Catering - The Breadwinner For the Food and Beverage Operation
Are You Leveraging This Revenue and Profit Vehicle?
By S. Lakshmi Narasimhan Founder, Ignite Insight LLC | April 06, 2014
Diversity – Its Strong Suit
The food and beverage operation is diverse. It has a multitude of outlets each boasting a bewildering variety of permutations, combinations of food and beverage fares. A restaurant outlet can be an All Day dining outlet, a bar, a fine dining outlet, a snack outlet, a lounge, a deli or gourmet shop, a patisserie, to name some types. However, these are purely from the dining outlet operation category. A major part of the food and beverage division is the catering or banquet operation, quite different from the dining outlet types. It is thus apparent that diversity is indeed the strong suit of the food and beverage operation.
The types of outlets listed above are diverse not just in their nature but right from the kind of fare they serve, through to being food or beverage oriented or both, right down to customer profile and price points. They differ in virtually every facet of their respective operations.
Catering – a Unique Animal
The Catering or Banquet operation provides yet another set of varied dimensions to the food and beverage operation. The Catering operation is that chunk of the food and beverage operation, which is driven by market segments more than the traditional meal periods. Although the Catering operation can and does support meal periods, its source of business is derived from market segments. This is because the convention and meeting segments pre-dominantly drive the Catering operation.
Conventions and meetings are the bread and butter of the Catering operation. The best way to distinguish conventions from meetings would be to simply call the former a mega meeting normally with a big chunk of rooms business at the forefront. Conventions are big events - examples are conferences, workshops, retreats, and so on. They may be held in city hotels which are convention oriented or as is more and more the trend, at resorts away from the hustle and bustle of the offices.