“If you want to beat a successful/bigger/better competitor, You’re not going to do it by doing what they do.”
~ Jeffrey Summers
Innovating a single unit operation or turning around a drifting business chain requires a combination of proven operational skills and strategically focused leadership. SHG® provides a complete portfolio of business contract management services including operations, marketing, culinary and staff and management training.
Our business contract management mission is to work closely with owners, operators and investors to bring stability and greatly improved financial performance to the foodservice establishment. Our areas of expertise encompass a broad spectrum of business operations including:
- Concept Development & Analysis
- Operations Analysis and Execution
- Restaurant Turnarounds
- Profit Analysis
- Management & Leadership Effectiveness
- Corporate Management
- Management and Staff Training & Recruitment
- Menu & Culinary & Procurement Strategies
- Growth & Innovation Strategies
- Sales & Exit Strategies
Our contract management team brings over 400 combined years of successful experience in developing business management accountability, cost control systems, sales building initiatives and debt restructuring strategies – essential components to successful business and hospitality business turnarounds. Our approach creates a strategic and tactical focus among team members and business management to execute according to sound strategies while provides change process support to achieve your business goals.
Typically, most contract management fees contain up to three major components. These are:
- Initiation Fee: This is based on the size of a property/operation and includes all the work related to the start-up, including staffing, internal controls and systems, accounting formatting, financial reporting, budgeting and inventory systems.
- Management Fee: This fee is always established as a percentage of revenue. Typically the percentage can range from 4 – 7 percent, based on the size of the operation. This fee provides the necessary motivation to the management team to benefit from improved sales or lose compensation if sales go down.
- Bonus Profit Incentive: This fee is based on a part of the profits of the business, ONLY if the business exceeds budgeted profitability as a bonus for exceeding expectations.
Of course, these fees are contextual, negotiable and vary with each business. Equally important are the exact responsibilities Summers Hospitality Group® is asked to provide and the depth of authority you authorize us to execute. Typically we will prepare a complete budget for your approval within 60 days of taking over operations. Then we usually have complete authority to write checks and perform other “owner functions,” but only within budgetary guidelines. Any expense or action outside of your approved budget must be approved by the operator.
Management companies are very different, and each concept needs its own disciplines. So, make sure the company you select has proven abilities in promoting, marketing (revenue growth), cost management and developing a great experience for your concept. Summers Hospitality Group® possess extensive operational and technical skills in all the key disciplines that have proven to yield substantial outcomes for our clients. Our extensive business and hospitality management experience enables us to help your business management team attack many of the challenges facing foodservice operators today. Refined over 30+ years of experience working with diverse and unique companies, we have the knowledge and perspective to identify opportunities for improvement in any environment.