Professional Documents
Culture Documents
INTRODUCTION
1. COMMERCIAL CATERING
These are hotels/restaurants that run on profit basis.
Individuals or private (i.e. profit oriented) include hotels
of different classes, restaurants with different service styles,
example; Wine bars, fast foods and take-away-offering.
Types of Contracts
- Cost Plus
Clients pay for all agreed costs plus a management fee,
either a percentage of the expenditure or an agreed fixed
fee.
- Guaranteed performance
Clients obtain guarantee from caterer to perform in
certain areas, such as to recover food costs or a gross
profit
- Fixed Cost
Caterer works to annual budget fixed with clients. If
caterer overspends, he or she pays if she under spends he
or she retains the profits.
- Nil Cost
Caterer retains all income and deducts operating cost. No
payments required by clients.
- Commercial Returns
Caterer pays to provide a service via fixed rental,
percentage of turnover, or both.
- Partnership
This is where the client and customer are partners in the
operations and share the cost and revenues.