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F&B Budgeting and Negotiating Strategies

Presented by: Paula J. Rigling, CMP

President Meeting Planning Professionals

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Saving money on F&B starts at the very beginning of the planning process, with the RFP. !

If you sign the contract before considering F&B, you lose your chance to negotiate.

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Saving Money Starts with the RFP

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What are your F&B essentials?

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RFP F&B Concessions

• Rebates on rooms to apply toward F&B

• 10-15% overall F&B Discount

• Lock in current menu pricing

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RFP F&B Concessions• Comp welcome reception or coffee break • Waived bartender and cashier fees with

minimum bar sales • Waived attendant fees for carving stations

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RFP F&B Concessions• Food & Beverage Minimum – State your F&B

minimum, less 20% allowable a!rition (i.e., $30k F&B minimum X 20% a!rition = $24k final guarantee)

• Performance Damages – Based on lost profit, not lost revenue (i.e., $10k F&B revenue X 35% profit = $3500)

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RFP F&B Concessions• No charge for less than minimum buffets • No charge for Coke vs Pepsi products • Minimum oversets of 5% vs 3%

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RFP F&B Concessions• Reduced priced menus

( ie- $30 incl. for breakfast, $50 incl. for lunch) • If you can’t get reduced pricing, negotiate

upgraded menus or beverages, as that is sometimes easier to get

• Negotiate a corkage fee to bring in donated beverages (the fee itself can also be negotiated)

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F&B Minimum• Ask the hotel up-front what their F&B minimum is for

your dates – not your program • This number varies based on the time of year. • It’s a great number to have before you start negotiating. • Let’s you see if the hotel is the right fit for you and gauge

if you have leverage with the hotel already built into your budget

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F&B Maximum Clause• Too o#en we only worry about an F&B Minimum and

lose negotiating power if we have a history of a higher F&B Spend

• Use your history to negotiate additional concessions that will create real value for your group !“If we spend at least $20,000 on F&B, we’ll unlock these additional concessions.”

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Money Saving Tips When Ordering• Share your budget with the Chef and ask for special menus

to meet your pricing • For larger groups, NEVER order per person for continental

breakfast or breaks, ALWAYS order a la carte as it is much cheaper – Exception: When ordering for a small group of less than

15-20 is it usually cheaper to pay per person than to order a la carte

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Do the Math- Save Money at Continental Breakfast!For continental breakfast order: • Regular Coffee- 1 gallon per 30 a!endees • Decaf Coffee- 1 gallon per 75 a!endees • Hot Water- 1 gallon per 100 • Sodas/Water- Order for 25% of group • Pastries- Order for 75-90% of the group

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Do the Math- Save Money on Breaks!

For breaks order: • Regular Coffee- 1 gallon per 50 a!endees • Decaf Coffee- 1 gallon per 50 a!endees • Hot Water- 1 gallon per 100 • Sodas/Water- Order for 70% of group

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Do the Math- Save Money on Coffee

One gallon of coffee will serve the following: • 21 6-oz cups • 16 8-oz cups • 10 12-oz cups

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Save Money on Breaks• Skip the bottled water, and use hydration stations • Ice down all bottled sodas and juice as people are less

likely to grab extras for their bag if they are dripping wet

• Offer only one item at break — grab and go items work great — whole fruit, protein bars

• Shrink the cups. Ask for 6 oz cups and eliminate “to go” cups as they are usually larger

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Save Money at Meals• Skip the juice on plated breakfasts and place ice

water on the tables instead • Skip dessert at lunch, few people eat it • Eliminate coffee at lunch • Serve lunch dessert at the a#ernoon break- those

same people who decline it at lunch will eat it at 3:00

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Save Money at Receptions• For a hosted bar, offer limited options: beer,

wine and sodas are fine • Get pricing for dra# vs bo!led beer • Pass the Hors d’ Oeuvres instead of placing

them on a buffet, as people usually only take one from a waiter but load up their plate

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Save Money at Receptions• The more options you offer, the more likely people

are to take one of each • Request smaller plates or no plates • Fewer appetizer stations in a big room reduces

consumption. !Remember: A hosted bar increases consumption as people stay longer …

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Do the Math- Save Money on Hors d’ OeuvresLength & Type of Reception Type of Eaters

# pieces ofHors d ’OeuvresPer Person

Less than 1.5 hours with dinner following

Light MediumHeavy

4-5 pieces7-8 pieces10+ pieces

Less than 2 hours with no dinner following

Light MediumHeavy

6-8 pieces10-12 pieces14+ pieces

2 to 3 hours with no dinner following

Light MediumHeavy

8-10 pieces10-12 pieces16+ pieces

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Contact me: Paula J. Rigling, CMP

President, Meeting Planning Professionals pjrig@aol.com

512-791-4701