Ok everyone, put down your battle swords! I haven't checked in on this post in awhile since I got about all the advice I needed within the first 5 responses. I do have extremely good news about this whole predicament though! (in case anyone wanted an update)
I called the restaurant after getting their email and told them that I had reached out to their printing guy a few times in the last week and either through my own error or his, I hadn't heard anything back about the event having interest in my services and assumed the restaurant had gone with someone else. I then booked a former client for the same weekend since I had thought I had an open schedule. The woman from the restaurant was very confused and had assumed I was already "hired" weeks ago and she was following up to get the bill from me and talk about the time frame details. So what happened is the PRINTING GUY dropped the ball. The restaurant had agreed to use me weeks ago and when I reached out to him numerous times (I even went as far as asking the guy for the restaurant's contact info so I can speak with them personally) he ignored me and in turn told the restaurant I happily agreed, the restaurant assumed the printing guy would be getting a quote from me and setting up the booking process. I told the woman it is ultimately in the hands of my prom client now and that if I am able to reschedule it, I will be able to shoot the event. I sent my price quote, she agreed to the proposed amount and said she will be waiting patiently to hear back.
I then called the prom client (who is actually the mother that booked me, not the teenager) and laid it all out on the table. Explaining that my obligations are to her and that this scheduling disaster is completely my fault. She has booked me many times over the past year for her family pics, holidays, ect. Before I could even offer her a free shoot and start my rounds of apologies she congratulated me on the job in Chicago and said that I need to take the other job. She said she knows how hard I have worked to get my business name out in Chicago and would tell her daughter the situation. She said we always have next year (since this is her daughter's junior prom, not senior) and I offered her a free 2 hour session (twice as much time as the original prom shoot) and she can use the time however she would like with as many family members as she would like the next time I would be in the area. She then thanked me and told me to "knock em' dead."
The restaurant has now sent over the contracts and put down the event payment. All is good and the Photographic Gods must have been in on this one because no one was offended and my honor is still in tact. Whoooo!
The only problem I see here is that while the printer guy did drop the ball, you pretty much left him swinging in the wind for it!
Wouldnt be a problem if were secondary to your business, but since we is the hookup you are looking to develop, if you don't protect him, you risk that he may lose interest in working with you.
HOPEFULLY, since the scheduling got worked out, he won't pick up on that nuance, but if it fell through, I can bet you wouldn't get another chance and not because it fell though but because you had left him swinging. Yes it's his own fault. But smart in business sometimes means working around other people's failures.
And depending in what gets said between him and the client, it still might go sour down the road.