Enough is enough: April 2009 morsel

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Enough is enough: April 2009 morsel

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By Claire R. Gould
Published: April 2, 2009

Claire R. Gould is the owner of Rx for Events International and Rx for Catering LLC, a full-service events design and logistics company that has done work in more than 30 countries. A large part of Ms. Gould's company is designing menus and negotiating culinary for meetings and events, in addition to exhibit design, strategies and general meeting planning. Her company has done work for the Coca-Cola Co., Aerion Supersonic Business Jets, Honeywell International and HCC Life Insurance, among others. Gould teaches and writes about culinary and banquet trends and topics. Follow her on Twitter @Rx_for_Catering and Rx For Events on Facebook. E-mail cgould@rxforevents.com.

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With the economy being what it is — and for our purposes let’s call that crappy — it never ceases to amaze me how hotels keep trying to charge new, and excessive, fees in their banqueting services.

Listen to this one, courtesy of a hotel chain in Texas that will remain nameless:

“The hotel reserves the right to add an $85 fee to all ‘pop-up’ requests. A ‘pop-up’ is classified as an event that is requested for the hotel (minimum 25 people) within 24 hours of the actual event.”

They reserve the right? What right do you have to possibly charge me an added fee on top of your already overpriced menus when I am giving you additional business?

Knowing that this particular hotel just laid off employees, I wonder if they should be focusing on thanking clients for giving them additional business instead of wanting to charge my client extra.

And whatever happened to the client’s right to good service? You know, when hotels used to say, “We are here to serve you, should you need anything else.”

Hotels, quit penalizing those of us who are giving you business. Between that and instituting a 24 percent service charge (don’t even get me started!), you’re well on your way to contributing to your own downfall.

That is my story and I am sticking to it.

Claire R. Gould is the owner of Rx for Catering, LLC, a culinary and logistics company that works globally negotiating and designing menus for meetings and events. Her company has done work for Coca-Cola, IBM, Honeywell and Randstad, among others. Gould teaches and writes about culinary and banquet trends and topics, and publishes a quarterly online newsletter “The Claire Diaries.” If you have any feedback for her, please leave a comment.

Join the discussion

Amy Pappas Says:

2009-04-08 08:45:36

I tottaly agree.

Amy Pappas Says:

2009-04-08 08:47:17

Oops, not typing correctly this morning "totally".

Lynne Grant Says:

2009-04-10 09:55:10

I can understand why there should not be excessive fees added, however, it does create a challenge to provide quality food when a group exceeds by 60%over the expected number. We require 1 week prior for the guarantee and allow the number to be increased up to 3 days prior. This will ensure quality & service and that is what we strive for. Lately groups have a tendecy to provide a much lower guarantee and hotels/resort fear to not have enough food, when 50 + more guests arrive. It is a perception factor and we all want to give the best we can to our valuable clients. We all need to work as a TEAM and all will be successful

Maria Says:

2009-04-10 19:22:07

I can relate to the hotel having to pass on fees to service last minute opportunities that the customer is graciously giving them. However, within twenty four hours, there are time constraints, that may turn in to overtime wages that are incurred, additional fees from vendors that charge us for getting the needed product to serve, not having the adequate staff and having to try to get someone at the last minute to take additional shifts (as they may have a life outside our service industry). There are two sides of every coin. Hotels do have fiscal responsibilities that need to be met, and there is a fine line between service and being held accountable to bring in a profit like any other business. It is obvious this part of the partnership is misunderstand. Hospitality service does not mean it should only benefit the customer. There is always a happy medium that should make both parties successful. If planners would come to understand there is always a price for service, because people are needed to serve. I am sure you would not want to work for free to service your customers. How would you pay your bills?

Claire Gould Says:

2009-04-12 21:46:40

Folks, This is great we are getting a dialogue - TRUST me Maria - we do understand thre is always a price for service - HELLO 22% to 24% service charge - and with most hotels having a huge "on call" banqueting staff that the majority of them are fighting for work - there is NO REASON AT ALL for pop up fees. Everyone is down in banqueting these days and all service staff is welcoming a last minute phone call to come to work. Plus this money is not getting passed along to the server it is going to the hotels bottom line.

Maria Says:

2009-04-15 11:48:37

No offense but broad generalizations in how every hotel conducts their business and operates puts many people in the red to service some based on cost concessions, discounts off programs, etc.. As an independent franchise hotel that outsources the food and beverage operation to an upscale restaurant group we don't have the priviledge of putting it to the bottom line because we do not have the revenue incoming to offset the labor for set up. Contrary to the assumption we do not pass on this to the employee, WE DO! They are at most times multi tasking to ensure all of our services throughout the hotel are up to standards. We actually do rank in our BRAND in the top 25 out of 300+ hotels. Please understand, we have no intention of gouging the customers, but, not all hotels are operated as a hugh 2000+ room convention hotel that has people hanging around the water cooler waiting to work. Every city, every hotel and operation of such is different. We cannot just blanket an assumption that we are making money hand over first. First all whether you are a Starwood, Wyndham, Hilton, etc. most of the agreements are franchise and none of the corporations own or operate the hotels and the $$ is not going to the big guys, but, private investors that expect a profit to the actual owners.

Kristi Casey Sanders Says:

2009-04-15 12:06:06

I think Maria raises a great point. Claire- are you dealing mostly with major chain hotels? From everything I've seen with the independently owned and boutique hotels or heard about them from our planning audience, they seem to be a lot more flexible and focused on the long-term relationship rather than short-term gain or one-time sale. I have heard a lot of frustrations about fees, lately, but I've also heard many in the hotel community equally outraged by what other hotels may be doing that gives everyone a bad name. In Austin last week, one planner asked why, if she had purchased a complete, all-inclusive beverage package, it didn't include coffee once she was on-site. She had to really fight to get coffee put back into her "all-inclusive beverage package." There were some hoteliers in the room when we were discussing this and they told her that yes, she was right to expect coffee was included and wondered what the hotel justification for not including it after the fact was. One hotel sales person said she had been asked by a planner recently whether the total beverage package included coffee. She thought that was a really strange question, until she heard from the planner in our session. Then, she realized that other hotels must be not counting coffee as a beverage. So, I do think there are some weird fees planners are encountering. But, I have to agree with Maria that it's dangerous to assume that ALL hotels are out to gouge. The general response I've gotten from conversations with the hoteliers I've had access to would be to not do business with properties that are jerking you around (like what Claire's experienced) and go with properties like Maria's who value your relationship and are interested in honest dialogue about challenges and compromises.

Claire Says:

2009-04-16 10:11:56

Folks, keep in mind here I am talking big picture when I am writing these morsels. I am wanting to make planners aware of start looking at your F & B menus and their "rules" before you sign your hotel contracts because for the majority of us across the board an $85.00 pop up fee in this economy in a hotel that banqueting does handle the F & B just doesn't make sense. Also on the other morsel - that gal that wrote that coffee is not included in her beverage package - that does sometimes happens because this at some hotels comes from 2 different departments. Coffee comes through banquets and sodas etc comes through beverages...WHAT SHOULD HAVE HAPPENED and maybe it did - is that when they are giving a price for an all inclusive beverage package - as one would think it included coffee - is hotel should list in bold letters what that includes this way this is no miscommunication...as I do agree the majority of the world should think that coffee is included as technically - that is a beverage - and how the charge back happens is an internal hotel issues and shouldn't be a customer issue.