Restaurant Coaching and Consultations, Good Idea?
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Every business owner or manager will arrive at a place where they have questions without answers. When that time comes, we seek help outside ourselves. This is often with friends and peers – other business owners in many cases.
But when the amount of attention and knowledge required becomes extensive, it may be time to hire a restaurant consultant or coach to bring new light and expertise to the situation.
Having worked as both a consultant and a consumer of consulting services, I’ve thought long and hard about the issues that are important to a successful coaching program. How can you as a restaurant owner get the information and action needed, at a fair price?
Know what you want in advance
Having open ended and vague descriptions of what you need accomplished will take consulting time and increase cost unnecessarily. The first thing you should do before inviting a third party into a situation is taking a moment to flesh out the details of what you need. From there, spend a few moments to formulate a series of definite, concrete questions that can be answered with specific plans.
In many cases this simple process will bring answers to light that you hadn’t thought about prior.
Simply take a few moments to remove emotions from the situation… relax… and reconsider the possibilities. We can evaluate circumstances with a fresh set of eyes (and rejuvenated brain cells!).
This is what I mean: ask yourself “If I was a consultant coming into MY business, what are the first things I would talk about?”
If you can think of things – perhaps MANY things – than you don’t need a consultant, yet. Write down what comes to mind and then draw up plans to put them into action. Need to set aside time in your day to handle it? Can your staff do it? Do you need additional staff?
Always do as much as you can FIRST, before hiring a consultant, because it will increase your sense of empowerment. Your experience will also skyrocket through this process as you do it over months and years.
The times you should absolutely hire a consultant is when you are asking questions and cannot think of the answers. If the answers require extensive research, you’ll have to decide if it’s worth the time. It may be that a consultant could help you accomplish it better and faster. BUT at least you’ll have specific questions to ask them.
Look for restaurant consultants with real world experience
There are consultants out there who “talk-the-talk” but can’t deliver as promised when it comes down to the wire. And by the time you figure this out, you’ve probably spent money. To avoid these situations, I always recommend getting testimonials and references from past clients – hopefully those who have engaged the consultant for work similar to what you need.
Look for consultants with specialized knowledge
Do you always have to find a restaurant-specific coach or consultant? No.
The reason is that many “restaurant consultants” are entirely clueless about topics that can increase your business and profit margins. Marketing is a great example. Technical subjects are another. Don’t let a generic restaurant consultant fool you into thinking they can handle all topics equally – as mentioned, always look for real-world experience for YOUR needs.
However, if the subject is purely operational, it’s a good idea to find someone who’s run restaurants similar to yours AND been very successful at it.
Make sure the restaurant consultant understands regulatory requirements
When developing the questions you need answered, remember to note if things may be regulated by local/federal government or industry regulations. Ask the consultant these questions in open-ended fashion and see if they are capable of answering them.
Before hiring, CHECK THEIR ANSWERS! I’ve seen it more than once – someone answers questions point blank (like they know what they’re talking about) but when fact-checking comes into play… well… it was all made up. It’s important to make sure advice given is sound across the board, and legal.
Get a detailed written proposal
You have your questions – ask how the consultant intends to deliver their advice, what guarantees are involved and how fees are affected.
Get everything in writing beforehand. Know what you’re buying.
Many consultants will fill their proposals with marketing-lingo (often senseless garbage) and attempt to push things you don’t need. Avoid this. You have specific needs, get specific answers. Only allow up-sells and additions to the proposal after you consider whether it’s actually needed. Do NOT decide on the spot, with the consultant in front of you.
Restaurant consultation prices
There are basically two forms of pricing: hourly and flat-fee. Consultants with hourly fees should be avoided if your questions were difficult to formulate, or if you’re unsure of specific needs. What tends to happen is they can milk the hourly fee.
I recommend offering consultants that get paid by the hour the opportunity to be paid at a flat-rate to address specific situations. If they address the situations satisfactorily, then invite them for their normal rates.
Top consultants are usually paid by the hour (some by 10 minute segments!). If you’re dealing with those widely considered to be the best in their fields of knowledge, that is expected. What also comes with these types of people are satisfaction guarantees.
What should you pay, though?
Rates of $500-$1,000/hour are not uncommon for top professional knowledge. The average consultant is likely to charge in the $100-$200/hour range however, and may be suitable depending on what you need accomplished.
Gut feeling
Many restaurant owners don’t consider the chemistry factor – how they get along with the person they’re about to share intimate details of their business with.
To get the most out of your coaching and consultations, it’s always best to have a good gut-feeling with the person. If there is ANY sense of discomfort, or things just don’t seem 100% during the introductory period, then stop. Move on.
Questions to consider:
- Does the consultant have a personality similar to mine?
- Do they have strong communication skills?
- Do their values match my business?
- Is their jargon easy to understand – are they able to clarify it, if needed?
One very important thing to consider is, would you hire the restaurant consultant to be a part of your team full-time? They are working FOR YOU, remember.
This may seem like common sense, but occasionally you may be impressed with credentials and accept advice from someone even if you don’t like them as a person. What they say can be taken with a grain of salt, but in the end, it’s important to have a sense of trust and comfort.
Hello, Nathan:
I think you have underscored the real need for any form of consultant – restaurant or otherwise.
In the past, I taught MBA students how to deliver ‘consulting’ and how to conduct consulting assignments.
The biggest problem nearly everyone had was two pronged: (a) how can the person (prospective client) who has the problems, or feels s/he may need help, KNOW the right questions to ask?
Then there was (b) how can the restaurateur – the one with the supposed problems – be objective about those same problems, since s/he is the one that has them or caused them in the first place?
It’s always good to remember when pointing a finger at someone or something, that if you look closely, you’ll see that you still have at least three fingers pointing back at you.
Objectivity, transparency, and honesty are the three prerequisites of any so-called ‘consultant’ (personally, I hate the word, myself…it’s been overused, hackneyed and done to death, kind of like the word: awesome).
Moreover, in your comments, you use the words “consultant” and “coach” as if they are interchangeable.
They are not.
I, for one, understand that a coach is someone who listens to you objectively, helps you understand your problem (or opportunity) and nudges you or points you in the right direction, once you know where you are, and where you want to go. It’s like a coach in football. He never goes on the field and plays. He coaches.
Many consultants, on the other hand, actually get in there and helps IMPLEMENT the suggestions he has given to the client. Big difference. Sometimes the consultant dons the skates and plays a few shifts on the ice too. Unlike that football coach, he still can and will play the game.
Often, you can find a consultant with real world expertise and experience (remember you can’t microwave experience!) who has been in the trenches and really knows how to implement his own recommendations. S/he has not just learned these things from a book or being in school for four years.
If you’re really fortunate, you might meet one who also knows how to coach the client/restaurateur and encourages him/her to get in the game, while actually playing a bit, if nothing else but to show the way.
One thing I do agree with is how you pay them. Personally, I have never earned revenue by the hour: that’s for accountants, lawyers and taxis. They drop the flag and start charging regardless…in tenths of a mile, or hour, your pick.
I was taught to charge by the flat fee for the assignment. (I always added a slippage figure of plus or minus 5%; and usually came in at 98% of my original quote). How I worked out what that flat fee was is my secret; but I can tell you this: it related immensely to the VALUE of the solution to the client’s problem and a multitude of other pertinent factors.
I too, would never hire someone by the hour; or someone who was going to charge me to learn my business.
Hence I would look for advisers (there, isn’t that a much better word?) that have relevant education, a demonstrated track record of achievement in this restaurant field; and with whom I know I can work well.
Using an adviser is not easy. You should understand that you are essentially buying another set of eyes who do not own equity or interest in your operation. They are objective in that regard; they can bring a fresh new way or approach to your business.
You may not be asking the right questions. Additionally, you may think you have most of the answers; but they may be answers to the wrong or irrelevant questions. Knowing the difference is key.
Always consider: objectivity, transparency and honesty and you won’t go wrong.
Thanks for your comments, Roy.
Consultants/Coaches, as you mentioned, will be entirely different from person-to-person. Whether they are both, well… that goes in to personality and their experience.
And whether a consultant puts the things into action or not will also vary. Some, like myself, offer two-tiers. We can tell you WHAT and HOW to do things, but if you want us to do it for you - there’s additional cost, obviously.
The point I wanted to make was that you CAN, in fact, discover questions and sometimes answers by simply taking a look at the [potential] mess you’ve created. Often times business owners get in the day-to-day rut, and hope the consultant will help them out.
That’s fine, but it might not be necessary if you look in the mirror first and then look at the situation objectively.
With the plethora of information available to us, most of it for free, there is always room to learn and THINK about our situations before spending money.
This should never dissuade someone from hiring a coach or consultant. I have them, and love them. As you mentioned - objectivity!
Regards,
Nathan
Hi Nathan!
Good post! I’d like to add a few points though.
1. Knowing what you want in advance. This is absolutely true! Operators have to ask themselves, “What does success in this area look like? How do I measure success?” Even though sometimes they will not know what level of success is possible until they have an experienced and outside perspective to help them discern just that. However, a good consultant will offer to talk with any operator for free about their specific issues and opportunities before any diagnosis or prescription begins.
2. Look for restaurant consultants with real world experience. Bam! There are no barriers to becoming a consultant. Anyone can hang out their shingle and viola – they’re a consultant. What great operators need is an experienced (successful experience!) set of eyes and ears refined by years of practical application in the industry. Like Roy said above, you can’t get it out of a book!
3. Prices. No one should ever pay an hourly fee. Period. They are unethical. A client is best served by solving problems or addressing issues as fast as possible. Hourly fees push the consultant to slow down this process to make sure they “get their money”. Other reasons include;
a. There is a cap on the client’s investment. They know exactly what is to be spent and there are no surprises.
b. There is never a “meter running.” The client does not have to worry each time my help is requested that I might be there for an hour, a day, or a week.
c. It is unfair to place the client in the position of making an investment decision every time they may need my help. Otherwise, they’re trying to determine the impossible: Is this an issue that justifies a $2,000 visit or a $500 phone call. No client should ever be in that position.
d. A client’s staff should feel free to use my assistance and to ask for my help without feeling they have to go to someone for budgetary approval. This only makes them more resistant to sharing their views and at worst, delays the flow of important information.
e. If I find additional work that was unanticipated but must be performed, I can do it without having to go to the client for additional funds. In those instances, legitimate, additional work would otherwise be viewed as self-aggrandizing and an attempt to generate addition hours or days.
f. If the client finds additional, related work that must be done, they can freely request it without worry about increased project costs.
g. The overall, set fee, in relation to the project outcomes to be delivered, is inevitably less of a proportional investment than hourly billing.
h. If conditions change in the client’s business, they won’t be in the difficult situation of having to request that the project be completed in less time. The quality approach is assured, since the fee is set and paid.
i. If I decide that additional resources are necessary, there is no cost to the client and I can employ additional help as I see fit.
j. This is the most uncomplicated way to work together. There will never be a debate about what is billable time (e.g., report writing, taking phone calls, etc…) or what should be done on site or off site.
4. Chemistry. On this point I disagree. I don’t have to like you as a person – as long as you are ethical and subscribe to the same core values I do – to hire you to do a job for me. The criteria should be, “who can accomplish what I need them to?”
5. Coaching vs. Consulting. There is too much confusion about this issue. We are all consultants. But I, for example, use the Coaching methodology more often than not to accomplish what is needed for my clients. Coaching does not require you to reinvent the wheel. The operator usually has great skills and experience but lacks the needed guidance or broader experience that a business Coach has in order to bounce ideas off of or to test different business models in order to refine their thinking and make important business decisions. A consultant, or a consultative engagement, will need to reinvent the wheel because something is usually broken and need to be fixed in order to get the business back on the right path.
A great consultant will offer a guarantee of their work. Mind you this isn’t a guarantee on results - but work. No one can guarantee results but I do guarantee that you will be satisfied with my work on your issues or I will work for you until you are - for free!
Again, all great stuff. Thanks for addressing it!
Jeffrey Summers