How do I judge a conference space’s catering partner arrangements?
Find out first whether catering is in-house, exclusive to one partner or open to outside caterers. Read the agreement for term, exclusivity, payment and what happens on a sale. Then ask clients how the food and service have actually gone.
Request every catering agreement and summarize it in a single page. Note who prepares the food, whether the centre earns a commission or a markup, how long the agreement runs and whether either side can end it. Exclusivity matters a great deal: it can protect income, but it can also frustrate clients who want their own caterer.
Check whether the arrangement survives a change of owner. Some contracts need consent from the partner, and some partners may use the sale to reopen terms. Ask your lawyer to flag these clauses, and consider making consent a condition of your purchase.
Then look at performance. Ask for complaints, last-minute failures, dietary mishaps and repeat feedback. Speak with the partner about how they see the relationship, and note how much of their business depends on this venue. A fragile partner is a risk to you. Finally, ask what the centre would do if the partner left tomorrow, and whether a backup is already in place. Compare what the partner charges with what clients say they expect, and look at how often menus are updated. Ask whether the partner uses the kitchen on site, who stocks it and who is responsible for cleaning it after events.
Key takeaways
- Summarize each catering agreement: term, exclusivity, payment and termination.
- Confirm whether the arrangement survives a sale or needs the partner’s consent.
- Ask clients and the partner how service has really gone.
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Due diligence
Selling
Sources
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- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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