restaurant concept development start-up costs by william bender, fcsi, @wmbender @rockmyrestotv

Presented by: William H. Bender, FCSI

Facilities Management and Design

January 29, 2014

Restaurant Concept Development Start Up Costs


@WmBender


WHY CHOOSE AN FCSI MEMBER AS YOUR CONSULTANT?

FCSI is the only such consulting society that operates in 45

countries worldwide. FCSI consultant members must abide by a strict Code of Ethics and Professional Conduct. We efficiently to

achieve total client satisfaction and always maintain independence from the supply side of the industry.


WHAT IS A FOODSERVICE CONSULTANT?

Generally speaking, a foodservice consultant: • Is an independent professional advisor

• Works on a defined scope of work and related fee • Works as an advocate for their client in achieving their goals

Design and implementation of foodservice facilities

and/or Management Advisory Services (MAS)

As independent professionals their primary focus is the welfare of the client

organization that they serve.


• Accounting & Finance • Architectural Design • Beverage System design • Business Strategy • Capital Budgeting • Code Compliance • Compliance Certification • Concept Development • Contract Management • Culinary Development • Dietary & Nutrition • Distribution/Procurement • Due Diligence • Energy & Environment • Equipment Surveys • Executive Coaching • Facility Assessments • Feasibility Studies • Finance Raising • Food Production Systems Design • Food Safety & Hygiene • Franchising • Human Resources • Imagineering • Interior Design • IT Systems, Sourcing/Mgt • Kitchen Design • Laundry Design • LEED Planning/Design • Legal Advice/Litigation Support • Mgt Recruitment & Development • Marketing & Promotion • Master Planning • Menu Development/Engineering • Operating Procedures & Systems • Operations Review & Re-Engineering • Operator RFP Selection/Monitoring • Quality Management • Revenue Generation • Space Planning • Strategic Financial Analysis • Sustainability • Training • Waste Management Design • Workshops and Education • Workstation Ergonomics/Design

Specialties:


Mission Statement:

To promote professionalism in foodservice and hospitality consulting while returning maximum benefits to all members.

www.fcsi.org


1967 - First Gratuity .50¢


The trades pay off!


SYSTEM = SYR-O-MATIC


2014-15 Restaurant Industry Challenges

• Hypercompetitive Market Elements - (Growing daily) • Market of People - (Lack of qualified employees and applicants) • Generation of People - (Poor education nationwide with almost Ø parental oversight) • National & Global Economic Crisis (Slow Recovery) • Cost of Obama Health Care Plan???

$ 10.15 San Jose Minimum Wage $ 10.74 San Francisco Minimum Wage


Starting a Restaurant Calls

Hi Bill, My _______ and I are starting a restaurant. We have a great recipe, product and want to open up a location(s) and then we want to franchise. How much do your services cost? We have money and need help with……

Hi Bill, My _______ and I are starting a restaurant. We have a great location and want to open up in May 2014. How much do your services cost? We have money and need help with……


Start Up Development Costs

!  Costs vary according to type, size/scale of restaurant with “first

units” costing more

!  Large restaurants/full service have greater costs

!  Urban projects cost more than suburban

!  Mall sites have higher costs than small neighborhood centers

!  Proven concepts cost less that “new” concepts

!  Complicated menus/service concepts have higher costs

!  Next Generation Prototypes have a tendency to increase in

size/square feet


Start-Up Costs

Expenses incurred for the acquisition or creation of your restaurant business. Start-up costs are comprised as any incurred amounts or outgoing capital in relation with your restaurant’s activity for income

generation before your restaurant business starts.


Start Up Development Expenses • Potential Market Surveys • Evaluation of site, locations, facilities, labor market • Concept creation and development • Brand and Marketing development • Design and building or remodeling fees • Interior design and decorating • Permits and Licenses • Construction and Engineering Fees • Fixture, Furnishings, and Equipment • Equipment and Fixture Installation • Pre-opening salaries for management training and their trainers • Salaries, fees for owners, executives, consultants, or similar services • Costs of travel for acquiring prospective suppliers or distributors • Pre-opening Training of Team Members • Team Member Uniforms


Guest Experience

Team Member Experience


Branding

The whole process of branding is to differentiate your product In the marketplace and to get consumers to identify it as different, better and special.

~ Sergio Zyman The End of Marketing As We Know It

BrandRight


Closing Thoughts

1. View yourself as a professional.

2. Be proud of the foodservice industry.

3. Continue to educate yourself (Network).

4. Keep your life balanced.

5. Make some friends and have some fun.


@WmBender

408.784.7371

William H. Bender

Contact Information

W.H. Bender & Associates

Blog – WHBender.com W.H. Bender & Associates

William H. Bender W.H. Bender & Associates WHBender

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1430 Norman Avenue San Jose, CA 95125-5217

We’re based in San Jose, California - Learn how we can assist you create or improve your business. There is no charge for the first call and we love Silicon Valley Technology!

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WHBender


[email protected]

Questions or Information?

@WmBender @WmBender