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Johannesburg - South African corporate holiday parties used to be extravagant affairs. Workers got dressed up, companies rented out restaurants and there were open bars, live music and gifts.
However, the country’s sluggish economy has forced many to trim their year-end function budgets – much to the dismay of the party planners and events management companies.
Some party planners told City Press this week that tough times have seen some companies downgrade their year-end parties, avoid the fancy venues and even force employees to dig into their own pockets to contribute.
Dave de Jong of BlackJack Events says corporates are moving away from lavish wining and dining and opting for informal braais, canapés or roaming buffets.
“Companies are cutting back on fancy three-course meals and fancy wines and Champagne. These are tough times for events companies and the industry because of the ripple effect,” he explained.
He said the trend of cutting back started around 2010, when companies that would easily spend R1 million on corporate Christmas parties for 4 000 employees are spending almost half that amount this year.
BlackJack is one of the well-established players in the events management industry. It does catering, décor and provides staff to smaller events companies. Last week, the company did approximately 45 events. Despite this, bookings this year are substantially lower than in 2016.
De Jong said other cost-cutting measures include not hiring crockery, cutlery, fancy drapings and other party frills.
Companies that used to spend between R10 000 and R20 000 on their parties have trimmed their budgets considerably or have not allocated funds for year-end functions at all.
While advertising agency Ogilvy & Mather South Africa declined to divulge the budget for its year-end function, it told City Press it will use its own premises as a party venue and save
costs by having in-house deejays provide the entertainment.
The theme of their party will be cops and robbers and the menu has been downgraded to chips and burgers, hot dogs and doughnuts. However the drinks – Champagne, spirits, wine and beer – will be on the house.
Owner of Red Pepper Events, Carmel van Wyk painted a different picture, saying they “have never been so busy” as this year.
She had to turn clients away because functions clashed on some days.
However, Van Wyk said the situation for events companies looked bleak in the middle of the year and things were extremely quiet.
“From mid-November to mid-December business is crazy again. The company will be swamped with Christmas functions until December 16,” she said.
However, not every company is cutting costs. A few weeks ago, Universal Music Africa staged the mother of all Christmas parties for 300 people at the five-star Radisson Blu Hotel in Sandton.
The company’s brands and partnerships coordinator, Bianca Jade Scola, told City Press they teamed up with DJ Lucky Mpilo and the people who stage Friday Sunsets events at the hotel.
“They have the right idea: summer sun, champagne and good music by the pool. What could be better?” Scola asked. This year’s theme was Big Weekend Friday, to congratulate staff, clients and artists for making 2017 a memorable year.
They had in-house artists such as Berita, Craig Lucas, Dominic Neill, Tamara Dey, Trademark, Tresor and Zakes Bantwini to entertain their guests.
The staff indulged on mini beef burgers with home-made tomato relish, chicken and vegetable wraps, sticky BBQ marinated chicken wings and tomato, cheese and basil pesto tartlets. They washed these down with Champagnes, whiskeys, wines, beers, ciders and shooters.
“The budget was more than enough,” was all that Scola was willing to reveal.
For its party last year, it hosted 500 people at The Venue in Melrose Arch.
Another company that went the extra mile for its employees was public relations outfit Engage Joe Public. It spoiled 250 employees at its premises in Bryanston last week. The party theme was “dress as your favourite band”.
It did not skimp on drinks or on the entertainment and had musicians Kid Fonque, DJ PH and Johnny Cradle. On the menu was a lamb spit braai with a choice of two sides and dessert.
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