Some places I've worked have had great parties but they were private, not company functions and we could drink and the boss wasn't there. The exception was the insurance agency. He always had us out to their country club or their home where we would drink and party. He was a pain to work for but he was willing to spend money on a Christmas party.

Thinking about it, I realize that I have rarely had great office parties of any kind. Even the insurance agency parties, while expensive and lot of booze, were not exactly "lots of fun" except in a very proper, middle class sort of way. People also feel rather obligated to be nice about the whole thing so they can't really say how they feel about the party or the people that they have to party with.

All things considered, I would say that lunch is a nice compromise for an office party. You don't have to worry about what to wear. You don't have to worry about getting drunk in front of your co-workers. You don't have to waste a perfectly good evening when you could be doing something fun, like trimming your toenails. I like the people I work with, but I've just never been too happy with office parties. They make me nervous. I would rather get together in a little more relaxed and spontaneous fashion and drink a beer.