A Meeting Planner’s A Meeting Planner’s Guide to Catered Guide to Catered EventsEventsChapter TenChapter Ten

Contracts and NegotiationsContracts and Negotiations

Caterers typically require meeting planners Caterers typically require meeting planners to sign formal catering contracts before to sign formal catering contracts before events are scheduled to take place.events are scheduled to take place.

Sometimes a caterer will forgo the use of Sometimes a caterer will forgo the use of formal contracts and instead rely on signed formal contracts and instead rely on signed banquet event orders (BEOs) or signed banquet event orders (BEOs) or signed letters of agreement.letters of agreement.

These documents may be every bit as These documents may be every bit as legally enforceable as formal contracts; legally enforceable as formal contracts; however, they do not use the typical however, they do not use the typical boilerplate legalese boilerplate legalese

More caterers are using letters of More caterers are using letters of agreement as opposed to contracts.agreement as opposed to contracts.

They serve the same purpose.They serve the same purpose. Signing an agreement is less threatening Signing an agreement is less threatening

to most people than signing a contract.to most people than signing a contract. The word “agreement” is friendlier, not The word “agreement” is friendlier, not

quite as cold.quite as cold.

Never book and confirm a catered event Never book and confirm a catered event without a signed agreement.without a signed agreement.

Usually an unwritten contract cannot be Usually an unwritten contract cannot be legally enforced in a court of law unless legally enforced in a court of law unless you are dealing with an agreement worth you are dealing with an agreement worth $500 or less.$500 or less.

Even with small parties, it is good Even with small parties, it is good business practice to detail in writing both business practice to detail in writing both your and the caterer’s responsibilities your and the caterer’s responsibilities and obligations.and obligations.

Banquet Event Order Banquet Event Order The banquet event order (BEO), also The banquet event order (BEO), also

called the function sheet, is the basis of called the function sheet, is the basis of the property's internal communication the property's internal communication system between departments.system between departments.

It is the basic building block upon which It is the basic building block upon which the caterer's accounting and record-the caterer's accounting and record-keeping systems are constructed.keeping systems are constructed.

A BEO is prepared for each meal and A BEO is prepared for each meal and beverage function, and copies are sent to beverage function, and copies are sent to the departments that will be directly or the departments that will be directly or indirectly involved with the events. indirectly involved with the events.

BEOBEO

Usually all departments receive a copy of Usually all departments receive a copy of each BEO a week or more before the each BEO a week or more before the catered function is held.catered function is held.

This ensures that all department heads This ensures that all department heads have enough time to schedule and have enough time to schedule and complete the activities that support the complete the activities that support the events. events.

The typical BEO contains: The typical BEO contains: BEO numberBEO number Function day(s) and date(s)Function day(s) and date(s) Type of functionType of function Client name with signature lineClient name with signature line Client addressClient address Client contact person, or person in Client contact person, or person in

chargecharge Person who booked the event and Person who booked the event and

authorized signature(s)authorized signature(s) Name of function roomName of function room

BEO Contents (con’t)BEO Contents (con’t)

Beginning time of functionBeginning time of function Expected ending time of functionExpected ending time of function Number of attendees expectedNumber of attendees expected Number of attendees to prepare forNumber of attendees to prepare for MenusMenus Style of serviceStyle of service Function room setupFunction room setup

BEO Contents (con’t)BEO Contents (con’t)

Reference to other BEOs or other Reference to other BEOs or other relevant recordsrelevant records

Date BEO was completedDate BEO was completed Signature of person preparing (or Signature of person preparing (or

approving) the BEOapproving) the BEO List of departments receiving a copy List of departments receiving a copy

of the BEOof the BEO

BEO Contents (con’t)BEO Contents (con’t) Special instructions (such as centerpieces, Special instructions (such as centerpieces,

set-by times, parking details, miscellaneous set-by times, parking details, miscellaneous labor charges, sleeping-room blocks, labor charges, sleeping-room blocks, napery, tablescapes, bar arrangements, napery, tablescapes, bar arrangements, props, entertainment, electrical/engineering props, entertainment, electrical/engineering needs, unique underliners, VIPs, and other needs, unique underliners, VIPs, and other special amenities)special amenities)

Prices chargedPrices charged Master billing account numberMaster billing account number Billing instructionsBilling instructions

Resume Resume A resume (also called a convention A resume (also called a convention

resume or meeting resume) is a resume or meeting resume) is a summary of function room uses for a summary of function room uses for a particular convention or meeting.particular convention or meeting.

Normally it is used whenever a meeting Normally it is used whenever a meeting planner books two or more catered planner books two or more catered events to be held consecutively.events to be held consecutively.

The resume usually includes all BEOs. The resume usually includes all BEOs.

ResumeResume

The resume may more appropriately be The resume may more appropriately be referred to as the function room resume referred to as the function room resume as this report details function room use as this report details function room use for a particular client.for a particular client.

It focuses on the major highlights while It focuses on the major highlights while deferring to the pertinent BEOs for deferring to the pertinent BEOs for specific details.specific details.

ResumeResume

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

Resumes Include:Resumes Include: Function day(s) and date(s)Function day(s) and date(s) Types of functionsTypes of functions Client nameClient name Client contact information (address, e-Client contact information (address, e-

mail address, and cell phone number)mail address, and cell phone number) Client contact person, or person in Client contact person, or person in

chargecharge Person who booked the events along Person who booked the events along

with authorized signature(s)with authorized signature(s)

Resumes Include: (con’t)Resumes Include: (con’t)

Beginning times of functionsBeginning times of functions Expected ending times of functionsExpected ending times of functions Number of attendees expectedNumber of attendees expected Furniture and equipment needsFurniture and equipment needs Function room namesFunction room names Room setupsRoom setups Special instructions Special instructions

Resumes Include: (con’t)Resumes Include: (con’t)

Date resume was completedDate resume was completed Signature of person preparing (or Signature of person preparing (or

approving) the resumeapproving) the resume List of departments receiving a copy List of departments receiving a copy

of the resumeof the resume

Resumes Include: (con’t)Resumes Include: (con’t)

Room chargesRoom charges Labor chargesLabor charges Equipment chargesEquipment charges Master billing account numberMaster billing account number Billing instructionsBilling instructions Reference to other relevant recordsReference to other relevant records

Contract Contract Contract dateContract date Function day(s) and datesFunction day(s) and dates Function time(s)Function time(s) Appropriate client and facility signaturesAppropriate client and facility signatures Function room(s) tentatively assignedFunction room(s) tentatively assigned MenusMenus Style(s) of serviceStyle(s) of service Function room setup(s)Function room setup(s)

ContractContract Other client service(s)Other client service(s) Deposit(s)Deposit(s) BreakageBreakage Head-count guarantee(s)Head-count guarantee(s) OversetOverset AttritionAttrition Refunds, returns, and allowancesRefunds, returns, and allowances Outside food and beverageOutside food and beverage

ContractContract TaxesTaxes GratuitiesGratuities TipsTips Service charge(s)Service charge(s) Cancellation penaltyCancellation penalty Room setup charge(s)Room setup charge(s) Room rental rate(s)Room rental rate(s) Setup service charge(s)Setup service charge(s)

ContractContract Display restriction(s)Display restriction(s) Responsibility for loss and/or damageResponsibility for loss and/or damage Underage or visibly intoxicated guestsUnderage or visibly intoxicated guests IndemnificationIndemnification SecuritySecurity License(s) and permit(s)License(s) and permit(s) Price quotation(s)Price quotation(s) Uncontrollable actsUncontrollable acts

ContractContract

SubstitutionsSubstitutions Change order(s)Change order(s) Service ratiosService ratios Other extra charge(s)Other extra charge(s) Billing proceduresBilling procedures Collection proceduresCollection procedures

GuaranteeGuarantee

You will have to provide a head-You will have to provide a head-count guarantee and/or dollar count guarantee and/or dollar amount guarantee.amount guarantee.

At the time specified by the At the time specified by the agreement, the meeting planner agreement, the meeting planner must finalize the count of attendees.must finalize the count of attendees.

A guarantee deposit is normally A guarantee deposit is normally paid at this time.paid at this time.

GuaranteeGuarantee A guarantee provides the information that A guarantee provides the information that

will drive food production, staffing, and will drive food production, staffing, and sales revenue.sales revenue.

With a guarantee, the caterer is assured With a guarantee, the caterer is assured of receiving payment based on either the of receiving payment based on either the guarantee or the number of attendees guarantee or the number of attendees served (whichever is larger).served (whichever is larger).

Without a guarantee, the caterer doesn’t Without a guarantee, the caterer doesn’t know how much food and beverage to know how much food and beverage to order and how much labor to call in.order and how much labor to call in.

GuaranteeGuarantee Guarantees are generally required 48 hours in Guarantees are generally required 48 hours in

advance of the event.advance of the event. Sometimes a 72-hour advance notice is Sometimes a 72-hour advance notice is

required if the event is held over a weekend or required if the event is held over a weekend or in a location that doesn’t receive daily in a location that doesn’t receive daily deliveries.deliveries.

Sometimes a caterer will take a Sometimes a caterer will take a minimumminimum guarantee 48 hours in advance, and the guarantee 48 hours in advance, and the meeting planner can meeting planner can addadd to that number up to that number up until 24 hours prior to the event. until 24 hours prior to the event.

GuaranteeGuarantee

Caterers must charge for the guaranteed Caterers must charge for the guaranteed number of attendees regardless of how number of attendees regardless of how many attendees show up.many attendees show up.

They still have labor, food, and beverage They still have labor, food, and beverage costs, but no compensation for them if costs, but no compensation for them if the number falls below the guaranteed the number falls below the guaranteed count and they did not charge for the count and they did not charge for the guaranteed number.guaranteed number.