Jim Piquette says it was really no surprise when the number of company outings booked at Mulligan’s Island, where he is managing partner, sank in 2009.
After all, in the midst of a recession, many businesses couldn’t afford to splurge for events, even at a lower-cost venue such as Mulligan’s, which features miniature golf, a driving range, a par-3 course and batting cages. But Piquette says things are already looking up this year.
Inquiries from local companies looking to hold some type of employee-appreciation gathering are up more than 50 percent from the same time last year, and the pace is picking up. Although he acknowledges that Mulligan’s has not signed any contracts yet – mostly because it’s too early in the season – Piquette attributes the increase not to a revival of the corporate outing overall, but to the fact that the price tag for an event at Mulligan’s is relatively inexpensive, as low as $30 per person.
In this battered economy, there have been few winners, particularly when it comes to the business of throwing corporate events. Companies have been slashing these discretionary budgets; event planners have weathered cancellations; and many venues have been hurting for bookings. But lower-cost-option venues might be poised to capitalize.
Laurie Stroll, president of Newport Hospitality Inc., has seen a shift.
Her company, which handles many of the dining, entertainment and transportation details of corporate groups visiting Rhode Island, has fielded calls from clients wanting to reduce costs.
In many cases, gone are a lot of the higher-priced outings such as a group excursion on a 12-meter yacht in Newport Harbor. But clients are looking to do something.
Twice this year alone, clients have asked Stroll to arrange parties at a local bowling alley for their employees. “I haven’t heard a request like that much in my 18 years in the business,” she said. “But there definitely has been a switch in mentality.”
Some of the changes can be attributed to companies feeling an economic squeeze. Planners say many firms desire to avoid excessive spending while staffing is cut or pay raises have been postponed.
That search for a cheaper option is leading to more phone calls to places such as Francis Farms in Rehoboth, a 60-acre site that features banquet halls, volleyball and bocce courts and horseshoe pits.
Known for its clambakes, which can cost $39 a person, Francis Farms also offers hot dog and hamburger buffets at $18 per person, according to general manager Paula Lastarza.
Despite those prices, Lastarza acknowledged the venue has lost some of that business during the economic downturn.
Brown University, for instance, used to have department gatherings at Francis Farms. That came to an end last year, when Brown’s endowment took a severe hit and the university reduced its staff.
Still, the inquiries are coming in at a higher rate than last year, although most are tentative. “People are pricing everything out before making a decision,” said Lastarza.
Rhode Island’s coffers could stand to benefit, too, albeit in a very small way.
At least one event planner – Vision Strategies LLC in Cranston – is suggesting that companies consider holding cookouts at locations such at Colt State Park in Bristol, Goddard Memorial State Park in Warwick and Lincoln Woods in Lincoln.
Ballfields can be rented for as little as $8; picnic shelters for $16.
Amgen Inc. has already taken advantage of those low fees for an employee gathering at Goddard Park for the last two summers, according to Robert Paquette, chief of the R.I. Division of Parks and Recreation.
“We’re hoping to pick up business in the middle of the week now,” Paquette said.
Bookings for company events have been slow at Newport Cruise Company Inc., which was forced to stop operating the Bay Queen dinner-boat line this year because the two boats O’Hare had leased were put up for sale.
Newport Cruise is still running another boat, the Majestic, and while bookings for wedding and other occasions have done well, the corporate market has sagged for two years, O’Hare said.
Prices for the boat start at $55 per person for a three-entrée buffet and cruise for a minimum of 90 people.
So far this year, the company hasn’t booked a single corporate event, though O’Hare said some companies wait until later in the year to make plans.
Mulligan’s Island wasn’t booking many corporate outings, either, until late in the season last year, said Piquette.
That’s when he saw the number of events climb, including one for Citizens Bank Rhode Island and another for a large corporation that Piquette declined to identify.
That momentum appears to be continuing into 2010, judging by the number of inquiries.
Piquette said many of the corporate clients are attracted to the venue because of its family atmosphere. But he said price plays a part, too.
The site can accommodate as many as 2,500 people in a picnic area that can offer fare ranging from hamburgers ($29.95 per person) to seafood ($50 per person).
Like Francis Farms and the Newport Cruise Company, Mulligan’s Island is open to negotiating.
“We customize to someone’s budget,” Piquette said. “We have to because some of the businesses have been squeezed by the economy.” •
