7 Tyra W. Hilliard, PhD, Esq, CMP College of Coastal Georgia
8 What We re Talking About 1. Before the Contract 2. Off-Sites 3. Contracts Quality Issues 4. Contracts & Liability Issues
9 Before the Contract RFPS & SUCH
10 All About Your F&B What type of F&B functions and how flexible you are Schedule of F&B functions Any considered for off-site Known dietary restrictions Due diligence
11 Show Me the Money Budget Overall Limitations/restrictions Discount on published catering prices Good idea or not?
12 Your Meeting As a Piece of Business Walk a mile in the hotel/caterer s shoes F&B program and Room block Two different revenue streams Combined to look at strength of overall program
14 Specificity is Key Events are not (necessarily) their core business RFP, contract, BEOs need to be much more detailed Electrical Load-in and out entrance, times Parking Off-limits areas Buy-out or still open to the public Kitchen facilities Furniture, linens, etc. Risk management Fees & surcharges
15 Exclusive or Preferred Vendors With good reason (usually) Get approved list early Option to have another vendor approved If bring in non-preferred vendor Is there a charge for the preferred vendor to supervise? Is there an additional charge for electrical or other services, items?
16 Contracts QUALITY ISSUES
17 Menus From which catering menus? Custom menus When will applicable catering prices be determined? Flexibility, acceptable substitutions
18 Quality Local Slow Organic Farm to Fork Grade of meats Low All the food groups represented Trend toward qualitarianism?
19 Service Standards Buffet labeling or menus Separate gluten free buffet How identify and serve people with food allergies or dietary restrictions? TIPs (or similar) trained bartenders and servers only Number of servers per guests, depending on function type
20 Dietary Restriction Cards
21 Service Standards (CIC) Typical 1 server for 20 guests VIP 1 server for 10 guests One bartender per 50 guests (en masse) One bartender per guests Varies by service style
22 Contracts & Liability THE LAW AS WE KNOW IT
23 Food & Beverage Attrition
24 Food & Beverage Minimum, v.1 Group agrees to provide a minimum of $35, in banquet food and beverage revenue (excluding tax and service charge). Should the Group's banquet food and beverage revenue fall below this amount, the Group will be responsible for the difference between the minimum banquet food and beverage revenue and the actualized food and beverage revenue, plus any applicable taxes.
25 By Any Other Name Really just an attrition clause. A guarantee or minimum may be construed as Group agrees to pay the difference. I prefer: Food and Beverage Performance Food and Beverage Estimate Food and Beverage Program Use an overall revenue amount For reductions made a week or more out, pay lost profit (35%) of the difference. Last minute, may be 100%.
26 Food & Beverage Minimum, v.2 Group agrees to provide a minimum of $35, in banquet food and beverage revenue (excluding tax and service charge). Should the Group's banquet food and beverage revenue fall below this amount, the Group will be responsible for the difference between the minimum banquet food and beverage revenue and the actualized food and beverage revenue multiplied by 35% (minimum food and beverage revenue minus actualized food and beverage revenue multiplied by 35%), plus any applicable taxes.
27 Bill Emerson Good Samaritan Food Donation Act Protects you from liability when you donate to a nonprofit organization; Protects you from civil and criminal liability should the product donated in good faith later cause harm to the recipient; Standardizes donor liability exposure. You or your legal counsel do not need to investigate liability laws in 50 states; and Exception: "gross negligence" or intentional misconduct
28 F&B and the ADA Person with a Disability - Any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment. Under the original Americans with Disabilities Act, food allergies were consistently not treated as disabilities
29 ADA as Amended (ADAAA) ADA was not being applied as intended Amended to be more inclusive Specifies eating and breathing as major life activities U.S. Department of Justice v. Lesly University (2013) University required students to purchase meal plan Refused to provide food choices for students with food allergies Turns the tide on ADA and food allergies
30 Resource - Accommodating Food Allergies
32 Indemnification Mutual - parties will indemnify each other Imagine: Group collects information on food allergies but fails to tell Hotel Caterer (sort of) tries to create food allergy friendly food, but cross-contaminates
33 Tyra W. Hilliard, PhD, EsQ, CMP College of Coastal Georgia