WHAT IS THE DIFFERENCE BETWEEN PRIVATE/PREPAID CATERING AND AN EVENT WHERE GUESTS PAY THEIR OWN WAY?

There are two main types of events. The most common type of event is a private event. Private events are arranged ahead of time with a set menu and quantity of food and drinks from which guests can choose. These most often take place on private property. Examples of private events are company parties, weddings, etc. Everything is paid in advance.

Another common event scenario is when a budget is not allocated to pay for all event attendees and instead the host or organizer agrees to guarantee a vendor’s food and beverage minimum, commonly referred to as a guaranteed minimum. Examples of an event that may use a guaranteed minimum is a street festival. In this scenario, the total client costs depend on the event sales. If the guaranteed minimum is $1,000 and sales are $800,the client would be responsible for paying the $200 balance. If sales are at or above $1,000, the client would not have a balance for the minimum.

These figures are examples. In both scenarios, rental fees, travel fees and a booking fee may apply.