Just a few years ago, planners were screaming about coffee that cost $80/gallon. Now it approaches $100/gallon. Buffets, which once were the budget-friendly option, now cost more than plated meals. Every meeting needs food and beverage, but the art of culinary negotiation is still one that remains elusive for many meeting planners. In this session, industry veteran Paula Rigling will share her tips for how to save money without sacrificing quality during culinary negotiations, and how to partner with your hotel, venue or catering salespeople to craft high quality, yet affordable menus. This session is worth .5 CMP-IS clock hours in Strategic Domain D: Financial Management. Presented by Paula Rigling at PYM LIVE Austin on May 21, 2014. For more information about PYM and its events for meeting and event planners, visit: http://PlanYourMeetings.com/events

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

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Do the Math- Save Money on Hors d’ Oeuvres
Length & Type of
Reception Type of Eaters
# pieces of
Hors d ’Oeuvres
Per Person
Less than 1.5 hours
with dinner following
Light
Medium
Heavy
4-5 pieces
7-8 pieces
10+ pieces
Less than 2 hours
with no dinner following
Light
Medium
Heavy
6-8 pieces
10-12 pieces
14+ pieces
2 to 3 hours with
no dinner following
Light
Medium
Heavy
8-10 pieces
10-12 pieces
16+ pieces

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Contact me:
Paula J. Rigling, CMP
President, Meeting Planning Professionals
pjrig@aol.com
512-791-4701