Leading The Hospitality
Industry Into The New Millennium
Management & Operations Services
Our consulting and design teams will develop a
general project overview, preliminary project direction, theme, stylistic
direction, menu direction, price points, and required support services. We
utilize information obtained from meeting with clients concerning their ideas,
desires and ambitions for the business. Based upon these discussions and our analysis of the market, concepts
for service style, menu formats and ambiance will be developed.
Many critical operating components are considered for optimum appeal within defined cost limitations. Consideration is
given to theme, price points, menu and required support services. Emphasis is
on presentation, entertainment value, quality food, retail sales within the
space, and service suitable for the concept. We also complete a basic menu profile to facilitate the programming of
the kitchen and storage areas. The information derived from this step will be essential for guiding the interior
design and food facilities design process as it will be used to create a verbal
description of the intended facility. The interior design and ambiance that is created within this space is
essential to the financial success and overall image of the business. When all of the elements discussed in this
phase are completed, they are organized into a comprehensive presentation to
the client. Discussions and recommendations are encouraged and modifications made.
Because a feasibility study serves as the foundation for the Business
Plan, we cannot develop a Business Plan for a project unless we have conducted a feasibility study. On occasion, we can use
feasibility data compiled by the client or another party, however we always must supplement the information we are provided. As
specialists in the hospitality industry with years of focused education and experience, our feasibility studies are comprehensive and
more reliable than those produced by generalists. Our work includes the following:
Site Analysis, Data Collection and Research
Members of the Whitman Lane staff meet with you to review the area, gather data necessary in developing key operating
assumptions, and review the potential site(s). We review local competition in the market area, identify characteristics and
sources of customers, and look to establish a basis for expected demand through identification of potential traffic generators.
Our analysis includes area demographics, area business and industry, area colleges, tourism activity, area construction
activity (residential and non-residential) and traffic counts and patterns. A small, yet focused study on consumer demand is
essential to gain this information.
Along with a study of the potential demand for the facility, an analysis of the competition is also undertaken. Our
competitive analysis includes a profile of area bars/restaurants and their offerings and an assessment of market
opportunities discovered in the competitive research along with the strengths and weaknesses of each. We then use all of the
data gathered above to document a number of recommendations including market opportunities and concept
recommendations (hours, menu, pricing, etc.).
Development of Assumptions and Revenue Projections
The information developed above is used to estimate the proper size of the facility (total sf, bar, dining, kitchen) and the
cost of its development. We then prepare operating projections for the facility; revenue estimates are based on seasons,
meal periods, anticipated customer counts and anticipated check averages. We consider all revenue centers established in
the work described above. Sales are estimated for three scenarios; worst-case, best, and most-likely. In addition, we project
the facilities' staffing requirements along with appropriate wage and salary scales which form the basis for the project's
labor cost. We will prepare pro forma income and expense statements for the first year of operation. We then proceed to
refine the preliminary estimates in order to determine an appropriate budget for construction and renovation.
Profit and Loss Statements and Break-Even Analysis
During this phase, we develop a potential break-even sales level for the facility and conduct sensitivity analysis of key cost
variables in order to determine changes in profits resulting from future escalation or reduction in operating costs. We also
provide a detailed Profit and Loss Statement for the first five years of operation using the "Most Likely" scenario developed
above. We also assist in establishing an appropriate level of Capital Expense based upon the scope of work required and
potential return on investment.
Documentation and Presentation
We document all of our work above in a written report and present our findings and recommendations to the client.
Business Plan Development
A Business Plan is a description of your business that includes your product, your market, your organization and people,
and financial needs and objectives. A well-prepared plan serves a dual role as it defines your goals and objectives and
serves as a tool for management. Moreover, it is a vital sales tool used in soliciting capital. Using the information we
gather in a feasibility study we prepare a comprehensive Business Plan that achieves these goals and will be suitable for use
as a Private Placement Offering or other means of financing, depending upon the structure you seek.
Using information on the desired concept, we prepare a written program outlining the desired facility. The program: defines the
goals and objectives for the design; describes the operational and functional characteristics; evaluates and confirms spatial
requirements and relationships; further describes menu profiles and serving methods; establishes seating type, arrangement, and
required seating capacity; and creates a preliminary list of equipment. Additional services that can be provided include artistic presentation renderings of the conceptual design for the facility as well as
preparation of dimension mechanical, electrical, and plumbing utility rough-in drawings to indicate the utility installation locations
for each item of bar and foodservice equipment. Although these drawings are usually provided by the successful equipment
contractor, a project's construction schedule frequently requires that they be provided in advance of the equipment contractor's
Whitman Lane Associates has the capability to perform the services necessary to detail the entire operational plan for the facility.
It is essential that the organization structure be well planned and flexible as you establish your new business. The objectives of our
operational planning will be to:
1) Identify the physical and managerial tasks that need to be done;
2) Group jobs that can be done well together and assign responsibility for their completion; this means to arrange the
responsibilities and functions throughout the facility;
3) Provide employees at all levels with information and resources necessary to do their jobs in the
most effective manner, including monitoring their actual job performance; create job performance measurement
standards that are compatible with your organization's objectives and goals; and create incentive-based budgeting
objectives to motivate your management to perform as well as they can.
In order to accomplish the three organizational objectives listed above, the following steps will be taken:
1) Decision-flow analysis: identification of decisions that should be made by management;
2) Modeling each managerial decision
3) Determination of the information required for each decision and design of a management information system that
will fulfill these requirements (this will lead to POS selection to follow);
4) Design of jobs: grouping decisions into job descriptions,
assigning responsibility for them, identifying those decisions that are to be made by groups, and specifying the organization of group
decision making process; and
5) Development of (a) measures of performance (b) procedures for making the measurements, and
disseminating and using the results, and (c) incentive systems for motivating personnel to perform as well as they can. To achieve
the above objectives, we work with clients closely in the development of all objectives, utilizing our experience in the hospitality
Development of Operational Systems & Procedures
During this phase of our assignment, we look to create guidelines and systems that will promote and enhance an efficient and
profitable operation. Management systems will be designed to utilize point-of-sale (POS) and other computer systems and any other
information available to produce a streamlined system for producing operational objectives as well as providing timely reporting to
owners and investors. We make recommendations regarding the organization and the management structure of the operation.
Administrative policies are documented to provide a basis for efficient and productive management of the facility.
Organization of Staffing Requirements
Whitman Lane Associates will determine appropriate staffing levels for each shift based on anticipated business, hours of
operation, and desired method for service. All work schedules for each department are included. Staffing requirements include
recommended pay scales for all departments in accordance with desired payroll cost targets. We can assist in the selection of
management personnel as well as in the hiring and training of all employees, depending upon your needs.
Using the generic menu create in previous phases, a specific menu is written. The menu takes into account all parameters
beginning with the market, proposed production capability, service style, product merchandising and plating requirements. In
addition to an initial menu for opening, a menu plan is developed that specifies the timing of menu changes due to either seasonal
or price influences and include the use of daily specials. We will also work with graphic designers on the formatting to be used as
well as the layout and design.
Recipe Standardization, Costing & Pricing
Upon completion of the previous step, we prepare all product specifications for purchasing along with standardized recipes that are
representative of an efficient production system. A product specifications manual is created to facilitate the bidding and selection of
purveyors for the major product categories. The recipes are documented and contained in a three-ring binder for use by management
and staff. Recipes consider ease of preparation, simplification of training, maintenance of accepted quality standards, and control of
waste. Recipes are costed, taking into account food prices and market conditions in order to price the menus and achieve the
project's targeted food cost. During this phase we consider the following: 1) Simplification of the training process for production
and preparation personnel; 2) Ease of preparation in order to reduce labor expense and skill requirements of staff; 3) An efficient
format for kitchen staff; 4) Maintenance of a specified target raw cost of goods percentage; 5) Control of waste and spoilage in
addition to maximizing use of product through effective daily production practices; and 6) Efficiency in the use of production and
Development of Operating Manuals
Operations and Control Manuals, suitable for the operation, are prepared and submitted as part of the final package. The control
manuals address the following areas: administration; staffing; inventory control; production and service systems; cash control
procedures; personnel polices and procedures; management information systems; and sanitation, safety and maintenance. These tools
provide a comprehensive, consistent source of reference for operating polices and procedures. The manuals provide management
with tools to ensure continuity as the operation grows.
We document the organization and management structure as well as define the policies and procedures. The policies and
procedures pertaining to all areas of management are developed.
We determine appropriate staffing levels for each shift based on anticipated business, hours of operation, and desired
method for service. All work schedules for each department are included. Staffing requirements include recommended pay
scales for all departments in accordance with desired payroll cost targets. We also provide labor control procedures that
allow daily control of labor expenses to ensure that labor costs are held in line with budgeted goals and objectives. Daily
and weekly labor control worksheets are established so that management can track daily labor costs and productivity.
We implement a control system that assures management of thorough procedural and financial control of all aspects of the
supply cycle including purchasing, receiving, storage, issuing of product and inventories. Daily inventory procedures are
streamlined for purchasing requirements as well as weekly inventories for control and costing of food and beverage
departments. We provide for both manual as well as computer-aided inventory procedures.
Production and Service Systems
We provide systems and procedures for production planning, portion control, control of waste and labor saving multi-
tasking of production procedures. Daily preparation and production worksheets are prepared for control and efficiency.
Techniques for efficient flow of products through the preparation areas are developed with particular emphasis on quality
assurance and speed of service. We assist in determining Hours of Operation, Reservation Policy, Group Policies & Party
Planning, Catering Opportunities, Music/Entertainment options, et al.
Cash Control Procedures
An internal cash control system is developed to assure proper cash handling and reconciliation including daily cash reports,
petty cash procedures, house banks, and safe funds management procedures.
Personnel Polices and Procedures
Personnel policies and procedures are developed pertaining to hiring, recruitment, orientation, training, hygiene, proper
dress, timeliness, time clock issues, etc.
Management Information Systems
Working with the POS system selected for the facility, we develop daily, weekly and monthly reporting systems for revenue
and statistical data involving cost of goods sold, payroll and other expenses in a format that will maximize management's
efforts in achieving budgeted goals and targets. The management systems will be designed from a practical and functional
standpoint to allow for efficiency and profitability. All systems and procedures are documented for use by owners,
management and staff.
Sanitation, Safety and Maintenance
We establish a sanitation and safety manual which is used to maintain the clean and safe operation of the facility. We
implement a sanitation and safety checklist to be completed by management on a monthly basis, reflecting the condition of
the operation. This manual includes proper food handling techniques and the proper use of cleaning and bacterial solvents
within the kitchen and other food preparation areas.
Training Program Development
A detailed training program which is both reasonable and effective is developed. The major emphasis is placed on developing a
positive attitude among those individuals who are in the public view. Training systems are written to accommodate the average skill
level of the line employee. The training program includes all topics required for the various positions in both the front-of-the-house
(Dining room & Lounge) as well as the back-of-the-house (Kitchen and Service area), from dishwasher to manager, in a step-by-
step training method. Topics are broken into discrete learning blocks and are reinforced, where possible, by testing. Topics addressed
in this training program include: Food service techniques; Beverage service techniques; Suggestive selling techniques; Food
handling and preparation; Dining room service duties; Dish and potwashinq; Personal hygiene; Food merchandising; Sanitation and
Safety; Cash handling responsibilities and techniques; and Management techniques including operation of POS systems, income,
inventory and cash controls, accounting procedures, and all facets of operation contained in the manuals and new employee
indoctrination or handbook.
It is essential to building a high-quality staff that you provide employees with the knowledge they require by teaching them the skills
demanded by the position and creating a positive attitude. Our basic training approach is to: Define training needs; Plan training
process; Prepare employees; Conduct training; Evaluate trainees; and Provide management with follow-through techniques.
Additionally, we prepare: Job lists for each position in the restaurant; Job breakdowns for each task assigned to the job lists; Job
descriptions for each position; and Job performance standards to be used in evaluations. The net result of this phase will be the
creation of job training booklets, tests, and answers to tests in a programmed learning format. Where appropriate, audiovisual aids
may be used consisting of slides or taped presentations showing workers in the environment in which they will be placed. This is to
assure that the training program will be geared to all levels of employees in the most effective format. Also, employee handbooks
will be useful in orientating new personnel to the policies and procedures and will be an outgrowth of this work.
Tabletop And Smallwares Selection
Whitman Lane Associates will work with you to review the selection of furnishings, tabletop service wares, smallwares, and
cooking utensils. Our interest is to make sure costs are kept within your capital budget, that materials and finishes are practical from
a maintenance standpoint, and that selections made do not adversely affect the day-to-day operations, particularly in the area of
staffing and payroll costs. An effective and workable control system will be developed for the restaurant.
POS System Selection
Appropriate point-of-sale systems will be evaluated and recommendations will be made to ensure that the control functions are
accomplished. We provide a written specification for the system that most suits the project's needs. We solicit and present proposals
from companies representative of state-of-the-art systems meeting the requirements of the facility. In addition, we assist in
implementing the training of employees on the selected system during pre-opening.
Our staff can assist in selecting uniforms for all service staff in coordination with graphic designers. We make specific
recommendations regarding appropriate dress for employees in both the front and back-of-the-house and establish policies with
regard to the cost to be incurred by the restaurant as well as the employees.
Executive Search For Key Management Personnel
We can provide you with resumes of suitable candidates to fill your management positions. We then arrange and participate in an
interview process making recommendations to you on the candidates that best suit your needs. We advise you on suitable
compensation and benefit packages that fit within your projected budget and meet the needs of the individual skills displayed by each
candidate. Our search effort will be on a global level utilizing our contacts and affiliations in the hospitality industry. We present
you with two to three candidates for each management position that must be filled. You receive from our initial search resumes
and references along with a written report outlining the strengths and weaknesses of each candidate presented. We can also assist in
the selection of a management company through a thorough a request for proposal process.
Pre-Opening & Opening Services
We can work with you to develop a pre-opening plan for the opening of your facility. This plan will include a pre-opening schedule,
providing a timeline of events that must take place up until the time of opening. This plan will assign responsibilities to the
individuals participating in the opening. We also create necessary budgets for pre-opening hiring and training, inventories,
promotion and marketing, and soft opening as well as grand opening festivities.
Staff Hiring, Training & Development
We assist in hiring and training of all personnel. Additionally, we include preparation of job descriptions and profiles, development
of staffing charts, preparation of payroll cost budgets, hiring schedules, and assistance in recruitment. WLA also designs and
conducts the initial training process for pre-opening, prepares pre-opening training manuals, schedules training sessions, prepares
policies and procedures, develops all other required materials and support, provides "hands on" training guidance, and develops a
plan for on-going development and supervision. We also prepare a schedule for hiring and training as well as a plan for both a soft
opening as well as a grand opening of the facility.
Supervision Of Opening Activities
WLA will schedule and supervise all pre-opening activities such as staff training and "soft" openings. We also will provide "hands
on" supervision of all opening activities to ensure that management, staff and all operations are working effectively.
Marketing, Communications And Public Relations
Whitman Lane Associates will develop a marketing and communications program that will draw attention and customers to your
restaurant. Our services includes researching effective marketing strategies and channels for your geographic area, budgeting,
development of a written marketing plan, and assisting management in its implementation. Key marketing channels include public
relations and advertising. We also can create a World-Wide-Web site that contains information on your restaurant, its location,
menus, pictures and planned special events.
Follow-Up Monitoring Services
Whitman Lane Associates can provide follow up services to ensure that your business maintains a course of profitability. Services
include operations audits and overviews, cost reviews, analysis of ratios to industry standards, and monthly financial reporting and
analysis. As an integral part of the initial implementation, we can establish a plan to meet with you each subsequent month to
critique the operating statements during the period. In addition, through our Continuing Management Assistance program, we
provide you with information and recommendations on a continuing basis in the areas of operations, reporting and controls,
organization, personnel, and planning. Within these areas, we apply our knowledge, skills, and experience to your specific situation.
During this activity, we actively participate in the implementation of new systems and procedures by becoming part-time members of
your management team. Our expertise to implement and "fine tune" the operating systems enable us to make the systems more
productive, effective and financially rewarding for you. This service allows you to have a multi-faceted management team without
adding additional full-time personnel to your staff. The Continuing Management Review is designed to provide your organization
with expertise in the operation of the food and beverage facilities during the crucial, initial 12-month period following opening.
This program is designed to take the policies and procedures developed and implemented in this proposal and monitor them in three
During the first month of operation, we will are in contact with the operation, monitoring all the systems and procedures
that we have established. We assist your manager and other management personnel with any problems that can be solved.
Copies of certain management reports established as part of the operating system are forwarded to our offices for review and
comment. This procedure begins with the first month of operation.
Every three months, members of our professional staff make a physical inspection of the food and beverage facilities, review
reports and records, and furnish your organization with a written evaluation of our observations with recommendations of
the course of action required. This is particularly important following the initial month where weekly reviews are being