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Q: Finding the best price for a caterer ( Answered 4 out of 5 stars,   4 Comments )
Question  
Subject: Finding the best price for a caterer
Category: Miscellaneous
Asked by: marbuck-ga
List Price: $15.00
Posted: 17 Jul 2002 13:26 PDT
Expires: 16 Aug 2002 13:26 PDT
Question ID: 42238
A friend asked me to post this question.  His son and daughter are
having a joint bar/bat mitzvah.  Our community has two kosher
caterers.  The events are in November. The prospective client has
specified menu items for the variety of meals for the weekend events,
and submitted the request to the caterers.  One has come back with a
greater-than-five figure quote.  The other has not responded.

The question (and it relates to a much broader issue) is what should
he do now to get the lowest possible price and best possible value.

On a wider level, this deals with situations involving relatively high
ticket purchases that are

in markets where there is limited and very finite competition.  

and where the consumer, while having some knowledge, lacks the 'clout'
and power of becoming a repeat or continuous customer (this is a
once-in-a-lifetime expense).
Answer  
Subject: Re: Finding the best price for a caterer
Answered By: inquisitive-ga on 17 Jul 2002 20:14 PDT
Rated:4 out of 5 stars
 
Hello marbuck-ga,

I would like to begin by saying that I'm not Jewish, but I do have
many Jewish friends and know just how involved kosher supervision can
be. Unfortunately, this can add to the expense of catering a kosher
event by as much as 15-20%, primarily due to the extra cost of kosher
food and the extra expense of kosher preparation and supervision. That
doesn't mean that your friend doesn't have any options, however.

FLEXIBILITY & NEGOTIATION

1) Don't let the initial price quote throw you off. Talk to the
caterer and see if he/she is willing to work with you (your friend) to
get the costs closer to the budget you had in mind. Caterers can often
come up with creative ways to save money and still provide a
first-class affair. Lay your cards on the table.

2)"...draft a list of your priorities. Although everything is
technically negotiable, it makes sense to determine what you
absolutely must have and what you can live without because chances are
you won't get everything that you ask for."
--"Negotiating F&B [Food & Beverage]" by Jerry Murphy, CMP
http://www.pcma.org/convene/Conferon/charts/Ch10_1.htm

Example: Meat and wine are going to be more pricey because of the
higher costs involved in certifying them as kosher. Food that is out
of season, food that needs extra servers or extra-special preparation,
etc. are all going to dramatically raise the price.

3) "Shop some of the components that may be provided by the caterer,
i.e. decor or rental table cloths, napkins, glassware, china,
silverware, etc. since you may be able to save a significant amount of
money by obtaining these items directly from another source." You
didn't mention whether that catering quote covered expenses other than
food, so I thought I'd include this option for consideration.
--"Party Planning - Do It Yourself and Save" from BarMitzvahs.org
http://www.barmitzvahs.org/partyplanning.php

4) "Consider using upscale disposable plasticware rather than china
and glassware. Clear, heavyweight plates and glasses that have the
appearance of etched glass are available that cost less than renting
china and glassware. You don't have to worry about cleaning or
breakage charges either!"
--"Party Planning - Do It Yourself and Save" from BarMitzvahs.org
http://www.barmitzvahs.org/partyplanning.php

5) Work to cut down serving costs. Consider a buffet rather than a
sit-down, served meal. Offer appetizers on a table rather than served
by roving waiters.

6) "Have your caterer prepare just your main dishes and have friends
and family prepare appetizers, side dishes, bread, and salad. Many
caterers will only allow this at a reception held in your home."
--"Catering Money Saving Tips" from the Frugal Wedding
http://www.usabride.com/frugal/a_catering_tips.html

7) "The more labor intensive the food item is to prepare -- the more
it will cost. Think about this when choosing your main course as well
as your side dishes and hors d'oeuvres."
--"Catering Money Saving Tips" from the Frugal Wedding
http://www.usabride.com/frugal/a_catering_tips.html

8) Talk to caterers outside of your local community. Many caterers
will travel up to several hours to cater an event with just a small
added surcharge for the travel. If you can find one or two who are
willing to travel, quotes from them will give you more to work with
and more bargaining power when negotiating your catering contract.
--"Cutting the Kosher Costs" - The Jewish Week
http://www.thejewishweek.com/bottom/specialcontent.php3?artid=291

9) Another option, and this may not be acceptable to your friend
depending upon how strictly he/she practices Kosher, but there may be
an opportunity to hire a caterer who isn't certified kosher. Some
caterers, especially newer ones with a smaller base of clientele, may
be willing to cater a kosher menu. They will need to be taught how to
adher to kosher rules during food preparation and it would probably be
a good idea to obtain the services of trained mashgia to oversee the
food preparation as well.

10) This may not be an option depending on the particulars of the
situation, but consider a different location and/or date. Saturdays
are the busiest day of the week for caterers. As for location, maybe
there is a kosher restaurant in town who could open specially for the
occasion. "...another creative option: kosher restaurants that by
prior arrangement and payment will host a private party for Shabbat
dinner or lunch. Yehudah Amital, owner of Darna, will stay open for
approximately 65 to 130 guests."
--"Cutting the Kosher Costs" - The Jewish Week
http://www.thejewishweek.com/bottom/specialcontent.php3?artid=291

A few more links which may be useful:

Eight Secrets for Controlling the Costs of Catering... 
http://www.leadingcaterers.com/buyers_guide5.asp 

"Finding the Right Caterer - Some Do's and Don'ts" - The Jewish Week
http://www.thejewishweek.com/bottom/specialcontent.php3?artid=292


KNOWLEDGE IS POWER

While the fact that there isn't much competition in your community
does provide a barrier to negotiation, it doesn't mean that your
friend isn't in the driver's seat. Knowledge is power. Research other
options (even if they aren't your first choice), talk to other people
from the synagogue to find out who they used and how they kept costs
reasonable, learn more about typical kosher catering costs (that
5-figure quote may not be out of line), etc.

Here is a basic example of the costs/profit of a catering business.
You do need to keep in mind that you are paying not only for the
actual catering of the event (food & service) but also for the general
business costs of the caterer (advertising, insurance, maybe even
their kosher certification):

"Most successful caterers price their menus to achieve anywhere from a
20% to 35% food cost with between 25% and 30% being the norm. They
generally strive to achieve somewhere around a 50% gross margin from
each event. This means that once all of the direct costs (food,
beverages, direct labor, supplies, etc.) of the party, wedding or
event are paid, there remains 50% as a profit from that event. This
profit is used to offset overhead or administrative and general
expenses"
http://www.leadingcaterers.com/asktheprofessorpricingstrategiesthatwork.asp

"How Much Will My Party Cost?"
http://www.leadingcaterers.com/howmuchdoesitcostforapartyweddingorspecialevent.asp

"Lessons in Lifemanship - The Art of Negotiation"
http://bbll.com/ch22.html


This may not help with negotiations, but just to help provide a sense
of the market I've provided links to a few kosher catering services
which offer general pricing information online:

Rubin's Kosher Catering - Boston, MA
http://www.rubinskosher.com/kiddushbrochure.pdf

Panache Catering by Foodarama - Philadelphia, PA (Kosher certified)
http://www.foodarama.com/formal_pricing.htm

This article provides general price per person info from a variety of
Phoenix-area kosher caterers. Costs range from $30 per person to over
$100. Sample menus help to show what you can expect for different
amounts.
http://www.jewishaz.com/special/wedding/kosher.shtml

As a final note, it is important to remember that while your friend
may not be a repeat customer (remind him to congratulate himself on
cutting costs dramatically by celebrating with both children at
once!), catering businesses need good word-of-mouth referrals to
survive. Your friend probably has friends who will be needing the
services of a kosher caterer at some point in the near future. He
should also follow up once more with the caterer who did not provide
him with a quote. It is possible that they never received the request,
had a family emergency, etc.

I hope this answer helps in the quest for a successful (and not too
extensive) bar/bat mitzvah. Best of luck and please wish your friend
congratulations on my behalf.

Regards,

inquisitive-ga
marbuck-ga rated this answer:4 out of 5 stars
friend's response
"Thanks very much for the info.  I really appreciate it."

Comments  
Subject: Re: Finding the best price for a caterer
From: dstern-ga on 18 Jul 2002 20:31 PDT
 
I have attended over thirty Bar and Bat Mitzvahs, and most offer
kosher style food, with specially prepared kosher meals for those who
are more observant.  This dramatically cut down on the cost of my Bar
Mitzvah, as well as my brothers.  The steak wasn’t supervised, but it
wasn’t served with dairy products (which is not allowed).  So ask if
the family observes laws of Kashrut.  If they don’t, than the
alternative that I proposed could save thousands.  If they live in a
community with only two kosher caterers, I suspect that the
alternative would suit their needs just fine, and allow them to cut a
lot of costs.

Best regards,
Drew
Subject: Re: Finding the best price for a caterer
From: marbuck-ga on 19 Jul 2002 03:09 PDT
 
I don't think the last suggestion will work.  We are both members of
an orthodox shul.  While our own observances are less than strict, one
thing that has to be taken into account are the requirements of the
other guests!
Subject: Re: Finding the best price for a caterer
From: eki-ga on 14 Jun 2004 13:11 PDT
 
Not all caterers are the same, and not all parties are the same. there
is no standar price for a car it can range from 10,000 to 100,000,00
with catering as well it depends exactly what you are looking for. I
suggest you check out www.elitecaterers.com a full service on and off
premise glatt kosher caterer who although one of New York's foremost
kosher caterers is very personable and competitvly priced. Mazal tov
on the bar/bat mitzvohs
Subject: Re: Finding the best price for a caterer
From: rudy1227-ga on 14 Jul 2004 14:20 PDT
 
you should find a caterer that has an exclusive in a place .That they
don't  have to bring everthing some where.I had my party with Prestige
Caterer which is a great caterer.i had my party in there own place and
the price was very fair.and the party was great.good luck.

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