FOOD AND BEVERAGE PROGRAMS

1. FOOD AND BEVERAGE PROGRAMS Becky Genoways, CFEE Genoways Events Memphis in May International, Saint Louis Art Fair

2. Top Event Revenue Sources? 1. 9. 2. 10. 3. 11. 4. 12. 5. 13. 6. 14. 7. 15. 8. 16.

5. Food Who Vends? In House Contract Out Sell Vendor Space Commercial or NFP Product Price Placement Offering

6. Food How Do You Determine Vendor Fees? Pricing Considerations Flat Fee for Space Variable Based On Size Commission/Percentage Combination Additional Fees Electricity Permits Tent, Tables, Chairs

7. Sample Food Vendor Fees

8. Food Sales Trends Smaller Portions Healthy Choices Local Market Themed Specialty Areas Ethnic Desserts BBQ Restaurant

10. Beverages Soft Drinks, Energy Drinks, Water Process-Who Sells? Size of Product Type-Brand, Bottle or Fountain? Exclusive Sales-Do Your Food Vendors Sell Drinks?

11. Beverages BEER Decline in Sales Product Diversity Change In Preferences Micro Brews Trends Low Carb DUI Bottles vs. Plastic

12. Beverages WINE Increase in Popularity Bottle Pour Single Serve MIXED DRINKS Bars Signature/Specialty Drinks Commemorative Cups

14. Sales Trends Alcoholic Beverages • Beer • Domestic • Craft-MicroBrew • Imports • Malternatives • Bars-Mixed and Specialty • Brand Specialty Drinks • Stand Alone Venues

15. Beer Sales

16. Importance of Demographics Know your patron/customer! • Demographic-age, sex, education, marital status • Geographic-local, non-local • Psychographic-values, attitudes, interests, or lifestyles What does your patron/customer want? • What is the customer’s expectation of your event? • What products are popular in your local market? A customer centric business puts its customers at the core of its strategy and day-to-day operations.

17. Demographics Your Event Your Event Age Income Education Gender Household Surveys Onsite Email

18. Determining Products If It Sells Keep It Why Does It Work? If It Doesn’t Sell Why not? Market Trends Stores Magazines Other Events Internet

19. Determining Prices Market Research Competition Local Market Product Size Survey Product Cost Negotiate with Sponsors & Vendors Volume Discount

20. Commercial Vendor

21. Successful Revenue Program Attributes Efficient Cash Management Accurate Budgeting Historical Analysis, Trends, Volume Price and Cost Control Knowledge of Market/Customers New Products-Growth Opportunities

22. Impacts on Revenue Cash Management Theft Counterfeiting Sales Location Price Point Cost Control Product Selection Weather Outside Competition

23. Cash Management and Inventory Systems Sales Transaction Methods Cash Tickets Debit or Credit Cards Cashless/Smart Cards, Wristbands Tokens Inventory Control and Reimbursement Varies By Product Cup Count Product Inventory

25. Maximize Your Existing RevenueEfficient Cash Management Cash Transaction Risks Theft Inaccurate Change Ticket Transaction Risks Reusing/Reselling Tickets Inaccurate Transactions Counterfeiting

26. Maximize Your Existing Revenue Efficient Cash Management Product/Sales Risks Consumption of Product Free Product Theft of Product Inaccurate Inventories Inaccurate Deliveries

27. Beer Tent Efficiency A Case Study EventEstimates $60,000 in Lost Beer Revenue. Efficiency program implemented. Results in 95% Efficiency with a $15,000 Shortage. Program refined to accomplish 99.5% Efficiency with Shrinkage of $2,000 Based on Average Sales Volume of $330,000

28. Beer Efficiency Kegs Efficiency Formula for Half-barrel of Domestic Beer Assume you can pour 155 12 oz. Beers into 14 oz. cups per half-barrel Price of 14 oz. Beer - $3.00 Event gets 145 beers 145 x $3.00 = $435 Event collects $435 per keg sold with the remainder given to the operator (approximately 10 cups or $30 per keg).

29. Beer Efficiency Kegs Operator sells 10 kegs. Event collects $4,350 Remainder goes to Operator (approximately $300). If Operator pours efficiently, doesn’t spill, catches foam, doesn’t drink product, etc. they will make more than 10 cups per keg.

30. Beer Efficiency Bottles Cases of 16 oz. Bottled Beer, 24 Bottles Per Case Price of 16 oz. Bottles = $4.50 Event Receives Revenue for 21 bottles per case sold or $94.50 Operator is Paid for 3 bottles of each case sold or $13.50 60 cases are Sold for a total of $6,480. Event collects $5,670.00, Operator receives $810.00

31. Beer Revenue Results Gross Receipts = $22,299 31 Half-Barrels Beer Sold 73 cases 16 oz. Bottles Sold 31 HBLS x 145 cups x $3 = $13,485 73 cases x 21 bottles x $4.50 = $6,898.50 Event Revenue $13,485 + $6,898.5 = $20,383.50 Operator Revenue $22,299- $20,383.50 = $1,950.50

32. Commission Based Sales VENDOR agrees to deliver a minimum yield of 118, 16 oz. cups of beer per keg sold for $5.00 regular and $7.00 premium brands. VENDOR agrees to deliver a yield of 24 units per case of packaged beer, which shall be sold for $5.00 per can or unit. Vendor agrees to deliver a yield of 24 units (plastic bottles) per case of packaged soda and water, which shall be sold for $3.00 per unit. VENDOR agrees to deliver a yield of 5 (five) 4 oz. cups from 750 ml bottles and 10 (ten) 4 oz. cups from 1.5 liter bottles, for $6.00 per cup. VENDOR shall pay for, at cost, all lost or damaged units that cannot be sold during each event day.

33. Commission Based Sales Beer, Wine, Soda & Water Combined $0.00 - $6,000 13.50% of gross sales $6,001- $8,500 14.50% of gross sales $8,501 - $10,000 15.5% of gross sales $10,001 and above 16.50% of gross sales

34. Commission Based Sales The efficiency commission will be determined by dividing the beverage sales revenue collected by Operator by the total retail sales potential. Total retail sales potential will be determined by multiplying the utilized EVENT cup inventory by the retail price. All damaged cups must be returned and authenticated to receive credit. The incentive commission will be calculated as follows:

35. INVENTORY AND SALES TRACKING

36. TOTAL SALES AND EFFICIENCY

37. Wishing You Continued Success In All Your Events! www.genowaysevents.com genowaysevents@gmail.com