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Banqueting andBanqueting and
cateringcatering
San Ignacio CollegeSan Ignacio College
 Chapter OneChapter One
 The World of CateringThe World of Catering

Who doesnWho doesn’’t like to eatt like to eat
and drink?and drink?
 When you plan a meeting, you want theWhen you plan a meeting, you want the
food and beverages to be tasty andfood and beverages to be tasty and
abundant.abundant.
 You want your attendees to leave feelingYou want your attendees to leave feeling
pleased that they were at the event.pleased that they were at the event.

Banquets and receptionsBanquets and receptions
are both social andare both social and
business eventsbusiness events
 People love to socialize and network.People love to socialize and network.
 All aspects of a catered function areAll aspects of a catered function are
important.important.
 The quality of food, beverage, andThe quality of food, beverage, and
service makes one of the deepest andservice makes one of the deepest and
most lasting impressions on meetingmost lasting impressions on meeting
attendees.attendees.

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

Business CateringBusiness 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 suiteshospitality suites

Caterers come in allCaterers come in all
sizes and shapes.sizes and shapes.
 There are caterers who can provideThere 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, kosherThere are picnic caterers, kosher
caterers, and barbecue caterers.caterers, and barbecue caterers.
 Your options are endless.Your options are endless.

Types of CateringTypes of Catering
VenuesVenues
 independent banquetindependent banquet
hallshalls
 civic auditoriumscivic auditoriums
 stadiums, arenasstadiums, arenas
 ethnic social clubsethnic social clubs
 fraternal organizationsfraternal organizations
 womenwomen’s clubs’s clubs
 private city or countryprivate city or country
clubs, athletic clubsclubs, athletic clubs
 hospitalshospitals
 universities, librariesuniversities, libraries
 executive dining roomsexecutive dining rooms
in office buildings orin office buildings or
corporate headquarterscorporate headquarters
 houses of worshiphouses of worship
 recreation rooms in largerecreation rooms in large
housing complexeshousing complexes
 parksparks
 museums, aquariumsmuseums, aquariums
 restaurants with privaterestaurants with private
dining roomsdining rooms

 Some facilities are more competitiveSome facilities are more competitive
than hotels or conference centers, withthan hotels or conference centers, with
more flexible price structures due tomore 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 ownSome facilities provide their own
catering in-house; others are leased tocatering in-house; others are leased to
and operated by contract foodserviceand operated by contract foodservice
companies that have exclusivecompanies 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 plannersMany meeting planners
do not simply purchase ado not simply purchase a
mealmeal
 They buy fantasy, fun, service,They buy fantasy, fun, service,
ambience, entertainment, and memories.ambience, entertainment, and memories.
 Buying food and beverage is only oneBuying food and beverage is only one
component of the fun and fantasy.component of the fun and fantasy.

Catering is aCatering is a
consumer-drivenconsumer-driven
marketmarket
 Stimulated by clients who demand exceptionalStimulated by clients who demand exceptional
quality and excellent value for a reasonablequality and excellent value for a reasonable
price.price.
 Value is determined by the buyer, not theValue is determined by the buyer, not the
seller.seller.
 BuyersBuyers’ perceptions are sellers’ realities.’ perceptions are sellers’ realities.
 The impression meeting planners have of aThe 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 plannersMost meeting planners
will comparison shopwill comparison shop
 They make the best choice when theyThey make the best choice when they
perceive a facility is reliable, consistent,perceive a facility is reliable, consistent,
creative, and can execute the bestcreative, and can execute the best
quality event consistent with what theyquality event consistent with what they
are able to pay.are able to pay.

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

Catering staffCatering staff
 Director of catering (DOC)Director of catering (DOC)
 Assistant catering directorAssistant catering director
 Catering managerCatering manager
 Catering sales managerCatering sales manager
(CSM)(CSM)
 Catering sales representativeCatering sales representative
 Convention/conferenceConvention/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 cateringBanquet and catering
operationsoperations

WHY DO WE LIKE TOWHY DO WE LIKE TO
SELL BANQUETSSELL BANQUETS
 Very profitableVery profitable
businessbusiness
 Every event allowsEvery event allows
for flexibility in pricingfor flexibility in pricing
 Food cost are lowerFood cost are lower
due to volumedue to volume
 Beverage cost easierBeverage cost easier
to controlto control
Labor cost are lowerLabor cost are lower
Additional incomeAdditional income
generatorgenerator
(flower,bakeries,photog(flower,bakeries,photog
rapher.rapher.

WHY? CONTWHY? CONT’’DD
 Celebrate events; sell more expensive & moreCelebrate events; sell more expensive & more
profitable menu itemsprofitable menu items
 Number of guests known; greater productionNumber 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

MONKEY BUFFET – WHAT THE HECK?

COFFEE SHOPCOFFEE SHOP
STAFFING:STAFFING:
STAFFING:STAFFING:
 Coffee ShopCoffee Shop
ManagerManager
CashiersCashiers
 Hosts/HostessHosts/Hostess
 Cooks &Cooks &
kitchen staffkitchen staff
 ServersServers
 BusBus
TERMS:TERMS:
Side WorkSide Work = service= service
related tasksrelated tasks
performed during aperformed during a
shift; rollshift; roll
silverware,silverware,
restock, refillrestock, refill
condiments, etc.condiments, etc.
Table TurnTable Turn = the= the
number of timesnumber of times
wewe “Meet, greet,“Meet, greet,
seat, serve, paysseat, serve, pays
check & leaves incheck & leaves in

WHO IS YOURWHO IS YOUR
MARKET?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; theirInfluentials – intellectually curious; their
opinionopinion “counts”; cutting edge“counts”; cutting edge
 The Affluent – earn $100 - $250,000 aThe 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 availabilityProduct 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 & PLANNINGBOOKING & PLANNING
EVENTSEVENTS
 Function room reservation formFunction room reservation form – coordinates– coordinates
the spacethe space
 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– extra if no food or food is
not high enoughnot high enough
 BEO or Function SheetBEO or Function Sheet – lists all of the details– lists all of the details
that apply to the function. VIP document.that apply to the function. VIP document.
Nothing gets done without it. Signatures;Nothing gets done without it. Signatures;
billing. Contract.billing. Contract.

BEVERAGEBEVERAGE
SERVICE/BARS &SERVICE/BARS &
FUNCTIONSFUNCTIONS
TYPES:TYPES:
Cash BarCash Bar – guests pay cash– guests pay cash
Host 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; ticket
Host Bar/BottleHost Bar/Bottle – Charge by # of bottles– Charge by # of bottles
consumed/opened; par; agreed upon priceconsumed/opened; par; agreed upon price
Host Bar/HourHost Bar/Hour – Charge host fixed fee per– Charge host fixed fee per
person per hour; estimate guest consumptionperson per hour; estimate guest consumption
Wine 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 theWhat is Service? And how relate to the
hospitality Industry?hospitality Industry?
 Service isService is

HOTEL A – LA –HOTEL A – LA –
CARTE DININGCARTE DINING
ROOMSROOMS

TYPES OF HOTEL A –TYPES OF HOTEL A –
LA – CARTE DININGLA – CARTE DINING
 Casual/Theme/Celebrity RestaurantsCasual/Theme/Celebrity Restaurants
 Fine DiningFine Dining
 Bars & LoungesBars & Lounges

ELEMENTS OF COFFEEELEMENTS OF COFFEE
SHOPSHOP
 Bright, lively informalBright, lively informal
atmosphereatmosphere
 Cheerful & efficientCheerful & efficient
serviceservice
 Well-prepared &Well-prepared &
presented foodpresented food
 Quick serviceQuick service
 Low pricesLow prices
 Quite busing ofQuite busing of
tableware & dishestableware & dishes

MENUMENU
CHARACTERISTICSCHARACTERISTICS
 California menuCalifornia menu
optionsoptions
 Variety/SelectionVariety/Selection
 Price valuePrice value
 Portion valuePortion value
 Presentation valuePresentation value
 BeveragesBeverages

How caterers priceHow caterers price
 Three general types of pricing methodsThree 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 coverCalculating a per-person price that will cover
three things equally:three things equally:
1.1. the cost of food, beverage, and other supplies (such asthe 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 overheadthe cost of payroll to handle the function, plus overhead
expenses needed to open the room (such as turning onexpenses 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 willWith a $30.00 price per-person, the caterer will
have approx. $20.00 to cover expenses, leaving ahave 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 (orThe caterer will also add taxes and gratuities (or
service charges) to this price.service charges) to this price.

The contributionThe contribution
margin (CM) methodmargin (CM) method
 This is the typical pricing method used byThis 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 buildIt is too difficult for large caterers to build
each party from scratch, so it iseach party from scratch, so it is
necessary to standardize some things.necessary to standardize some things.

 The caterer must know as much asThe caterer must know as much as
possible all the expenses associated withpossible all the expenses associated with
“opening the room,” apart from the types“opening the room,” apart from the types
of menu items meeting planners willof menu items meeting planners will
order.order.
 These are essentially fixed cateringThese 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.

 These total fixed expenses must be divided byThese 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 ofThis 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 costTo this number is added the per-person cost
for the food, beverage, and other variable costsfor 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.

 Once the caterer knows how much theOnce the caterer knows how much the
total variable and fixed expense is pertotal variable and fixed expense is per
person, the desired profit margin is thenperson, 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 contributionThis is a version of the contribution
margin (CM) method.margin (CM) method.
 Once it is established, the caterer thenOnce it is established, the caterer then
multiplies it by a factor that usually variesmultiplies it by a factor that usually varies
from about 3 to 7, but can go higherfrom 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 canduring the high season, even modest caterers can
command a high price.command a high price.
 The factor, and the price, are influenced byThe 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 thatTo 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 pricingRange 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’’ss
objectivesobjectives
 Earn a fair profit, consistent with theEarn a fair profit, consistent with the
amount of money invested in the cateringamount of money invested in the catering
business.business.
 Generate sufficient catering salesGenerate sufficient catering sales
revenues to accomplish the above, torevenues to accomplish the above, to
cover all operating expenses, and tocover all operating expenses, and to
have enough money left over to reinvesthave enough money left over to reinvest
in the business.in the business.
 Ensure customer satisfaction.Ensure customer satisfaction.

The catererThe caterer’’ss
objectivesobjectives
 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.

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