Does anyone have experience (or know someone that does) in owning a banquet hall (the hall would be geared towards wedding receptions primarily, but obviously could be used for many other situations - birthday party's, corporate meetings, etc.)? The hall business seems like a lucrative model, but wasn't sure if there were any major pitfalls that I may be overlooking.

Any advise or general comments would be greatly appreciated!

PS Love this forum...great place to find/share information.

If I had the funds a banquet hall would be at the top of the list in investments. I've spent the last 20 something years working at a country club and I can't remember too many times we didn't host at least one wedding on friday and saturday nights. Sometimes we'd have two weddings each night and on occasion we'd have weddings on weekend days and nights. If you have the start up capital (the cost will be great) I say go for it.

One of the benefits of such an operation is that overhead is not as steep and volatile as a regular restaurant because your investement in stock is based upon an actual contract; no operating money is put out till you have a function booked.

If you have the start up money then go for it!

My thoughts are the same as yours concerning overhead...for the most part, it is limited compared to other businesses. I also like the fact that once you build a reputation you have the opportunity to "book" the hall up to 1 year in advance. That makes for a nice consistent stream of income.

You are correct. I started on with the above mentioned country club about 5 years after it first opened. I remember back then how they used to have to advertise for business. Now, they do no advertising and they can only take bookings one or more years in advance. It really is a gold mine!

Good luck putting it together and I hope you keep us posted as you go through the steps.

One drawback I can see is employees when you first start. Until you get regular bookings...can you keep consistent help, or will it be a re-train over and over until your business is built up? Have you checked on licenses you will need...also might check what the laws are regarding you allowing liquor for private parties. Is there someone near that is a good food caterer? Who will do the clean-up? And don't forget the minimums will go on for utilities...as well as insurance payments whether you are booked or not. Good luck!

For employees it helps if you're near a university. That and part-time housewives made up the majority of our on-call staff. We kept a list of up to a hundred people and each week we'd go down that list to match them up with functions. Over time we developed a core of employees that we knew we could count on to work. Later, we started using a temporary placement agency and got away from the list -a bad mistake in my opinion.

If you could I would put on your own small event to kick off your grand opening. If you know any big names in your area like, doctors, attorneys, governors, actors, actresses, paintors and other biz owners.

Do it by invite only.
This will give the people that you invited the feeling of importance.
If you give them that and they enjoy the atmosphere you just may have one your self some great clients.

Yes you will spend some money but you can save on money by networking.
Find other companys that would complament yours.

Through this on the table for them. They help you for this openning event by not charging you except for purchases. In return you offer to give referals to all your clients. Also aallow them to pass out their biz cards and pamplets.

This will minimize cost and boost your image.