F&B Minimum (Catering Slippage)

Category: business

The minimum dollar amount a client contractually commits to spending on food and beverage catering at a venue.

Distinct from a guest room night block, the F&B minimum ensures the venue hits its target hospitality profit margins. If a corporate planner guarantees a $50,000 F&B minimum but delegates only execute $40,000 in actual consumption orders, the bank master account is billed for the full difference.

Common Examples

• To avoid an F&B minimum penalty, we upgraded our final evening reception package to include an artisanal craft cocktail tasting bar.
• The corporate event contract outlines a strict catering slippage cushion allowing for a ten percent reduction in our food obligation scale.