Price freeze

Increases in food costs are biting, but caterers are hitting back by adding value to their culinary offerings for meetings and events.

Soaring food costs and inflationary pressures are hurting manufacturers, suppliers and distributors where it matters - their pockets. Inevitably, this has led to rises in the cost of staging meetings or events where food is involved.

Event management companies (EMCs) and venues need to make a profit, but corporate planners need to justify the cost of events to their bosses.

And being in the Middle East doesn't help matters. With little arable land and low rainfall figures, the majority of food produce is imported.

 

It's a challenging situation for the entire meeting and event industry, according to groups and events sales executive for Le Méridien Mina Seyahi Beach Resort and Marina and the Westin Dubai, Pit Ludig.

"You need to take into consideration, not just in Dubai, but worldwide; prices increase on a daily basis," he said.

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"There has been an increase since 2007 of 56% on the cost of poultry alone."

Catering teams, therefore EMCs, are having to adjust prices every six months compared to annually, which used to be the norm, a fact that needs explaining to clients.

"It is very difficult for hotels to restructure prices and it is important to explain to clients why they are paying more than they did the previous year, which is why adding value is essential," Ludig said.

A little creativity allows everybody a slice of the successful event pie, according to executive chef, InterContinental Hotels Group Dubai Festival City, Geoff Haviland.

"We absorb a lot of these market fluctuations into our menu, but we also look at customising our packages," he said.

"A soup and sandwich break can be something absolutely spectacular and it doesn't have to be expensive - it's down to how you package it."

The trend of providing live cooking stations also allows for customisation and theatre-like performances - an area where value can be added via the ‘wow' factor rather than expensive ingredients.