Even in the best of time, it can be tough to manage the food & beverage budget for your meetings and events … and these are not the best of times. With the current political volatility, rapid global economic shifts, and the threat of reciprocal tariffs on international trade, meetings and events planners should prepare for sudden and steep spikes in food & beverage costs, as well as unanticipated shortages that may hit even the most common menu staples.
Currently, there is simply no way to predict all the potential fallout from the many proposed tit-for-tat tariffs or when we will feel their impact. But there are some steps you can take now to minimize the impact of rising costs in the short-term and protect your organization’s investment in upcoming meetings & events. Here are some tips on how to stretch your food & beverage budget while making the most of your attendees’ experience.
Plan Your Menus Around Locally Sourced Cuisines
One area sure to be hit hard by tariffs is imported food and beverages, so save money during your upcoming events by diving into the local cuisine. Often, traditional dishes from the region made with locally sourced ingredients are less expensive to prepare and can be a great way to incorporate the local culture into your event. Also, if you’ve considered embracing the “Farm to Table” movement, this might be your year. Work with the hotel’s Catering management and Executive Chef for recommendations on local suppliers for fresh, seasonal foods that taste delicious, save money, and ensure availability.
Stay Flexible and Establish Open Communications
Unless your event is specifically food-focused or your attendees have exacting culinary requirements, be flexible and consider whether every food function is mission critical to the success of your event. Hotels typically publish their banquet menus and pricing annually. If tariffs subsequently make certain menu items prohibitively expensive or availability scarce, price changes or menu substitutions may happen without notice. Of course, if you have serious concerns about changes to your menus, reach out to your Catering Manager. They can be an incredible resource for creative solutions to your food & beverage issues. But otherwise, be flexible and keep and open mind.
Submit Your Banquet Event Orders Early and Lock in Pricing
You may be in the habit of waiting until shortly before your event to plan menus and submit your Banquet Event Orders. Even if your event is much later in the year, tell your Conference Services Manager you want to submit your Banquet Event Orders early. Not only can that help the hotel’s Catering staff and Executive Chef manage their internal operations, but you will protect your organization from sudden price increases down the road. You may have to deal with substitutions down the road, but you’ll be in a better position to negotiate.
Build Room in Your Budget for Price Increases
Here’s trick that professional planners use to save money for their clients. Hotels routinely prepare a certain amount of food over the anticipated number of guests, usually it’s around 5%. For larger events, savvy planners deduct this number from their guarantee before sending it to the hotel. It’s important to correctly communicate this in your Banquet Event Orders. For example, if you have 100 people attending a dinner, your BEOs should state “Set for 100 | Guarantee for 95.”
IMPORTANT use with Caution! Do not try this technique with small groups, or if you are unsure of the final count, or if you have already cancelled or reduced other meal functions or breaks. However, if you routinely see uneaten food heading back to the kitchen, consider reducing your guarantee to save money on uneaten portions.
Get Some Professional Help for Creative Solutions
Many people think professional planners are only for weddings or social events. But using a professional meeting & event planner can save you significant time and money earning you negotiated savings and upgrades of which you may not even be aware. Professional planners have access to tools that let them search for hotel deals that are specific to group business. For example, if you want to save money on breakfasts without downgrading to limited-service hotels, a professional planner can help find discounts on hotels with concierge level rooms that include free breakfast and a happy hour as a better option. In addition, professionals can reduce your risk to penalties for cancellation or underperformance when negotiating contracts. In uncertain times, turning to a professional for help can be a smart move.
Enjoy the Experience – Even on a Budget!
Every meeting planner wants meal services that are enticing, delicious and memorable (in a good way) and a spectacular meal can be one of the highlights of any meeting or event. While rising food and beverage prices can make delivering that level of experience increasingly challenging, try to remember that meetings and events are about the collective experience, so maintain some perspective. Remember, unless you’re Leonardo DaVinci, it ain’t The Last Supper.
With the right preparation and a mindful approach, you can enjoy great food & beverage service without letting tariffs and rising prices spoil your meeting or event. Safe travels and happy eating!
