The Impact of Organising a Public Music Event on the Performance of a Private Catering Establishment

The diploma thesis examined the assumption that organising a music event in a private catering establishment has the same characteristics and principles as project organisation and management. Based on an analysis of project management theory and recent theory in the field of management, the assumption can be confirmed and it can be established that project management and the organisation of public music events share many common characteristics, among which the most important can be highlighted: it is a unique event that is defined in time, has its beginning and end, has defined objectives, specific necessary activities, resources and a financial budget. Just as with projects, organising a music event also requires project management and the personnel we need for the event to be successfully executed.

Problem

The diploma thesis examined the assumption that organising a music event in a private catering establishment has the same characteristics and principles as project organisation and management. Based on an analysis of project management theory and recent theory in the field of management, the assumption can be confirmed and it can be established that project management and the organisation of public music events share many common characteristics, among which the most important can be highlighted: it is a unique event that is defined in time, has its beginning and end, has defined objectives, specific necessary activities, resources and a financial budget.

Solution and Method

Just as with projects, organising a music event also requires project management and the personnel we need for the event to be successfully executed. For the success of the event, it is crucial that objectives are precisely set and that all those involved are familiar with them. Based on an analysis of project management theory, it can be confirmed that the organisation of a public music event has the same characteristics and principles as project organisation and management, which is also confirmed by recent theory in the field of management.

The next assumption that was examined in the diploma thesis is that the success of an event depends on several factors over which we have influence and on factors over which we have no influence, but the factors can be divided into external and internal depending on where they come from and how they affect the event. Risks in their case represent the danger that some unplanned events will negatively affect the success of the event. For this reason, it is advisable to anticipate them in advance, examine possible consequences and take appropriate measures, and in this way reduce the consequences of risks that we cannot completely prevent, but which we can reduce through the best possible management.

Among the most important factors that affect the success of an event, it is necessary to highlight two aspects that arise from the need to employ additional workers. ** The first is the cost aspect, as labour costs can represent a significant part of the cost structure.** Based on legislation, we can choose between regularly employed workers for a fixed term with working hours shorter than full-time, we can hire workers from employment agencies, or we can opt for student work. All three forms have a different impact on labour costs, so before deciding how to engage additional labour, we must carefully examine which form is most appropriate. ** The second aspect, which from the perspective of event success may be even more important than the cost aspect, is the quality of personnel.** For some time now, there has been a shortage of catering staff on the labour market, which makes short-term employment (only for one event) all the more problematic.

Professionally trained and responsible workers can significantly influence the success of an event. Their attitude towards event participants can influence the decision whether participants will feel good at the event and return to the catering establishment. In the case examined, the success of the event was influenced by factors that could be influenced through appropriate business decisions.

These include quality preparations for the event, activity planning, work organisation, financial plan, event advertising, formal mandatory procedures related to event registration, etc. Because the event took place in an enclosed space, weather and other external influences did not affect the execution of the event. However, despite good preparations, we can never prevent unpleasant situations that can occur at any event.

The greatest concern is represented by events that can prevent the execution of the event at the last moment (e.g. due to sudden illness or poor health, the musical guest cannot perform, musical equipment can be damaged in a traffic accident on the way to the music event, power outage due to bad weather, fight between participants, etc.).

Results

Resolving such problems and finding appropriate solutions depends on the experience and knowledge of those responsible, so it is advisable that events are organised by people with experience, knowledge, organisational skills and the ability to make good judgements about current dangers that threaten the execution of the event. One of the assumptions that was examined in the diploma thesis was that the execution of a music event has a positive impact on the business performance of a private catering establishment. For this purpose, revenues and costs were compared in the case of regular catering operations without an organised event and in the case when a music event with a musical guest was organised.

The assumption can be confirmed, although the analysis showed that the difference between the business result when a music event is organised and in the case when only regular catering activity is carried out is not a large difference. The main reason for the small profit can be attributed to the capacity of the establishment, which is very important, as it limits the number of visitors, on whom revenues from sold tickets, food and beverages depend. Recently, organisers of music events with more expensive musical performers have therefore been opting to rent marquees, which have larger capacities than catering establishments, and in this way also increase the success of the event, and in the case of suitable weather conditions, the event can also be organised outdoors, if the location of the catering establishment allows this.

There is also the possibility of renting suitable premises, but this option is not addressed in this diploma thesis, because it means a completely different cost structure and activities that would be required in the organisation. Larger capacities mean more tickets sold and beverages sold with unchanged fixed costs, but it is also necessary to take into account variable costs, which increase in this case (labour costs for additional staff, higher security costs, material costs...). Among the important next reasons for the small profit, we can include the high cost of the musical performer, which is among the largest costs and can be classified by nature among fixed costs, which do not change with the volume of sales.

Musical performers usually have fixed prices for performances regardless of the number of visitors, which affects the success of the event especially in the case of smaller establishment capacities or in the case of poor attendance. The business result can also be improved in the area of material and service procurement. If the organisation of music events were to become practice and a new activity of the business entity, there is a possibility that we can agree with suppliers on more favourable conditions for the supply of materials and services (additional quantity discounts, longer payment terms, free marketing materials...).

In this regard, it should be noted that negotiations with suppliers must never encroach on the area of ensuring the safety of participants, which is one of the most important responsibilities of event organisers and also arises from current legislation. Based on the study of current legislation, it was established that it can affect business performance indirectly and directly. It is complex and dispersed legislation, so comprehensive knowledge of legislation in the area addressed is very important.

The greatest risk, in addition to possible direct consequences, is represented by its non-compliance, as violations can be sanctioned with very high fines, which can be disproportionate to the profit, and namely turn a successful event into a business disaster. Based on the findings in previous chapters, we can summarise that the business result or profit can be increased on the revenue side by increasing them and on the cost side by reducing them. Because it is a unique event, in determining this, the area of financing and cash flows was neglected, because they do not have a major impact on the success of the event.

Based on the analysis carried out, it can be confirmed that the organisation of music events can represent added value to regular catering activity, but with careful planning of the organisation and planning and control of costs associated with it. Although the main objective of every music event is profit, it is also necessary to be aware of indirect positive effects, such as company image, recognition and long-term company growth. Entrepreneurs often forget the importance of long-term growth and do not realise that satisfied participants contribute to this above all.

Because it is difficult to carry out an evaluation of success at the event itself, nowadays there are numerous information tools (social networks) that we can use to evaluate the success of the event also from the perspective of participant satisfaction. Information collected in this way can be a good basis for executing the next events even more successfully.