Budgeting and Financial Management


by Vicky Betzig, CMP

Part 5: Champagne on a Beer Budget

Last month’s column discussed options to lower your food and beverage costs without negatively impacting attendees’ perceptions. Here are additional recommendations.

 

Negotiating meal pricing is a bit complicated and depends upon the demographics of the group, their eating patterns, and the facility's flexibility. Portion control is one way to negotiate published meal prices. Ganging menus is another, as are chef-designed menus and vegetarian options.

 The only item that can reduce a meal price by controlling the size of the portion is the meat item. Requesting a six-ounce instead of eight-ounce chicken breast or steak for lunch may help to slightly lower a menu price; reducing the starch or vegetable portion size will do no such thing. Negotiating to serve no dessert at lunch (but, in its place, to serve cookies/brownies at the afternoon break) may be another.

Ganging menus refers to a smaller group agreeing to serve the exact same menu as a larger group that is using the facility at the same time. Because food and labor costs may be slightly reduced in this manner, the facility may agree to a slight price reduction.

Allowing the chef to design and select the complete menu for your group, based on lower-cost items available at the specific time of the meal function, is another possible negotiation technique to arrive at a lower-priced menu. Serving vegetarian items such as pasta dishes, especially for lunch, can also reduce costs.

It is also important to note that buffet meals will always be more expensive than plated meals, due to the amount of food that must be prepared so that the buffet does not run out. If a plated meal supports the objectives of the meal function, it should be chosen. You can also choose a less expensive meal, but make it seem more formal by requesting a formal service style (French or Russian service, for example). While there may be service charges associated with more formal service, the savings on the menu price may more than make up for them.

Location, Location, Location

Where continental breakfast, refreshment break, and reception food tables are located can make an impact on how much food is consumed. While "hiding" the food is not a realistic option, placing more expensive items in "harder to access" places can reduce consumption of expensive items. For example, place shrimp or carving stations at the back of the room for receptions. Placing continental breakfasts and refreshment break tables where they are not quite so readily accessible for "seconds and thirds" can also reduce costs. There is a very fine line you can cross here, however. If food and beverage items become too difficult to access - and especially if there are long lines to get to them - attendee complaints will follow.

Receptions

 Receptions with cocktails and hors d'oeuvres can be one of the most difficult F&B functions to manage in terms of cutting costs without impacting quality. However, a few tips can help:

  • serve many hors d'oeuvres "butler style" - passed by wait staff on trays
  • provide smaller plates on buffet tables so less is consumed
  • place higher-priced items in the back of the room
  • use "filler" platters like cheese and crudités that are less expensive but provide a large amount of food
  • offer tray service for wine and soft drinks near the entrance, with full-service bars in the back - those who begin drinking wine out of convenience will continue to do so at a lower cost than cocktails
  • insist bartenders use pouring controls and do not serve doubles.

Wine With Dinner

Wine service is another key area where there is the potential for waste. Putting control measures into place can allow you to include wine with dinner, without it breaking the bank. Instructing the facility as follows can reduce the cost of wine service: 

  • servers should open only one bottle of each type of wine at a time
  • wine service should start after the salad or appetizer is served
  • wine should be offered initially, not simply poured for everyone
  • refills should be provided upon request only 
  • a total number of bottles limit can be imposed, with instructions that once the limit is reached, the planner is consulted - if it is late in the dinner, you may decide to suspend the wine service.

 If done right, controlling F&B costs can add to your bottom line - without subtracting from your attendees' experience. Bon appetit!

Vicky Betzig, CMP, is a 20-plus year veteran of the meetings industry, currently providing freelance meeting management services on a project basis for associations and companies. Formerly the vice president of JR Daggett & Associates, she has been involved with all aspects of managing meetings, conferences, conventions, trade shows, and events. She is the co-recipient of PCMA's 2004 Author of the Year Achievement Award and can be contacted at vabetzig@mindspring.com.