HOSTED BAR vs. CASH BAR...HOW TO DECIDE...

Greetings to all my connections and followers!  I had a very interesting conversation with a Meeting Planner today who I was assisting.  It was her first time planning a reception for her company, so as you can imagine it was a bit nerve racking for her.  And who can blame her?  She only had to plan a very important reception for her boss (she is an executive assistant) for oh...only potential clients they are trying to impress...no big deal...NOT!  Yes, that can be a very nerve racking and important task I hear often from people who reach out to me for assistance.  I have to admit, it is these conversations I enjoy most because it keeps me on my toes and reminds me of what I know best...events!

As we discussed her event in detail, we came to the topic of whether or not she should have a bar at her event due to budget reasons.  I find that this topic is one that I discuss often with my clients, so I decided to share a bit of insight with all of you.

Deciding if you should have a cash bar (where your guest pay) or a hosted bar (where you or your company pays) is quite simple.  I think the real questions are:

1.  Do you want your guests to pay for their own drinks while they attend your event?

...and...

2.  Do you have a budget or dollar amount you are willing to allocate towards this expense?

For the first question, it seems simple enough.  In my experience I have planner that says, "No I don't want a bar because I don't have the budget for it."  Usually that prompts me to ask the questions: "Will you have clients attending this event?...Or is this more of a social/informal event where it can be somewhat casual?...Or are you networking and entertaining clients?"  Not surprisingly, their response is usually that they are entertaining clients (which is why they are tossing around the idea of hosting a bar) or they would like to be able to pay for a drink for their guests, but they feel they just don't have a budget for it.  Unfortunately, in the world of "entertaining clients" it's not good practice to have clients pay for their own drinks.  Usually when I have a client who is contemplating whether or not to have a bar, they would certainly like to host a bar, but they feel that they cannot afford it.  Social events, on the other hand, it would be very impressive to host a bar, but something that's just out of their reach.  Well the great news is, YES, if you have a budget to work with, then you can certainly have some form of hosted bar.

So this leads me to answering the second question.  There are so many ways that you can have a hosted bar, without breaking the bank and still maintaining control of how much you allot towards the bar.  Here are 6 great tips:

1.  Host the bar up to the dollar amount you've allocated towards this budget, then turn the bar into a cash bar.

2.  Host drink tickets.  This is a great way to control costs and ensure that each of your guests receive a drink or two.  It doesn't have to be a boring raffle ticket; get creative!  Make a ticket look like an old movie ticket, add your photo or company logo...but don't forget to indicate on the ticket that it is redeemable for one drink.

3.  Host: a "signature" drink, wine & beer, or soft drinks, water & juice, then have it tray passed.  For all the other beverages, have those available on a cash basis at the bar.  The signature drink can be a couple of martinis in the colors of your wedding or company logo.  It doesn't have to be something boring.  Look up ideas that are trendy, hip and fun.

4.  Host the bar for a duration of time..maybe the first hour or two, then turn the bar into a cash basis.  I typically estimate about 1.5 drinks per person, per hour.  Obviously if you know your guests are heavy drinkers, you may want to increase this estimate.

5.  Host an alcoholic beverage that is offered "by the gallon."  Some venues will offer a sparkling alcoholic fruit punch or sangria by the gallon.  This is great to have in a cool glass beverage dispenser with a spout or a silver punch bowl.  You can make this a self-serve station or have this offered at the bar.  With fresh fruit, this can be visually appealing.

6.  Order specific quantities and selections of wine or beer, then have these available at the cash bar.  As a rule of thumb you get about 4 glasses of wine per bottle.  Once these run out, it's done!  The rest of the event can be a cash bar.

Keep in mind that most venues charge separately for the bartender, so make sure to budget for that cost.  Some will have the option of waiving the bartender fee if a certain dollar amount is met.  You may want to host the bar up to what that dollar amount is, just so you do not have to pay for the bartender.  Maybe this means only hosting beverages ordered by your VIP or bridal couple to reach that minimum.

I hope this gives you some ideas of how you can host a bar.  In any case, always communicate to the venue exactly what your "total" budget is for your bar and what this budget is to be allocated towards.  If any of you have more ideas, please share them with our fans at Event Dining Connections!  We'd love to hear them!