Posted by Carl Jones on February 12, 19100 at 10:43:11 :
In Reply to: Banquet room price question posted by CJ on February 11, 19100 at 11:50:28 :
: To those with banquet rooms and/or hall, do you
: charge extra for the room or is it included with the
: price of the catering?
: Thanks for any info.
I charge for the rental of my facility.
But what is the question you are trying to ask? The next
person will come back and say they don't charge, but build
it in there menu price.
Let me share with you a great idea I heard that I may test.
Phil Landis, a catering friend of mine from PA, has a cool way
of handling this. IF they spend 3500.00 in food & beverages, the facility is free, The facility fee is half of the difference between 3500.00 and the actual food & beverage purchased.
Example:
If they don't have food then it would be a difference of 3500.00. Half of that is 1750.00, so that is what they pay.
If they spend 2500.00 in F & B, then the difference is 1000.00, they pay 500.00 for the facility on top of the 2500.00.
Now, my opinion is that you should vary your minimums based upon
some key points:
Day of the Week; Seasonality (Sat in June should be more than a Sat. in January); Demand; Competition.
Now, should you have a minimum of 3500.00?? That depends on how you facility compares with the example above. You may have a 1000.00 minimum for yours or a 5000.00 minimum. It depends on the quality of the facility, competition and what the market will pay.
My goal in catering is to charge as much as the customer will pay, make a great living to compensate me for the long, hard, stressful hours of being a caterer.
Hope this helps,
Carl