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Functions and Events Types of events, planning, organising and
costing of an event, hygiene considerations, staffing the event, evaluation
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AIMS AND OBJECTIVES Identify key considerations.
List the different price factors. consider the legal requirements. Create a function sheet. Highlight the importance of communication, timing and feedback in successful planning. Create a feedback form.
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FUNCTION: DEFINITION A function can be described as the service of food and drink at a specific time and place, for a given number of people at a known price. Examples of hospitality functions: Social Functions: Weddings and Anniversaries Business Functions: Conferences, Meetings, Working lunches/dinners
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As a group of three / four, list the different Financial and Marketing considerations you should take into account for successful planning.
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FINANCIAL CONSIDERATIONS
Function catering is most commonly associated with the commercially orientated sector of the Hospitality industry. Gross profit margins in function catering tend to be higher than those achieved in hotel, restaurants and coffee shops. An average gross profit percentage of 65% to 75% is usually required in function catering depending on the type of establishment, customers, level of service, etc...
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Financial Considerations
The financial policy will also determine the pricing structures to the different types of functions and different menus on offer. The pricing structure for an establishment’s function catering will be determined by its cost structure, with reference to its semi fixed and variable costs. There are variety of pricing structures that may be used for costing functions depending of factors such as forecasted profitability, competitors, customers’ needs, etc... Some establishments will also make a separate charge for room hire.
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MARKETING CONSIDERATIONS
The marketing policy of a function establishment will focus on the market which the business aims to capture, and how best to promote the special characteristic of the establishment. An establishment’s marketing policy should contain a review relating to the competition in the area in order to keep abreast of fashions and trends in the function market (you may obtain a quotation from other establishment).
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Marketing Considerations
The function manager should devise a marketing policy for a given period. This plan should take into account: Finance: targets of turnover, profit for a given period Facilities: focused on selling certain facilities Development: the promotion of a new product or concept Promotions: General: How to increase the business and how it is to be achieved Special: Specially designed to be launched in a given period
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Marketing Considerations
Every organisation needs to advertise and promote its functions. There are number of ways in which an organisation can promote the business: Word of mouth Brochures and flyers Press releases Web browser
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Marketing Considerations
Brochures have to be designed carefully using professional designers, printers etc. The menus should be clear with the prices stated. All photographs must be clear and accurate, they should be in no way misleading. Brochures or folders should ideally contain the company logo. The pack should also contain the following: Letter from Meeting and Events manager Details of all function rooms (size and facilities offered) Sample menus Rates and prices (including room hire) Beverage list Location map
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2nd Group Exercise As a group of three / four, list the different factors you should be looking when pricing menus for functions.
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PRICING Functions menus are usually pre-listed with the desired profit margins added to them. These menus will generally have a standard set of purchasing and operational specifications added to them. However there is a normally flexible element added to it. The relationship between price and value for money is important aspect of pricing. It takes into account the whole environment in which the food/drink is consumed – atmosphere, decor and surroundings of the establishment and the level of service.
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Pricing In order to be successful and to obtain a satisfactory volume of sales, pricing has to consider three basic factors: The nature of demand for the product consider the elasticity of demand (how sensitive is price to affect demand) The level of demand for the product Fluctuation in demand makes it necessary to take a flexible approach to pricing, to increase sales (deals) The level of competition for the product Monitoring the competition does not only include the price but the facilities, services, decor, etc...
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Pricing Every business whatever its size can choose to set its prices above its proper costs or at or below the prices of the competitors. The challenge then is to get the costs below the prices which has to be set. No one should intend to sell anything until they have calculated the break-even point. This is the point which the amount of sales (menus-portions) at a certain price have reach to cover their variable costs and all the fixed costs.
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LEGAL REQUIREMENTS All functions must be planned within the legal framework. Considerations must be given to the welfare of staff. Provide Health, safety and Hygiene. The employees must understand the fire regulations and evacuation procedures. Training is important in rick assessment, handling dangerous equipment/chemicals. Companies have a legal responsibilities to the customers, e.g. the customers should be aware of the maximum number of guests permitted in the building due to the Fire Regulations. The issuing of Contract Forms, forms a legal bond between the customer and the venue.
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Legal requirements Special requirements
Dietary needs must be catered for Access, it is important that if a wheelchair access is required it is made available Where it is difficult to accommodate certain special requirements, the customers should be given alternative Food allergies When planning menus for a large function the chef must think of the danger of any food allergies All waiting staff must be informed of the content of the dishes, e.g. Shellfish, gluten, nuts
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MANAGING A FUNCTION Many establishments concentrate and market themselves as a specialist function caterers. The function business may be the company’s sole business; on the other hand it may be part of the product range, for example in a hotel. Policy decisions relating to function catering is determined by a number of characteristics inherent to this type of catering: Space Location Customers’ needs Seasonality Facilities / equipment Marketing strategy
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Managing a Function a considerable amount of information is available to the caterer in advance of the function. This includes: Number of guests Menu requirement Type of menu Price per cover / head Drink requirement IT / equipment needs This information allows the manager to assess the resources requirement: Staffing Food and drinks Linen Equipment
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3rd Group exercise As a group of three / four, create a function sheet that will summarise the required information for successful planning.
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PLANNING A FUNCTION Customers are usually invited for a detailed view of the venue, in some establishment this will include menu tasting. During the visit the customers are encouraged to discuss their menu requirements, which the Events Coordinator will gather. The customer will also be advised of the different options available, for example: Different room layout Choice of menu, vegetarian or allergy requirement Order of service Flowers and decorations (table, room, etc...) Cloakroom requirement Technical requirements, IT needs
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IMPORTANCE OF COMMUNICATION
Communication and flow of information in any organisation is paramount to a successful organisation. Any changes to the function must be immediately communicated to all those concerned. This information could be gathered using various means of communication: Telephone s Fax Meetings This information is then recorded in different stages: Telephone/ s enquiry Hire contract Feedback form Weekly report Thank you letter Invoice
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Internal Communication
Internal meeting is especially important within any organisation. Frequent meetings are essential to inform the staff or the forthcoming events and the expected working hours for the following week. Internal function sheets should be given to the relevant staff at least one week in advance of the function. It is then up to each department to assess their on responsibility and needs relating to the event so that the work can be planned in advance. Final numbers should be confirmed from the client at least 48 hours before the event.
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4th Group exercise As a group of three / four, explain why timing is important for successful planning.
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IMPORTANCE OF TIMING The accurate timing of functions is vital for the following reasons: Each department needs time to prepare for the function. The timing of deliveries is most important as late deliveries cab cause severe problems to the kitchen. In high quality banqueting houses much of the service and presentation is finished at the last minute. Any delays in the function will result in hourly paid staff being paid extra time thus pushing up costs. Timing can affect the smooth running of the function, also to turn the room around.
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IMPORTANCE OF FEEDBACK
It is important that the client feel at ease and being looked after. The functions must be executed as planned in line with client’s needs. At the end of the function it is essential to gain feedback from the client to ensure that if the client was not satisfied a follow up letter apologising or offering some compensation to be sent. This client evaluation should then be passed on to the staff. Some companies will contact the client one to three days after the function to obtain constructive feedback, using a standard evaluation form for them to fill in. Well organised functions can not only be profitable but may also lead to repeat business.
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5th Group exercise As a group of three / four, create a feedback form that you could issue to clients.
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