Companies that scratched their holiday galas last year and in 2008 are showing signs of reviving their Christmas cheer — but don’t break out the bubbly just yet.
Caterers, a private club, a restaurant and a hotel banquet director said they are fighting for business customers with scaled-back budgets and are helping them keep costs down by not serving Champagne, or any alcoholic beverages. Businesses also are holding the affairs at lunch, a practice that usually keeps the head count to employees only.
“We had people cancel events last year, and the people who’ve rebooked are spending less money,” said Carmelo Gabriele, who co-owns Il Bel Lago restaurant in Creve Coeur.
Businesses still planning dinner parties are requesting less-expensive wines, he said. His restaurant now hears from businesses that have capped their holiday entertainment budgets at $35 a person, “and we’re working to accommodate them,” he said.
Most businesses contacted declined to comment on any plans for holiday parties, but one that’s raising its budget for an early December company party is Black Twig Communications of Clayton. “We’ve reserved the whole wine bar at Trattoria Branica in Kirkwood for the staff and their significant others,” said Tom Geiser, managing partner of the 4-year-old marketing and public relations agency.
Geiser said that following a strong year, Black Twig expects to boost its party budget from the $45 a person the company spent last year at Trattoria Branica for its 20 employees in St. Louis. Black Twig generated just under $7 million in revenue for 2009 and projects the company will near $8 million in revenue for 2010, he said. Black Twig also is preparing to move to expanded quarters at 7711 Bonhomme Ave.
Even as many other companies continue to tighten finances, business leaders recognize there’s value in rewarding employees with a party, even one that’s less lavish than in previous holiday seasons, said caterers and venue operators.
“There’s so much negative out there. For those who have survived, there’s reason to celebrate,” said Richard Nix, president of catering and event company Butler’s Pantry. “They’re looking for creative ways to have a fun event.”
His company started getting queries about holiday bookings as early as April, and as of late September, Butler’s Pantry’s bookings were up between 20 percent and 25 percent over the same period in 2009, Nix said.
Butler’s Pantry, which reported 2009 revenue of $3.9 million, recently completed its most profitable quarter in recent history, he said.
Mark Erker, president and owner of Catering St. Louis Inc., said his business has received a major pop in corporate business during the past two months. It has helped boost bookings by 17 percent compared with the same period last year, but only about 9 percent of the increase is for corporate Christmas parties.
“Everyone’s a little nervous about spending money, and they don’t want to look too lavish,” said Erker, whose business reported $9 million in revenue last year.
Erker said that in addition to spending less, corporate customers are reserving party space and St. Louis Catering’s services later and later. Before the current economic slump, corporations would book events six months in advance. While many firms now book three months in advance, 30 to 45 days ahead of an event is common, he said.
Bill Miller, president and founder of Premier Rentals, which rents equipment to catering firms for the parties, said 2008 was the off year for his company. Premier has been rebounding since then and is up 9 percent over last year at this time. Premier has annual revenue of about $3 million. He said it’s still too early to figure what businesses will do for the holidays.
Heather Allison Smith, director of sales and marketing for the Ritz-Carlton hotel in Clayton, also said it is still early to project holiday party bookings, but the hotel expects there to be some recovery from last year. “My guess is (businesses) are waiting to see how their third quarter performs before making a decision about spending in the fourth quarter,” Smith said.
To bring in businesses on a tight entertainment budget, Smith said the Ritz-Carlton here is working with a New Jersey-based company called Impact 4 Good, which develops community-service projects in conjunction with holiday parties.
At the Saint Louis Club in Clayton, holiday bookings remain below levels of several years ago. Some of the people who cancelled parties two years ago are coming back but doing smaller events, said Helane Bernath, director of marketing and membership for the private dining club with 1,200 members. “It may not be as good as previous years, but the holiday season is always good business,” she said.