The success of any business is dependent upon the accuracy and thoroughness of the information utilized to make business decisions. We propose to gain familiarity with the food service facilities through on-site research, available factually supported data and discussions with the current client base. Our staff will spend the required man-days reviewing the food service operations, gaining information on the student / faculty populations, identifying the scope and type of traffic flow which currently exists, while projecting changes in the market place which may impact the food service demand.

The scope of our market study will involve analysis of four key factors – supply, demand, competition, and the proposed site. Research in each of these areas will enable us to develop a complete profile of the marketplace and project how the proposed facilities may function.

The conclusion of our market study will be documented in a written report and supported by pro forma income statements which represent our opinion of the proposed facilities’ projected financial performance. Over the course of the study, we will consider the preliminary concepts which you have developed and modify them as necessary utilizing industry sources and data. This capability provides us with the unique opportunity to review various alternatives and be responsive to changes which may occur during the planning process.

The principal objective of this phase will be to analyze the present concepts for dining, entertainment and banquet / function business at the Facility. More specifically, we will assess whether existing concepts are appropriate to ensure long-term success for the better interest of the client base. Answers to the following questions will be sought.

• Do existing concepts ensure long-term patronage?

• Is the sustained revenue growth probable?

• Can the market capture rate continue to grow?

• Are the existing concepts flexible enough to adapt to changing market conditions?

The initial step in this phase will be to define the food service program from the standpoint of concept, services and facilities. To be most effective and to conserve on the amount of time required, we will adopt a team approach to this part of our work. We would like to take full advantage of the resources you have in your staff. We propose to work closely with your Marketing Relations person to define how the current or future food service is to be positioned in the public’s eye.

A definition of the existing facility includes a profile of its patronage. We will conduct interviews with your service personnel and supervisors to understand what their views are and what attracts clients. We will also organize and coordinate a focus group which should involve select students. These groups should represent the general mix of who currently patronage your facilities. We will develop the questions and program for discussion for these focus groups. Upon their conclusion, we will assemble all input provided and document a summary of conclusions. The results of this research will define the perceived image of the current situation currently, based on both a patron and employee perspectives.

The other aspect of defining the existing facilities, and critical to determining the Facilities’ market position, is to define the image that the Owner intends to project to the public. This should result from meetings with your advertising / public relations staff members and other pertinent persons.

Once the existing concepts, services and facilities are defined, we will proceed with a study of competitive facilities in the geographic trading area. This will involve field research to: 1) review existing operations which may be deemed competitive or cross competitive; 2) profile the market area’s population; thereby their needs for food, drink and entertainment. Questions to be answered include:

• What gaps exist in the market for food, beverage
  and entertainment?

• What is the food service image?

• What additional avenues of revenue may be achieved from the existing infrastructure?

In conducting field work, we expect to visit all current food facilities and local competitive facilities within a designated geographic area, interview management personnel at these locations, identify sources of demand and customer traffic, and project changes in the marketplace that may impact on the Facilities’ goals and objectives.

We will conclude our Phase II activity by presenting our recommendations and analysis of the existing concepts
and alternative concepts. Our written recommendations
will focus on:

• Menu pricing

• Service Style

• Entertainment format

• Ambience / décor

• Merchandising techniques

• Marketing / promotion

• Reuse of physical space

• Employee / operator profile

The objective of our activity within this phase will be to identify areas of excessive or disproportionate expense.
We will attempt to determine areas in which cost can be reduced or eliminated. We will review the procedure for computing revenues for the Facility. Additionally, we will review procedures for calculating operating and payroll expenses and product cost.

If possible, we will review monthly financial statements for the last twelve months of operation. The emphasis of our study will be on the following areas:

• Cost of sales

• Payroll

• Operating expense line items

• Deferred expenses, if applicable

• Depreciation expense

• Methods of developing operational budgets

• Other items of particular concern to you and or management

We will conclude activities within Phase III with a written summary of our analysis. This document will identify all areas that, in our opinion warrant a closer scrutiny due to an imbalance in expense allocations or improper variances.
We will present recommendations for developing a general strategy to correct those items considered to be out of line.

The initial step of this phase will be to define the standards for food and beverage presentation and service in the food outlets and banquet facilities. Through observation and meetings with the staff, we will strive to define standards for service techniques, customer relations, table turnover, and other service-oriented factors.

Standards for food presentation, on the other hand will be reviewed from the standpoint of plating, texture, color, garnishing, presentation and service-ware selection.

Once standards have been defined for our reference,  we will observe the service staff’s performance while in the kitchen and the dining areas. We will be interested in determining how well the staff complies with standards established by management.

We will document our observations and present recommendations in a written critique of food presentation and service.