Banquet Facilities
Transcription
Banquet Facilities
Banquet Facilities Most facilities have in-house event-planning professionals to assist clients in identifying the “look and feel” of an event and to take care of many of the details associated with hosting an event. Listed below are the primary decisions that event planners help clients make: Industry Overview Banquet facilities -- also called “event sites” -- and related services are found in several different types of food service operations: Event-Planning Activities • Concept or theme. What’s the message conveyed by the event and does it relate to the company’s or client’s vision or strategy? • Venue. Planners consider location, size, style, ambience, parking, price and catering options in choosing a site. Restaurants that host special parties and other events in their own catering and private dining areas. • Invitations. Well-designed, creative, memorable invitations can set the tone for the event. • Historic homes, museums, concert halls, stadiums, country clubs and other spaces that rent out their banquet facilities and do catering for special events. • Food and beverage. Caterers and facility operators should have experience with the style and size of the event being planned. • Hospitals, universities and “contract employee feeders” -- also known as non-commercial operators -- that serve patients, students and employees and also cater events. • Decor. Furniture, lighting, wall and table displays, and accent props all combine to create a unique environment in which the event theme stands out. • Entertainment. The right performers can energize, inspire, or relax an event to reinforce the feeling the event planner is trying to establish. • Budget. An initial event budget is key, to ensure planned concepts fit into spending parameters. • Freestanding facilities that provide space and partyrelated service for weddings, receptions, parties, luncheons, and religious-themed and work-related events, among others. • Hotels with onsite catering and banquet sales staff that can accommodate all types of groups. • Equipment rental revenue in the party and events business in 2005 reached $1.85 billion (Event Solutions, April 2006). Rental of party equipment and supplies is just one of several ancillary products and services that banquet facility operators offer in-house or through thirdparty specialists. Others are depicted below: Ancillary Products and Services Offered by Banquet Facilities and Event Sites % of Facilities Offering 78.9% Power* Dance floor Staging 73.6% 73.6% 73.6% 70.2% 64.9% Audio visual Table and chair rentals Linen rentals Lighting and sound Additional decor 63.2% 52.6% 52.6% Entertainment Wedding accessories Florals 36.8% 36.8% 0 10 20 30 40 50 60 70 80 Source: Event Solutions, “2006 Black Book.” * Additional power is often needed to run sophisticated sound/light displays. Source: The Portland Business Journal, April 3, 2006. Issues and Trends The health and vitality of the banquet facility business is heavily dependent on the catering and event-planning business. With the economy humming along, 2006 is expected to end on a good note for most operators, following a strong 2005, in which more than two-thirds of all banquet facility and event-site operators saw gross revenue gains. Average gross revenue increased by just over 17% in 2005, and gross profits inched up to 18.2%, from 13% gross profit margins the previous year (Event Solutions, “Black Book 2006”). © 2006 Profile America, Inc. All rights reserved. www.profileamerica.biz Freestanding banquet facilities number around 3,500, and they generate average revenue of around $300,000 annually (according to D & B Marketing Solutions’ www.zapdata.com and 2006 Hugo Dunhill Mailing List Company). Hotels and resorts involved in staging events number in the thousands, and the revenue they generate from events averages more than $1 million (Special Events magazine, November 1, 2006). Facilities categorized as banquet halls lost ground with event planners, who gave more of their business to hotels, resorts and convention centers. Banquet facilities were used by 29% of all event planners in 2005, down from 33.2% in 2004. The chart that follows indicates the relative popularity of sites used by event-planning professionals. Most Popular Event Sites Used (% of Event Planners Using Selected Venues) Hotel/resort Convention center Tent/structure Banquet hall Outdoors Corporate facility Museum/zoo/gardens Arena/stadium/theater Restaurant Private residence Club 10 20 30 40 50 Yet there are ways to pare down banquet facility costs for weddings, and facility operators who can advise their clients on creative ways to trim the budget have a competitive advantage over those who simply want to rent space and leave all the planning to the client. Weddings and Banquets on a Budget • Late night weddings with receptions featuring champagne, coffee, and desserts are elegant but economical. A 8:30 post-dinnertime exchange of vows shortens the reception time and labor costs, while the food and beverages cost much less than soup-to-nuts sit-down dinners or lavish buffets. • Holding a champagne-and-cake reception in the same place as the wedding, and doing it in the afternoon, can save the bridal couple, or their parents, 40% to 50% on the final tab. • Serving lunch instead of dinner and utilizing the banquet hall’s own centerpieces instead of customized arrangements dramatically cuts cost. Adding personal touches to the place settings and centerpieces helps create a unique experience. • Morning weddings, with brunch receptions, allow consumers to serve lighter and less expensive food and avoid the full bar. • Mid-afternoon weddings generally are too late to serve lunch and too early to serve dinner, so light hors d’oeuvres or small plates would be sufficient, and much less expensive than complete meals. • How the food is arranged on tables at a buffet reception can be a money-saver. Put the most expensive items at the end of the line and the least expensive items at the beginning. The timetested idea is that guests will fill up their plates before they get to the high-cost items and won’t have anyplace to put the big-ticket foods. 66.4% 38.1% 30.1 % 29.0% 20.9 % 25.9% 11.7% 18.9% 13.5% 24.0% 15.7% 0 and a reception typically accounting for 50% of the cost, it’s a major challenge for clients, banquet facility operators, and event planners to hold receptions that are memorable without breaking the bank. 60 70 80 Source: Event Solutions, “2006 Black Book.” While the banquet facility and event-site industry overall is heavily dependent on corporate events, the consumer side of the business is vitally important to most smaller banquet facility operators. Free-standing banquet facilities provide party planners -be they corporate types or consumers who need to rent space for a wedding or other celebration -- with certain advantages when they book those venues, including the following: Advantages of Doing Business with Freestanding Banquet Facilities • Dedicated staff fully accustomed to event planning dynamics and pitfalls. • Full kitchens onsite. • Well-established relationships with party-item vendors. • Multiple areas, each with its own style, where different events can be held concurrently. Consumers use banquet facilities primarily for wedding receptions and other celebrations -- like golden anniversary or Bar Mitzvah parties. With wedding costs in the U.S. averaging in the $27,000 range, Source: Association of Wedding Planners International (AFWPI) “Tips for the Banquet & Reception,” 2006. As in most industries, attracting clients is dependent on generating positive word-of-mouth, highlighting what differentiates one banquet facility from another, and using a variety of advertising vehicles to communicate meaningful messages to target markets. Banquet facility operators spend an average of 5.4% of gross revenue on advertising and marketing, using traditional media as well as online marketing (which has become standard practice in the industry). According to Event Solutions “2006 Black Book,” 95% of banquet facilities and event sites have websites, up from 80% in 2000. Among those that have websites, more than 80% use Internet marketing to attract clients, up from 55% in 2000. © 2006 Profile America, Inc. All rights reserved. www.profileamerica.biz The chart that follows provides details about the marketing and advertising methods used by banquet facility and event site operators. Marketing Methods Used (% of Operators Using Selected Media) Internet 81.3% Local print media 79.3% Direct mail 62.1% Yellow Pages 36.2% National print media 28.0% Local TV 19.0% National radio/TV 3.4% 0 20 40 Banquet facilities typically have higher “average invoice” amounts, because most clients use facilities for more than simply renting space. Catering, party equipment rental, valet parking, wedding planning, floral arrangements and other decor is often included in the final invoice that banquet facility operators send to clients. Event Solutions “2006 Black Book” reported that the average banquet and event site invoice is $25,560. Critical Success Factors 31.0% Local radio several times that, and simple wedding receptions in small banquet facilities can cost much less. 60 80 100 Source: Event Solutions, "2006 Black Book." Selecting the right banquet venue and handling logistics efficiently can make all the difference between a successful occasion or a failed one. Listed below are a few guidelines that facility operators should follow to ensure that events happen as they are planned: In advertising to attract new clients, the owners and managers of banquet facilities mention characteristics of their businesses which they believe will appeal to clients’ desire for reliable products and services. Some of the characteristics they mention can be categorized as “confidence factors” and some as “convenience factors.” Examples follow: CSFs for Banquet Facilities • Be cognizant of and ready to explain labor costs and the logistics that will be required to transport people to and from the site -- and be up-front about any activity restrictions associated with the site. • Be flexible and accommodating when clients make special requests. Events often require that equipment is delivered in tight “windows of opportunity,” so staff should always be on hand to oversee delivery and ensure that equipment is secure and installed without problems. • Make available technical, design and audio team personnel before and during all phases of the event, to help make planners comfortable that the event will occur as they envision. • Be creative in adapting the facility to reflect the theme that the planner or client has chosen. • Ensure that any technical aspects associated with providing the entertainment can be hidden from view when the space is in use, to maintain ambience and a clutter-free environment. • For corporate events, thoroughly understand the goals of the meeting or event: Will there be intensive training sessions? Will attendees need to use laptops or take notes? Is the meeting formal or casual? How much free time will be built into the schedule? Is there flexibility as to when lunch or dinner can be served? Confidence Factors Mentioned in Ads Free and Ample Parking Years in Business Professional Party Coordinator Professional Menu Planning / Event Planning Hotel Affiliation Non-Smoking Facility References Professional Staff Specialty - Weddings, etc. Renowned Food, Quality Source: 2005 Comparative Ad Analysis Survey, Norbert J. Kuk & Associates Convenience Factors Mentioned in Ads Phone Estimates Toll Free / Fax Number Location Data / Maps Days / Hours to Call Square Footage Given Valet / Validated Parking Free Consultation Website / E-Mail Address Complete Convention Facilities Order Online / Virtual Tour Menu Online Source: 2005 Comparative Ad Analysis Survey, Norbert J. Kuk & Associates Value of Products and Services in the Industry According to the Event Solutions “Black Book 2006,” the average cost to rent a facility for an event in 2005 was nearly $6,000 ($5,927). Corporate events can cost Source: Event Solutions, May and July 2006. Industry Resources Event Solutions, www.event-solutions.org Special Events, www.specialevents.com Catersource LLC, www.catersource.com National Association of Catering Executives, www.nace.net © 2006 Profile America, Inc. All rights reserved. www.profileamerica.biz Background Values and Benefits Media Marketing, Inc., creators of imMEDIAte® software, has been in the forefront of sales presentation systems since 1987. The imMEDIAte suite, a state-of-the-art consultative system, is used by hundreds of media reps every day to create compelling presentations and expert media proposals. Built on Microsoft Office® technology, the imMEDIAte system provides a complete solution to your media sales needs. Media Marketing is an authorized distributor of Profile America’s IndustryIQ reports. Sales and marketing teams embrace these industryknowledge reports because of their concise, easy-to-read style and rich store of information. 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IndustryIQ is distributed by Media Marketing, Inc., in association with Profile America, Inc., for use by advertising sales representatives. Although the information in this report has been obtained from sources that Profile America, Inc. believes to be reliable, no guarantees are made as to the accuracy of the information presented, and any information presented may be incomplete or condensed. © 2006 Profile America, Inc. All rights reserved. www.profileamerica.biz