The holiday party season, which is a traditional economic boon for local restaurants, hotels and catering companies, may turn out to be nearly a bust this year.
Even before the Sept. 11 terrorist attacks, party bookings had dipped considerably from last year due to a slowing economy. But in the aftermath of the devastating attack, companies are taking another look at their party plans.
For the moment, some are foregoing parties altogether, feeling it just isn’t right to celebrate when so many have suffered. Executives at one company that had booked their holiday party at the five-star Peninsula Hotel in Beverly Hills called to cancel, saying they were donating the party budget to a charity.
Others have canceled because guests flying from out of state or out of the country just don’t want to get on a plane right now.
“We have gotten a fair amount of cancellations, such as an international gathering for an Italian insurance company that had booked for 70 people,” said Robert Simon, owner of Bistro 45, a Pasadena restaurant that serves California-French food. His holiday bookings are down 10 percent.
Long distance travel is the least of many executives’ worries. “If companies are going to be laying off people, they certainly can’t afford to have a Christmas party,” said Jack Griffith, general manager of Typhoon, an Asian restaurant located next to the runway at Santa Monica Airport. Griffith has had only two inquiries about holiday parties so far and no bookings. “We’re planning to lower our party prices 20 percent from last year,” he said.
Normally restaurant phones start ringing off the hook right after Labor Day to reserve prime party dates at a premier location. Sometimes companies book as much as one year in advance.
At the 443-room Omni Hotel in downtown Los Angeles, where dinners for up to 700 guests is not unusual, reservations are down 33 percent, said Tony DiRaimondo, the hotel’s director of marketing. “People are feeling a little less festive,” DiRaimondo noted.
Many companies going ahead with their annual celebrations are scaling back their expenses, from having a cash bar instead of an open bar to paring down the menu. “Before if they were doing steak and lobster, now they’re only doing steak,” said DiRaimondo. “Instead of a six-piece band, they may have a disc jockey.”
Others are whittling away at the guest list, opting not to invite long-time customers or outside contractors.
“Parties that would have had 40 people will be scaled back to 25,” said Joachim Splichal, founder of such upscale restaurants as Patina, Pinot Hollywood, Pinot Bistro and Nick & Stef’s, all included under The Patina Group umbrella.
Recently Splichal and his staff strategized on how to improve their holiday party business that currently is off 25 percent over last year.
“We are offering to do anything from an elaborate dinner at Patina to catering at their home or office or at the Music Center. We are just going to have to be a little more creative this year,” Splichal said.
