How The Rising Prices Of Food And Beverages Affect The Event Management Industry
If you will notice, there is one thing common in corporate events, annual banquets and conferences including weddings – food and beverages. In all the events, food and beverage take centre stage; however, industry experts report that the high cost of food and beverages have a dampening effect on the event’s budget.
Prices of food and beverages are rising globally. Since the cost of food and beverage represents 30% to 50% of an event budget, event organizers and consumers are concerned about its effects in the industry. On the other hand, industry experts in Northeast Ohio say that events are not yet affected because the increase in food and beverage prices are still to be felt.
Adding to the pressure faced by event organizers is Cleveland’s high visitor profile because of the explosion of new hotels and the Republican National Convention. Because the demand for hotel rooms is very high right now, event venues have less incentive to provide corporate events with discounted rates. Hotels that want to profit from large groups of businesses boost the bottom line by increasing the prices of its food and beverages.
In order to sustain the events management industry, it is important to inform clients of the trend in the industry. Since food and beverages account for 30% to 40% of an event’s budget, clients must realize that whatever bargains enjoyed last year are not available this year. For example, if changes are made in the entrée selection, increased costs can be mitigated. Instead of fillet, short ribs can be suggested.
However, the choice of food and beverages is usually a decision made the hosts and not the organizers and caterers. The cost of food per person may increase substantially but it will not have an adverse effect on the willingness of corporations and businesses to hold events.
When you want an event to be different from the rest, give conference management service a call. Aside from honesty and ethics, the event organizer will work with you to ensure the best possible outcome. Flawless on-site execution is guaranteed because the event management team set exceptionally high standards in the performance of their tasks.
