F&B: Budget Secrets. Wednesday, July 26, Tyler Davidson Vice President & Chief Content Director Meetings Today
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1 F&B: Budget Secrets Wednesday, July 26, 2017 Presented by Patti Shock Academic Consultant The International School of Hospitality Moderated by Tyler Davidson Vice President & Chief Content Director Meetings Today
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3 Housekeeping Today s Webinar is worth the following credit toward the CMP application through the CIC: Financial Management, 1 hour. To receive this credit for attending simply visit: Here you may also find a copy of today s presentation and watch the webinar On Demand. We will redirect you to this page following today s presentation. Use the Ask a Question box to ask questions at any time during the presentation. Should you experience any technical difficulties, please send a message in the Q&A area or call or
4 Thank You to our Webinar Sponsors:
5 Today s Speaker: Patti Shock Academic Consultant The International School of Hospitality patti.shock@gmail.com
6 Following this webinar, you will: Be prepared to negotiate additional goods and services Understand the importance of having great rapport with your CCSM Know how to be smart when requesting concessions Recognize the difference between soft and hard costs Be able to deal with not reaching your F&B minimums
7 Also Food and Beverage Trends Special Meals Sustainability Using Food Trucks
8 CCSM Catering & Convention Service Manager Catering Manager Banquet Manager/Banquet Service Manager Servers Room Captain Catering Sales Manager Local/social market Convention Service Manager Banquet Setup Manager Housemen
9 4 Ways Venues Increase Revenue 1.Increase the number of clients 2.Increase the frequency with which they deal with their clients 3.Increase the average value of the sales transaction 4.Improve the effectiveness of the processes in their venue
10 Trained to upsell Upselling is helping a client decide to buy a little extra or upgrade the final purchase slightly Additional items Bigger items Better items More expensive items Additional services Upselling
11 Training Instead of asking, do you want to serve wine? Ask, do you prefer a red or a white wine?
12 Adding Extras Intermezzo Cheese Cart Cordial Service Fancier Hors d Oeuvres Hot Hors d Oeuvres Petit Fours Ice Carvings
13 Range Pricing Mid-Range Value Premium Linen Color White Overlay Band 3 piece 2 piece 4 piece Floral Lilies Carnations Roses Entree Beef Chicken Veal Wine California House French Service 1/32 1/40 1/20
14 % Meetings % Social Catering Marketing Mix Often not as restrictive time constraints % Transient % Rooms available for meetings Sleeping and Meeting Tourist destinations often limit # sleeping rooms available for meetings
15 Organization Chart Ask to see the venue organization chart during site inspection
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20 HAPS Hold All Public Space Marketing vs F&B How many CCSMs? How many meetings will your CCSM be juggling?
21 Pre-Event Meeting Go over menu, service, program, timing, special meals, etc. Check room set, temperature Check handicap access Check bars Meet the staff
22 Hotels are constantly seeking new ways to generate profits Resort fees Room rental Service charges Wi-Fi Parking Goods and services that were complimentary or discounted - Water, Ice
23 You may notice new fees associated with water Water is expensive and venues are passing along the cost and adding to their revenue Charges can include: water station charges, pitchers of ice water for meetings and water on dining tables; labor Water
24 Concessions Usually first part of contract CCSMs will look at Most negotiable and customized part of the contract A CCSM will look this over to see what they are dealing with and what to anticipate with the group Concession clauses can be quite long depending on the value of the group Some venues list the amount of the concessions, showing the retail value in hard dollars
25 Common concessions: One comp room per 40 rooms booked 10 % discount off of prevailing catering menu pricing Comp reception, continental breakfast or refreshment break Comp staff office Free Wi-Fi (specify where) VIP welcome amenities Specified number of VIP round trip limousine transfers Specified number of room upgrades to best available at reduced group rate Spa discounts Comp or discount staff and student rooms Reduced or eliminated resort fee Discounts on audio visual Discounted shipping, receiving or storage charges Comp risers, podiums and easels, and so on. Restaurant meal vouchers Bottles of water in the room each day Rebates to the master account Early check-in, late check-out
26 Labor Reduce labor, reduce costs Look for labor surcharges in areas where wages have been increased
27 Leverage ICW business (in conjunction with) Sponsors, exhibitors and affiliate events not covered in your contract but a vital part of the program require revenue expected be included in the group s overall food and beverage minimum Provide/ask for a history of how much revenue these groups produced.
28 Camera Cuisine Rise of food photography by guests Must be aware that food is art
29 Ask to see photos of plate presentations
30 Food Trends Regional Cuisine Global Cuisine African, Middle Eastern, Latin American, Filipino Street Food Inspired Foods Vertical Rotisseries Savory Desserts Rise of Vegan Options/Plant Based Diets top Google searches in 2016 Food Trends report: vegan cheese, vegan mac and cheese, vegan ice cream, and vegan chocolate
31 Frozen Wine
32 Latin Drinks Horchata Mexican Rice, Milk, Cinnamon, Sugar Tamarindo Horchata White Russian Tamarindo with Tequila
33 Ask to meet the Chef Not sales people Know what is in season/priced well Note level of rapport with CCSM
34 Site Inspection Questions Do they have a separate banquet chef? Do they have a separate banquet kitchen? How far is the kitchen from the event? How often do they get deliveries?
35 Deep pockets Rarely even at own restaurants Making TV shows and attending food events Hierarchy in Chefdom Don t like catering Exception: Wolfgang Puck Celebrity Chefs
36 Chefs as Educators Interactive Chef Stations
37 Seasonality Food is cheaper, better quality and more nutritious when in season Google: Seasonal Produce Chart Available Regional
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39 Sustainability Buy local Fresher and flavorful Less expensive Transportation costs Fossil Fuel use Safety Other countries may use pesticides banned here
40 Parking lot Nearby park Show floor Food Truck Brokers can handle all of the details. They can hire the trucks, give you tips on how to arrange them, and what to do to enhance the experience. Food Trucks
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43 Some want a guarantee on sales, others are just happy to come They like to be the only truck with their type of food They need set hours, including setup, service and departure Food Trucks
44 Food Trucks Attendees can pay individually for what they want Attendees can be given tickets that they exchange for food and drink You can pay a set amount for the trucks to just serve attendees what they want Provide tickets for a reasonable amount, then they can purchase their own, just like a bar.
45 Food Truck Broker
46 Check food inspection reports
47 American 39% From the Farm 18% Mediterranean/Italian 6% Global/Ethnic 6% Barbecue 5% Other 33% Survey from ICA
48 Instead of plated, served dinner More opportunity to network Make one station unique or specialty food to get conversation started Haute grandma/nostalgia cuisine Food Stations
49 Inexpensive Cuts of Meat Short Ribs Pot Roast Coulotte Steak Chicken Thighs Meatballs Sausages Brisket
50 Tasteofhome.com via Pinterest Ground Beef Wellington
51 Chicken Pot Pie Soup Longhornsteaksathome.blogspot.com
52 Deep Fried Deviled Eggs Las Vegas Country Club
53 Enchilada Lasagna Mini Chicken Pot Pies
54 A Cone Is the Perfect Way to Eat Spaghetti Neatorama.com via Pinterest
55 Bite sized corn dogs. Serve with different mustards.
56 Vegetables Vegetables featured more prominently on menus No longer just sides Vegetables are becoming necessary to keep costs in line Non GMO Organic ingredients still popular but only if certified as non-gmo
57 Special Meals Thrive Meetings & Events Allergies Religious restrictions Gluten-free Vegans are not necessarily gluten-free
58 Special Meals Negotiate special meals in advance Last minute requests can be more expensive Be sure your special needs attendees are taken care of Be creative Don t treat your vegans like pariahs You want them to return More and more people adopting plant based diets.
59 Always label buffet items Allergies Vegans Preferences
60 Health Conscious Consumer Organic Foods Plant Based Foods Low Fat Recipes Low Carb Offerings Sugar Free Options Fresh Anything No Trans-Fats No HFCS No Carmine
61 Vegan Plant-Based Menu Items No meat, fish, dairy Organic Ricotta & Spinach Ravioli Homemade spinach ravioli filled with organic ricotta and ground walnuts in a creamy vodka tomato sauce (oil free)
62 Brown Rice Ball Falafel Baked organic brown rice balls filled with falafel cream and roasted bell peppers on a bed of creamy vodka-tomato sauce (oil free) Google Panevino Las Vegas for full plant-based menu Group dining Just south of Strip
63 Nut Milk
64 Save $$ Shorten duration of event 45 minute receptions Receptions not Seated Meals 3 hours vs 5 hours labor Breakfast and Lunch receptions Limit bar offerings Beer, wine, one specialty drink Pass appetizers instead of a buffet DIY Sangria Station
65 Save $ Eliminate First Course Shorten meal time to 45 minutes Those that want more time can linger over dessert Holly Peterson on BizBash podcast
66 Soft vs Hard Costs Hard Costs Hotel has to purchase Cannot sell you a bottle of wine for $40 if they paid $50 for it CCSM can recommend less expensive wine that is affordable and of good quality. Soft Costs Hotel does not have to lay out cash Room with view Meeting room rental Free parking Corkage Comp Mic in room
67 Most Negotiable Menu contents Swapping out items Easier to get approval then discounting prices Least Negotiable Minimums to protect and hold space Labor fees esp. in union properties Service charges include gratuity
68 Attrition Damages for not reaching F&B Minimums Pay difference between the guarantee and the actual amount Or percentage of amount Attrition clause Establish limits of liability Specify how much $ instead of head count Negotiate to pay damages on profit, not revenue Can be: Money Concessions negotiated Loss of meeting space
69 Do not mix sleeping room attrition with F&B or meeting room rental. They should be dealt with separately their profitability is very different in most cases F&B prices have not been determined at the time the contract is executed
70 F&B attrition clauses should allow for graduated reduction Sliding scale Liability should not take affect until about 3 months out Food is generally ordered a week prior, so the only damage is the profit, if the hotel were unable to rebook the event.
71 Only agree to pay damages on lost profit If you agree to lost F&B revenue, you are paying for food that was never ordered in the first place. Address specific guarantee cut off dates and the amount of the damage due at each timeframe.
72 Sample Attrition Clause Here is a sample F&B performance clause from Tyra Hilliard, Esq. PhD, CMP: Group agrees to provide a minimum of $35,000 in banquet food and beverage revenue (excluding tax and service charge). Should the Group s banquet food and beverage revenue fall below this amount, the Group will be responsible for 35 percent of the difference between the minimum banquet food and beverage revenue and the actualized food and beverage revenue, plus any applicable taxes.
73 Cannabis Primer THC CBD Indica Sativa Hybrid Edibles Chocolate Honey Krispy Treats Cookies Drinks K-Cups Infused butter
74 Thank you for Attending
75 Questions? LinkedIn: pattishock YouTube: pattishock1
76 Questions? Patti Shock Academic Consultant The International School of Hospitality Tyler Davidson Vice President & Chief Content Director Meetings Today
77 Housekeeping Our TAKE 10 feature, offered either on our website or via our Webinar Wrap e-newsletters, provides answers to some of the key questions we just did not have time to get to during today s webinar. Look for an coming soon! Upcoming Events Winning with Gamification: How to Engage your Attendees & Increase Mobile Adoption Tuesday, August 8 th at 1pm Eastern Presented by Brooke Gracey with CrowdCompass by Cvent On Demand - Also available for you to view at any time. Visit ( today learn more, register and Watch Now!
78 Thank You to our Webinar Sponsors:
79 MEETINGS WEBINAR CLUB On each Webinar Club page, the individual sections will allow you to: Download webinar PPT slides View the webinar On Demand Obtain CMP Credit information Read related articles and so much more! Each webinar has it s own Webinar Club page and URL! For today s Webinar Club page, visit:
80 Thank you for joining today s webinar! F&B: Budget Secrets Please stay connected as you will be redirected to the Meetings Today Webinar Club page where you can obtain a copy of this presentation as well find information to gain CMP Credit. If you are not automatically redirected, please visit:
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