Contract Catering – Is it Beneficial to the Corporate Client?

by | May 23, 2013 | All Blog Postings, Corporate Catering | 0 comments

The catering industry is often perceived as luxurious and extravagant by many people.  This is primarily because everyone loves an event!  For those outside the industry it is usually all about the glamorous aspects like weddings, holiday parties, and high class service.  But, for people in the industry, we know it is really all about the corporate business we generate.  One of the newest trends on the corporate side of the industry, is contract catering agreements. These kind of contracts vary from place to place and involve a variety of arrangements.  Some Boulder catering companies have jumped on board, while others remain highly skeptical about their practicality in today competitive corporate market.  Although we can see where contracts work in the area of privately run cafeterias and corporate cafes, for the most part, it is in the opinion of Savory Cuisines that they are just not necessary.  With big chain restaurants like Panera Bread and Qdoba further developing their catering programs, the independant local boy has to kick it up by offering exquisite food and unmatched service for a competitive price.

Here we will explore the reasons why we believe requiring a corporate client to sign a contract can be a bad decision for both parties involved.  First of all, the kind of contract you are signing has a lot to do with whether or not you should even entertain the idea.   1. If the caterer will not allow you to use other catering services during your contract, I would be weary.  2. Be cautious if any contract involving monthly regular fees.  3. If the contract extend past a reasonable period of time, like over a year, avoid it at all costs.

For the Client:

With the ever changing world of catering, new styles, dishes, and levels of service can be explore much more freely without a contract, even if you utilize the same caterer for all your service.  Bundling corporate catering in order to offer bulk discounts is a much better approach, and the one Savory Cuisines practices. We offer repeat business discounts on a case by case basis to our *preferred* clients.  This kind of relationship building approach has worked with much success throughout time and history due to industry leader’s dedication to producing top quality food and service.  For the corporation who is considering these kind of contracts, we would ask you to think about what would happen in the event that service is not satisfactory?  The truth is that most reputable catering companies will work their “rump roasts” off to make sure your event is a success, but accidents, miscommunications, and other unfortunate circumstances do happen.  What legal repercussions are there of the contract, if you wish to change things down the line?

For the Catering Company:

The caterer who participates in such contract programs, may be opening themselves up to additional liabilities.  There is no need to take on formal lines of unnecessary responsibility just to secure your place with company.  This is because, most corporate event planners enjoying working with a company exclusively anyway since the relationship and repeat transactions usually equal ease and convenience.