Private event rentals are a critical revenue engine for cultural institutions, shaping not only financial performance but also the guest experience and community engagement. Choosing the right catering model is a strategic decision that cannot be made in isolation. One of the most consequential—and often underestimated—choices is how catering is structured: a preferred caterers list or an exclusive partnership. That decision sends ripple effects across the entire food and beverage program, including visitor food service.
Preferred Caterers List
A preferred list tends to feel like the natural fit for many cultural institutions. It offers flexibility and makes the institution more approachable to the community, which matters when working with a wide range of stakeholders. A preferred list allows institutions to work with local and diverse businesses, reinforcing organizational values around inclusion. Many cultural institutions have limited or non-commercial kitchen infrastructure. A preferred list avoids the need for a major capital investment.
But flexibility comes at a cost.
- Revenue is limited – typically with commissions
- Over time, the wear-and-tear on the facility becomes noticeable
- Liquor licensing can become complicated with preferred models. The need to accept donated alcohol, and the ability to sell at a café, restaurant, or during special events need to be considered.
Exclusive Model
An exclusive model brings a different level of alignment.
With a single operator or in-house team, food service becomes cohesive. The café and catering program work in tandem – sharing staff, costs, and leveraging the same kitchen, allowing more opportunities to build menus that reflect the organization. That consistency carries through to the guest experience, whether someone is grabbing lunch or attending an evening event.
Financially, the institution’s benefits are clearer. An exclusive model allows an operator greater flexibility with commissions across the entire program. And operators are more apt to make a considerable capital contribution.
That’s not to say that it’s not without challenges. If an exclusive caterer underperforms, it affects every event and, by extension, the institution’s reputation.
Finding the Right Fit
The key is to think beyond events alone. Catering decisions should be made in the context of the full food and beverage program – especially visitor food in, which serves as the daily touchpoint for visitors.
Because in the end, it’s not just about who serves the food at an event. It’s about how the entire experience – daytime and evening, casual and formal – comes together under one roof.
Understanding which model is being used in the local market is also an important part of the decision. Bottom line: this decision cannot be made in a vacuum.
The Value of a JGL Partnership
At JGL, we listen to understand our clients’ goals and objectives. Then, in collaboration with key stakeholders, we conduct a robust and meaningful assessment of the current operation, including a review of financial performance, space utilization, benchmarking, and catering potential. We then outline practical recommendations and a clear path forward to maximize results and increase financial return.
Let JGL help your institution make an educated decision that supports financial and operational longevity.