Event organisers of AUSjet 24 are reeling at what they are calling an outrageous “rip-off” as Melbourne Showgrounds caterer Dean & McPherson quoted a staggering $27.60 for a single sausage on a slice of bread with a minimum of 150 as a commitment.

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

“We’re left with no choice – pay or don’t get served,” said Gary Fitz-Roy, one of the frustrated organisers. “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,” he continued.

In addition to the already steep base price, a further 15% surcharge is imposed on all food orders, simply because some venues on the grounds lack kitchen facilities, making it even more costly for organisers struggling to rebuild post-pandemic.

And, if Dean & McPherson are not making enough on the higher than norm costs, 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!

“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,” Fitz-Roy continued. “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 Government dollars,” he continued.

In another twist, a “favour” was called in by The Showgrounds to the caterers and the client paid $10 and The Showgrounds paid $5 so the sausages came down to $15! Given on a weekend Bunnings charge $3.50 for the same thing, a five times factor doesn’t seem fair for a bog standard sausage in bread.

The situation raises serious concerns about the exclusivity arrangements between the Melbourne Showgrounds and their catering partner, leaving many events questioning the fairness and transparency of these deals.

At a time when exhibitions are critical for rebuilding business relationships and stimulating economic recovery, it is disappointing to see such tactics that hurt the industry rather than support it.

The association intends to lodge a formal complaint to both the ACCC and Department of Fair Trading to encourage an inquiry to back room deals that harm clients and extort charges that do not pass the reasonable fairness test.

ASE reached out to Melbourne Showground for comment and received this reply from James Gilham, Senior Business Development Manager

The food and beverage offering at Melbourne Showgrounds is curated and delivered by one of Melbourne’s leading food and beverage providers, Dean & McPherson catering, a division of the Moonee Valley Racing Club. 

The food and beverage offering is tailored to meet the needs, wants and expectations of event and exhibition organisers with an emphasis on quality, value and uniqueness. 

There is a suite of menus for all types of events and exhibitions, from BBQs to gala dinners to suit client requests regarding style, volume and budget and all menu package fees are inclusive of the services of qualified chefs and front-of-house service staff.

A tailored BBQ solution was developed for the event in question, based on the client’s requirements which was not a standard menu package. The solution provided to the client, took into consideration the bespoke set up costs, labour, food, and service for the relatively small number of guests the client was expecting to attend. 

As you can appreciate, Melbourne Showgrounds is one of Victoria’s largest and most versatile venues for events, exhibitions, trade shows, festivals, and banquets and as such there are minimum spends for catering, guest numbers, or volumes for events to be financially viable. The minimum costs are discussed and shared with the client in the planning of the event or exhibition in line standard industry practice.