AboutJeffrey Summers Expertise I am the Founder & Owner of Restaurant Coaching Solutions, Inc. We have experience on any topic related to the restaurant & hospitality industry - from Menu R&D, Menu Engineering, Marketing Strategies, New Store Openings, P&L Analysis, Lease Negotiations, Staffing, Policies & Procedures, Building & Design, Site Location, Branding, PR & Promotions, Multi-Unit Development, and any other area effecting the operation of your business. Check us out on the web for more information at www.RestaurantCoachingSolutions.com or call us toll free at 877-535-2324.
Experience I am a recognized expert in the hospitality profession with over 26 years of success at planning, developing and executing strategies for delivering dramatic results. A former "GM of the Year" for 2 major, full-service chain franchises, an Award winning Multi-Unit Executive with two of the largest International Restaurant Chains in the U.S., business owner, published author, husband and father of two.
I have been recognized for achievements in our industry for successfully managing a wide variety of franchise, independent and corporate hospitality industry challenges. These include new store openings, turnarounds and new market development in a variety of venues including; casual-fine dining restaurants, on and off-site catering facilities, banquets, clubs as well as casual full-service, quick casual and fast food. I have planned or opened 22 new restaurants, developed new production, service and business models and operational cost control strategies that have significantly lowered operating costs, improved productivities, increased overall food quality, increased and improved service models, lowered staff and management turnover, increased sales and guest counts using initiatives developed, planned and executed through my Leadership Circle Initiatives.
This background also includes extensive experience in coaching, recruiting and training over 100 managers and over 2,000 hourly employees to date.
Organizations The National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry. Together with the National Restaurant Association Educational Foundation, the Association's mission is to represent, educate and promote a rapidly growing industry that is comprised of 925,000 restaurant and foodservice outlets employing 12.5 million people.
The Society of Hospitality Management
The Society for Hospitality Management is an education and professional development association and organization serving the hospitality industry. The SHM is a network of hospitality professionals committed to the education, training, and professional development of employees at all levels in the industry. Through training and educational programs, products, and services, industry professionals grow personally and professionally and in the process improve the performance of the properties and companies they serve.
The Gerson Lehrman Leisure & Lodging Council
The Gerson Lehrman Group Councils are global networks of executives, physicians, scientists, engineers, attorneys, and other professionals who deliver expertise and decision-making assistance to businesses, governments and investment leaders from around the world.
The Professional Business Coaches Alliance
The Professional Business Coaches Alliance is a knowledge sharing and peer coaching organization that concentrates on the delivery of effective business coaching - with an emphasis on usable strategies and tools - for the small business owner.
The International Council on Hotel, Restaurant and Institutional Education
Founded in 1946, the International Council on Hotel, Restaurant, and Institutional Education is the global advocate of hospitality and tourism education for schools, colleges, and universities offering programs in hotel and restaurant management, foodservice management and culinary arts.
Publications My articles and opinion pieces have been featured on several industry websites, magazines, blogs and forums including:
RestaurantOwner.com
RestaurantEdge.com
FoodService.com
Ezinearticles.com
Restaurant Startup & Growth Magazine
American Express' Briefing Newsletter
Nation's Restaurant News
and tons more!
Education/Credentials I hold degrees in Economics, English, Culinary Arts and industry certifications in Hospitality Management and Restaurant & Catering Management.
Past/Present Clients Here's a list of some of the teams Jeffrey has coached!
Hardee's
Connie's Pizza
Burger King
Chili's
Long John Silver's
The Purple Sage Bistro
Applebee's
Shoney's
T.G.I. Friday's
La Dolce Vita Pastries & Catering
5 Seasons Sports Clubs
Wendy's
Bennigan's
Godfather's Pizza
Expert: Jeffrey Summers Date: 7/4/2008 Subject: How do quick-serve restaurants make money?
Question Hi Jeffrey - I've browsed many of the answers you and your peers provide here, and am encouraged by the clarity and honesty, yet the brevity, too. Hopefully, my question will be answerable too.
I have a concept for a quick-serve restaurant. As I'm looking at startup costs and also observing the competition (fast food places would be competition, for example, even tho I don't plan burgers...).
When I see the rent costs, the number of employees working (payroll & taxes), food costs, etc., I have to wonder how some of them make any money at all. A local burger place rarely gets much traffic. How do they break even, at all?
Related questions for a pizza take-out / delivery startup:
1.) What are the ballpark costs and breakeven timeframe (I understand volume will dictate)? Are there any industry averages / guidelines?
2.) Using same volume assumptions, what's a reasonable profit margin to expect, also assuming decent management controls?
Thanks for your help!
Bryan
Answer Hi Bryan.
The industry average for QSR profit margins is still under $0.06 per each dollar of sales. Even the chains cannot break the dime barrier.
The good news is that given the tightening in the economy QSR sales are climbing due to guests trading down from full-service. This trend is likely to reverse when the economies across the country start to rebound.
Breakeven is a unique variable for each situation and while I can say that experience shows 6 months to a year, it will vary due to start-up costs, financing, sales, operational controls, marketing, etc...
For more "rules of thumb" see this link here...http://restaurantcoachingsolutions.com/rules-of-thumb/
