Getting Your Project Started Chapter 1 © 2014 by John Wiley & Sons, Inc.

In this chapter, you will learn about:  Preliminary planning steps for foodservice businesses  Creating a business plan and feasibility studies  Calculating prime cost estimates  Types of foodservice designers and consultants  How to work with designers and consultants  Factors to consider in determining the scope of work and related fees for your project  Professional and ethical considerations of consultants Learning Objectives © 2014 by John Wiley & Sons, Inc.

 The design process is complex.  A lot of information must be provided to contractors.  The person or firm supervising a foodservice design project must have thorough knowledge of:  Current building codes and permitting processes  Health and safety codes, for buildings and equipment  Requirements of the Americans with Disabilities Act  Local contractors and equipment availability Why Hire a Consultant? © 2014 by John Wiley & Sons, Inc.

Don’t hire a contractor before you know exactly what you’re hiring them for. Prepare:  A basic business plan with details of your concept.  A financial feasibility study  Projected sales and expenses.  A market feasibility study  Site information Initial Planning & Project Considerations Source: John R. Walker, The Restaurant: From Concept to Operation, 6th Edition. This material is licensed by permission of John Wiley & Sons, Inc., © 2014 by John Wiley & Sons, Inc.

 Discuss the various areas of consultants’ expertise. Which would you find useful – or unnecessary? Finding a Qualified Designer or Consultant Accounting & FinanceArchitectural design Beverage system designBusiness strategy Capital budgetingCode compliance Compliance certificationConcept development Contract managementCulinary development Dietary and nutritionDistribution, procurement Due diligenceEnergy & environment Equipment surveysExecutive coaching Facility assessmentsFeasibility studies Finance-raisingFood production systems design © 2014 by John Wiley & Sons, Inc.

 More consultants’ areas of expertise. Which would you need? Finding a Qualified Designer or Consultant (cont’d) Food safety & hygieneFranchising Human resourcesImagineering Interior designIT systems, sourcing, management Kitchen designLaundry design LEED compliance & designLegal advice, litigation support Master planningMarketing & promotion Management recruitment & development Menu development & engineering Operating procedures & systems Operations review & re- engineering © 2014 by John Wiley & Sons, Inc.

 More consultants’ areas of expertise. Which would you need? Finding a Qualified Designer or Consultant (cont’d) Operator RFP selection & monitoring Quality management Revenue generationSpace planning Strategic financial analysisSustainability TrainingWaste management design Workshops and educationWorkstation ergonomics & design © 2014 by John Wiley & Sons, Inc.

Interviewing Design Candidates  Look for a level of comfort and trust in these interviews. Ask:  What is your foodservice operational and design background?  Have you worked in or had exposure to a foodservice facility of this type?  Describe your approach to a new project.  How do you ensure you’ll be reasonably accurate in providing what is needed?  How will you make my facility function according to my needs?  How will you select and size the equipment? Finding a Qualified Designer or Consultant (cont’d) © 2014 by John Wiley & Sons, Inc.

Finding a Qualified Designer or Consultant (cont’d) Interviewing Design Candidates (cont’d)  Explain some ways you try to reduce labor and operational costs in the design process or with equipment selection.  How do you charge for your services? Is anything specifically not included in your fees, or anything that requires additional fees?  Do you (personally, or as a company) carry liability insurance for the projects you work on? What other types of insurance do you have?  What are the payment terms for your services?  What value do you deliver that your competitors may not? © 2014 by John Wiley & Sons, Inc.

Types of Designers Membership requires high-caliber work and adherence to a code of ethics. “Professional” status requires yearly education credits. FCSI-affiliated designers Not affiliated with FCSI, which is not necessarily a reflection of their work or professionalism. Other fee- based designers Services included or discounted for purchasing equipment from dealer. Equipment dealer designers © 2014 by John Wiley & Sons, Inc.

Types of Designers (cont’d) Are hired separately or brought in by architect Interior designers Similar standards as FCSI; wide range of expertise. Might be an individual or a firm. Management Advisory Services Consultants (MAS) © 2014 by John Wiley & Sons, Inc.

Who’s in charge? The options:  You – because you’re paying the bills and want to stay involved; or your project is complex and you need to be involved.  The architect – because this person can deal with the design consultant and only involve you if necessary.  The general contractor – because this person can deal with the design consultant along with the other contractors and their crews. Who is the Consultant’s Customer? © 2014 by John Wiley & Sons, Inc.

 Most design work is done before the space is actually laid out.  If process goes smoothly, a consultant should not have to ask or justify need for more or less space in an area.  Everyone on team should know whom to ask if they have questions, and who makes the final call on design decisions.  Delays, cost overruns usually mean poor planning. Who is the Consultant’s Customer? (cont’d) © 2014 by John Wiley & Sons, Inc.

 Spell out all requirements in Requests for Proposal (RFP) to contractors.  Include detailed Scope of Work: timeline, deadlines, description of all services to be provided.  Determine your hard costs (construction, labor, materials, equipment)  Determine your soft costs (permits, license fees).  A wide range of bid amounts often means your Scope of Work isn’t detailed enough.  Consider quality and experience when comparing bids.  Ask contractors for a fee rationale – don’t be shy about asking how they set their fees. Establishing a Scope of Work, Bids & Fees © 2014 by John Wiley & Sons, Inc.

 Consultants’ Responsibilities  Can you think of examples in a team setting where these traits have been evident from a project consultant?  Bring a commitment to the project.  Be willing to share information.  Inspire confidence as part of the team.  Go the extra yard; give more than is expected.  Meet deadlines and respond quickly to questions.  Don’t promise what you can’t deliver  Respect the client’s knowledge and experience. Establishing a Scope of Work, Bids & Fees (cont’d) © 2014 by John Wiley & Sons, Inc.

 Consultants’ Responsibilities (cont’d)  Work hard to meld the consultants into the team.  Be totally honest and open about the operation and its problems.  Respond to questions and concerns quickly and fully.  Respect the consultants’ requirements and experience.  Pay on time. Establishing a Scope of Work, Bids & Fees (cont’d) © 2014 by John Wiley & Sons, Inc.

 Follow your gut in selecting your design team:  Will team members play by the rules?  Will they treat others with fairness and respect – even when deadlines loom and disagreements arise?  Can you trust people on the team with money? With confidential information?  If issues arise after the work is done, will this person or firm still be willing to work with you to make it right?  Are these the kinds of people you’d like to maintain an ongoing relationship with when the project is finished? Professionalism & Ethics © 2014 by John Wiley & Sons, Inc.