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Are you new at negotiating banquet prices or do you know how hotels think about negotiating banquet food? What can and can not be negotiated during the planning process? So, what has been your experience as a meeting and event planner been when this issue comes up?

Are banquet menus prices set in stone? Some are and some are not.

Remember that hotels make most of their money from room rates. The profit margin is higher. On banquet food there is a smaller profit margin, so there is less to work with and hotels normally will not offer discounts unless there are specific requests and they really have a reason to negotiate.

Banquet food pricing consists of three items, food cost, staff labor and profit. Since the food cost and staffing takes up so much of the banquet price, it is very hard to ask your Catering Manager to just lower the price.

However, even though the hotel is reluctant to reduce prices, you still might have some options. Ask your Catering Manager to get with the Chef and come up with a menu that has a lower food cost so the hotel can still maintain their profit margin, yet allow them to lower the price of the banquet item.

I have worked with many Chefs and they always have a couple of menu items in their hip pocket that would work for both their cost and your budget.

An example of this is a banquet for a teenage YMCA group. Banquet menus may run $20 – $30++ for normal beef, chicken or fish items. However, teenagers just want to be fed and would be happier with spaghetti, meat sauce, a small tossed salad, plain rolls and a simple dessert (Chef’s choice). The food cost for this menu is much lower and therefore the hotel can still make a profit and the group can fit the price into their budget.

Another way would be to ask your Catering or Convention Service Manager to get with the Chef and ask for a simple buffet with Chef’s choice of entree, starch and dessert. This would not work for a high powered corporate event, but might work for lunch if you are just trying to feed the group. Again, the Chef can keep his food cost in line and you can fit something into your meeting budget that will work.

So, are banquet menu prices set in stone? Some are and some are not. Sometimes it is necessary to negotiate special food items and pricing in order to “make it work” for the group and the hotel.