Restaurant and hospitality consultants commonly charge by time, by a defined piece of work or through a recurring retainer. To compare proposals, examine the responsibilities, deliverables and assumptions behind the fee, then clarify expenses, revisions and what happens when the question changes.
Key takeaways
- Compare the responsibility and deliverables before comparing fee structures.
- Clarify preparation, revisions, expenses and the treatment of new requests.
- Understand what a recurring payment includes and what triggers a separate decision.
- Use a written brief so competing proposals address the same question.
Why can proposals for the same business look so different?
A request to “review the restaurant” can mean very different things to different providers. One may be assessing the concept. Another may be examining reporting and standards across several outlets. The price is not meaningfully comparable until the work is.
This is a general industry explainer. It does not describe Leviathan’s fees or commercial arrangements, and it offers no dollar benchmarks.
Start with the owner’s decision. Identify the information available, the people who need to participate and the material required to support that decision. A clearer brief gives each provider a better basis for explaining what the work involves.
What are the common consulting fee structures?
IMC USA’s discussion of consulting fees identifies hourly, daily, project-based and retainer structures. For an owner comparing proposals, the key is understanding what is being purchased and how it is measured.
| Structure | Basis of the charge | Question to resolve |
|---|---|---|
| Hourly | Time recorded against agreed work | Which activities count and who approves more time? |
| Daily | Agreed days of work | What does a day include, including preparation? |
| Fixed project fee | A defined scope and result | What marks completion and what is excluded? |
| Retainer | Recurring agreed responsibilities or access | What is included and how are requests handled? |
A proposal may combine structures or attach conditions to them. Read the actual terms instead of assuming that a familiar label creates a standard arrangement.
What should an owner clarify about time-based billing?
Ask how the provider estimates the work and communicates when the estimate may change. Identify which activities are counted, including preparation, analysis, meetings and follow-up. Discuss travel separately if it is relevant.
The owner should be able to understand a record of time without reconstructing the entire assignment. Ask how entries will relate to the agreed question and how additional work will be authorized.
Also consider the quality of the information you can provide. Disorganized records can create work that is necessary but different from the original request. Decide who will prepare that material and how gaps will be handled before they become an argument about effort.
What makes a fixed scope useful?
A fixed fee needs a defined scope, but a list of document titles is not enough. Ask what question each document will answer and what inputs the provider assumes are available. Clarify which leaders need to review the work.
Describe completion in terms that both parties can recognize. For example, a concept recommendation might require a clear operating rationale and an explanation of unresolved assumptions. It should not be judged only by the number of slides delivered.
Ask how revisions are distinguished from a new request. Correcting an error, clarifying a recommendation and assessing an additional property are different activities. Agree on how those distinctions will be discussed rather than waiting until a new request arrives.
What should a recurring arrangement make explicit?
A retainer should explain the continuing responsibilities or access it provides. Ask how questions are submitted, which people participate and how competing priorities are handled. Do not infer unlimited availability from a recurring invoice.
Look for a way to review whether the relationship still serves its purpose. The original question may change as the business develops or as leaders become more confident in their decisions. The arrangement should be understandable enough to reassess.
Clarify renewal, notice and the handling of unfinished work with qualified advice where needed. The practical objective is continuity without uncertainty about obligations. The word retainer does not answer those questions by itself.
Which characteristics of the business change the work involved?
Consider the complexity of the decision, not just the size of the business. A single outlet with unclear records and unresolved ownership priorities can require careful investigation. A group with consistent information may make some comparisons easier, while introducing questions across properties.
At Life House Hotels, I built the F&B department and set portfolio-wide standards, programs and the technology platform. That experience informs a distinction worth making in any brief: reviewing a property’s question is different from deciding which standards should apply across a portfolio.
Other practical variables include access to information, the need for site observation and the number of people whose decisions must be reconciled. Explain them early. A provider should identify which assumptions materially affect the proposed work.
How should expenses and outside specialists be handled?
Ask which expenses are included, which require prior approval and how they will be documented. If travel or specialist input is expected, establish who authorizes it. Avoid treating these items as minor details simply because they are separate from the headline fee.
Find out who is responsible for coordinating outside professionals and who receives their advice. An owner may already have legal, accounting or design relationships that need to be considered.
The IMC USA Code of Ethics supports discussing fees, expenses and interests connected to recommendations in advance. Ask about referral benefits or vendor relationships when they could affect the advice you receive.
What should you ask about value or outcome-based proposals?
If a provider proposes linking compensation to value or an outcome, ask exactly what the terms mean. A fee discussed in relation to value is not automatically contingent on a measured result. Do not assume the phrases describe the same arrangement.
For any outcome-linked proposal, clarify the baseline, the measure and the period being assessed. Ask which decisions the provider controls and how other changes in the business would be treated. Have the arrangement reviewed by appropriate legal and financial advisers.
Watch for incentives that could favor an immediate result over the business’s broader priorities. A measure can be easy to count and still be a poor representation of the outcome ownership wants.
How can an owner compare proposals fairly?
Create a comparison sheet from the same brief. Record the question, responsible people, expected materials and exclusions. Then note any assumptions that differ between proposals.
Use this checklist before choosing:
- Is each provider addressing the same owner decision?
- Is the person doing the work identified?
- Are preparation and review responsibilities clear?
- Are expenses and specialist needs addressed?
- Is there a process for approving changes?
- Can both parties recognize when the agreed work is complete?
- Are confidentiality and use of information covered?
The questions to ask before hiring a consultant can help assess the person behind the proposal. If operating responsibilities are unclear, first review consultants versus management companies.
What should the owner decide before requesting a proposal?
Decide what you need to understand and who will act on the recommendation. Assemble the records you can reasonably provide and identify missing information. That makes a discussion of effort and responsibility more useful.
Leviathan’s restaurant and bar page and capabilities explain the business questions addressed by its experience. They are separate from the industry fee structures described here.
The aim of a proposal comparison is to understand the exchange: the work, the responsibility and the basis for assessing completion. A fee is only one part of that decision. Clarity about what sits behind it is what allows an owner to compare choices intelligently.
What else should you know?
What fee models do hospitality consultants use?
Common consulting structures include hourly or daily billing, a fixed fee for defined work and a recurring retainer. Providers may also propose other arrangements, with terms that need careful review. The label alone does not tell an owner what is included.
Is a fixed fee always the clearest choice?
It can make the agreed cost easier to understand when the work is well defined. The owner still needs to check assumptions, exclusions and how changes are handled. A fixed amount attached to an unclear brief can create disagreement about what completion means.
Does a retainer mean unlimited access?
No. A recurring agreement needs to define the responsibilities, availability or work it covers. Ask how requests are prioritized, what happens to unused capacity if relevant, and what falls outside the arrangement. The written terms matter more than the label.
What most affects the cost of consulting?
The question being addressed, the required expertise and the work needed to reach a reliable recommendation all matter. Multiple properties, incomplete records, travel or additional specialist input can change the effort. Compare proposals on equivalent assumptions before drawing conclusions from the total.
Does this article describe Leviathan’s fees?
No. This is an industry explainer about how owners can evaluate consulting proposals in general. It does not describe Leviathan’s pricing, rates or commercial arrangements.
To discuss a decision for your business, start a conversation with Daniel.
About this guidance
This article provides general operating guidance, not legal, tax, accounting, or investment advice. Requirements and business conditions vary by location and project. Verify current requirements with the relevant agencies and qualified professionals before acting. Contact us about a correction.