
Apologies. I got a little excited in the last edition and shared a ton of info. I decided to make some tweaks and split them up into 2 parts.
With this edition, I dive into how packages often get presented and where the disconnect usually happens.
You run a restaurant that can comfortably host up to 125 people. Tuesday nights after dinner service are consistently slow. Based on your POS history, you’ve never done more than $4,000 in sales after dinner on a Tuesday.
An inquiry comes in from a company down the street about a post-dinner work event. They’re looking for space for 100 guests for 3 hours and have expressed interest in premium drinks and light food. They have a strict all-in budget of $6,000 after taxes and fees.
For context, you have a standard event sheet on file that includes a range of food platters and bar packages for 3 hours.
What would you do?
Most venues I’ve seen send something like, “Thank you for inquiring. Here are our food platters and open bar options for three hours. Let us know if you have any questions.”
Often with the mindset of, “If they want to adjust to something else, they’ll ask,” or “This budget is extremely low for 100 people. A premium open bar for 3 hours would be $11,500 before taxes and gratuity. This is probably a waste of time.”
After receiving that response, the host is probably thinking, “Wow, these bar packages are expensive. People won’t drink that much. It looks like we need to find a cheaper venue.”
Chances are, they don’t respond.
What if this is the host’s first time planning an event, or they think this is all that’s possible?
They’re just trying to be responsible with what they’ve been instructed to do. The problem is that the decision is being made purely on PRICE, and the first real conversation never happens.
Venues end up reacting to requests instead of guiding, and cost never actually gets addressed in a meaningful way.
Instead of pushing a premium open bar, I’d explain how we can stay within budget using a premium consumption bar or drink tickets, anchored by a clear minimum spend.
For example, a $4,500 minimum commitment. The host decides how much food they want, say $1,000. That leaves roughly $3,500 for drinks.
As the bar approaches that ceiling, the GM checks in. If they want to extend it, great. If not, the bar can switch to cash for anyone who wants to keep drinking. If the group comes in under the minimum, the remaining balance becomes the venue’s margin for holding the space.
Realistically, on a Tuesday night, most guests will have one drink and head out. They’re showing face for their boss, not getting after it. People have shit to do. A Wednesday hangover is not in the cards.
Is the per-person value incredible? No. But that’s exactly why minimum spends exist. You’re protected, and you’ve introduced 100 nearby employees to your bar on a slow night.
All in, that Tuesday night would generate more after-dinner revenue than you’ve ever had.
If 100 people walked in off the street on a Tuesday, would you turn them away? Or would you figure it out?
The difference here isn’t the package. It’s once again… all about the conversation.