Banquet Events Require Teamwork

Many hotels experience banquet revenues equal to or higher than 50 percent of total food and beverage volume. Managing the profits from the banquet operation starts with the order team. These events often involve booking rooms, package deals, and other incentive plans. Profit potential varies depending on the competition for the account and the sales team’s decisions.

After each event is booked, the kitchen receives the contract menu details for each banquet event order (BEO). Since the chef is usually involved with the menu planning activities for banquet events, it is often interesting to see their surprise at the prices charged for certain events. I have helped chefs calculate expected gross margins on several accounts. All too often, events are sold with very little profit potential.

When the hotel expects a very high occupancy rate, these sweet deals can have a negative impact on overall results. It is these peak days when the sales team needs to work closely with the kitchen team before promising the prospect a discount.

If the hotel is in the slow season and management has decided to promote banquet business, the kitchen can offer suggestions for appropriate menus which may be offered at a discounted price. The entire operation will benefit if the sales and production teams work closely to improve banquet returns.