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Consultant and Management Fees
Our real estate firm is looking to open a series of restaurants in the Caribbean to support our various resort properites. Our initial thoughts are to leverage recognized chefs who have been successful, independent operators. No chains like Olive Garden, etc.
Consultant and management contracts can be structured very differently. Our partners will both (1) consult re: design, theme, menu, ops budget, etc., and (2) manage the ongoing operations. These arrangements are quite common in large hotels, such as in Vegas.
The agreements will likely be structured as a flat fee of $XXX for pre-opening, and a % of sales/profit after opening, with our firm to retain ownership (operator may have a buyout provision). What are some of the indicative fees in the industry right now for these types of relationships?
Any advice would be greatly appreciated! Thanks!
Consultant and management contracts can be structured very differently. Our partners will both (1) consult re: design, theme, menu, ops budget, etc., and (2) manage the ongoing operations. These arrangements are quite common in large hotels, such as in Vegas.
The agreements will likely be structured as a flat fee of $XXX for pre-opening, and a % of sales/profit after opening, with our firm to retain ownership (operator may have a buyout provision). What are some of the indicative fees in the industry right now for these types of relationships?
Any advice would be greatly appreciated! Thanks!
Tags: Consultants, Contracts, Fees, Investing, Management
Replies to This Discussion
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Permalink Reply by Adam R. Cox on -
What do you do for consultant fees or people who are helping you create food products for your company? This is being asked so you do not have to hire them as employees. Is there a difference between consultants and independant contractors>
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Permalink Reply by Keith Bernhardt on -
You mention that these arrangements are quite common in venues like Vegas. What is the rule of thumb for the Caribbean ?
The Caribbean is different from Vegas. Some areas are more exclusive. is there a certain island you are setting your sights on ?
Will the restaurants be the same at each resort (like a chain here in the US) ?
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