Reception Garden
Market characteristics
• Seasonality – operate mainly between May and October. Operating them in wintertime requires suitable and expensive preparations. Today, most reception gardens are adapted for operating in the wintertime as well.
• Many reception gardens are set up as land designation conversions from a garden, swimming pool, fruit orchard or natural site.
Reception gardens can operate in two formats:
• Operating like a reception hall, providing the totality of services needed for occasions/events: food, serving, decoration, music and everything else
• Extensive operation – maintaining the garden only, with the rest of the activity being commissioned and implemented by the customer
Customers
The main target audience is marrying couples or families holding a bar mitzvah, bat mitzvah or circumcision. In addition, commercial companies and works committees hold annual or periodic events and look for unique locations for the purpose.
Market segmentation
• Geographical – reception gardens serve customers from the nearby area. The estimated main customer potential is within a radius of around 50 km from the garden.
• Economic status – the main clientele are members of the middle class and above.
Competitors
Competitors can be divided into three main groups:
• Hotels – where especially prestigious events are held. Hotels compete with the more prestigious reception gardens over the upper class market segment.
• Reception halls – designed in various styles and intended for various target audiences.
• Other reception gardens – mainly those designed in a similar style and/or located in the same geographical area.
Advantages in comparison with the competitors: The distance from the city (convenient parking and flexible opening hours), the use of extensive grounds at low costs, there is no restriction on the opening hours and the noise level. Reception gardens are perceived as more prestigious than halls.
Disadvantages in comparison with the competitors: Seasonality – an additional investment is required to prepare the site for wintertime, halls can offer a luxury atmosphere and operate pyrotechnics more easily, the travel and arrival times are relatively long.
Suppliers
The suppliers who work with reception gardens can be divided into three main groups:
Equipment suppliers: kitchen equipment, equipment and furnishings for the hospitality area, serving dishes
Food and drinks suppliers: when choosing a supplier, in addition to prices, it is important to check credibility and the quality of the goods they supply.
Additional suppliers: flower suppliers, subcontractors in the domain of gardening – for maintaining the garden, music services. A lack of credibility or malfunctions on the part of a given supplier will harm the garden’s reputation and therefore selecting suppliers carefully is of considerable importance.
Marketing methods
The customary marketing methods are as follows:
Advertising in the media (mainly the press), outdoor signage, mainly in the vicinity of the garden, public relations, signing agreements with agencies for holding events. Marketing is accomplished by word of mouth.
The effect of the security situation
There is a legal requirement for security for events. The number of security guards at reception gardens ranges from 2 to 4 guards, in accordance with the location of the garden.
Turnover and profitability in the sector
The pricing basis is made up of the basic price per chair (NIS 31.50 – NIS 45) and a price for extras (special flower arrangements, special chair covers). The price ranges between NIS 157.50 and NIS 211.50 per head, not including VAT. On the most popular days (Tuesdays and mainly Thursdays) higher prices are charged, or else a high minimum number of guests is required. The expenses on materials are estimated at 28% - 33% of the turnover.
Customary payment terms
Supplier credit: varied payment terms. In certain cases it will be possible to purchase the permanent equipment in instalments.
Customer credit: at most reception gardens an advance is paid when a decision is made to hold the event. The advance ranges from NIS 2,000 to NIS 5,000, or 10% of the price of the event. The balance is paid at the end of the event.
Licences and certification
The process for licensing the business is prolonged and complex.
• A business licence from the local authority. This licence is contingent on obtaining permission from the police and the Health Ministry.
• If the land is agricultural, approval of the change in land designation or approval for irregular use must be obtained from the Israel Lands Administration.
Insurance
Building and content insurance, third party insurance, employer’s liability insurance, insurance against food poisoning, insurance against mechanical breakage and spoiled goods and loss of profit insurance.
In addition to the aforesaid, consulting with an insurance agent regarding required insurance is advisable.
| Reception Garden
• Seasonality – operate mainly between May and October. Operating them in wintertime requires suitable and expensive preparations. Today, most reception gardens are adapted for operating in the wintertime as well.
• Many reception gardens are set up as land designation conversions from a garden, swimming pool, fruit orchard or natural site.
Reception gardens can operate in two formats:
• Operating like a reception hall, providing the totality of services needed for occasions/events: food, serving, decoration, music and everything else
• Extensive operation – maintaining the garden only, with the rest of the activity being commissioned and implemented by the customer
Customers
The main target audience is marrying couples or families holding a bar mitzvah, bat mitzvah or circumcision. In addition, commercial companies and works committees hold annual or periodic events and look for unique locations for the purpose.
Market segmentation
• Geographical – reception gardens serve customers from the nearby area. The estimated main customer potential is within a radius of around 50 km from the garden.
• Economic status – the main clientele are members of the middle class and above.
Competitors
Competitors can be divided into three main groups:
• Hotels – where especially prestigious events are held. Hotels compete with the more prestigious reception gardens over the upper class market segment.
• Reception halls – designed in various styles and intended for various target audiences.
• Other reception gardens – mainly those designed in a similar style and/or located in the same geographical area.
Advantages in comparison with the competitors: The distance from the city (convenient parking and flexible opening hours), the use of extensive grounds at low costs, there is no restriction on the opening hours and the noise level. Reception gardens are perceived as more prestigious than halls.
Disadvantages in comparison with the competitors: Seasonality – an additional investment is required to prepare the site for wintertime, halls can offer a luxury atmosphere and operate pyrotechnics more easily, the travel and arrival times are relatively long.
Suppliers
The suppliers who work with reception gardens can be divided into three main groups:
Equipment suppliers: kitchen equipment, equipment and furnishings for the hospitality area, serving dishes
Food and drinks suppliers: when choosing a supplier, in addition to prices, it is important to check credibility and the quality of the goods they supply.
Additional suppliers: flower suppliers, subcontractors in the domain of gardening – for maintaining the garden, music services. A lack of credibility or malfunctions on the part of a given supplier will harm the garden’s reputation and therefore selecting suppliers carefully is of considerable importance.
Marketing methods
The customary marketing methods are as follows:
Advertising in the media (mainly the press), outdoor signage, mainly in the vicinity of the garden, public relations, signing agreements with agencies for holding events. Marketing is accomplished by word of mouth.
The effect of the security situation
There is a legal requirement for security for events. The number of security guards at reception gardens ranges from 2 to 4 guards, in accordance with the location of the garden.
Turnover and profitability in the sector
The pricing basis is made up of the basic price per chair (NIS 31.50 – NIS 45) and a price for extras (special flower arrangements, special chair covers). The price ranges between NIS 157.50 and NIS 211.50 per head, not including VAT. On the most popular days (Tuesdays and mainly Thursdays) higher prices are charged, or else a high minimum number of guests is required. The expenses on materials are estimated at 28% - 33% of the turnover.
Customary payment terms
Supplier credit: varied payment terms. In certain cases it will be possible to purchase the permanent equipment in instalments.
Customer credit: at most reception gardens an advance is paid when a decision is made to hold the event. The advance ranges from NIS 2,000 to NIS 5,000, or 10% of the price of the event. The balance is paid at the end of the event.
Licences and certification
The process for licensing the business is prolonged and complex.
• A business licence from the local authority. This licence is contingent on obtaining permission from the police and the Health Ministry.
• If the land is agricultural, approval of the change in land designation or approval for irregular use must be obtained from the Israel Lands Administration.
Insurance
Building and content insurance, third party insurance, employer’s liability insurance, insurance against food poisoning, insurance against mechanical breakage and spoiled goods and loss of profit insurance.
In addition to the aforesaid, consulting with an insurance agent regarding required insurance is advisable.
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