Not sure how F&B charges work or feeling overwhelmed by the all different options presented by your venue?
You're not alone.
We get this question from clients all the time.
How you structure these F&B charges can influence both your budget and the overall experience for your attendees.
In this article, we’ll break down the three main ways venues charge for F&B and share our recommendations on the best approach based on your event type and needs.
Quick summary.
Whether you're planning a corporate conference, a gala dinner, or an incentive retreat, understanding the different pricing models can help you make an informed decision.
Let’s look at the three primary ways venues and caterers charge for F&B:
- Per-person pricing
- Consumption-based pricing
- All-inclusive pricing
Per-person pricing: predictable but inflexible.
One of the most common pricing models is the per-person (or per-head) pricing structure.
This method charges a flat rate per attendee, covering all their meals and drinks within a set menu.
Pros:
- Predictable budgeting: with a fixed cost, you can easily forecast expenses without worrying about fluctuating consumption levels.
- Streamlined planning: since everything is pre-arranged, tracking individual food and beverage items isn’t necessary, making it easier for event planners and catering teams.
- Better vendor negotiation: venues may be more open to negotiating prices per person because it guarantees their revenue and simplifies contracts.
- Guaranteed availability: since F&B is planned for a set number of attendees, there’s little risk of food running out.
Cons:
- Lack of flexibility: you must commit to a set number of meals and drinks, which means paying for attendees who don’t show up.
- Risk of overpayment: if attendees eat or drink less than expected, you’ll still be charged for the full headcount.
- Alcohol costs: while alcohol costs can be bundled into the per-person rate, this often results in higher expenses, especially if your group isn’t a heavy-drinking crowd.
Best for:
- Large conferences
- Plated dinners and formal banquets
- Galas and award ceremonies
- Invite-only events where attendance is predictable
Consumption-based pricing: pay for what you use.
In the consumption model, you are billed only for the food and drinks that are actually consumed.
This can be best for events with uncertain attendance numbers or varying consumption habits.
Pros:
- Cost efficiency: you only pay for what attendees eat and drink, reducing waste and unnecessary spending.
- Flexibility: guests can choose what they want, which improves their overall experience.
- Alcohol management: this model is particularly beneficial for bars, where tracking actual consumption prevents excessive spending on pre-set drink packages.
Cons:
- Unpredictable costs: since you don’t know how much attendees will consume, budgeting can be challenging.
- Service delays: restocking items can slow down food and drink service, especially if demand exceeds initial estimates.
- Potential for high costs: if consumption is higher than expected, expenses can quickly skyrocket.
Best for:
- Networking events
- Cocktail hours
- Casual receptions
- Hosted bars with unknown drinking patterns
All-inclusive pricing: convenience at a cost.
For high-end incentive programs, luxury retreats, or multi-day events, all-inclusive pricing can be a hassle-free option.
This model bundles all F&B into a single, upfront cost per attendee.
Pros:
- Complete budget control: you know exactly how much you’re spending with no hidden fees or surprises.
- Simplified billing: the event’s financial management becomes much easier since there’s a single price covering all meals and drinks.
- Convenient for attendees: guests can enjoy a variety of options without worrying about cost constraints.
- Expanded offerings: this model often includes high-end dining options as well as casual grab-and-go selections, giving attendees more flexibility.
Cons:
- High costs: all-inclusive pricing tends to be significantly more expensive compared to other models, especially for events where consumption is low.
- Waste issues: since attendees can eat and drink as much as they want, food waste can be a major concern.
- Mismatch with attendee profile: if your guests aren’t big eaters or drinkers (e.g., a group of PTA parents), this model may not provide good value.
Best for:
- Incentive trips
- Corporate retreats
- High-end, luxury experiences
- Multi-day events with extended meal service
Which F&B pricing model should you choose?
The best pricing model for your event depends on several factors, including budget, guest demographics, and your event’s structure.
Here’s a quick recap to help guide your decision:
- Choose per-person pricing if you need budget certainty and a simple planning process.
- Choose consumption-based pricing if you want flexibility and are willing to accept some budgeting risks.
- Choose all-inclusive pricing if you’re hosting a luxury event where convenience and premium offerings matter more than cost efficiency.
Understanding the nuances of each model allows you to make informed choices.
This helps optimize your F&B budget while ensuring a great experience for your attendees.
Ready to plan your next corporate event?
Want more insights on event planning and budget management? Let’s chat about how GoGather can help you plan the perfect F&B experience for your next event.