How to plan the perfect recessionary Christmas

With the kids back at school and the summer sun slowly disappearing, thoughts are rapidly turning to all things Christmas.​ 

It may seem too early to think about turkeys and crackers, but as budget cutbacks make this year’s festive period more competitive than ever, hospitality businesses are advised to organise alternative offerings to the traditional (and expensive) sit-down lunch, and do it now.

With so many redundancies and budget cuts this year, attracting profitable office parties will be tough for restaurants, pubs and hotels, but Guy Holmes of Captivate Restaurants​ says that businesses will be giving themselves the best possible chance to secure bookings if they market their Christmas offering now.

“Normally it’s the larger restaurants that start marketing early to attract the big groups but the smart manager of any sized restaurant is starting to get their menus and promotional material designed,” he says. “Christmas is the most profitable time of the year for all hospitality businesses, but this year will be bleak for many unless they start marketing to their local businesses as soon as possible.”

Market your Christmas now

Holmes suggests operators ditch expensive advertising in local papers and magazines in favour of calling and visiting local businesses while making better use of their current diner database. One way of securing those vital Christmas party bookings and much needed deposits is to follow the example of Seasonings Restaurant and Lounge​ in Fulham and offer a discount and complimentary glass of champagne on bookings made before a set date.

Olivia Fitzgerald, general manager for Livebookings​ UK and Ireland, says that businesses who have just begun to think about their Christmas offering are already behind the competition.

“Web bookings start to go through for Christmas from the end of August, so it pays to make sure you know what will be on offer by then,” she says. “Set up an offer for Christmas, and make sure you include the menu. Diners are very keen to see your menu before they book, so make sure you include it. Offers can be shown on your own website, and with network partner websites to increase your restaurant’s visibility.”
However, as businesses look to make every pound stretch further, operators are encouraged to ditch the traditional sit-down Christmas lunch, which can often be expensive through additional staff and food costs, for more innovative events.

“We’ll probably see a lot of smaller and more adhoc departmental Christmas parties this year, as people will want to be saving cash and make it look like they’re not being too prolific,” says Peter Backman, managing director of Horizons​. “It’s not good to be seen spending money when you’re making people redundant, in which case it’s probably worthwhile for hospitality businesses to think about offering different party packages with a range of price structures.”

The Copthorne Hotel​ in Gatwick is offering a range of party packages from simple sit-down lunches (£18.50pp) and an informal buffet and disco (£28pp) to traditional sit-down dinners (from £29pp) Christmas murder mystery evenings (£39pp), giving organisers more choice and versatility when it comes to booking their party.

Wet-led bars that are unable to provide an extensive food offering can also still make a profit out of the Christmas party market by offering more than just the luxury of a private lounge.

Callooh Callay​ in Shoreditch is offering an evening of tasting, creating and drinking cocktails for between 15-30 covers, with a range of price structures related to the number of guests. Guests are given a glass of prosecco plus canapés before a spirit tasting guide when they will create their own cocktails, with guidance from the Callooh Callay bartenders. Vinopolis​ in London’s South Bank is also offering informal wet-led parties with a Christmas Tour or wine tasting and tapas events for small companies, starting at £36.50 per person.

Don't skimp on quality

On the other hand, businesses looking to serve food as part of their package, be it a buffet, food and wine tasting or a simple drinks and canapés reception, all of which require minimal service, are being warned to cut back on staffing, not the quality of food.

Sara Stewart, partner for charetered accountants Jeffreys Henry​, says when it comes to cutting spend, service should be the only area for negotiation.

“The food has to happen and it has to be good but be prepared to offer a Christmas do without an army of servers,” she advises. “Think buffet; think self-service. The kitchen prepares while one or two waiters presents a well planned landscape of finger food or a buffet, and you can cut one large chunk from the budget. You are in the business to make money out of serving food that carries your name.”

Stewart also advises operators to make the most of the expected boost in custom over the Christmas period by collating guest’s details and advertising their regular, on-going menus and services.

“Look to the future while you are struggling through these times by making sure that you give guests business cards. If you have done it right, one day they will be back. Not as a party-goer but as a guest in your restaurant.”

If operators can promise consistent quality and perceived value for money, it is more likely that the increased custom seen over the Christmas period will be repeated not only next season, but throughout the year ahead.

The industry experts’ top tips for planning your Christmas offering:​

1. Start marketing your Christmas offers now
2. Attract all businesses by keeping party price packages versatile and flexible
3. Offer both private and shared event spaces, companies may be lured by a cheaper price
4. Be innovative to attract the attention of companies looking for a varied experience to last year’s event
5. Run a business card competition over Christmas or collate diners details to promote offers throughout the year
6. Use Christmas as a giant marketing strategy - make a good impression and diners will come back