Assignment
Following GFG’s submission to the English-Speaking Union (ESU) Board which involved reviewing the commercial event space as well as recommending a new Membership strategy, the Director-General commissioned our services to undertake an ITT catering contract review. As a result of the UK pandemic the existing contract was structured on a ‘shared profit‘ basis however this needed to change as the income was not sufficient to support Dartmouth House fixed costs.
Supported by our senior Catering consultant, GFG undertook the following tasks: –
- Agreed on a realistic and achievable project timetable
- Ensured the tender document clearly stated the current business model, including commercial events revenue and ESU’s long-term future catering and membership strategy
- Compiled an ITT tender document that outlined an alternative model focussing on a minimum guaranteed annual commission. Select an operator who has had experience in providing membership hospitality services but also an operator who was prepared to include a Capex investment programme into Dartmouth House in return for a five-year term contract.
- Agree and select a list of caterers with the ESU prior to the issue of qualification documents, then review the bid submissions and agree on a shortlist.
- Before the decision was made organise a series of ‘reference visits’ to venues operated by the caterers to assess their current performance.
- Organised the caterers’ presentations to the ESU panel, award and then negotiate the contract with the successful bidder.
- Following the appointment support and advise the ESU with the three-month mobilisation plans.
Output and Results
This ITT catering tender review was important for the ESU as not only they wanted to appoint a caterer who understood the Charity guidelines under the Royal Charter, but also re-engage with ESU’s membership.
With ‘shared services’ with their long-term tenant, GFG suggested that the Chesterfield Hotel should also be invited to tender as their next review was due in two years’ time. With excellent access to Dartmouth House and the Hotel offering a five-star service to Hotel guests it was greeted very positively and met the approval of the ESU, as a very positive and sound diplomatic move.
In conclusion, GFG successfully negotiated a three+one+one contract with a significant annual guaranteed minimum commission, but also negotiated a capital investment programme involving the refurbishment of the Mews building which had previously accommodated ESU’s office staff.