FREQUENTLY ASKED QUESTIONS

'"FAQS", THE FOUR LETTER "F" WORD THAT HELPS EVERYONE UNDERSTAND THE WORLD OF HOSPITALITY EXPERTISE!

There are a multitude of questions that can be asked in the world of hospitality consulting. Here are just a few that I have come across. For every question there are multiple answers but these are mine........ today.

• What is a PIP consultant? A brand quality consultant periodically reviews the physical state of the FF & E and issues a Product  Improvement Plan (PIP). The PIP consultant will review this plan and assist the owner in determining what should be done now, and what might be spread over a period of time. The work may sometimes involve negotiating 'waivers'.
• What is a hospitality brand consultant? A market specialist that determines the upsides for the owner of one brand over another in that specific district of the market for that particular time. Analysis includes a review of the cost of re-branding which includes penalties and other extraordinary costs.
• What is the right mix of Expatriots in a hotel?  In a young country without a mature hospitality industry, it is typical to open a hotel with a number of expatriot 'trainers'. The mission should be to eliminate most if not all within a certain period.
• Who can make a Feasibility Study in the UK, Saudi Arabia or Paris? The depth of experience of the actual consultant is critical to getting an objective and realistic evaluation of your project. If the individual consultant who is to do the work has personally had the multi-national industry experience to evaluate and form an opinion, then you have a good chance of being satisfied. If that experience is claimed through their office affiliations, be very cautious, or anticipate a one-dimensional view.
• How much does a hospitality consultant charge? It ranges between 1,000 to 2,500 per day depending on your situation. In the UK it is Pounds Sterling, in the US, it is Dollars. Another way of calculating the charge is 750-1,000 per page of the final report or 175 per gram by weight.
• Who is the best restaurant consultant? The David McMillan Group enjoys the services of a former chef from Maxim's in Paris, service personnel from three luxury European classic hotels, the manager of a highly successful Culinary Olympic team and the operator of more than 50 restaurants*. His associates are renowned restaurateurs on three Continents.
• What makes a good hotel management consultant? A truly effective consultant who will provide you with the solution to your question will have undoubtedly made and/or observed first hand all of the mistakes in the book. The art and science of the solution lies in ensuring that the same mistakes are not made again.
• Which consultants are focused on luxury hotels? Luxury is of course only such in the eye of the beholder. A three star hotel is perceived luxury for a two star customer and a five star hotel is luxury for a four star customer. A consultant to a luxury hotel will ensure that the actual level of luxury equates to the market and will need to understand the full range of budget through luxury so that the owner and operator are not blown out of the water by brand (or employee) aspirations.
• Who is an experienced hotel remodeling Consultant? An obsolete worn-out hotel is a roaring success waiting to happen. Whether the changes needed are physical bricks and mortar or soft conceptual or human, this is the best opportunity to bring in an orchestra leader, rather than replacing the percussion or strings. Visioning the remodeled improvement needs to touch both soft and hard and the result needs to reach a coordinated crescendo simultaneously.
• How can I assure success in starting a Resort? First of all recognise that you are probably competing with resorts in all global time zones. Therefore ensure that your resort is 'unique' and define clearly that uniqueness. Second and most important, realise that true profits rarely come before the third year....used to be the fifth!!  Budget for it and build, in fact engineer business from the first guest onwards.
• Who are the best international developers? They are typically non-existent..... but actually around the corner and waiting for the right opportunity. The best developments are driven by a local business person in your community. This is the secret ingredient that internatonal investors invariably seek.
• Where can I find a Consultant for safety? The answer to this question is that there is safety in numbers. If you are a branded hotel, your brand is your consultant on this subject. Listen to them carefully because their advice is golden. For independent hotels, consult your National Hotel Association. As former chairman of the Global Council on Security at the International Hotel & Restaurant Association, David McMillan can attest to the progress being made in the industry.
• Who can help me find the right brand? Whether you have a brand and need to review their effectiveness or are considering a new chain affiliation, speak to a multi-brand specialist with the experience of market positioning as well as brand strengths and weaknesses.
• Can you find a management company to invest? Yes. But what they invest is usually negotiable and it is rarely up-front cash except in very rare situations. Creative investment by a management company is welcome but owners beware. Investment by management companies restricts your freedom when the asset is to be sold.
• Who can help me finance my project? New projects having difficulty in finding financing have usually made mistakes in the development process. There is always money available for good projects provided the developer has taken the right steps to start.
• Does David McMillan do hospitality consultancy in the Middle East? Yes, in fact he has recently undertaken to do a major project in the Gulf area for a US group. His previous experience in opening hotels in Saudi Arabia and developing projects in Israel have provided him with an intimate understanding of the area and its idiosynchracies. Incidentally this is also true for China, SE Asia, the Caribbean, Mexico, Canada and Central America.
• Are there good hospitality consultants in Africa? There are a few excellent consultants who concentrate on Africa. The David McMillan Group is currently collaborating on a project in West Africa having previously done several studies in East Africa. The key to this area is understanding the risk/reward and picking the right team.
• How can I choose a good hospitality marketing specialist? You can not! If you have to ask, you have not analysed the basic problem which might lie in a multitude of places. In order to face in the right direction, ask a hospitality consultant to get to the bottom of your question.
• Why is there not an International Star Classification system? The answer to this one is easy, particularly when you understand the dangers and obstacles that the industry faces. To understand the basis for the industry opposition, click here Download hotel_classification.doc
• What are the Major Global Issues in Hospitality? There are approximately 25 major global issues that should be addressed by the industry. They generally fall into the areas of labour migration, skills shortages, terrorism, pandemic preparation, natural disaster preparedness, international standards, international classification, sustainability, copyright, food safety, menu regulations, alcoholism, trade barriers, neighbouring rights,  For details on these issues or opinions on their status, contact the author of this blog. Unfortunately there is insufficient knowledge that these issues are global or how they should be tackled. For regular updates on these issues, join the IH&RA.

Fur further information on these or other questions, contact [email protected]

* That person is David McMillan!