Going The Extra Mile
Smart marketing and creative thinking can lead to a profitable off-site catering business.
By Rebecca Oliva, Associate Editor -- HOTELS Magazine, 6/1/2004
|
Driving revenue, building brand awareness and maximizing kitchen equipment and talent—the reasons for running an off-site catering business are plentiful. Many F&B directors have taken their off-site catering business to the next level—building it into a lucrative revenue stream by taking on more responsibilities as total event planners.
A lot of properties have a meeting concierge or wedding concierge in-house, which can double as an off-site event specialists as well, says Robert Mandelbaum, director of research information services, The Hospitality Research Group of PKF Consulting, Atlanta. “Clearly the benefit is that it is yet another revenue source,” he says. “If your ballroom is full, off-site catering is another way to book a party.”
Off-premise catering also helps to maximize existing assets—turning down time into prep-time for catering orders—and allowing hotels to use their labor and facilities more efficiently. With most of the necessary equipment on hand, hotels are prime candidates to conduct such off-site events.
Get Noticed
“We got into this as another extension of our business,” says
George Patten, director of catering, The Fairmont San Jose. “We
have a lot of repeat clients, and there were some days where we were
booked but didn’t want to turn away business.”
Last year the 805-room Fairmont San Jose pulled in US$500,000 in off-site catering revenue and, Patten says, this year they will surpass that amount. Much of the business is derived from exclusive and preferred partnerships with convention halls, museums, and other event and meeting locations. Those partnerships, Patten says, help the hotel maintain a steady income from outside catering. Its most profitable exclusive catering partnership is with the Summit Center, a conference facility that houses more than 40,000 sq. ft. (3,716 sq. m) of space. Along with occasional events, the hotel caters a weekly lunch to the local Rotary Club.
|
Aside from exclusive partnerships, many hotels have found success by niche marketing. The Conrad Istanbul has made its name in the community for catering large, sit-down dinners in private homes for up to 3,000 guests. The 634-room hotel also markets its catering expertise to the Jewish community, touting its separate kosher kitchen. These efforts have made it the No. 1 caterer for kosher events in the city. Yet, since 90% of Istanbul’s population is Muslim, the F&B team has made it a priority to learn about special customs for such religious celebrations. The targeted marketing has paid off in a big way—bringing in approximately US$3.6 million in off-site catering revenue, 30% of its total banquet revenue. Additionally, it has secured more than 100 exclusive and preferred catering partnerships.
Similarly, Raffles Hotel, Singapore, found its niche in catering boutique events with an average size of 20 to 50 guests. “We are known in the community when it comes to very high-end boutique events,” says Nikheel Advani, hotel manager. The 103-room hotel caters around 70 events per year, which yields 10% of the hotel’s catering revenue.
Operations Of A Different Kind
While revenues make the effort worthwhile, taking the
show on the road poses its own set of challenges, two
of which are equipment and labor. Before every event, Patten and the client
visit the site two or three times to go over the menu,
set-up and service plan. “Since the location dictates what type of menu
we can serve, it is important to figure out the proper type of
equipment needed. Then you can go from there,” he says.
Typically, there are few large pieces of equipment needed for catering off-site. Patten and his team use a gas-powered electric oven to do the bulk of the cooking; the equipment enables them to prepare food for up to 200 guests. The Fairmont San Jose also purchased separate serving and holding pieces such as thermally controlled hotboxes. But Patten asserts, the hotel owns most of the necessary equipment.
Even if there is a kitchen facility at the location, it is best to use your own equipment or rent it, says Michele Tyrrell, director of conference services and catering, The Fairmont Palliser, Calgary, Alberta, Canada. She lists issues such as power access and health safety as reasons she relies on the hotel’s equipment. “Every location has its challenges, and we just determined that with the expertise and equipment we have in-house it works better if we use it.” The 405-room hotel caters off-site up to 10 times per month, accounting for 2% to 5% of catering revenue.
|
For jobs that require additional ovens or trucks, Patten relies on a rental supply business. These extra costs can be passed along to the client as Patten charges a US$1,000 cater-out fee or raises the price-per-person. While he admits charging these fees makes it difficult to compete on price with other caterers, many of Fairmont San Jose’s loyal guests base their decisions on Fairmont’s consistent results and reputation for quality of service.
To maintain the service integrity and culinary standards, Patten employs 100 to 150 separate employees for off-site catering jobs. “It is important to take the same team outside with you again and again,” he says. “They have all the same training and experience. You do not want a new person going outside because it is not a good place to train. We have the same standards as if the event were in the hotel. The product you are buying is identical to that of the hotel.”
The same philosophy goes for management. Both Fairmont properties employ a separate manager for off-site events, and the executive chef or the executive sous chef always attends the event to oversee kitchen operations.
Generally, off-site catering is more labor intensive and, therefore, requires a larger staff. “With outside catering you require more attention for set up and breakdown,” says Assad Farag, general manager, Conrad Istanbul. “You need the extra staff because you always want to exceed expectations.” Since Conrad Istanbul caters to larger crowds, Farag increases his staff-to-guest ratio from one per 15 guests to one per 10, and one manager per 50 guests. The hotel employs 53 full-time banquet servers and keeps up to 87 more on-call.
|
Make The Most Of The Event
Off-site catering is an opportunity to attract more business
to the hotel and build brand awareness. If a customer
is choosing the hotel to cater a party, it is probably because they had
a great experience at the hotel, Farag asserts. Therefore, the quality
of the catering experience must match or exceed that
of the hotel experience. “Pride plays a large role in off-site catering
because you are exposing a client to your hotel,” Farag says.
So good service applies both to your client and to
their guests.
This is where the planning stages of off-site operations differ from events on property. Farag involves the F&B team in the initial stages of planning. “After booking, the chef is the first point of contact with the client instead of a sales manager,” Farag says. “The venue is a very big part of the menu and the production itself.”
Often the surroundings dictate how creative you can be, Farag says. “Off-site catering is a good way to show off your talent in the kitchen,” he says. For example, the Conrad’s Executive Pastry Chef Martin Lynch made a replica of an army barrack out of chocolate for a gala dinner at an army base. The dessert was displayed for all guests to see over the course of the night, and then it doubled as a memorable last impression. The hotel once catered a large event outside amidst hundreds of Turkish trees. Lynch was so inspired by the surroundings he created miniature trees to display on each guest’s plate.
Others use the off-premise opportunity to spread their name. Both the The Fairmont Palliser and Raffles Hotel extend brand awareness with signage, signature silver and linens, uniforms and nametags. “The brand’s standards are maintained by ensuring our staffing ratios, food quality and overall presentation is consistent with our in-house events,” Tyrrell says.
And while promoting the brand name is important, Farag says, nothing attracts more business than creativity. Outside catering jobs call for thinking outside the box—putting aside what is standard operation at the hotel and being able to adapt to new surroundings with creative menus or décor. When Raffles caters an event the hotel usually has control of the whole event—from the flowers to the invitations to the cleaning, when necessary. “There are no limits to creation of the theme,” Advani says.
Off-Site Catering Advice From The Experts
Know Your Market. Find out as much as you can about the competition and then offer something more. Assad Farag, GM, Conrad Istanbul, says it is easier to create a niche with outside catering because it affords you the chance to break out of the boundaries. Conrad’s focus on kosher meals and its determination to learn about Ramadan celebrations paid off in a major way as the hotel is best known for catering those events.
Advertise Wisely. Many groups book a hotel to do off-site catering because of their reputation. Fairmont Palliser’s Michele Tyrrell says the best sales approach is to rely on a few good referrals. “We primarily cater to repeat clients, and so we market to our clients mainly by word of mouth. We prefer to use a personalized sales approach that caters to the individual client’s needs,” she says.
Exploit Your Talent. There are many assets a hotel can offer that go above and beyond any catering company. Farag suggests that you use your kitchen talent to gain more business. The Conrad’s Executive Pastry Chef Martin Lynch is famous in the community and does many custom jobs. Lynch along with the other chefs put their talents to good use to come up with creative themes for events.
Know Your Capabilities. Tyrrell says while Fairmont Palliser doesn’t have a separate menu for off-site catering, she strongly suggests items that can be cooked on-site or will transport easily. Items include cold platters, flambé stations, a whole roast of prime rib or tenderloin. Conrad Istanbul does most of its prep in-house and then reheats it in a “rolling kitchen” truck.
“You can do most anything as long as you plan ahead,” Farag says.
Double-Check Everything. Fairmont San Jose’s George Patten double-checks the equipment lists and then watches as each item is loaded into the truck. “You definitely don’t want to drive 20 miles from the hotel and realize you forgot something,” he says. “I always double-check.”
Raise The Bar. Remember that every event is a chance to attract more business to your hotel. With that in mind, Farag says, “always exceed guests’ expectations.” For instance, the hotel recently catered a 614-guest party at a private home, offering a choice of fish or steak. While most caterers cooking meals in the back of a truck wouldn’t consider that idea, Conrad pulled it off successfully and impressed guests.
On The Side
F&B People
- The Fairmont Copley Plaza, Boston, names Maxence Compagnon director of food and beverage...
- Willard InterContinental Washington D.C., appoints Michael O’Donohue food and beverage director...
- Mandarin Oriental, Miami, names Thomas S. Parlo executive chef...
- Oliver Schulz-Jander is appointed F&B director at Viceroy Palm Springs, California...
- Edward Farrow is named chef de cuisine at Julien restaurant at the Langham Hotel, Boston...
- The Four Seasons Resort Whistler, BC, Canada, appoints Edel Forristal director of F&B and The Four Seasons Resort Palm Beach, Florida, names Stephanie Rowe restaurant chef and Jeffery Smith executive pastry chef...
- Grove Hotel, Boise, Idaho, names Rick D. Sordahl executive chef...
- Chef and Restaurateur David Bouley will be opening a signature restaurant at The Ritz-Carlton South Beach, Miami, in September 2004...Grand Hyatt Singapore names Robert Dallimore director of F&B...
- Radisson Hotel Kathmandu Konala, Kathmandu, Nepal, appoints Ram Krishna Reddy executive chef...
- Omni Orlando Resort at ChampionsGate, Orlando, Florida, appoints Richard Galipault catering manager for the golf and meeting resort opening October 2004...
- Conrad Miami, set to open spring 2004, names Roger Ruch executive chef.
View All Blogs
