MASTERCLASS: Financial management in an experience environment
Goal Introduction to financial management of party-, event- and venue catering By: Noud van den Boer (M.Sc.B.E.)
Koninklijke Van den Boer Groep B.V. Facts & Figures Activities Business model
Facts & Figures Koninklijke Van den Boer Groep BV
Family business since 1906 Corporate, Private and Public Events Annual turnover € 50 mln. 700 employees /400 fte Located in The Netherlands and Germany with worldwide activities The holding exists of 4 units: Maison van den Boer Nederland Oseven happening and food Maison van den Boer Deutschland FoodforCare Core values: Quality, Trust, Sustainability, Experience and Hospitality
About me Fourth generation 50 years 3 sons >25 experience in F&B, hospitality and events Family Endurance sports Health Entertainment
High volatility
Out of home foodservice market
Experience
Functional
Source: KVDBG
Regularity
Classic F&B and hospitality management accounting vs. party catering CLASSIC
PARTY CATERING
Daily routine Category Based One site oriented Primarily insourced (90/10)
Project based Department based Multi site oriented Significantly outsourced (60/40)
Choices to be made for Party Caterers Level of flexibility Amount of variety Growth ambition Insourcing or outsourcing Amount of overhead costs Span of control …
Principles of Activity Based Costing Products and activities generate costs Definition: An activity is a process which adds value and consumes resources
Products consume activities Total Activity Cost
Activity Based Cost per Unit = Total number of Units for Activity
ABC vs. Direct costing Size of company / operation Business model Level of volatility Profitability Impact potential Growth ambition Culture
How does ABC work in Party Catering? ‘Standardize’ your project related products and service Food Beverage Equipment Employees Determine your products and service pricing on a well balanced integral bases (80 to 90%) Set project calculation model Test on recent representative projects Implement on a practical IT platform Excel – Banquet Profi, Easy Party Measure results of ABC system and also impact on profitability
Implementing ABC Previous steps Instruct and discuss Sales PM Kitchen ‘Logistics’
Practice and feedback
Beware Maintain your heritage Experience Hospitality Taste Culture USP’s How to mix α and β
Conclusion For any party catering company challenged with maintaining a profitable business model and striving for growth and scalability It makes sense to introduce ABC. This will enhance transparency, accuracy in proposals and accountability for performance of company, departments and individuals on a periodical base. Beware of overcompensation and undermining your true values.
QUESTIONS?