As is the case with most meeting management functions, the first goal is to make sure that food and beverage (F&B) events/functions support the overall objectives of the meeting. Each F&B function should have an objective - whether it is networking, continued learning, an additional educational program, recognition, or entertainment. As these objectives vary, so should the planned menu, room setup, and program for the event.

For example, if networking is the objective of the function, a sit-down meal at banquet rounds of eight or 10 would not support the objective as well as a meal with stations for food and mingling at smaller tables.

Facilities must make sure that the F&B revenue generated by a group can support the amount of space required for the events, and exactly how they will guarantee that revenue should be specifically stated in the contract. The methods that facilities use to guarantee F&B revenue include:

•  requiring a certain dollar amount of F&B expenditure per room night
• a guaranteed number of events and a minimum attendance for each event
• a guaranteed minimum total dollar amount to be spent on F&B for the entire meeting/group (using this method, be sure the contract specifies if affiliate events are part of the guarantee, and whether service charges/gratuities and taxes are included)
• using the meeting's F&B history to determine minimum requirements

You should begin working with the facility's catering personnel at least 12-18 months in advance of the meeting. While firm menu pricing is typically not available until six months prior to the meeting, it is important to negotiate menu pricing or a maximum percentage increase to current prices 12-18 months out.

It is also important to share budget objectives with the facility so that both parties can be realistic with menu pricing. The planner should communicate information to the facility, including:

• history and patterns of usage/demand
• objectives of the meeting and of each food function
• specifications/current requirements (45-60 days prior to the start of the meeting)
• special needs.

The catering manager should communicate information to the planner, including:

• Banquet Event Orders (BEOs)/function sheets (as soon as possible after specifications are provided by the planner)
• local laws/regulations
• union regulations
• staffing standards
• outlet information

Guarantees Guarantees are typically required 48-72 hours in advance of the function, although sometimes these deadlines can be negotiated. Guarantee management can be a significant tool in managing your F&B costs, so if you are able to negotiate a preliminary guarantee to be given 72 hours in advance - as well as agree that you can raise the guarantee within 10 percent-15 percent 24 hours in advance - it may help "tighten up" the guarantee.

The typical overset policy (additional number of place settings provided, although this usually does not include additional meals prepared) is 3 percent-5 percent of the guarantee.

Meal Tickets

In addition, meal tickets can be used to control guarantees and thereby keep costs in line - providing registrants are required to trade in their ticket for an actual table number via a seating chart or entrance coupon to the meal function. Those who don't plan to attend the event will likely not take the time to trade in a ticket, therefore allowing your guarantee to be more accurate. (Note that the ticket exchange must be completed prior to the guarantee deadline.)

Facility wait staff should be asked to collect tickets and return them to the meeting planner so that an audit of the tickets can be conducted. If there is assigned seating, a floor plan with numbered tables should be provided for attendees (in order to select their preferred seating) and to the facility and table numbers (in holders high enough for easy viewing) must be on the tables.

Gratuities and Service Charges

Gratuities and service charges are also part of food and beverage planning. According to the APEX Glossary (http://glossary.conventionindustry.org), a service charge is a mandatory and automatic amount added to standard F&B charges, usually used to defray the cost of labor, such as housemen, servers, and technicians, and for which the facility receives a portion of the charge. In return, the guest is relieved of the responsibility for tipping.

Also according to the APEX glossary, a gratuity is a voluntary payment added to a bill (e.g., a restaurant check), to signify good service.

The typical range for a service charge is 17 percent-20 percent and may or may not be taxable. It is important to find out in advance the amount of the service charge and if it is taxable to ensure these figures are included in the amount budgeted for the function.

Editor's Note: Part 2 of the Food and Beverage function will appear in the July installment of this column.

° Vicky Betzig, CMP, is president/owner of Meetings Industry Consulting and has more than 20 years of experience in managing meetings, conferences, conventions, trade shows, and events. She has extensive experience in the development, production, and facilitation of CMP study programs and is a nationally recognized trainer, presenter, and author (the co-recipient of PCMA's 2004 Author of the Year Achievement Award) on a variety of meeting management topics. She can be contacted at vabetzig@mindspring.com.

The Certified Meeting Professional (CMP) designation, the foremost certification program of today's meetings, conventions, and expositions industry, recognizes those who have achieved the industry's highest standards of professionalism. For more information on obtaining the CMP?designation, please contact the Convention Industry Council at http://www.conventionindustry.org. For more information on PCMA's CMP programs, please visit http://www.pcma.org.