When planning an event, you know that dealing with a food and beverage contract is a very important part of a smooth event. We do not want to confront disappointment or disagreements just because we didn’t review or consider some crucial parts of the meeting when negotiating and contracting the venue. We all know after the contract is signed, there isn’t much you can do about changing the terms.
This quick guide may help you use the right strategies to get what you want for your money’s worth.
This might be one of the hardest things to identify, in my opinion. There are so many factors that can affect participation in an event, and because of that, I like to be very conservative about it. Also, there are different ways to negotiate this aspect depending on the type of meeting you are planning. For example, if we planning a convention, the negotiation can go further if we also block a certain amount of rooms but for the purpose of this article, let’s keep it like we are working on a 1-day event –no room block– in this case.
If you are a newbie, please know that the minimum guarantee is the expected number of meals to be served and/or the minimum total consumption for the requested space in the venue. I always try to identify my client’s needs so I can find a location that can accommodate their target number of people but will let us guarantee the minimum amount for the use of the room -without having to incur in room rental charges. Having said that, you will need to monitor closely the RSVP’s so you can update this number with the venue as it changes. Please take into consideration that to increase or/decrease the number of participants, the venue may give you deadlines that may vary from one venue to another.
Your Food and Beverage Contract should include all of your agreed terms and conditions, starting with the banquet set-up, number of people, full menu, the pricing per person, and the estimated final bill. You should also let them know if you are planning to bring an outside vendor for audiovisual service, entertainment or decoration because some locations may charge if you are using an outside vendor different than their in-house provider. Even the smallest details should be included in the contract to make sure you and the venue are in the same page and avoid changes that may cause mistakes along the way. Don’t take me wrong, you can change some things if needed but, it is way simpler if you have everything set up since the beginning. Believe me, it will save you TONS of time, effort and money.
There should be a section in the contract that stipulates the total deposit and payment schedule you should pay prior to the event. Most venues require full payment before the event, so keep that in mind.
Also, watch out for a cancellation clause in your contract. This part should explain how late you can cancel without incurring in significant penalties or loss on your deposit.
Don’t be deceived by food and beverage minimums set by venues. In many cases, it differs greatly depending on location and/or type of venue, so please, COMPARE all of your alternatives... This can be a deciding factor in the total cost you’ll actually spend.
As long as you watch out for the little “things” in your contract, nothing can go wrong with your event. Go for what you need, and don’t let a contract defy your terms. After all, in most cases, your venue's point of contact will go a long way to provide you an excellent service.
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