How to Start a Successful Catering Business
Steps Necessary to Succeed in the Competitive Catering Industry
Jun 5, 2009
Weddings, anniversaries, graduations and business functions are the types of events that will require the services of a caterer. What is being sold is not only food, but also dependability. That being the case, it's vital that the caterer delivers what is promised.
This is a tough role. It requires lots of stamina and the ability to work under pressure. Among other things, a strong business plan will be needed to start a catering business. Prepare everything ahead of time on paper and ascertain every need accurately, i.e. kitchen space and the location of that kitchen, accessories and vehicles.
Determining the Appropriate Style of Cuisine
Those who are new to the catering business will have to decide whether they are comfortable making simple desserts and comfort foods, or able to cook more elaborate and complicated recipes. This will ultimately determine the types of clients that the caterer will have. To claim a niche, it will be necessary to choose an existing market where the demand is greater than the supply. Finally, it would be sensible to take a cooking class if there are any gaps that need to be corrected.
It would also be a good idea to invest time and money in a management course to learn about the business side of the catering industry.
Learning About Other Catering Businesses and Market Research
To compete successfully, a caterer who is just starting out will need a special selling technique to make the business outshine all of the other caterers out there. Checking out the competition and making close observations about how established caterers conduct business will help beginners shape their own plans.
Following Local and Federal Regulations About Food Handling and Safety
Caterers must be licensed before they think about anything else and all U.S. states have slightly different rules and regulations. A caterer must be up to date with the current FDA guidelines for storing and preparing food safely. Officials from the health department will conduct routine inspections to make sure catering businesses have sanitary environments. They can also show up out of the blue and make a surprise inspection.
Customers are the lifeblood of all catering businesses. Salmonella and E-coli are words that no caterer would want to hear in the same sentence as the name of their business. No one can afford to be sloppy or make mistakes. If somebody gets sick it will put a significant dent in the reputation of the caterer and the business may be shut down indefinitely.
Deciding to Hire New Employees
In the beginning, when the caterer doesn't have a lot of clients, he/she may be able to handle things easily with no outside help. Sooner or later the caterer will need extra pairs of hands. Examine all applicants thoroughly and check references. Hire the best chef possible. Once there are some employees the caterer will be responsible for supervising the workers and delegating responsibilities.
When working in a kitchen with tight deadlines, mistakes and arguments can easily arise. It will be up to the caterer to make sure things get back on track. It's a people business and if the caterer doesn't understand how to manage people the business won't last.
Getting the Necessary Insurance
A caterer serves food and lots of surprises come along in this business. This is where insurance comes in. Product and personal liability insurance, coverage for equipment, vehicles used in transporting food and worker compensation if hiring employees are all essential.
How to Advertise a New Catering Business
Catering can be a lucrative profession as long as the owner is aware of how to let people know about it. Word of mouth is the best form of advertising but this will come much later when the business is well established.
Creating a web site is an inexpensive option. Ask a local supermarket if it would be possible to give some food to the customers, and pass out business cards to anyone who tastes a sample. Or, advertise in a community paper and try to get the ad up to the top right hand corner of the page. This is where most people look when reading a newspaper.
Pay Close Attention to Pricing
Some new caterers make the mistake of investing too much time and energy in their foods while ignoring money matters. Caterers must have a good idea of what costs they will incur, including all overheads, then set prices accordingly.
With careful planning, good business sense and hard work, catering can be a lot of fun. Offer repeat customers discounts and rewards for referrals. This will make any business more competitive and successful in the long run.
