Contracting for Catering Cancellations

To avoid problems between the client and

Functions the caterer, cancellation concerns should be
included in the contract. Moreover, the
In carrying out catering functions, contract must indicate the cancellation fee
many factors must be considered in and must be reasonable. In the part of the
determining your price for each caterer, he should be ready with the details
event. These are: of the damage caused the company by the
1. Food and other supplies cancellation.
2. Conditions and location of the service
areas Factors in Determining Charges
3. Facilities and equipment needed Catering income/Total Cost of
4. Venue/location of the function from the Package 100%
production area/commissary Direct Costs
5. Labor and operating costs
Food and supplies 26%
The following concerns are only Payroll 38%
suggestions which hope to guide the Payroll taxes -
caterer in determining his charges Purchased Services 6.2%
that suit the requirements of his Total Direct Costs -70.2%
operation. Gross Profit 29.8%
1. Get a minimum number guarantee for
guests
Operating Expenses
2. Food costs
Advertising and promotion
3. Labor charges
Transportation expenses
4. Distance
Depreciation: furniture and fixtures
5. Charges for personal services
transportation facilities
6. Cost of tools and equipment handling
Gas, electricity, water
and use
Insurance
7. Delivery
Laundry and cleaning
8. Duration of the function
Maintenance and repairs
Permits, licenses and fees
Contracts and Deposits Professional Services: Lawyer and
Practically any business activity involves a Accountant
contract - a binding agreement between Garbage disposal/collection
two or more parties. Rentals
This agreement obliges the caterer to Replacement of table appointments
supply the food and service as agreed upon Office supplies
in the contract. The client, on the other Taxes
hand, is obliged to pay for food and the Telephone
implied services. If either party fails to fulfill Miscellaneous
its obligation, then the other party may Total Operating Expenses 15%
have the right to legal recourse. Net Income 14.8%
Conservatively, upon signing of the
contract, the client makes a deposit of no Summation
less than 50% of the package cost and that Catering Income/Total Cost of Package:
the balance should be paid right after the 100%
completion of the function in some cases, Total Direct Costs: 70.2%
there are catering companies that require Operating Costs: 15% 85.2%
their clients to pay the complete amount Net Profit 14.8%
before the function which is an option.
Master Checklist for Catering: 43. Entertainment
Contact person in charge of the 44. Sanitation facilities -trash bags, hand
gloves, broom, etc.
party/Organizer/Contracting party
45. Washing area
1. Address and telephone
46. Plate warmers
number/cellphone number/Fax number
47. Plate chillers
2. Type of function
48. First aid kit
3. Date of function
49. Can and bottle openers
4. Time of function
50. Flowers
5. Number of rooms assigned/venue
51. Photographer
6. Number of persons/pax
52. Video coverage
7. Guaranteed reservations/number of
53. Mobile services
guests
54. Lighting
8. Expected number of guests
55. Audio visual and sound equipment
9. Serving time
56. Souvenirs
10. Bill made up
57. Cake boxes, packaging materials
11. Dancing/band/entertainment
58. Printing -place cards, menu, tickets,
12. Head table/microphone/podium
stubs,etc.
13. Floor plan
59. Schedule of events
14. Guest list/place cards
15. Ticket collection
16. Menu Terms and Conditions: (Concerns
17. Work schedule differ depending upon the company
18. Purchases 1. Payment of deposit upon reservation
19. Rentals- for extra equipment 2. Full payment before function or right
20. Decorations -banner, flag, sign, after service completion
streamer 3. Cancellation agreement number of days,
21. Check if the food and beverage are amount to forfeit, etc.
ready for service 4. Re-booking of function
22. Check if equipment are ready 5. Duration of function
23. Check if function room is ready 6. Cash/basis/checks honored/credit cards
24. Directional signs not acceptable
25. Check tables that need to be draped- 7. Facilities to be provided by the client
presidential, bridal, cake gifts, etc.
26. Printed tickets/stubs Inclusive Items in the Package
27. Direction cards Chosen Menu- Preparation, cooking, and
28. Functianal bars service of a well-planned menu consisting
29. Parking and checking arrangements of deliciously prepared and presented
From Outside Functions merienda cena dishes
30. Tents Buffet Table- A well-set buffet with
31. Dance floor centerpiece that matches the theme of the
32. Kitchen or preparation area event.
33. Stoves Guest service equipment- Use of good
34. Pantry quality table appointments -linens,
35. Lavatory facilities dinnerware, beverageware, flatware, and
36. Dressing room for help holloware.
37. Storage area for equipment and Service Staff- Consists of courteous, well-
supplies groomed, and efficient personnel.
38. Electrical Outlets
39. Service area for trucks Terms and Conditions
40. Tables - work tables, dining, buffet, etc. 1. Payment: 50% downpayment upon
41. Chairs reservation 30% partial payment at least 2
42. Table appointments/guest service days before the function 20% full payment
equipment
of balance upon service completion CASH
BASIS ONLY
2. Changes or adjustments in the package
should be done a week before the event.
3. Cancellation of the function may be
affected only a week before the set date
and subject to a 20% fee. Cancellation made
less than a week will forfeit the
downpayment paid.
4. Breakages or losses will be charged to the
contracting party or organizer unless due to
catering staff negligence.

Requirements of the Caterer

1. Service Station - a small room or
kitchen for material assembly and
work station.
2. Water Outlet