Bah, humbug! Parties downsized, too

As the end of 2009 draws nigh, fewer companies are planning holiday parties. Parties that are planned have smaller budgets and are likely to be potlucks during the workday, according to Chicago-based outplacement consulting firm Challenger, Gray & Christmas.

The Challenger report comes as no surprise to those in the Northern Colorado catering and event business. In fact, these business owners have been planning for a coal-and-switches holiday season for some time, even as they hope that cost-cutting efforts will not cut celebrations completely.

“It’s really too early to say how the holiday season will shape up, but I would bet it will show more of the same declines because of the economy,´ said Korey Albert, owner of Albert Pit Barbeque in Fort Collins. “This last summer, we had lots of weddings, but corporate business all but disappeared. Before 2007, it wasn’t unusual to cater a company party of 3,000. Now the big ones are around 500.”

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Albert’s experience matches Challenger’s findings: Of those throwing holiday parties, 29 percent are budgeting less, up from 13 percent who cut back in 2008.

Albert added that his clients who used to order the $16 plate now order the $12 plate, and the $12-a-plate crowd will probably wait until the last minute to make its plans.

Parties just pop up

Last-minute planning also seems to be increasing this season, putting event site owners like Bobbie and Mark Randolph in a bit of a quandary.

“People are waiting until the last minute to do their booking,´ said Bobbie Randolph, who directs the day-to-day operations of Tapestry House in LaPorte. “That sometimes gives us just two weeks to plan. In the past, people planned all kinds of parties further out. Now only those planning to have a full-service wedding plan ahead. Weddings remain a strong market for us because our facility is so beautiful.”

Alexis Peacock, sales and catering manager for Fiona’s Delicatessen and Catering in Fort Collins, has noticed that her customers are willing to cut costs by cutting out the service completely. Now “pop-up” events are becoming the norm.

“We are doing more pick-up orders and delivery setup,” she said. “There are some kinds of food that require hot boxes. The clients can’t pick those up. But we can arrange some kinds of food on disposable platters. They look nice, and not that many people require silver chaffing dishes. It’s still our delicious food at the last-minute, pop-up event.”

Paul Pellegrino, owner of All Occasions Catering in Fort Collins, has noticed the same trend.

“Planning has gotten more spontaneous,” he said. “There is a lot of last-minute planning going on. At this point in the year, we do not have what I would consider adequate bookings. We have our loyal customers, like Dellenbach, IBMC and the health district, but even for them we want to offer value and affordability. This economy has been hard on everyone.”

Strategies that Pellegrino has initiated to adjust to economic realities include more searching to discover what people’s expectations are. What do they see as affordable and proportional to the size and needs of the company? What makes something a good value even if it isn’t the least expensive option?

Randolph has also had to get creative with strategies to attract new clients and hold on to the regulars.

“People are very concerned to know exactly how much everything is going to cost,” she said. “And so we are doing some prepackaging with the event and the food. For example, we can offer a business lunch event and have another company, like Fiona’s, cater it. We don’t have to supply serving staff, and so that saves the customer some money. Noontime events are always less expensive, but possibly not the best choice for a company like Drahota Construction that wants to entertain its vendors during the holidays.”

Company events important to morale

Randolph pointed out that Tapestry House does not have a liquor license. While that arrangement is perfect for wedding parties for which the hosts are expected to provide beverages for their guests, it sometimes does not work for companies.

“We can’t have a cash bar, so employers worry that if they supply the liquor – which really would save them money – they will be liable if their guests get drunk and get into trouble.”

Incidentally, the Challenger report cautions specifically against drinking free holiday party alcohol to excess: “Even if your alcohol-induced actions do not get you fired, they could hurt your chances for advancement.”

In Pellegrino’s view, the good news for caterers is that food service is important to most festive gatherings, despite the Challenger finding that some companies are organizing smaller, departmental potluck events. That trend would seem to run contrary to the point of a holiday party, which is supposed to bring all levels of the company together for a few festive hours.

For all the gloomy predictions about a blue, blue holiday season, Pellegrino remains optimistic.

“We don’t want the economic Grinch to steal Christmas,” he said. “If a company can afford it, a party does a lot to motivate employees and to unite efforts. I think we need to remember that for all the pains, there are still elements of hope and cause for celebration.”