Is an exclusive relationship or a preferred caterer list the better choice for a cultural institution?

It depends upon the norms in your market and the goals of the food service program. We do not generally advise developing an exclusive relationship if the rest of the market has a long-preferred list because that will create a negative differentiation. Below is a chart that highlights the commonly accepted advantages and disadvantages of each:

 

Category Preferred List Exclusive
Client Choice High Low
Varied Price Points Likely Less Likely
Café Development Unlikely Likely
Commission Return Lower Higher
Investment Potential Little or None Higher
Facility Caretaking Depends upon caterer Better
Marketing Assistance Will feature on website Will commit $
Sales Assistance Unlikely Likely
Preferred Internal Pricing Limited Definitely