The Ten-Minute Manager’s Guide to ... Making Private Dining Profitable

The Ten-Minute Manager’s Guide to ... Making Private Dining Profitable

By Kate Leahy, Associate Editor -- Restaurants & Institutions, 3/1/2008

Some restaurants stake their claim on "home-cooked" meals. Others foster loyalty by offering a "third place," a space to relax away from home and work. And many realize the value of providing another kind of service: a personal party planner.

Even in a trying financial climate, no trend suggests that people will choose to entertain more at home for important corporate or personal occasions. Private events benefit restaurateurs by generating goodwill and increasing profits. The key to repeat business is working efficiently to create remarkable events.

"Folks want a memorable type of event," says Alex Brennan-Martin, co-owner of Brennan’s of Houston, an establishment that draws 20% of its revenue from private events. "If we’re selling that, we’re not competing only on price."

Room Service

Whether the occasion is a corporate dinner or an anniversary celebration, it’s becoming more important for restaurateurs to offer private rooms for special events.

"It’s an exclusive space with a lounge area, a couple of couches, coffee tables and a stand-up bar," says Private Dining Director Daniela Ortiz (above) of Naha in Chicago. "When you have an event in the private dining room, it is your world. ... You have room to relax without the formality of being seated at your table."

Says Jeanne Cretella, who owns Stone House at Stirling Ridge in Warren, N.J., and Liberty House Restaurant in Jersey City, N.J.: "It’s really important to have those little spaces. There are a lot of business meetings that would be lost in a banquet room."

As rooms become more differentiated from the main dining room via private bars and comfortable couches, restaurateurs should ensure that sought-after spaces are reserved in a way that benefits the operation.

"Space is expensive," says Alex Brennan-Martin, co-owner of Brennan’s of Houston. If a small group books a large room before a large group has an opportunity to book it, the restaurateur can lose the opportunity to accommodate what could be a more-lucrative event.

"Early on, [tell the client that] you have room minimums," advises Brennan-Martin. "It’s not just the cost of your meal plus cocktails. We set a room minimum for our rooms for the meal period."

Good Impression

Coordinating an unforgettable event can instill client loyalty and draw new business.

Jeanne Cretella draws 70% of her revenue at Liberty Restaurant and Stone House at Stirling Ridge from private events. When a real-estate company asked her to arrange a special dinner for its top customers, she knew a good impression would drive repeat business.

Cretella suggested a seven-course wine-tasting menu, with wine descriptions explained by a sommelier before each course. Because most of the guests didn’t know each other, the tasting theme helped stimulate conversation.

"It made everyone feel comfortable," she recalls. "If they weren’t a conversationalist, they didn’t need to be." She also came away with an enthusiastic corporate client.

Vanessa Harris, private-dining manager for Absinthe Brasserie and Bar in San Francisco, recently helped a customer plan a surprise party for his mother. "Some people have never planned events before," she says. "They look to you."

As an added touch, she offers clients the option of purchasing party favors, which can range from bottles of wine to house-made truffles and cakes.

Explaining to the staff the theme of the event also helps set the tone. Kathy White, director of catering for Raleigh, N.C.-based Rocky Top Hospitality, allows plenty of time for a detailed rundown the day of the event. This way, "if there is a special guest of honor, we figure out who that person is beforehand," she says.

Foolproof

Good events managers have to be resourceful. "Because we’re in a service-oriented business, I will take a change at the last minute," says Chris Carr, catering director for University Unions Food Services at the University of Michigan in Ann Arbor, Mich. Yet he also knows that it’s not always possible for the event to go on exactly as planned.

In these cases, it’s important to have a working relationship with the client. Cretella, who had a media company change its guest list from 400 people to 800 for an event at her Liberty House Restaurant’s banquet facility in January, rented an all-weather tent to set against the banquet’s back door. She then limited the event to cocktails.

With drastic changes, "you have to be realistic," she says. "Sometimes you have to make adjustments. Be open and upfront with your client. Most clients want to hear your concerns."

Profit Margin

Making private events profitable for the operator and economical for the client is an important way to maintain strong private-dining business regardless of the economic climate.

The San Francisco restaurant Absinthe Brasserie and Bar is always closed on Monday nights. But rather than take that day off, Private Dining Manager Vanessa Harris chose to use the time to expand private-dining business. She opened Absinthe’s main dining room and its next-door private dining room to cocktail receptions for about 200 guests and targeted corporate clients.

"I sold it as a buyout," says Harris. For corporate event planners, the Monday night buyouts were a bargain because the restaurant didn’t have to account for lost revenue by shutting the main dining room. Fully booked Mondays in November and December also added substantially to Absinthe’s revenue. Last year was one of the most profitable in the five years that the restaurant has offered private dining.

Yet small details also can help clients get more mileage out of private events. Rocky Top Hospitality Catering Director Kathy White steers budget-conscious clients toward selecting passed appetizers instead of the more labor-intensive appetizer stations. She also devises a menu with satisfying appetizers such as crab cakes and hearty dips. "If they are on a limited budget, you want a menu that is a little more filling because you’re not going to have as many things," White says.

Client Management

Having a clear understanding of a client’s vision is essential in orchestrating a successful, memorable event.

"I ask straightforward questions," says Daniela Ortiz, private-dining director at Naha in Chicago. "Do they like cocktails? What style of dining are they looking for? Are they steak eaters? Do they like quiet spaces?"

Such questions help managers gain insight into a client’s expectations; this in turn helps staff orchestrate the appropriate meals in the appropriate setting.

For Chris Carr, catering director for University Unions Food Services at the University of Michigan in Ann Arbor, Mich., the questions let him know whether he needs to provide basic staples, such as bagels and coffee, or whether he needs to help a professor impress a department head. "That’s when we can really help them shine," he says.

At Eagle Ridge Resort & Spa in Galena, Ill., Food and Beverage Director Donald Pleau requests that clients have a site inspection a few months before the event to facilitate event planning. After an initial site inspection, Pleau asks a client to show up a few hours before the event for a final walk-through and then to arrive before the first guests walk in.

"Inevitably, there is going to be something that changes. It’s set for 20, but overnight it goes up to 24. In this business, people play the numbers game as close as they can. They’re trying to watch their budget. So we allow lots of time for adjustments."

And although no good events manager likes to tell a client "no," there are times when a reality check is in order.

"If it’s a party for 300 and they want a pasta station, that’s going to be really difficult and would add to their cost," explains Kathy White, catering director for Rocky Top Hospitality. "I want to make things easy on my clients. I push for combination plates."