A Meeting Planner’s Guide to Catered Events

1. A Meeting Planner’s Guide to Catered Events Chapter Ten Contracts and Negotiations

2. Caterers typically require meeting planners to sign formal catering contracts before events are scheduled to take place. • Sometimes a caterer will forgo the use of formal contracts and instead rely on signed banquet event orders (BEOs) or signed letters of agreement. • These documents may be every bit as legally enforceable as formal contracts; however, they do not use the typical boilerplate legalese

3. More caterers are using letters of agreement as opposed to contracts. • They serve the same purpose. • Signing an agreement is less threatening to most people than signing a contract. • The word “agreement” is friendlier, not quite as cold.

4. Never book and confirm a catered event without a signed agreement. • Usually an unwritten contract cannot be legally enforced in a court of law unless you are dealing with an agreement worth $500 or less. • Even with small parties, it is good business practice to detail in writing both your and the caterer’s responsibilities and obligations.

5. Banquet Event Order • The banquet event order (BEO), also called the function sheet, is the basis of the property's internal communication system between departments. • It is the basic building block upon which the caterer's accounting and record-keeping systems are constructed. • A BEO is prepared for each meal and beverage function, and copies are sent to the departments that will be directly or indirectly involved with the events.

6. BEO • Usually all departments receive a copy of each BEO a week or more before the catered function is held. • This ensures that all department heads have enough time to schedule and complete the activities that support the events.

7. The typical BEO contains: • BEO number • Function day(s) and date(s) • Type of function • Client name with signature line • Client address • Client contact person, or person in charge • Person who booked the event and authorized signature(s) • Name of function room

8. BEO Contents (con’t) • Beginning time of function • Expected ending time of function • Number of attendees expected • Number of attendees to prepare for • Menus • Style of service • Function room setup

9. BEO Contents (con’t) • Reference to other BEOs or other relevant records • Date BEO was completed • Signature of person preparing (or approving) the BEO • List of departments receiving a copy of the BEO

10. BEO Contents (con’t) • Special instructions (such as centerpieces, set-by times, parking details, miscellaneous labor charges, sleeping-room blocks, napery, tablescapes, bar arrangements, props, entertainment, electrical/engineering needs, unique underliners, VIPs, and other special amenities) • Prices charged • Master billing account number • Billing instructions

11. Resume • A resume (also called a convention resume or meeting resume) is a summary of function room uses for a particular convention or meeting. • Normally it is used whenever a meeting planner books two or more catered events to be held consecutively. • The resume usually includes all BEOs.

12. Resume • The resume may more appropriately be referred to as the function room resume as this report details function room use for a particular client. • It focuses on the major highlights while deferring to the pertinent BEOs for specific details.

13. Resume • If you book a one-week convention, and there are 15 meal, beverage, and business-meeting functions, the resume will highlight each function, when the function rooms will be booked, and when they will be dark.

14. Resumes Include: • Function day(s) and date(s) • Types of functions • Client name • Client contact information (address, e-mail address, and cell phone number) • Client contact person, or person in charge • Person who booked the events along with authorized signature(s)

15. Resumes Include: (con’t) • Beginning times of functions • Expected ending times of functions • Number of attendees expected • Furniture and equipment needs • Function room names • Room setups • Special instructions

16. Resumes Include: (con’t) • Date resume was completed • Signature of person preparing (or approving) the resume • List of departments receiving a copy of the resume

17. Resumes Include: (con’t) • Room charges • Labor charges • Equipment charges • Master billing account number • Billing instructions • Reference to other relevant records

18. Contract • Contract date • Function day(s) and dates • Function time(s) • Appropriate client and facility signatures • Function room(s) tentatively assigned • Menus • Style(s) of service • Function room setup(s)

19. Contract • Other client service(s) • Deposit(s) • Breakage • Head-count guarantee(s) • Overset • Attrition • Refunds, returns, and allowances • Outside food and beverage

20. Contract • Taxes • Gratuities • Tips • Service charge(s) • Cancellation penalty • Room setup charge(s) • Room rental rate(s) • Setup service charge(s)

21. Contract • Display restriction(s) • Responsibility for loss and/or damage • Underage or visibly intoxicated guests • Indemnification • Security • License(s) and permit(s) • Price quotation(s) • Uncontrollable acts

22. Contract • Substitutions • Change order(s) • Service ratios • Other extra charge(s) • Billing procedures • Collection procedures

23. Guarantee • You will have to provide a head-count guarantee and/or dollar amount guarantee. • At the time specified by the agreement, the meeting planner must finalize the count of attendees. • A guarantee deposit is normally paid at this time.

24. Guarantee • A guarantee provides the information that will drive food production, staffing, and sales revenue. • With a guarantee, the caterer is assured of receiving payment based on either the guarantee or the number of attendees served (whichever is larger). • Without a guarantee, the caterer doesn’t know how much food and beverage to order and how much labor to call in.

25. Guarantee • Guarantees are generally required 48 hours in advance of the event. • Sometimes a 72-hour advance notice is required if the event is held over a weekend or in a location that doesn’t receive daily deliveries. • Sometimes a caterer will take a minimumguarantee 48 hours in advance, and the meeting planner can add to that number up until 24 hours prior to the event.

26. Guarantee • Caterers must charge for the guaranteed number of attendees regardless of how many attendees show up. • They still have labor, food, and beverage costs, but no compensation for them if the number falls below the guaranteed count and they did not charge for the guaranteed number.