurant ü $5,000 for the kitchen design? ü $30,000 (2%) Professionalism and Ethics You want people who are going to play by the rules and treat you fairness and respect throughout the process – even when, as often happens, situations get tense mid-project. See you next week.