A Meeting Planners Guide to Catered Events

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A Meeting Planners Guide to Catered Events

• Chapter One
• The World of Catering

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Who doesnt like to eat and drink?

• When you plan a meeting, you want the food and
  beverages to be tasty and abundant.
• You want your attendees to leave feeling pleased
  that they were at the event.

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Banquets and receptions are both social and
business events

• People love to socialize and network.
• All aspects of a catered function are important.
• The quality of food, beverage, and service makes
  one of the deepest and most lasting impressions
  on meeting attendees.

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• Groups generally prefer professionally prepared
  and served food and beverages.
• This allows hosts to concentrate solely on their
  personal, social, and business activities while
  also enjoying the events.
• And they can leave the clean up to someone else.

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Business Catering

• association conventions and meetings
• civic meetings
• corporate sales or stockholder meetings
• recognition banquets
• product launches
• educational training sessions
• seller-buyer entertaining
• service awards banquets
• hospitality suites

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Caterers come in all sizes and shapes.

• There are caterers who can provide Japanese,
  Italian, French, Chinese, American, Southwest,
  and Seafood.
• There are picnic caterers, kosher caterers, and
  barbecue caterers.
• Your options are endless.

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Types of Catering Venues

• independent banquet halls
• civic auditoriums
• stadiums, arenas
• ethnic social clubs
• fraternal organizations
• womens clubs
• private city or country clubs, athletic clubs
• hospitals
• universities, libraries

• executive dining rooms in office buildings or
  corporate headquarters
• houses of worship
• recreation rooms in large housing complexes
• parks
• museums, aquariums
• restaurants with private dining rooms

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• Some facilities are more competitive than hotels
  or conference centers, with more flexible price
  structures due to lower overhead expenses.
• Public facilities are tax-exempt.
• Some facilities provide their own catering
  in-house others are leased to and operated by
  contract foodservice companies that have
  exclusive contracts.
• Some will rent their facilities to off-premise
  caterers.

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Many meeting planners do not simply purchase a
meal

• They buy fantasy, fun, service, ambience,
  entertainment, and memories.
• Buying food and beverage is only one component of
  the fun and fantasy.

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Much of what a caterer sells is intangible

• You cannot touch or feel an event before hand.
• The caterer is selling something that has yet to
  be produced and delivered.
• It cannot be resold, restocked, or returned.
• People purchase what they "think" will happen.
• Its a gamble for them.
• They are nervous and need to be reassured that
  they made the correct decision.
• The caterer must create a sense of trust with his
  or her clients.

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Catering is a consumer-driven market

• Stimulated by clients who demand exceptional
  quality and excellent value for a reasonable
  price.
• Value is determined by the buyer, not the seller.
• Buyers perceptions are sellers realities.
• The impression meeting planners have of a
  propertys catering ability is their reality, and
  will influence their buying decisions.

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Most meeting planners will comparison shop

• They make the best choice when they perceive a
  facility is reliable, consistent, creative, and
  can execute the best quality event consistent
  with what they are able to pay.

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The caterer must be able to take a meeting
planner's vision of the function (needs, wishes,
purpose of the function, and budget) and develop
an event that can be delivered effectively and
efficiently.
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Catering staff

• Server
• Busperson (busser)
• Food handler
• Bartender
• Barback
• Sommelier
• Houseman
• Attendant
• Clerical person
• Engineer
• Cashier
• Ticket taker
• Security
• Room service manager

• Director of catering (DOC)
• Assistant catering director
• Catering manager
• Catering sales manager (CSM)
• Catering sales representative
• Convention/conference service manager
• Banquet manager
• Banquet setup manager
• Assistant banquet manager
• Scheduler
• Maitre d hotel
• Captain

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How caterers price

• Three general types of pricing methods used by
  caterers
• thirds method
• contribution margin (CM) method
• multiplier method

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The thirds method

• Calculating a per-person price that will cover
  three things equally
• the cost of food, beverage, and other supplies
  (such as napery, dance floor, etc.)
• the cost of payroll to handle the function, plus
  overhead expenses needed to open the room (such
  as turning on the air conditioning units, etc.)
  and
• profit.
• With a 30.00 price per-person, the caterer will
  have approx. 20.00 to cover expenses, leaving a
  10.00 profit from each guest.
• The caterer will also add taxes and gratuities
  (or service charges) to this price.

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The contribution margin (CM) method

• This is the typical pricing method used by large
  caterers.
• Everything must make a profit.
• It is too difficult for large caterers to build
  each party from scratch, so it is necessary to
  standardize some things.

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The contribution margin (CM) method

• The caterer must know as much as possible all the
  expenses associated with opening the room,
  apart from the types of menu items meeting
  planners will order.
• These are essentially fixed catering expenses,
  such as salaries and wages, utilities, paper
  products, and marketing.

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The contribution margin (CM) method

• These total fixed expenses must be divided by the
  number of attendees expected for a year.
• This gives the caterer a reasonable estimate of
  the amount of fixed expense per attendee.
• To this number is added the per-person cost for
  the food, beverage, and other variable costs
  (such as special linen) that comes with a
  particular catering menu option.

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The contribution margin (CM) method

• Once the caterer knows how much the total
  variable and fixed expense is per person, the
  desired profit margin is then added to each menu
  option.

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The multiplier method

• This is a version of the contribution margin (CM)
  method.
• Once it is established, the caterer then
  multiplies it by a factor that usually varies
  from about 3 to 7, but can go higher

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The multiplier method

• The factor is related to the type of services,
  ambience, and so forth, provided to attendees.
• The more expensive, the higher the factor will
  be.
• The factor can be independent of these variables
  during the high season, even modest caterers can
  command a high price.
• The factor, and the price, are influenced by
  competition and what the market will bear.
• It will be as high as possible.
• To the caterer, there is no such thing as a price
  that is too high.

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Level pricing
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Range pricing
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The caterers objectives

• Earn a fair profit, consistent with the amount of
  money invested in the catering business.
• Generate sufficient catering sales revenues to
  accomplish the above, to cover all operating
  expenses, and to have enough money left over to
  reinvest in the business.
• Ensure customer satisfaction.

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The caterers objectives

• Provide consistent quality and service.
• Convey a particular image.
• Develop a reputation for dependability,
  flexibility, and solving problems.
• Stay on budget.