Scaled-Down Parties to Return as Uncertainty Hovers Over Economy

By KOULA GIANULIAS

Staff Reporter

It’s shaping up to be a frugal holiday party season this year for L.A. companies as an uncertain economy is spawning plans for smaller, less elaborate functions.

But an informal survey of caterers and party planners found that many companies that canceled parties last year due to a soft economy and post-Sept. 11 malaise are planning to bring them back for employees and clients though in scaled-down fashion.

“There aren’t as many elaborate parties, but anything is better than last year,” said Chris Adlesh, president of Truly Yours Gourmet Foods and Catering, an L.A. catering company whose clients include United Parcel Service of America Inc., Merrill Lynch, Paine Webber and the Writers Guild of America.

Some companies that typically held weekend night parties are scheduling their events for weeknights or planning to cater lunch for their employees.

Some even held Halloween parties in lieu of traditional holiday events. “Halloween parties are less formal, which means they are a lot less costly,” said Shirley Foxman, owner of Party 411, a party consulting and planning service that conducts numerous L.A. parties.

A survey by Challenger, Gray and Christmas Inc., a Chicago-based employee outplacement firm, said the corporate party business is down from 40 to 50 percent nationally this year compared to 2001, which already was hit hard by Sept. 11.

John Challenger, president of the firm, said this year’s slump stems from the soft economy and a shorter holiday season. Thanksgiving falls on Nov. 28 this year, giving companies less time to squeeze in parties.

In L.A., frugality is the watchword.

Dick Barrett, managing director of Credit Suisse First Boston in Los Angeles, said the company has cut its entertainment costs overall throughout the year. “We’ve been trying to cut expenses significantly,” he said.

Companies also seem to be taking their time with booking venues, holding out to see if they can cut a better deal, said Maureen McGrath, director of sales and marketing at House of Blues.

“Two years ago, my calendar was booked solid at this time,” she said. “This year, the phone is now starting to ring off the hook. People are still planning their parties, they just want more bang for their buck.”

Contributing Reporter Caitlin Carroll contributed to this story.