Article written and created by Chef Crusco Catering in Austin, Texas
“Do we really have to pay money up front for Catering services?” The answer is a resounding YES. In part 3 of our 6 part series on ways to secure a reputable catering company, this article explains why paying a deposit is a positive sign and one that should be required by any reputable catering company. In fact, paying the caterer a deposit and signing a contract is not only crucial for a succesful event but also designed to protect you the customer.
Listed below are 4 reasons why this requirement is important ensuring a better overall customer experience.
1. It secures the date and services expected
The deposit (usually anywhere from 25%-50%) confirms and finalizes customer bookings. This ultimately allows the caterer time to source ingredients, reserve staff and other resources for your event. It also allows the caterer the ability to better manage their client calendar. Once the Deposit is paid, that date is blocked off to other inquiring customers and reserved only for the customer that paid the deposit. Otherwise, the caterer may give your date to another client who pays first.
2. It protects both Parties legally
A signed contract outlines what is being provided by the caterer. This can include the menu, service style, timing, equipment, rentals and pricing. It also provides Terms & Conditions clearly communicating the responsibilities for both parties involved. Examples include the following:
- Guest count guarantee date (required 2 weeks from the date of your event)
- Credit Card transaction fees (if not using ACH payments)
- Sales Tax fees required if not a 501 (c) 3 status
A signed contract ultimately prevents any unnecessary misunderstandings and gives both parties legal recourse if any of the agreed upon commitments are not met.
3. It confirms mutual commitment
Oftentimes we have customers that are just window shopping and asking for date availability. This makes it difficult to answer as a caterers schedule can change daily. If a caterer were to simply give out dates to inquiring customers (without a deposit) there is nothing in place to hold all parties accountable. The deposit shows the customer is serious. The contract shows that the caterer is serious and committed to deliver. This mutual trust helps maintain a professional relationship.
4. It locks In pricing and specific details
Most people in the food and beverage industry know that events are fluid and things happen. Guest counts, venue restrictions or dietary needs are always changing. However, any reputable caterer will have a contract in place to mitigate the challenges the changes create. The contracts are simply in place to fix pricing and service details thus shielding customers from any last-minute cost increases. They also provide caterers the ablity to specify what will happen when things inevitably change.
We receive 2-3 calls per month from desperate customers asking us to help them with an event 2 days away because their caterer or private chef disappeared. When asked if a deposit has been paid or if a contract has been signed the answer is always no. In order to avoid finding yourself in this predicament, make sure to secure these items. In summary, deposits and contracts are not red flags but green and ones that customers should always look for when secruing an event partner. Remember it this way: deposits secure your event date and the contract secures your peace of mind.
