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The Truth About Muffins

By Blair Potter September 26, 2011

So the U.S. government is indignant about wasteful spending in the form of alleged $16 muffins at a 2009 conference. According to Hilton (the Capital Hilton played host to the event in question), that $16 included much more than a muffin.

“Dining receipts are often abbreviated and do not reflect the full pre-contracted menu and service provided,” a Hilton statement said, “as is the case with recent media reports of breakfast items approved for some government meetings. In Washington, the contracted breakfast included fresh fruit, coffee, juice, and muffins, plus tax and gratuity, for an inclusive price of $16 per person.”

The Office of Inspector General says it stands by the report.

This whole issue, of course, is about much more than muffins, as the greater concern is another governmental assault on the meeting and event industry. It's interesting to note, however, that the incident that triggered the entire issue might have been completely misrepresented (or misunderstood) from the outset.

Click here to see what industry leaders have to say about this issue, and to lend your voice to the discussion.

Conversation
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Conversation (19)

  • Lori Carper, CMP September 27, 2011

    $16 per person inclusive for the contracted breakfast is a great deal in any major city in the U.S. The government spokesperson who issued the report does not have a clue what prices are in meeting facilities. You are not just paying for the food and beverage but the service staff as well. Once again, the government has put its foot in its mouth without thinking and possibly hurt private enterprise. When are they going to learn?  Sign me, a frustrated meeting professional who does not work for hotels but needs them...

  • MaryAnne Bobrow, CAE, CMP, CMM, CHE September 27, 2011

    Once again, we have people who are clueless as to how we do business and what it involves making sweeping statements about something they know nothing about.  $16 is NOT an unreasonable charge for a continental in today's environment (as much as we'd like it to be a whole lot less.

    I think we, as an industry do ourselves a disservice by not allocating funds to educate the rest of the population on what we all do that positively impacts their local environments vis-a-vis bringing meetings to their locales.  We now have the data to substantiate our claims.  We need to 'commercialize' our efforts and make local communities aware of how we positively impact their economies with our events.

  • Tracy Stuckrath, CSEP, CMM, CHC September 27, 2011

    I agree with both MaryAnne and Lori in that we need to educate those around us on the costs and steps it takes to plan a successful meeting. We provide a great service that is undervalued nor understood. 

    And, the price of the continental was great, per recent quotes I've received: $46+++ for continental breakfast in NY City and $52 for a dozen Krispy Kreme donuts in southern California.

    Additionally, I also think the industry needs to take a hard look at what we charge for things in general. At a recent event I attended a big brand was charging $90/day/attendee for internet access in the meeting space since the event did not order it. After several attendees tweeted about it, tagging the hotel, the fee was reduced to $15/day/attendee, proving the fee was overly exaggerated. 

  • Roger Rickard September 27, 2011

    Ah Muffingate! This is another example of how Washington deflects their own ineptness and quickly points a finger at anyone else, or should I say everyone else. I have checked the headlines lately and have concluded that our leaders in Washington have more important items to address, like; debt-ceiling reduction, jobs creation, and housing corrections, just to name a few of the important items on most American’s list of concerns. I checked and didn’t find Muffingate on this list.

    Bravo to Hilton for standing up to this frivolous attack. The Office of the Inspector General is throwing stones inside a glass house. They are unaware of or misunderstand how government entities purchase goods and services within the meetings and hospitality industry. This is another great opportunity for the meetings industry to step up and assist by educating stakeholders.

    While I believe the government has more important issues to attend to than Muffingate, it serves as a systemic example of the key issue within the meetings industry, that of no respect or understanding of the value our industry brings to the table. Why is that? It is because we have not unified behind one core set of messages and have not trained our members to use their unified voice to influence all of our key stakeholders.  We provide jobs, drive the economy, support other businesses and our meetings shape and change the world.  We matter and most importantly our meetings matter.

    But Roger, don’t you know you are preaching to the choir? You are not in the choir just because you say you are. Have you attended choir practice? Have you opened the hymnal? Have you turned to proper page of the hymnal? Have you practiced singing the value messages of our industry?  If you haven’t, then you are not part of the choir.

    There are openings in my choir – come join in the fun.

    Roger Rickard
    Chief Advocate
    www.rogerrickard.com

  • Karen Grunwald September 27, 2011

    I agree that the $16 pp inclusive is a great price.  I would like to point out  that I watched the news report on NBC Nightly News with Brian Willams and the report was seriously that the government paid $16 for one muffin. 

    In the story, they were comparing it to a local muffin shop which sells muffins for $2.20.  It is misleading to run a story that was not correct.  I believe that if the breakfast were broken down it included:
    Coffee
    Fruit
    Juice
    Muffin
    Tax and Gratuity

    Going to a muffin shop, starbucks, a fruit stand, juice stand and paying city tax and gratuity it would have been just as much if not more!  I think the news agencies should report apples to apples - or in this case, muffins to muffins.

  • Prefer to remain anonymous September 27, 2011

    While I totally agree with all that have written before me, I thought I would add a few things. 

    As a CMP, a meeting manager (with more than 20 years planning experience) who lives and works in the Washington DC area and a government contractor whose clients include many offices within the U.S. Department of Justice, there are a few things that I have direct knowledge of with this particular situation. As the CNN article mentioned in the last paragraph, the 2007 OIG report led to tightened Food and Beverage guidelines that ALL contractors are supposed to comply with when conducting meetings and conference for DOJ. As we all know, $16 for JUST a muffin, hardly. However that same $16 should have included the AM break, the PM break, tax and gratuity all included, in accordance the DOJ guidelines. That may be where OIG has the problem with incident.  The Hilton stated that that cost was for the AM/continental break only. Articles like the one that sparked the NBC broadcast, never seem to get it right and the reporters don’t seem to care that they did not dig deep enough to uncover the truth.  So I am glad to see Hilton stand up and say, “Wait a minute, that’s not quite right.  DOJ has become increasingly stricter with its Food and Beverage guidelines over the past few months, making it even tougher to work with hotels in top tier cities and this type of shoddy reporting making national news is not going to help. That being said, as an industry we really do need to do more to educate our communities about how our industry works and the impact we provide to their lives and economy.

  • thom singer September 27, 2011

    Would politicians agree to no face-to-face fundraisers for their campaigns?  How about only skype campaigning.  No town halls.  No $1000 a plate dinners.  Would they do this...???   NOOOOOO, cuz they know the importance of being present with live people if you want to make meaningful connections. Meetings and trade shows are important to getting business done and it allows people to build connections that cannot exist with just a "like" on Facebook.

    Humans are experiential beings, and nothing will change this reality.  Instead of complaining about meetings (and the costs of muffins...especially since it was not just a muffin for $16) they should focus on the number of jobs that exist in the hospitality industry.  Real hard working people are the ones who plan, execute and serve the meetings industry.  

  • Joan Eisenstodt September 27, 2011

    Glad to see this discussion surface here. Who among the industry's leaders has issued an official statement? Has CIC? Anyone? I blogged about this earlier - www.meetingsfocus.com and look for my blog "below the fold". And it's being discussed at the SGMP linkedin group among others.

    Note too: the US Federal Govt. and most states and municipalities are cutting travel budgets and stating that people cannot attend conferences. This will impact SGMP and others tremendously.

    And still we wait for someone to speak up -- we had/have "Meetings Mean Business" -- but it's about the economic impact of meetings/travel. Where is the case for those of us who PLAN the meetings?

    Continue to be frustrated. And this adds to it:
    >>Airline Assns, USTA Blast Obama’s Plans To Increase Air Travel Fees…Putting a portion of funds raised through higher security fees into paying down the federal deficit is unfair and detrimental to bettering airlines and promoting travel to generate jobs and revenue, groups say.<<   But I've still not seen a word about "muffingate" (coined by someone else, btw) and the value of planners.

  • Traci Browne September 28, 2011

    This problem lies with the meetings industry and there alone.

    Associations do a very poor job of communicating their value.  And I'm not talking about the inflated numbers CVBs put out when you come to their city.  Those are bogus.  I'm talking about the real value and impact of meetings. 

    Those who hold meetings and conferences can rarely communicate the value of their meeting to their own organizations let alone the public. 

    I have proposed this topic numerous times to the different meetings organizations and was rejected by committee every time.  As Joan points out she's also been advocating for this and no one seems to listen.  I'm sure there are many more than just the two of us. 

    Yesterday I saw this and was floored.  MPI releases a study on the value of meetings..."Download the Business Value of Meetings Study (Members: FREE | Non-Members: $99) >> " 

    So let me guess this straight.  You are all up in arms that the public doesn't understand the value we bring to the economy with our meetings.  You have the evidence to prove this (although I'm willing to bet it misses the real point) and you are charging the people you want to know $99.  At what point MPI did your organization mission change from being an advocate for the meetings industry to report-selling-revenue-generation.  And who do you think is going to buy that???

  • Heather Herrig September 28, 2011

    I agree that there is a terrible perception issue right now with meeting spend. Most Americans are quick to attack and slow to see the tremendous value in bringing people together…and even slower to see that there is a cost involved in doing so.

    That said, this audit does reveal how broken our government’s spend management has become (and continues to be). Those involved in meeting planning and coordination in the private sector have had to really pull together to justify spend, and at a bare minimum we know we need to at least account for every dollar. Shouldn’t the same principles apply to our government?

    If you read further into the audit, one of the main issues brought to light was that there was just not enough due diligence performed when making budget-based decisions. The headline on this issue became the alleged “$16 muffins,” but I think the real story is that government event planning could probably benefit from looking at the outstanding best practices, ROI initiatives, and strategic meetings management programs that have become almost a standard in recent years, especially those following the economic downturn and recession.

    These policies have made us all better planners and stewards of our event budgets. I strongly believe that they need to find their way into some (and please don’t misunderstand me – not all) government event planning protocols as well. The coverage of this audit, albeit very sensationalist, at least might bring some positive change to government spending practices with respect to event planning.

    The attacks on our industry a couple of years ago dealt quite a blow – but look how we rose to the challenge! We’re now a more cohesive, unified, and stronger combined force…I’d love to see that for government planning as well. Then, let's see some reporters lead with that story!

  • Andrea Gold September 28, 2011

    This issue underlines how little people understand the meetings industry. I wish someone would have spoken up on behalf of the industry to explain what was discussed here--it being an inclusive price for way more than muffins. I am not taking a position on what is the "right" price to pay for meetings-based F & B. I am asserting that a credible spokesperson for meetings (equivalent to Roger Dow of U.S. Travel Association, for example, who does speak up) could have put this to rest quickly with the "other side of the story." It is the fair and right thing to do. I keep seeing this theme over and over. Just another heavy hint that a loud, credible meetings industry voice is needed.

  • Theresa (@MPITheresa) September 28, 2011

    @Traci

    Just a quick response to MPI making our research available to members and charging non-members.  Immediate, unlimited access to our research is a benefit of membership and limited access is a benefit for planners who are MPIWeb Connect users.

    I'd like to point out that there are a number of items from the Business Value of Meetings initiative that are freely accessible to the public.  Notably, the Meetings Deliver Research & Tool Kit , 4 webinars for viewing (just need to create an MPI profile - not membership), 2 podcasts with researchers, and a presentation that you can download freely and customize.  All of which can be found here.

    As an association we share our research with the media to further the communication of key findings but must also balance the value of membership in MPI is accessibility to thought leadership initiatives that help our members get ahead in their careers.  We are in fact, a professional development organization, not an advocacy group, so we need to stay true to our core value of  helping our members be smarter, more successful and more connected.

  • Traci Browne September 28, 2011

    Thanks for clarifying Theresa, I assumed MPI was interested in advocating for the industry.  I see that it is not specifically part of the MPI mission or vision...in which case keeping the content for member only access makes sense as a revenue generation model. 

    However, the rest of my comment still stands about lack of ability to communicate a meetings value by most...hopefully more people will take the time to learn to use the tools you have created...or read some of the books by Jack Phillips and educate themselves. 

  • Meeting Planner September 28, 2011

    I agree with Karen up above, has anyone been to Starbucks lately?   $16 is a very good price for breakfast.  I have used and continue to use hotels that the continental breakfast starts at $25++ per person.  

  • Karen Kotowski September 29, 2011

    See commentary on CIC website. We've been outwardly focused on getting this message out to those who need to hear it and not preaching to the choir on the industry blogs. I'll make sure I tee up my sermon within the church in the future.

    http://www.conventionindustry.org/Newsroom/headlines/11-09-28/Commentary_on_the_Justice_Department_Report_on_Government_Meetings.aspx

  • Pam Williams September 29, 2011

    Let's chalk this up to what it is - A very slow news day!  This is what happens, time and time again, when the press has not much to report so they take the nearest mole-hill and turn it into a mountain.  I would be totally shocked to learn that this news organization didn't know the whole scoop.  However, when you have nothing to report...

    That said, we must as an industry speak up for ourselves and make certain that they whole story is told.  Additionally, we need to include the whole meeting picture and the facts about the support that is being provided to Government organizations in the form of room rates and meeting room rental fees.  Again, the news has seen fit not to present the "Whole" picture.  Sensationalized news reporting is not what the public wants or needs, for our industry or any other for that matter!

  • Roger Rickard September 29, 2011

    Everyone should take the time to read the CIC commentary on the CIC website - it is brilliant. Thanks for the reference to the chior.

    http://www.conventionindustry.org/Newsroom/headlines/11-09-28/Commentary_on_the_Justice_Department_Report_on_Government_Meetings.aspx

  • Jessie States September 29, 2011

    Beautifully written, Karen. Brava!

  • Central Iowan September 29, 2011

    One option surely to get more negative (anti-business) press would be for US government agencies to build their own comprehensive flexible meeting space and hire their own catering employees, kitchen, chef's, etc.  Then US government meetings would not pay for space, connectivity, tax or gratuity.  Maybe if more government employees are let go so fewer can do more work for less, then empty office floors can be consolidated to create these conference spaces.

    Thank you for following up with the hotel. Inspector General should write public apology and get it into the record.

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