Last updated on 2024年7月28日

How do you negotiate contracts and terms with your catering and banquet clients?

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As a catering and banquet professional, you know that creating delicious and appealing menus is only part of your job. You also need to negotiate contracts and terms with your clients, ensuring that you meet their expectations and budget, while also protecting your own interests and profitability. In this article, we will share some tips and best practices on how to negotiate contracts and terms with your catering and banquet clients, covering topics such as:

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you,…

1 Pricing strategies

One of the most important aspects of negotiating contracts and terms is pricing your menus correctly. You need to consider factors such as food and labor costs, market demand, competition, seasonality, and client preferences. You also need to decide whether to charge a fixed price per person, a variable price based on consumption, or a combination of both. You should aim to offer a fair and competitive price that reflects the value and quality of your service, while also covering your expenses and generating a profit margin.

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you, Leader in the selling and buying of all Restaurants, Bars, anything Hospitality for 44years.
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Simply put, listening to your clients needs and wishes helps you formalate what type of function they wish to have. By allowing them to explain what they want, you are enabling them to be a part of the planning and making them feel comfortable with the many options you can present to them to make their catered affair one that they will certainly look forward to and create trust. Be in control but allow their input to make them feel that you are adhearing to their wishes yet allowing yourself to control the event.

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Michael D Souza

Failure Analysis Engineer at AMD | B.Eng. (Hons) MSE, NUS
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To determine a fair pricing strategy, restaurant owners should take a look at the rates offered by competitors. Moreover, the variety of food available at catering size should also be taken into account before deciding on a price.

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2 Service details

Another key element of negotiating contracts and terms is defining the scope and details of your service. You need to specify what is included and what is not in your catering and banquet package, such as the number of guests, the menu items, the beverages, the equipment, the staff, the setup, the cleanup, and the delivery. You also need to clarify the roles and responsibilities of both parties, such as who will provide the venue, the decor, the entertainment, the licenses, and the insurance. You should communicate clearly and transparently with your clients, and avoid any misunderstandings or surprises.

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you, Leader in the selling and buying of all Restaurants, Bars, anything Hospitality for 44years.
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Allowing your client to control the event is a mistake. You should explain the timing , procedure, allowing for their special requests and explain ( especially formal affairs) how best the planning will fit their details. There are so many variables associated with running a good function, one should instill confidence to your client that it will go off easily if we follow the plan set forth.

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3 Cancellation policies

A third crucial aspect of negotiating contracts and terms is establishing the cancellation policies and procedures. You need to protect yourself from the risk of losing revenue and wasting resources if your clients cancel or change their plans at the last minute. You should set clear and reasonable terms for cancellation fees, deposits, refunds, and rescheduling options. You should also explain the consequences of force majeure events, such as natural disasters, pandemics, or civil unrest, that may affect your ability to perform your service. You should have a written contract that outlines all the cancellation policies and terms, and have your clients sign it before confirming the booking.

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you, Leader in the selling and buying of all Restaurants, Bars, anything Hospitality for 44years.
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Contrat done right spell out the particulars of any event. Should be clearly outlined what their reponsibilities are and what happens if you cancel. I have found that being transparent and allowing time for the clients to read, listen and sign an agreement only when they understand the terms iof the event.

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4 Payment methods

A fourth important aspect of negotiating contracts and terms is agreeing on the payment methods and schedules. You need to ensure that you receive your payment in a timely and secure manner, and that you avoid any disputes or delays. You should decide whether to accept cash, check, credit card, or online payment, and whether to charge a service fee or a gratuity. You should also determine when and how to collect your payment, such as upfront, in installments, or after the event. You should provide your clients with a detailed invoice that shows the breakdown of your charges and any taxes or fees.

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you, Leader in the selling and buying of all Restaurants, Bars, anything Hospitality for 44years.
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Functions should have a spelled out payment plan. Once again, a good understandable contract will spell out clearly the responsibilities of the client including differerent options to pay , guarantee's and make easy the particulars and what they cost. Yes, spelled out is paramount here.

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5 Feedback and reviews

A fifth valuable aspect of negotiating contracts and terms is soliciting feedback and reviews from your clients. You need to measure your performance and satisfaction levels, and use the feedback to improve your service and reputation. You should ask your clients for their opinions and suggestions, either verbally, through a survey, or through an online platform. You should also encourage your clients to leave positive reviews and testimonials on your website, social media, or other channels. You should thank your clients for their feedback and reviews, and respond to any complaints or issues promptly and professionally.

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you, Leader in the selling and buying of all Restaurants, Bars, anything Hospitality for 44years.
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Its a great policy to always ask where do you hear of us? allow the client to talk about what they know and open up. Its relationship building for their special event. If allowed, they will be a wealth of information for you

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Bob Cioffi

Executive Vice President-National Restaurant Exchange : The Hospitaliyt Brokerage Specialists" We get it done for you, Leader in the selling and buying of all Restaurants, Bars, anything Hospitality for 44years.
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Be open, friendly, listen. Make your client feel comfortable. I always offered a non alcoholic beverage and one of two oif my favorite appetizers to settle them in. Gives them a chance to allow you to put your best foot forward and upsell items they do not know about.

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How do you negotiate contracts and terms with your catering and banquet clients?

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1 Pricing strategies

2 Service details

3 Cancellation policies

4 Payment methods

5 Feedback and reviews

6 Here’s what else to consider

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