Companies toning down holiday parties

Caterers, bands, event planners bearing the brunt

By Joyzelle Davis, Rocky Mountain News (Contact)

Published December 9, 2008 at 12:05 a.m.

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Photo by Dennis Schroeder / The Rocky

Maria Ventura prepares a dessert table in the Augusta room at the Westin Tabor Center. She and other workers were preparing for the first Christmas party of the year. Catering for the holidays is down around town as companies cut costs.

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In a normal year, the Saturday that falls smack in the middle of December is the most sought-after date in the holiday party season. Reservations are usually snapped up nearly a year in advance.

But as companies scrutinize every expense amid the ongoing economic malaise, Strings Restaurant suddenly finds itself with one large party canceling and another threatening to pull the plug on its plans for that coveted slot.

"The people who are calling are pretty upset to have to cancel," said Lauren Shumake, director of events catering at the Uptown restaurant. "They don't want to do it, but they all say they have to cut back because of the economy."

One in five companies is scuttling or scaling down its year-end bash, according to the workplace consulting firm Challenger, Gray & Christmas Inc. Surveys by the catering executives group and the trade magazine Special Events found a majority of event planners are losing at least 10 percent of their corporate holiday business.

The downsizing of office parties around the country is having repercussions throughout the restaurant and hospitality industry, hurting everyone from caterers to live bands and events planners. Many hotels and restaurants with banquet facilities count on a flush slate of holiday parties to carry them through the leaner winter months.

"Our phones haven't been ringing as much as in past seasons," said Cindy Lew, director of marketing for the Loews Denver Hotel, who estimates that its holiday party business is down about 30 percent, a figure she's hearing from other hotels, too.

"A lot of our clients have been saying that they're going to do something smaller, or just a gathering in the office, because they just don't have the budget," she said.

In Colorado, companies including commercial real estate brokerage Frederick Ross Co., travel agency Polk Majestic Travel Group and EnCana Oil & Gas have eliminated or scaled back their holiday parties this year.

To be sure, not every restaurant and banquet facility has seen a slew of last-minute cancellations. Strings still has some 100 parties going ahead as planned during December, and the Westin Tabor Center said it has been booked solid since the first quarter with repeat customers.

"The parties are still going well, although the trend is toward a conservative approach to menus and decor," said Tom Curley, area managing director for Starwood Hotels & Resorts and general manager at the Westin Tabor Center. "The meeting planner wants to send the appropriate message to associates and guests."

That means that elaborate ice carvings and specialty martinis are out this year, while comfort foods and warm apple cider are in, said Dan Spahr, vice president of sales at caterer Epicurean. Many clients this year are requesting their parties smell like freshly baked bread, cinnamon or other soothing scents.

Greg Leonard, manager of the Grand Hyatt downtown, said he hasn't seen a rash in cancellations this year. A few clients have opted for less expensive menu items, but overall he said business has been affected more by the late Thanksgiving holiday this year than the economy.

"A lot of companies are asking themselves, should we do this?" Leonard said. "But the holidays are a time to get together and reflect and enjoy each other's company. There's something to be said about taking care of your team and rewarding them for good work."

At Loews Denver Hotel, the marketing staff took the slow holiday season into its own hands and gave away a full holiday party - from beverages and dinner to a live band. The hotel received some half-dozen YouTube video entries from company executives explaining why their employees deserved a fete, and on Wednesday it selected Greenwood Village-based Investment Management Consultants Association.

IMCA Executive Director Dede Pahl and three other employees secretly prepared their entry, which highlighted the organization's accomplishments while comically forecasting budget cuts to come in 2009 - such as suggesting that employees would have to ride their bikes to San Diego rather than fly for future business trips.

"It's a chance to have a nice blowout party in a year when people least expect it," said Pahl.

Party poopers

1 in 5 companies is scuttling or scaling down its year-end bash, according to the workplace consulting firm Challenger, Gray & Christmas Inc.

10 percent of corporate holiday business has been lost by event planners, say surveys by the catering executives group and the trade magazine Special Events.

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