Banqueting and cateringBanqueting and cateringSan Ignacio CollegeSan Ignacio College

Chapter OneChapter One The World of CateringThe World of Catering

Who doesnWho doesn’’t like to eat t like to eat and drink? and drink?

When you plan a meeting, you want the When you plan a meeting, you want the food and beverages to be tasty and food and beverages to be tasty and abundant.abundant.

You want your attendees to leave feeling You want your attendees to leave feeling pleased that they were at the event. pleased that they were at the event.

Banquets and receptions Banquets and receptions are both social and business are both social and business eventsevents

People love to socialize and network.People love to socialize and network. All aspects of a catered function are All aspects of a catered function are

important.important. The quality of food, beverage, and The quality of food, beverage, and

service makes one of the deepest and service makes one of the deepest and most lasting impressions on meeting most lasting impressions on meeting attendees.attendees.

BanquetingBanqueting

Groups generally prefer professionally Groups generally prefer professionally prepared and served food and prepared and served food and beverages.beverages.

This allows hosts to concentrate solely This allows hosts to concentrate solely on their personal, social, and business on their personal, social, and business activities while also enjoying the events.activities while also enjoying the events.

And they can leave the clean up to And they can leave the clean up to someone else. someone else.

Business Catering Business Catering association conventions and meetingsassociation conventions and meetings civic meetingscivic meetings corporate sales or stockholder meetingscorporate sales or stockholder meetings recognition banquetsrecognition banquets product launchesproduct launches educational training sessionseducational training sessions seller-buyer entertainingseller-buyer entertaining service awards banquetsservice awards banquets hospitality suites hospitality suites

Caterers come in all sizes Caterers come in all sizes and shapes. and shapes.

There are caterers who can provide There are caterers who can provide Japanese, Italian, French, Chinese, Japanese, Italian, French, Chinese, American, Southwest, and Seafood.American, Southwest, and Seafood.

There are picnic caterers, kosher There are picnic caterers, kosher caterers, and barbecue caterers.caterers, and barbecue caterers.

Your options are endless.Your options are endless.

Types of Catering VenuesTypes of Catering Venues

independent banquet independent banquet hallshalls

civic auditoriumscivic auditoriums stadiums, arenas stadiums, arenas ethnic social clubsethnic social clubs fraternal organizationsfraternal organizations womenwomen’’s clubss clubs private city or country private city or country

clubs, athletic clubsclubs, athletic clubs hospitalshospitals universities, libraries universities, libraries

executive dining rooms executive dining rooms in office buildings or in office buildings or corporate headquarterscorporate headquarters

houses of worshiphouses of worship recreation rooms in large recreation rooms in large

housing complexeshousing complexes parksparks museums, aquariumsmuseums, aquariums restaurants with private restaurants with private

dining roomsdining rooms

Some facilities are more competitive Some facilities are more competitive than hotels or conference centers, with than hotels or conference centers, with more flexible price structures due to more flexible price structures due to lower overhead expenses.lower overhead expenses.

Public facilities are tax-exempt. Public facilities are tax-exempt. Some facilities provide their own Some facilities provide their own

catering in-house; others are leased to catering in-house; others are leased to and operated by contract foodservice and operated by contract foodservice companies that have exclusive companies that have exclusive contracts. contracts.

Some will rent their facilities to off-Some will rent their facilities to off-premise caterers.premise caterers.

Many meeting planners do Many meeting planners do not simply purchase a meal not simply purchase a meal

They buy fantasy, fun, service, They buy fantasy, fun, service, ambience, entertainment, and memories.ambience, entertainment, and memories.

Buying food and beverage is only one Buying food and beverage is only one component of the fun and fantasy.component of the fun and fantasy.

Catering is a consumer-Catering is a consumer-driven market driven market

Stimulated by clients who demand exceptional Stimulated by clients who demand exceptional quality and excellent value for a reasonable quality and excellent value for a reasonable price.price.

Value is determined by the buyer, not the Value is determined by the buyer, not the seller.seller.

BuyersBuyers’’ perceptions are sellers perceptions are sellers’’ realities. realities. The impression meeting planners have of a The impression meeting planners have of a

propertyproperty’’s catering ability is their reality, and s catering ability is their reality, and will influence their buying decisions. will influence their buying decisions.

Most meeting planners Most meeting planners will comparison shop will comparison shop

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

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

Catering staff Catering staff Director of catering (DOC)Director of catering (DOC) Assistant catering directorAssistant catering director Catering managerCatering manager Catering sales manager Catering sales manager

(CSM)(CSM) Catering sales representativeCatering sales representative Convention/conference Convention/conference

service managerservice manager Banquet managerBanquet manager Banquet setup managerBanquet setup manager Assistant banquet managerAssistant banquet manager SchedulerScheduler Maitre dMaitre d’’ hotel hotel CaptainCaptain

ServerServer Busperson (busser)Busperson (busser) Food handlerFood handler BartenderBartender BarbackBarback SommelierSommelier HousemanHouseman AttendantAttendant Clerical personClerical person EngineerEngineer CashierCashier Ticket takerTicket taker SecuritySecurity Room service managerRoom service manager

Banquet and catering Banquet and catering operationsoperations

WHY DO WE LIKE TO SELL WHY DO WE LIKE TO SELL BANQUETSBANQUETS

Very profitable Very profitable businessbusiness

Every event allows Every event allows for flexibility in pricingfor flexibility in pricing

Food cost are lower Food cost are lower due to volumedue to volume

Beverage cost easier Beverage cost easier to controlto control

Labor cost are lowerLabor cost are lower

Additional income Additional income generator generator (flower,bakeries,photog(flower,bakeries,photographer.rapher.

WHY? CONTWHY? CONT’’DD

Celebrate events; sell more expensive & more Celebrate events; sell more expensive & more profitable menu itemsprofitable menu items

Number of guests known; greater production Number of guests known; greater production controlscontrols

Sell bar service (See TYPES a little later on)Sell bar service (See TYPES a little later on) Charge extra for labor: bartenders, cashiers & Charge extra for labor: bartenders, cashiers &

servers; security; valet; coatroomservers; security; valet; coatroom

CANDY BUFFET!!

MONKEY BUFFET – WHAT THE HECK?

LAS VEGAS BUFFET

KANG KUNG KU BUFFET

COFFEE SHOP STAFFING:COFFEE SHOP STAFFING:

STAFFING:STAFFING: Coffee Shop ManagerCoffee Shop Manager Coffee Shop CashiersCoffee Shop Cashiers Hosts/HostessHosts/Hostess Cooks & kitchen staffCooks & kitchen staff ServersServers BusBus

TERMS:TERMS:Side WorkSide Work = service related = service related

tasks performed during a shift; tasks performed during a shift; roll silverware, restock, refill roll silverware, restock, refill condiments, etc.condiments, etc.

Table TurnTable Turn = the number of = the number of times we times we ““Meet, greet, seat, Meet, greet, seat, serve, pays check & leaves in serve, pays check & leaves in a perioda period””..

# of Customers/Seats = Turn# of Customers/Seats = Turn(Lunch turn is faster than dinner.)(Lunch turn is faster than dinner.)

WHO IS YOUR MARKET?WHO IS YOUR MARKET?

Generation X (20 somethings)Generation X (20 somethings) Generation Y ( IsnGeneration Y ( Isn’’t that you?)t that you?) Baby BoomersBaby Boomers Influentials – intellectually curious; their Influentials – intellectually curious; their

opinion opinion ““countscounts””; cutting edge; cutting edge The Affluent – earn $100 - $250,000 a The Affluent – earn $100 - $250,000 a

year; seek exceptional food, service, etc.year; seek exceptional food, service, etc.

PLANNING MENUS:PLANNING MENUS:

Facility layout/design & equipmentFacility layout/design & equipment Available labor & skillsAvailable labor & skills Product availability Product availability Quality level of clientQuality level of client Cost of food to produce menuCost of food to produce menu Pricing for clientsPricing for clients

BOOKING & PLANNING BOOKING & PLANNING EVENTSEVENTS

Function room reservation formFunction room reservation form – coordinates the – coordinates the spacespace

Contracts/letters of agreementContracts/letters of agreement – details every – details every aspect of event. Who is doing what.aspect of event. Who is doing what.

GuaranteeGuarantee Room rental ratesRoom rental rates – extra if no food or food is not – extra if no food or food is not

high enoughhigh enough BEO or Function SheetBEO or Function Sheet – lists all of the details that – lists all of the details that

apply to the function. VIP document. Nothing apply to the function. VIP document. Nothing gets done without it. Signatures; billing. Contract.gets done without it. Signatures; billing. Contract.

BEVERAGE SERVICE/BARS BEVERAGE SERVICE/BARS & FUNCTIONS& FUNCTIONS

TYPES:TYPES:Cash BarCash Bar – guests pay cash – guests pay cashHost Bar/DrinkHost Bar/Drink – Guests do not pay; Charge the – Guests do not pay; Charge the

host by the drink; system to track; tickethost by the drink; system to track; ticketHost Bar/BottleHost Bar/Bottle – Charge by # of bottles – Charge by # of bottles

consumed/opened; par; agreed upon priceconsumed/opened; par; agreed upon priceHost Bar/HourHost Bar/Hour – Charge host fixed fee per person – Charge host fixed fee per person

per hour; estimate guest consumptionper hour; estimate guest consumptionWine ServiceWine Service – servers can serve or bartenders – servers can serve or bartenders

can pourcan pour

DemonstrationDemonstration

Set up for Breakfast BuffetSet up for Breakfast Buffet Ready to do it.Ready to do it.

Week# 2Week# 2

Food Service IndustryFood Service Industry What is Service? And how relate to the What is Service? And how relate to the

hospitality Industry?hospitality Industry? Service isService is

HOTEL A – LA – HOTEL A – LA – CARTE DINING CARTE DINING

ROOMSROOMS

TYPES OF HOTEL A – LA – TYPES OF HOTEL A – LA – CARTE DININGCARTE DINING

Coffee ShopCoffee Shop Casual/Theme/Celebrity RestaurantsCasual/Theme/Celebrity Restaurants Fine DiningFine Dining Bars & LoungesBars & Lounges

WHO IS YOUR MARKET?WHO IS YOUR MARKET?

Generation X (20 somethings)Generation X (20 somethings) Generation Y ( IsnGeneration Y ( Isn’’t that you?)t that you?) Baby BoomersBaby Boomers Influentials – intellectually curious; their Influentials – intellectually curious; their

opinion opinion ““countscounts””; cutting edge; cutting edge The Affluent – earn $100 - $250,000 a The Affluent – earn $100 - $250,000 a

year; seek exceptional food, service, etc.year; seek exceptional food, service, etc.

ELEMENTS OF COFFEE ELEMENTS OF COFFEE SHOPSHOP

Bright, lively informal Bright, lively informal atmosphereatmosphere

Cheerful & efficient Cheerful & efficient serviceservice

Well-prepared & Well-prepared & presented foodpresented food

Quick serviceQuick service Low pricesLow prices Quite busing of Quite busing of

tableware & dishestableware & dishes

COFFEESHOPS

COFFEE SHOP

COFFEE SHOP

COFFEE SHOP

MENU CHARACTERISTICSMENU CHARACTERISTICS

California menu California menu optionsoptions

Variety/SelectionVariety/Selection Price valuePrice value Portion valuePortion value Presentation valuePresentation value BeveragesBeverages

How caterers price How caterers price

Three general types of pricing methods Three general types of pricing methods used by caterers: used by caterers: thirds methodthirds method contribution margin (CM) methodcontribution margin (CM) method multiplier methodmultiplier method

The thirds methodThe thirds method Calculating a per-person price that will cover Calculating a per-person price that will cover

three things equally: three things equally: 1.1. the cost of food, beverage, and other supplies (such as the cost of food, beverage, and other supplies (such as

napery, dance floor, etc.);napery, dance floor, etc.);2.2. the cost of payroll to handle the function, plus overhead the cost of payroll to handle the function, plus overhead

expenses needed to open the room (such as turning on expenses needed to open the room (such as turning on the air conditioning units, etc.); andthe air conditioning units, etc.); and

3.3. profit.profit. With a $30.00 price per-person, the caterer will With a $30.00 price per-person, the caterer will

have approx. $20.00 to cover expenses, leaving a have approx. $20.00 to cover expenses, leaving a $10.00 profit from each guest. $10.00 profit from each guest.

The caterer will also add taxes and gratuities (or The caterer will also add taxes and gratuities (or service charges) to this price. service charges) to this price.

The contribution margin The contribution margin (CM) method (CM) method

This is the typical pricing method used by This is the typical pricing method used by large caterers.large caterers.

Everything must make a profit.Everything must make a profit. It is too difficult for large caterers to build It is too difficult for large caterers to build

each party from scratch, so it is each party from scratch, so it is necessary to standardize some things. necessary to standardize some things.

The contribution margin The contribution margin (CM) method (CM) method

The caterer must know as much as The caterer must know as much as possible all the expenses associated with possible all the expenses associated with ““opening the room,opening the room,”” apart from the types apart from the types of menu items meeting planners will of menu items meeting planners will order.order.

These are essentially fixed catering These are essentially fixed catering expenses, such as salaries and wages, expenses, such as salaries and wages, utilities, paper products, and marketing. utilities, paper products, and marketing.

The contribution margin The contribution margin (CM) method (CM) method

These total fixed expenses must be divided by These total fixed expenses must be divided by the number of attendees expected for a year.the number of attendees expected for a year.

This gives the caterer a reasonable estimate of This gives the caterer a reasonable estimate of the amount of fixed expense per attendee.the amount of fixed expense per attendee.

To this number is added the per-person cost To this number is added the per-person cost for the food, beverage, and other variable costs for the food, beverage, and other variable costs (such as special linen) that comes with a (such as special linen) that comes with a particular catering menu option.particular catering menu option.

The contribution margin The contribution margin (CM) method(CM) method

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

The multiplier methodThe multiplier method

This is a version of the contribution This is a version of the contribution margin (CM) method. margin (CM) method.

Once it is established, the caterer then Once it is established, the caterer then multiplies it by a factor that usually varies multiplies it by a factor that usually varies from about 3 to 7, but can go higher from about 3 to 7, but can go higher

The multiplier methodThe multiplier method The factor is related to the type of services, The factor is related to the type of services,

ambience, and so forth, provided to attendees.ambience, and so forth, provided to attendees. The more expensive, the higher the factor will be.The more expensive, the higher the factor will be. The factor can be independent of these variables; The factor can be independent of these variables;

during the high season, even modest caterers can during the high season, even modest caterers can command a high price.command a high price.

The factor, and the price, are influenced by The factor, and the price, are influenced by competition and what the market will bear.competition and what the market will bear.

It will be as high as possible.It will be as high as possible. To the caterer, there is no such thing as a price that To the caterer, there is no such thing as a price that

is too high.is too high.

Popular Up-scale Value Based

Chicken per-person

Picatta$ 24.00

Oscar$ 32.00

Dijon$ 22.00

Staff B-team $500.00

A-team $700.00

C-team$400.00

Linen Color Overlays White

Chair rental Stacking$850.00

Ballroom$1400.00

Padded$600.00

Floral Roses$400.00

Orchids$600.00

Carnations$300.00

Music Duo$550.00

Trio$750.00

Solo$375.00

Level pricingLevel pricing

Range pricing Range pricing

Prime Rib Dinner Number of guests Price per guest

235 or less $29.75

236-265 $27.45

266 and up $24.25

The catererThe caterer’’s objectivess objectives Earn a fair profit, consistent with the Earn a fair profit, consistent with the

amount of money invested in the catering amount of money invested in the catering business.business.

Generate sufficient catering sales Generate sufficient catering sales revenues to accomplish the above, to revenues to accomplish the above, to cover all operating expenses, and to cover all operating expenses, and to have enough money left over to reinvest have enough money left over to reinvest in the business.in the business.

Ensure customer satisfaction.Ensure customer satisfaction.

The catererThe caterer’’s objectivess objectives

Provide consistent quality and service.Provide consistent quality and service. Convey a particular image.Convey a particular image. Develop a reputation for dependability, Develop a reputation for dependability,

flexibility, and solving problems.flexibility, and solving problems. Stay on budget.Stay on budget.