Area businesses feeling the economic downturn are cutting back on their holiday plans, but most appear not to be dropping their parties altogether.
Many are asking employees to bring their own food and drinks.
“We’re conscientious (about) our budget this year because of the year it is,” said Mike Hoover, the owner and principal broker for Windermere Central Oregon Real Estate. “But at the same time, this is one of the ways to have the sales team come together to have some holiday atmosphere and look forward to a new year.”
The company will pay a small fee to have its holiday party at Deschutes River Ranch, which it has represented as a client, Hoover said.
Roughly 60 agents and staff from the company’s offices in Bend and Redmond and their families will attend the mixer, with many bringing their own food and alcohol, he said.
Food and bar service at local venues can cost a company $50 per person or more, Hoover said.
“If you do something like we do, where employees bring their own alcohol and their own food, you can be more sensitive to a large group,” he said.
Roughly 60 percent of businesses will have their parties in-house this year or meet in restaurants instead of renting facilities, said Elena McMichaels, an events coordinator for FivePine Lodge & Conference Center in Sisters.
McMichaels attended the Bravo! event-planners meeting in Portland last week and said the downsizing trend is industrywide.
FivePine is offering incentives to attract more holiday business, Mc- Michaels said.
“Last year, there was not a lot of talk about site fees,” McMichaels said. “This year, there’s a lot more talk about everything from facility fees to catering fees per person.”
FivePine’s convention center, which opened in April 2007, had a large group cancel its plans for a party due to the slowdown in the economy, said Bill Willitts, the owner and developer of the conference center. Holiday bookings are down 30 percent, he said.
“It is safe to say that companies are in a little bit of a shock wave, and they have begun to restrain their spending,” Willitts said. “It is fairly obvious that FivePine is going to have slower convention party bookings this year.”
Merenda restaurant in downtown Bend also is down in its pre-holiday booking pace this year, said Jody Denton, executive chef and owner.
“We have quite a few (events) booked, but we’re definitely down from years past,” Denton said. “In general, people are being a little more frugal. Right now, things are tough for everybody.”
Sun Forest Construction is planning “a more modest holiday party” this year than in past years at Aspen Hall in Bend, said Phil Henderson, company president.
“We’re not going for the full restaurant-type dinner this year,” Henderson said.
The company will provide the ribs, and the rest of the food will be brought by employees and their families, Henderson said. The event will not be catered as it previously has been, he said.
The company has had success finding custom home and remodel projects this year, and opted to have the party despite 15 layoffs since the beginning of the year, Henderson said. Sun Forest, which peaked with 105 employees in early 2007, now has 70, Henderson said.
“People will be working through the holidays — it is important to celebrate what you are thankful for,” Henderson said. “We discussed it internally and thought we should still have a small holiday event.”
Cutting costs
Several other businesses, including some of Central Oregon’s top employers, are still planning their parties but are finding ways to reduce costs.
“We have not finalized our plans, but we will definitely scale back, given the economic situation,” said Valerie Yost, marketing manager of Brooks Resources Corp., a real estate development company in Bend. “I know we will do something because it is very important for our employees to get their spouses and (families) together and celebrate.”
The Riverhouse Hotel & Convention Center may have an answer for those businesses that have either cut back on or eliminated their holiday party plans this year.
Instead of renting out the 30,000-square-foot convention center or one of its banquet rooms and paying for food and decor, businesses can bring their employees to the north Bend facility as they would a restaurant.
On Dec. 11, the convention center will host an “Office Party” that is open to all companies and their employees. The party, being hosted for the first time to give cost-conscious companies a cheaper option, also will be a “semi-networking opportunity” for employees, said Lara Wettig, director of marketing for The Riverhouse.
“With what people are experiencing in the economy, we wanted to make sure we were offering something that allows people to enjoy the holidays,” Wettig said. “This takes the financial pressure off businesses and allows people to enjoy their holiday party without cutting back.”
The convention center also is waiving its room rental and event package fees for any company that wants to hold a party there during the holiday season, she said.
Thus far, The Riverhouse has had two holiday party cancellations, but Wettig has seen an uptick in calls to plan parties, which she says is “encouraging.”
Public and private
The city of Bend, meanwhile, is scrapping its party altogether this year — a cost-cutting move that will save the city nearly $20,000, said spokesman Justin Finestone.
The move became necessary following staff reductions of more than 17 percent and other financial uncertainty prompted by the economic downturn, Finestone said.
“It’s gone,” Finestone said of this year’s holiday party. “Individual departments may do small things in-house, but as far as a city-sponsored event using city funds, there is none.”
Kirby Nagelhout Construction Co. will have its holiday party at the Great Hall in Sunriver this December, where employees will bring gifts for charities and enjoy a full sit-down dinner and raffle, said Mike Taylor, general manager.
The company is returning to Sunriver for its party, which was held at another venue last year.
“It’s a little bit cheaper,” he said. “Plus, it just feels like Christmas. The Great Hall is a nice, historic venue for Central Oregon.”
As far as general contractors go, the company has had relative success this year, working on projects including the Redmond Airport expansion and the Central Oregon Community College Campus Center, Taylor said.
“We are pretty determined to have that event for our employees,” Taylor said. “As a construction company, we have close to 200 employees, but they are spread all over Central Oregon. This gives people a chance to see each other and connect.”
