Event organiser slams Melbourne Showgrounds caterer for high prices

Event organisers of AUSjet 24 waterjet technology exhibition and conference have slammed what they are calling an outrageous ‘rip-off’ at the Melbourne Showgrounds charged by venue caterer Dean & McPherson.

Staged last week - on 23rd and 24th October - AUSjet 24 organiser Expertise Events Pty Ltd have highlighted how they were quoted $27.60 for a single sausage on a slice of bread, with organisers wanting a minimum of 150 unit as a commitment.

Expertise Events had planned the sausage promotion to attract buyers on the final day of the trade event, an event that is run by a not-for-profit association, but were blindsided by the exorbitant cost for food.

Gary Fitz-Roy, Expertise Events’ Managing Director (who is also Convener of the National Events Alliance), advised “we were left with no choice - pay or don't get served.

"It's extraordinary that an exclusive deal has been struck between the Showgrounds and Dean & McPherson and yet event clients like us, who bring buyers and sellers together, are left out of the negotiation process.

“We're expected to foot the bill for these outrageous charges. The Showgrounds are also accountable, as, whilst not privy to the exact commercial arrangement, the Showgrounds take a clip of the revenue from the caterers.”

In addition to the already steep base price, Fitz-Roy pointed to a further 15% surcharge imposed on all food orders, making it even more costly for organisers struggling to rebuild post-pandemic.

Fitz-Roy also highlighted that organisers have to "guarantee the minimum total spend, meaning Dean & McPherson, along with the Showground, set a total revenue figure in advance, and, if it's not met, the organiser has to pay a fee, also predetermined.

“The additional kicker is, if you hold networking drinks (client cocktail party), an industry breakfast or promotion like the sausage BBQ, this isn't counted in the overall minimum spend so any shortfall is still added on.”

Fitz-Roy continued “this kind of exploitation is infuriating, especially at a time when the exhibition industry has been trying to get back on its feet after COVID-19 shutdowns and has been dealing with the cost of living and interest rates impacting exhibition successes.

"It's not just unfair, it's damaging. Secret contracts and price-gouging like this hold event organisers hostage. And what makes it worse The Showgrounds benefitted from Federal Government financial support of $3.2 million to support costs incurred from cancelled 2021 Melbourne Royal Show, while their clients did not get any compensation for shows they had to cancel due to the pandemic.

“Whilst not confirmed, it is believed the Showgrounds also received state (Victorian) Government dollars.”

In another twist, Fitz-Roy suggested that the Showgrounds did their caterers a "favour" in the supply of sausages with the client paying $10 and the Showgrounds paying $5 so the sausages eventually cost $15.

Fitz-Roy went on to point to concerns about the exclusivity arrangements between the Melbourne Showgrounds and their catering partner, which he suggests leaves many events questioning the fairness and transparency of these deals.

He added that “at a time when exhibitions are critical for rebuilding business relationships and stimulating economic recovery, it is disappointing to see underhanded tactics that hurt the industry rather than support it.”

He added that the National Events Alliance intends to lodge a formal complaint to both the Australian Competition and Consumer Commission and the Victorian Department of Fair Trading to encourage an inquiry into what he calls “back room deals that harm clients and extort charges that do not pass the reasonable fairness test.”

Images: Melbourne Showgrounds from the air (top) and Expertise Events’ Gary Fitz-Roy (below).