Paying the PriceMarch 6, 2025

Ways to Fight Rising F&B Costs By
March 6, 2025

Paying the Price

Ways to Fight Rising F&B Costs
By sourcing local and seasonal fare, you can minimize costs and support area farmers while providing your attendees with a more authentic dining experience. Courtesy of Rosey Romano

By sourcing local and seasonal fare, you can minimize costs and support area farmers while providing your attendees with a more authentic dining experience. Courtesy of Rosey Romano

All indicators point toward significant challenges for association event planners this year, due to rising F&B costs.

According to the most recent Global Business Travel Forecast — published by the Global Business Travel Association (GBTA) and business travel and meetings company CWT — the cost per meeting attendee is predicted to jump 4.3% this year, with the persistent high cost of F&B playing a key role.

The USDA also expects food prices to increase by 2.2% in 2025, while the cost of food purchased away from home (e.g., dining out) is projected to rise at an even higher rate. The well documented steep rise in the price of eggs (20.3%) is a key factor, as the industry continues to grapple with fallout from bird flu and other issues.

“One of the biggest challenges I face in keeping food and beverage within budget is managing the rising costs from providers,” says Megan Hemming, chief professional development officer at the California Special Districts Association. “Balancing the need to cover these higher costs without significantly raising attendee fees is a struggle. We aim to provide a high-quality experience without making the event prohibitively expensive for our guests.”

Sara Hunter, senior event planner for the British Columbia School Trustees Association (BCSTA), agrees that the rate and pace of still-rising food costs is a challenge, especially for her larger meetings of 400 or more attendees in downtown Vancouver, Canada. “It is difficult to budget, as you think pricing will stabilize, but it continues to go up at unprecedented rates,” Hunter says.

Location Matters

Hosting meetings in an expensive location such as Vancouver presents issues for planners as well as the host city or venue. Ayisha Rogalski, director of event planning at the Westin Bayshore Vancouver, says the challenge for her is that planners who set up meetings in other cities might be caught off guard when they see the pricing in a city like Vancouver or San Francisco.

“A person who’s done events in Kansas City would be very much shocked as to the pricing we have in Vancouver, even if it’s in Canadian dollars,” Rogalski says. “Sometimes, it’s a little bit of a challenge for us to actually meet those budgets, especially when those budgets don’t change, even though the cities change.”

Hunter says she used to plan meetings in Richmond, British Columbia, which was less expensive than downtown Vancouver. “We were in Richmond for a few years pre-COVID but outgrew the venue. It was a big jump to the downtown Vancouver food pricing, which seems consistent with large four-star conference hotels,” Hunter adds.

The type of venue can also impact F&B pricing — for example, hosting meetings at a convention center versus a hotel. As director of meetings at the Association for Diagnostics & Laboratory Medicine (ADLM), Rosey Romano uses both hotels and convention centers for their events. She finds F&B pricing at convention centers to be lower than at hotels, which makes them a cost-effective option for larger gatherings. “We typically hold our opening reception at the convention center to take advantage of the lower costs, while still providing a high-quality experience for attendees,” Romano says.

Hemming, who plans most of her meetings at hotels, finds the opposite to be true, with costs for F&B programming typically higher at convention centers. “Additionally, some convention centers can be more rigid in what they can offer, which can limit flexibility in menu planning and customization,” Hemming says. “However, this isn’t always the case, and it varies depending on the specific venue.”

Warner Peck, director of sales and marketing at Sodexo Live! at the Orange County Convention Center in Orlando, FL, says the location of an event can also dictate where F&B money should be allocated. For example, in Las Vegas, NV, attendees are more apt to explore a local restaurant on their own for lunch rather than eat at the convention center, whereas in Orlando there are not as many options within walking distance. “The food needs to be at a level where people are staying not because of the options that they don’t have, but because of the experience of having the great food here,” Peck says.

Planners holding meetings in Las Vegas also might portion a smaller budget for breakfast if fewer attendees wake up early to attend. “It’s understanding the group, so you’re not just defaulting to a breakfast that creates a ‘wow,’” Peck says. “You’re going to be more focused on your retail operations at that point, because they want the coffee and the danish to go.”

The First Step

Starting the conversation early in the process is key to keeping an F&B experience within budget and successful, according to Rogalski. The first step is discussing the overall budget and what the constraints are, as well as the priorities. “The earlier we can have that discussion and understand what the group’s and the planner’s budget is, the earlier we can work on a menu,” Rogalski says. “Confirming their menu earlier helps us source those items as well. We may be able to source them at a lower price.”

She says the early stages are the best time to decide where the money will be spent — whether too much is being allocated for a coffee break, for example, when it could be used for a better breakfast experience.

It’s also important that the planner is honest about attendee numbers, according to Peck. “What generally happens, especially for associations, is you’ve got 2,000 people and you’re only going to guarantee food for 1,500 because you’ve got a budget, and you want to stay within that budget. I’d rather know what that budget is ahead of time so I can feed all 2,000 on it. When you under-guarantee and we run out of food, I’m going to hit you with a last-minute surcharge to make sure that we can feed everybody.”

Hemming says that to keep F&B costs down, she pre-negotiates pricing with providers whenever possible. For instance, locking in prices for items such as coffee well in advance can help stabilize her budget. “Signing contracts for future events — such as securing 2025 menu pricing for a 2026 event — provides financial predictability.”

She says she also meticulously tracks attendee consumption at each event, using the data to order more accurate quantities for future events. “For example, if I notice a significant drop-off in breakfast attendance on the last day, I can adjust my orders accordingly to minimize waste and cost.”

Hemming allows vendors some wiggle room within her budget. “By setting broad guidelines, such as specifying that lunch should include two proteins, a salad and a drink, I give vendors the freedom to work within those parameters. This flexibility often results in better pricing and creative menu options that still meet my requirements.”

Strategic Menus

Planners can work on potential menus with the venue for more cost-effective dishes, which can vary based on the season or region. Partnering with caterers to use seasonal and locally sourced ingredients can be less expensive while also supporting sustainability goals.

Hemming says that to maintain quality within her budget, she focuses on early planning and leveraging local, easily sourced ingredients. “For instance, when hosting events in Monterey, [California], I often incorporate artichokes into the menu, as they are locally available and fresh. This not only supports local producers but also ensures high-quality ingredients at a reasonable cost. It also gives attendees a taste of the area.”

Adam Williams, director of F&B at the Atlanta Marriott Marquis, notes that by sourcing locally and seasonally, not only can you help minimize F&B costs, but you can also help out the local farmers. Williams adds that when you buy in season, you will get a better price than you would out of season.

Of course, current trends in food costs can dictate menus. Peck notes that chicken is no longer the default standard at events, especially considering recent higher costs and concerns about bird flu. “You can do an incredible beef tri-tip, which is a more cost-effective version of beef,” Peck suggests. “Also, I understand that there is a concern about shellfish, but sustainable seafood is a pretty good alternative.” Another lower-cost option would be plant-based foods, such as vegan “crab” cakes made from jackfruit or hearts of palm.

Williams sees working within a budget as an option to be creative. Examples would be serving sirloin rather than filet mignon, and adding a sauce to enhance its flavor, such as a fig demi-glace.

Strategic ordering is key for Romano. She notes that timing plays a significant role in how much food is needed. For instance, if a reception is scheduled from 6 p.m. to 7 p.m., attendees will likely have dinner afterward, so there is no need to overorder. “A cheese display is always a reliable option, as it consistently serves more guests than what is stated on the menu, making it a cost-effective choice across different venues,” Romano suggests.

Planners can also strategize to choose a particular dinner or reception format — whether it’s a buffet, plated meal, food stations or reception style, that decision can affect costs.

DIY Stations

Incorporating a make-your-own food station can be more engaging and cost-effective, also saving on labor. Peck is a fan of “walking tacos,” where attendees choose their own fillings. “That’s a huge cost save … plus it’s memorable. Same thing with salad bowls, just giving them a nice big bowl and they go down the salad buffet.”

Romano says that DIY activations, such as a “make your own trail mix” station, are cost-effective as well. “While venues may still assign a server to monitor the area, it typically doesn’t incur additional labor charges,” Romano adds.

To cut costs, Rogalski sometimes uses a daily menu, which is cheaper than the regular menus. “The idea is that we maximize this menu by having different groups order it, so the cost is less. It also minimizes food waste, so we try to promote that to our groups that have a little bit of a budget constraint.”

Beyond food, the beverage program can drive up prices, but here, planners have a variety of options. Rogalski cuts down on bottled beverages and offers infused water stations instead.

According to Peck, another tactic is to serve beer, wine and a signature cocktail instead of having a full bar. “Right now, we’re partnering with Craft Standard. That will save you way more money than … a full bar [would].”

According to Williams, a lot of people who were buying more expensive spirits are now leveling off because of the economy. One of the bars at the Atlanta Marriott Marquis also offers cocktails on tap, which, he says, could be introduced to catered events this year, cutting down on labor costs. An additional money-saving trend is serving creative nonalcoholic cocktails, such as the blueberry mocktail with lime and ginger.

Portion Control

Another tactic to keep F&B costs down is monitoring guest counts closely and ordering only what is necessary to avoid overpreparation. Williams suggests plated meals or hors d’oeuvres at events rather than having food on display where attendees may take more than they can eat.

Rogalski suggests that, because of the need for additional staff and other components involved, serving food reception-style is more expensive that providing plated meals. “I tell them you could even have it family-style if you really like that networking portion, or do a plated and then have the dessert as a reception-style, where now people are up getting their coffee, chatting.”

Hunter always requests that, during breaks in the event, any nonperishable items remaining from breakfast or lunch are served, which also cuts down on food waste.

“I don’t think people need to really spend a ton of money on the breaks,” Peck says. “I think people want to get fed for lunch, so I would rather do a lower-end break and put that money toward kind of a ‘wow’ lunch.” He adds that warm cookies and milk are a break favorite of his.

Negotiating With Vendors

Another way to keep F&B costs down is by negotiating packages with venues that include F&B along with other services like AV and room rentals. “When a venue charges a room rental fee, we negotiate for a higher F&B minimum instead of paying the rental cost outright,” Romano says. “This allows planners to allocate more budget toward F&B rather than facility fees.” She says that since AV providers are often third-party vendors, it’s more challenging to bundle those costs with F&B, but she does negotiate deep discounts on AV services during the contract phase whenever possible.

Hunter says that negotiating multiyear agreements with hotels can lead to an F&B discount. “We leverage business volume and loyalty to include favorable terms, including a food & beverage discount. Sometimes a planner can shift costs from a different item, such as printing. to earmark more funds for F&B.”

Sponsorships

Another cost-saving option is to partner with sponsors to cover meal or drink costs in exchange for branding opportunities. Peck suggests breakfast is ideal for this, with the potential for branded coffee cup holder sleeves or napkins.

Romano says she explores sponsorship opportunities for meals during the association’s annual meeting, as does Hemming. “Our sponsors typically enjoy being associated with these functions,” Hemming says, though she adds that she maintains control over the menu selection to ensure consistency and quality. “That sometimes requires clear communication with sponsors about their role and the extent of their influence.”

While costs are always the top priority, Peck emphasizes the importance of F&B for associations. “I think the money that you’re spending gives you good ROI in terms of the memory,” Peck says. “I think when people come here to the conference, they’re going to remember three things: what they learned, the weather and the food.” | AC&F |  

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