Contracts for the Catering Business - Essay Example

CONTRACT AND EVENTS MANAGEMENT Submitted by Zlatozara Filipova ID 21113 Submitted to Tsitsi Marima Table of Contents: Introduction: 3 LO1. Understand external factors that affect planning and management in the event 3 LO2. Operational issues which affect the success of event management 7 LO3. Understand the client and contractor relationship 10 LO4. Understand the financial processes involved in tendering for and implementation of events 12 References 15 Introduction: Food is an integral part of any festival, event or celebration. Catering is a system of cooking and servicing food in an organized manner. This is a very important part of any event. A catering team may provide their service in any corporate event, weddings or private parties. It’s your special day make it special with good food and great ambience. The all new concept of catering contracts are legal agreements which are made between the caterer and the consumer for a specific event. Such contracts are made to ensure adequate food and catering services in an event, namely sports event, corporate event, product launch or business meetings, social gathering etc. The contracts are typically arranged to ensure finest food quality services in the event. LO1. Understand external factors that affect planning and management in the event Contracts for The catering business There are different types of contracts. The catering contracts for event management sectors will help in saving time and money. Thus, planning the arrangements effectively will help in thriving in the catering business. Remember, an event cannot take place without food (Bode, 2003). Food is important in any event. Hence, adequate planning of providing food in the events by tying up with event management firm is likely to boost the company’s revenue earning. To start with such business plan, you must have some basic knowledge about the food industry and you must posses and urge to give the best service to your client. Key characteristics of the Contract catering service provider are Service Offering quality services is the key to succeed in the food industry. Efficiency and preparing tasty dishes will help in gaining quick popularity in the domain. Now, flexibility is essential, as depending on the nature of the product some will order for daily services. Thus, service enhancement is essential (Hayes and Ninemeier, 2012). Quality of the product To maintain consistency in the food preparation the caterer will require good products from the market. Besides, cooking finest dishes and delivering the products on daily basis, the caterer should develop a very good relationship with the supplier. Supplier and caterer must hold a good partnership, as you will require quality product to offer quality services in the catering domain. Innovation and creativity Creativity and innovation is the key to succeed in this industry (Hayes and Ninemeier, 2012). Thus, the contractor will contact only the dynamic item providers who can supply innovative products to deliver special services in the outlets. External factors that affect planning and management in the event and contract sectors The event industry has three main sectors: sport sector, conference sector and cultural sector. The firm should begin with a strategic planning procedure. Now to go about the process, analyze the business in relation to the below mentioned ideas; identification if the idea of the contract fits the sector: Start by identifying the main characteristics of the particular catering contract sector as well as make sure that the nature of the business complete fits with the expectation of the sector. Maintaining competitive helps, along with innovation, quality service and creativity is the demand of the event sector. The services should fulfil the expectation of the domain (Brotherton, 2003). The capacity of the business to serve the market is essential. To venture in this domain, the firm has to know the demand of various events. Offer services and innovative food items dedicated to the event expectation. In order to meet the expectation of the event sector, the catering firm should equip itself with sufficient man power to offer seamless services to the client. High level of commitment is the key to achieve success in this domain. Thus, contract catering demands professional approach and educated staff to offer dynamic services to in the event (Brotherton, 2003). It is essential to include SWOT analysis that is a very useful tool to access the position of the organization. It analyses two external mechanisms: opportunities and threats. The analysis should be implemented before contracting. The main external factor that effects the planning is the current state of the economy. Thus, PESTEL analysis is also essential to evaluate the external conditions in which the company has to operate in. PESTEL analysis is “political, economic, social and technological analysis. Political aspect investigates the government’s intervention into the economy. Economic aspect is mainly connected with economic growth. Social aspect studies cultural development of the population, health and safety. Technological aspects include mainly the development of technology, R&D issues. Assess external factors affecting planning and management in the event and contract sectors Key external factors influencing the event planning are Identify your customer: Contract catering customers are varied in nature. They do not have any fixed profile. They have different expectation as which changes as per the nature of the event (Brymer, 1995). Thus, identifying the taste of the customer is very essential before indulging into the contract and event planning. Nature of the event: the planning part should think of the type of event you have planned to offer services. The wedding event will have a different set up from a sports or corporate meets. Thus, identifying the nature of the business is essential while planning the event contractor. Research: research help in assimilating information about the particular sector so that you can plan well. Thus, conduct an audit or a thorough research to collect as much information possible (Brymer, 1995). A thorough market research will help in identifying the taste and demand of the potential customer. Identify the current suppliers: Net working is very essential in this domain. Unless you know who your suppliers are and what kind of products they provide, it will be difficult to cook and supply to any event ceremony. Thus, find out the present suppliers and then build a good relation with them (Mehndiratta, 2008). Analyzing these factors will help in knowing your potential customers adequately. Once you know your customers well you can easily succeed in the domain Why should you hire professional caterers for the party When you planned to organize a party you must hire professional caterers. Professional catering services will not only help you by supplying food on time but you will also get those special menus for your guest. The best part of such catering service is you will be free to attend the guests (Mehndiratta, 2008). If you were busy cooking and giving service then your guests will not get chance to talk to you. Therefore to avoid such problem today everyone hires catering service. Professional caterers work in a perfect way in such situation. LO2. Operational issues which affect the success of event management Operational issues primarily involve identifying the nature of the event. Until you identify the nature of the event, you will not be able to plan the catering services (Pizam, 2005). Thus, find out the nature of the event, then draft a budget, promotional campaign, target audience, publicity, human resource, logistics, venue, security, hygiene, sponsorship etc. Every event in the sector should be organized in correspondence with certain norms of hygiene and this should be a top priority for the staff. Discuss the elements of project management which are necessary to ensure effective management of Events Effective management of the events will be possible only by following key elements of project management; Begin with an initiating process. The project should be divided and executed as per phases. First, the objectives should be established, then the scopes of the project should be identified and finally the responsibility of delivering the project has to be identified (Pizam, 2005). Planning is important. A proper plan helps in going about the project without facing any problem. The action course plan along with set project objectives help in achieving the desired goals quickly. After planning, execution of the plan should be deftly done. Thus, you need to coordinate the resources collected. Apt execution of the plan will ensure effective business. After executing the event, you need to monitor its performance. Control its movement and manage it as per the expectation of the client (Pizam, 2005). Discuss the type and level of service associated with a variety of events The type of service depends on the type of event. If it is, for instance, a wedding, the level of service should be the highest. The service level helps in measuring the performance of the particular system. Key goals are defined as well as the service level informs how the particular goal will be achieved. This comes under the supply chain management Different service level types Cycle service level: this level helps in measuring the probability of the particular stock without which the event is not possible. The cycle service level basically gives a limit on the level of stock consumption during the event. The level focuses on inventory are also known as Alfa type 1 level (Scanlon, 2013). Fill rate service level: this level helps in measuring the expected percentage from the general demand of the quantity which has been met. Thus, it helps in identifying the level of minimum demand on an average and plan accordingly. This level helps in understanding the overall customer expectation and analyse the ability of offering services. It is also identified as beta type 2 level. Dynamic level: this level is based on individual demand. Assess the health, safety and hygiene problems which can affect the operational success of an event Catering in an outdoor event is a high risk venture which includes involving too many things like venue planning, arranging temporary mobile activity, catering to large gathering and concentrate on the food and health safety management. Food safety management is a vital point in the catering services (Scanlon, 2013). Food hazards which can affect the operation are Bacteria which contaminates food Chemicals used for cleaning the utensils or vegetables Foreign materials like metal piece, glass piece or pest Pilferage Accident In a catering service the food goes through a variety of steps, namely preparation, arrangement, cutting and cooking. Problems may occur at nay stage. Consider how marketing, human resources and quality control are applied in the organisation and delivery of a successful event Controlling measures should be taken to check operation hazards during an event. Different teams should come together and jointly work for professional success (Barth, 2012). The marketing, human resource and the quality controlling measures together will help in ensuring effective product delivery in an event. Human Resource objective to help in event success The human resource department should train every staff about the food management, safety and hygienic issues in detail. Regular training will ensure grabbing knowledge about food management and implement right ways of food handling (Barth, 2012). There are different types of food, a desert is to be separately handled than a paella. Hence, item based food maintenance should be taught. Train outdoor staff about handling emergency situation. Follow strategies to overcome tough situation in bigger events. Make sure that safety measures have been taken to protect against fire. Ensure site security Marketing objective to help in the success event The marketing team should be trained to help in managing the external affairs of the event to ensure successful event management (Bode, 2003). Irrespective of the size of the event there are certain marketing strategies needed to be applied. Identifying the target market Apt positioning’ Effective channels of distribution Useful launch strategy Delivery of the product and adhering to promises made Marketing of the event or catering business is essential for operation success. If people do not know about the event they will not come to eat or contractors will not hire you (Brotherton, 2003). Hence incorporate promotional campaigns with advertising, event marketing, press and creative campaigns. Remember a powerful marketing may help in saving any event. Quality control objective to help in the success of the event A food industry cannot survive without quality performance. Thus the quality management team or the role kitchen team is to ensure quality production to ensure client satisfaction (Brotherton, 2003). Prepare safe and tasty meal for all customers Provide quality meals. Protect food from getting contaminated by incorporating food safety measures. Store food at adequate temperature to curb bacteria growth Use clean equipments Cook items in adequate amount to ensure customers do not have to wait. Prepare adequate menu to attract customers. Prepare sufficient quantity food to ensure there is no food shortage during a event. LO3. Understand the client and contractor relationship Establishing a good client and contractor relationship helps in enhancing the business. Thus, provide quality food at an affordable rate. Grow competence as per your resources. For e.g in order to specialise in wedding events you must incorporate specialist chef for wedding menus. Similarly, if you plan to start with the corporate clients, then equip the team to offer quality services to the corporate clients. Once the clients are satisfied they will return to plan future events (Hayes and Ninemeier, 2012). Thus, developing a good relation will automatically help in thriving in the business of contract catering for events. Assess the factors that impact the success of the contract and client relationship Starting catering services is not easy. It takes proper planning and dedicated worker who enjoy cooking and dealing with customers. If you are in such services you must take care of your clients and develop good relation with them (Brymer, 1995). One must be creative. Creativity is very essential in cooking business. It is an art and getting the right flavor and taste is your skill. One must have in-depth knowledge about food and cooking Next plan out your idea and find out your area of expertise Hire people who have knowledge about this business. Then form a team and grow your business Begin with small private parties and then grow to large wedding ceremonies Be professional in approach and you will be the best in the industry Hard work and dedication is very important to establish any business. There is no substitute for hard work, dedication, skilled labor and apt team management for proper establishment. To start a business one must have a vision (Brymer, 1995). One cannot succeed without a proper vision. You must know where to reach and how to reach that point. Hence plan our wisely and grow quickly in the service of food business. Review the different types of contract Some prominent types of catering contract are Catering contracts for special events Catering for business meets Mobile catering Industrial catering contracts Depending on the nature of your services you can select the domain and indulge into offering services. Special event contract will offer scope to supply food to wedding ceremonies, large parties, anniversary occasions etc. One may even plan on focussing on a specific service and specialise to make it better. Business catering contracts will help in developing and growing in the corporate sector. Providing lunches or hi-tea to corporate parties or business meets will help in growing the business as such services are in great demand in the corporate sector (Mehndiratta, 2008). Mobile catering is generally not operated through contracts, however for special occasions like trade fair, fashion events, film festivals such operations may be planned since food is needed in such occasions. Mobile catering contracts will offer scope to provide food services in this domain. In the industrial catering category one can supply meals to hospitals, canteen, factories, schools or airlines. Any area where there is a huge requirement on monthly basis, such a contract will help in boosting the business both as a brand and in financial aspect (Pizam, 2005). Contracts can be verbal and written. Verbal contracts also has force, but it is better to have a written one, because it provides documents to prove the contract existence. Contracts also can be indefinite and fixed-term. Indefinite contracts has no fixed terms, but fixed-terms contract specifies the exact terms of collaboration. LO4. Understand the financial processes involved in tendering for and implementation of events Irrespective of the size of the business it should have a financial plan. A proper financial planning help in identifying the scopes of revenue earning based on the amount of investment made. Pricing is a vital aspect of the marketing strategy (Scanlon, 2013). Pricing objectives of the event catering contract Earn some return within a said time on the investment made Get some amount of market share Earn a growth by the end of the financial year Enhance the image of the business\ Discuss the process involved in drawing up contracts Contract is a legal agreement between the event manager and the catering contractor. The Event Manager get the scope of working for various types of firm. Hence, planning about ting up with catering services will help in executing better events and earn matchless profit. As irrespective of the size of the event, it is not possible without food or catering services. If we plan to tie up with a catering service provider, we can offer a complete package to the client and earn more profit as a team (Scanlon, 2013). To draw up the contract it is essential to: Begin with presenting the most important information about your business; Make the document easy to read; Explain every item the customer may not understand; Create template; Provide blank places to change information if necessary; Make copies. Assess the financial issues which affect the implementation of a contract The cost of production and overhead expenses are the most important financial issues, which influence the implementation the contract. The extra expenses may change the process of implementation. Discuss the process of business generation within contract and event management To successfully generate new business ideas every employee should be involved in searching new ideas. The customers and their opinion should be also involved in the process. The main focus should be made in the customer’s needs. Suppliers may also take part in the process of new business generation and it is very essential to involve innovations. Evaluate business success and achieving corporate targets in contract and event management Tying up with corporate house will soon help in establishing as a brand in the domain. There are countless corporate houses in the world, and some coming up on regular basis. Thus, once you prove your expertise in the firm, you get recommended. This is a very close knit sector with immense possibilities to grow (Scanlon, 2013). Thus, aiming to enter this domain with a catering contracting service will soon help in establishing both as a prominent Event Management brand and grow economically in the business. The successful business in contract end event sector always has returning clients. The level of hygiene determines the level of success. Conclusion: Event management is that kind of business which mostly offers entertainment services. Hence, it is an occasional choice for a firm. But a food business is that kind of business which is essential in any event or celebration. Thus, having a contract with a catering service provider will create new scopes of increasing the business (Hayes and Ninemeier, 2012). Besides, planning for entertainment nights we may now pitch for different types of programs and ceremonies. Hence, establishing as a prominent brand in the corporate sector will help in earning matchlessly as an event organiser. References Bamford, D. 1991. Event management. [Wellington, N.Z.]: Hillary Commission for Recreation and Sport. Barth, S. 2012. Hospitality law. Hoboken , N.J.: Wiley. Bode, S. 2003. Successful catering. Ocala, Fla.: Atlantic Pub. Group. Brotherton, B. 2003. The International hospitality industry. Oxford: Butterworth-Heinemann. Brymer, R. 1995. Hospitality management. Dubuque, Iowa: Kendall/Hunt Pub. Co.. Cotten, D. and Wolohan, J. 2010. Law for recreation and sport managers. Dubuque, Iowa: Kendall/Hunt Pub.. Hayes, D., Ninemeier, J. and Miller, A. 2012. Foundations of lodging management. Boston: Prentice Hall. Mehndiratta, V. 2008. Event management. Chandigarh, India: Abhishek Publications. Pizam, A. 2005. International encyclopedia of hospitality management. Amsterdam: Elsevier Butterworth Heinemann. Scanlon, N. 2013. Catering management. New Jersey: Wiley. Read More