‘Tis the Season to Party Less Hardy : Services: The catering business is holding up, but many firms are spending less on holiday festivities because of hard times.
The party isn’t over, but it sure has changed.
In a year filled with corporate layoffs, constricting budgets and an uncertain economy, holiday cheer is in short supply, as many companies cancel or scale back on end-of-the-year office parties.
Businesses that once offered employees sauteed shrimp, steak, Champagne and open bars are opting for lower-priced foods. Still others are charging employees for their holiday festivities.
Although corporate caterers say the number of events they are arranging remains at last year’s level--or, in some cases, has increased slightly--the dollar amount being spent during the holiday season has slipped ever since the mid-1980s.
“The days of shrimp cocktail are gone,” said Michael Roman, director of education at Chicago-based CaterSource Inc., a catering consultant. “Now at an office party, you might have shrimp toast or veal loaf, which are dramatically less costly. Where a business might have spent $24 per employee last year, they might be spending only $17 this year. They’re trading down to cheaper foods and trying to keep morale up.”
As a result, many caterers have been forced to drop their prices and introduce menus offering lower-priced food items, said Chip Fisher, general partner at Fisher & Levy corporate caterers in New York.
Fisher’s company has reduced its prices more than 10% since last holiday season on such popular foods as hors d’oeuvre platters and sandwiches to maintain the same dollar sales as a year ago.
“I wouldn’t say it’s a depression-style menu (we are now offering),” said Fisher, “but it’s set up for today’s economy. The corporate parties this year are less fancy, less pretentious than a year or two ago, so we have to increase the value of our products.”
Still, the listless economy has hurt the catering industry only a fraction, said Roman, who added that “caterers can do less Neiman Marcus events and do more Sears-style events.” This year, many businesses in California and elsewhere that once held extravagant bashes are opting for less opulence.
Cupertino-based Apple Computer, which for years has had lavish holiday parties for employees, is letting individual departments decide the type of parties they wish to have, spokeswoman Brooke Cohan said.
“Last year, we had a catered dinner party,” Cohan said. “This year, my department is having a pot-luck dinner. Individuals are going to bring their own dish, and everyone will sample what everyone else brought.”
Apple U.S.A. headquarters in San Jose is going ahead with its holiday party, but the company is charging each employee $10 so the festivities can stay within a cost-cutting plan.
Other corporations, faced with tighter budgets, have been combining separate winter functions to cut costs. Paramount Pictures, for example, last year had a tree-lighting ceremony and a weekend event for employees and their children. This year, the film company combined the parties.
“We’re very much in a cost-conscious time,” spokesman Harry Anderson said. “Given the current economic situation, we decided to do this, but I don’t think the party will be any less enjoyable.”
Many caterers rely on the month of December to bring in a third to a half of their entire year’s profit. To keep revenue up this holiday season, some caterers and restaurants are allowing businesses to pay for a holiday party early in 1992. Others are preparing and delivering food to corporate parties but allowing companies to serve it themselves, which can save as much as 40%.
Hotels and banquet facilities are feeling the pinch too. Office party reservations at the Biltmore, for example, have dropped 15% to 20% this December from the year-ago period, said David Morgan, director of catering.
Many businesses and law firms that are going ahead with banquets and holiday parties at the Biltmore and elsewhere “are spending less this season,” Morgan said. “With the recession being felt, we’ve had some cancellations. The companies that are still going on with their parties are spending less.”
Kathy Murphy, owner of the caterer K. P. & Co. in Santa Ana, said more corporations that are giving their employees holiday parties are having the functions in their company buildings to cut costs.
“Some of our clients are simplifying their parties this year,” Murphy said. “But our Christmas is not going to be markedly different than before. A lot of our clients are having their parties in the office, and they’re closing the bar early and serving coffee, cider and soda after that to save money. But it seems that a lot of companies are still having their parties to get everyone’s spirits up, because things have been so gloomy this year.”
Wendy Webster, a spokeswoman for the National Restaurant Assn., said some businesses are apprehensive about having lavish parties this holiday season, because it is “very important that businesses don’t let off the perception that they are spending their employees’ Christmas bonuses on expensive year-end parties. The perception factor is a big deal.”
Caterers were hopeful that business would prosper in 1991, after a slump in holiday office parties last year as the nation prepared for the Persian Gulf War. Jeff Lodge, owner of Bridgehead Catering in Oakley, said that after seeing a 20% dip in his profit this year compared to 1990, business has begun to pick up.
In the last two weeks, “we’ve gotten slammed with a lot of calls for parties,” said Lodge, who added that offices are waiting to see their end-of-the-year profit statements before committing to holiday parties.
A ‘90s Christmas Party
Caterers Are Charging Less...
Caterers, blaming the nation’s sluggish economy, say they have had to lower their prices to attract corporate office parties. This year, some caterers have cut their food prices by about 10%.
Pizza, per pie 1990: $11.00 1991: $9.75
Sliced Chicken Breast Sandwich: With herbs, arugula and sun-dried tomatoes, per sandwich 1990: $9.95 1991: $8.95
Imported Cheeses and Seasonal Fruits, per person 1990: $5.95 1991: $5.50
Filet Mignon Morsels: With sherry mustard dipping sauce, per person 1990: $4.50 1991: $3.40
Raw Vegetables: With dip, per person 1990: $3.50 1991: $2.95
Homemade Donuts, per donut 1990: $0.60 1991: $0.45
The catering business has grown despite this tough season for corporate caterers. New caterers have entered the industry and have expanded into private parties and more year-round business.
Sales in billions: 1987: $1.77 1988: $1.93 1989: $2.09 1990: $2.24 1991 (projected): $2.38 1992 (projected): $2.55
Source: National Restaurant Assn.
ETIQUETTE:
DON’T: Throw a cocktail party. Company parties are staying away from high alcohol consumption, in part, because people are drinking less alcohol than before. In addition, offices want to avoid poor conduct, sometimes associated with heavy drinking. And it’s too expensive.
DO: Spend less on the party than on company bonuses. Many offices are planning more simple holiday parties that offer less expensive foods, paper plates, paper cups and plastic utensils instead of glass and china.
DON’T: Bring the spouse and kids to your company holiday party. Family members are being excluded by many firms this year as a means to hold down costs.
DO: Go potluck. A growing number of companies, which can’t afford to carry the full costs of a holiday spread, are throwing pot luck parties with workers chipping in.
Source: CaterSource
