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In a potential bad spot?

post #1 of 7
10/15/08 at 7:59pm
Thread Starter 
Hey all, I am working on an event for a client that will include an outside buffet style lunch. As typical with the beginning of many food planning discussions the number of potential guests has decreased. But most recently our numbers have again been cut down (500 to 400 to 300). I was able to speak with the event organizer this evening to discuss the decreased numbers and ask about how the guest count was being estimated. The reality of it is that each of the potential guests are members of this organization. The members and potential guests are in total around 500+/-. The decreased numbers are merely an estimate based on the economy, budgetary restraints etc.
I was kind of at a loss for words when I realized that we can plan for 300 (+15%) and get wiped out of food and be incredibly embarrassed when it's all said and done. I know that many will read this and say “but that’s not your fault, nor is it really your problem”. But, we will be heavily advertised before, during and after the event so there will be no mistaking who ran out of food. I suggested that we can all (us and event planner) try and get together prior to the start of the event and cut down on portion sizes to try and make the food go further. Problem there is that we only have servers on the proteins and nothing else. Part of me wants to walk away from the event entirely but I don’t want to leave my client hung out to dry. At the same time, I don’t want to be hung out to dry at this event.

Input, thoughts, ideas???? HELP!
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post #2 of 7
10/17/08 at 9:47am
If you have business that will let you reroute unused food. Put a caveat into your contract or an addendum that says:

I'll bring X% (this time make it food for 400-500, whatever you are comfortable with). over your contracted 300 guests. We'll keep count and will charge you x+ amount for any additional guests. Make it so it's worth it to you to have backup (butt coverage) but not so that they will always under estimate "final count" to save $. Talk to them frankly about this solution that would cover them (you). Not knowing your operating procedures but have it so any additions are added to a credit card or balance is due by X. Confirm guest count the evening of event with contract signer.

If you don't have the facility or a place to move the unused food, go with 300.
JMTC
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post #3 of 7
10/18/08 at 1:42pm
Because my catering events are so few and far between - I don't have any other uses for uneaten food at a catered event.

The way I deal with it - and would probably do it with this client too - is atell the client that its reasonable to expect 80% of the people to show up - so thats about 375-400 people.

In my contract, I would write up a clause that says the price per person is $$ based on minimum of 400 guests. Additional guests will be charged $$ per person, and if the guest count falls below (a certain number) the price per person will increase to $$$. The final headcount is due by (insert date about a week out) at midnight. After final headcount is given, price will not decrease based on decreased attendance.

If she is reducing the number of guests because she wants a lower bid - that is NOT the way to do it! If she wants a lower bid, then you can tell her you will work on producing a lower cost, lower labor menu for her with reduced services. But lowering the guest count to stay within budget sounds like disaster to me.

Try to remember that you are the expert - and let her know in no uncertain terms that you cannot run out of food, or it will reflect poorly on your business and underestimating the guests count to decrease the cost is not the best way to handle her budget.
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post #4 of 7
10/18/08 at 3:47pm
With me they contract for a minimum guaranteed amount,they give deposit and sign.
They can give me final count 48 hours prior and have to sign again. There is a clause in original contract that this price pp is based on original contracted amount of guest. If then the count falls below this then is price per person, usually more ,anything over the contracted price pp is usually a little less as this is gravy. 100@$20.00 overage $18.00
Another example 100 people lets say is $20.00pp so thats $2000.00
Assuming it drops to 80 on final amount 48 hours notice > It is then $2000.00 divided by 80 people =$25.00pp. Brings you in same $2000.00.

Kids now figured different. No more !/2 price we now charge 3 for 2. In other words a couple is $40.00 so divide $40.00 couple price by 3 so kids are $13.33 each. Your staff gets paid same if they wait on kids or adults.

You are the caterer, you call the shots. Tell them you will be prepared to feed only 5% over day of and thats it. No surprises!!!
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post #5 of 7
10/18/08 at 6:20pm
Like Ed says, it's all in the contract.

First of all, what type of an arrangement with the client do you have? If you don't have anything signed yet, either get something signed with guarantee numbers and terms and conditions; or failing to get this, walk away from the whole thing and consider it a very cheap form of education. And then get yourself a "standard" contract drawn up for future business.

Your contract should stipulate terms and conditions, x% down 2 weeks before the event, x% 48 hrs before the event and with guarantee numbers, and the balance on the day of the event but before the event starts.
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post #6 of 7
10/18/08 at 7:51pm
Ed and foodpump are right on......the alternative I offered was in a long run not good.
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post #7 of 7
10/20/08 at 10:50am
Thread Starter 
That nailed it on the head! I fully understand (and appreciate) all of the responses addressing a certain contracted number of guests, over and unders. Legally, there was already a signed contract in place with a confirmed count, but hours after getting it signed (and before placing my protein order) we were contacted by the client about changing the count. We did go back to the drawing board and re-addressed the menu to try and drop the prices VS adjusting the guest count. I'm in too small of a market area to hold their feet to the fire given the signed contract, and didn't feel that it was necessary.

Unfortunately in the end, I had to take my catering company out of the equation all together. Since I was contacted by another caterer friend for assistance in the first place, I let her handle it. Everyone is fine, I made a great new client contact. And most importantly they understand my line of products and what too and not too contact me for in the future.

As always, thanks for the great feedback from all!
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