CATER – H3

Catering Management
CHAPTER 3
Establishing the Right Kind of Catering for you

Objectives
After studying this chapter, you should be able to:
✓ Discuss a caterer’s market.
✓ Explain market segments and relate how a caterer must identify them.
✓ Explain the major considerations when carving out a niche.
✓ Identify why personal characteristics are a key to success.
✓ Discuss mission statements and how they guide the caterer in the decision making
process.
✓ Explain a strategic vision.
✓ Discuss and identify the elements of the strategic planning tool SWOT analysis.
✓ Explain primary and secondary caterers.
✓ Discuss corporate and social catering.
✓ Discuss on-premise and off-premise catering.

Recipe for Success

Ingredients:
7. “Always exceed your customer’s expectations.”
8. “Create a strategic growth plan.”
9. “Build a positive reputation.”

The Catering Market

Caterer’s Market - is the group of all customers in a geographic service area who have unmet needs,
wants, or demands requiring food and beverage service.

Carving the Market

• Segmenting the whole market of customers into smaller pieces or niches.
• Requires the caterer to identify customers with similar needs and wants and group them
together (segmentation).
• This enables the caterer to decide how to best build the business to satisfy that specific
group.
• Key questions used to identify a market niche.
1. What kind of catering can be executed right now?
2. What kind of food and service can be provided right now to meet and exceed
the customer’s expectations?
3. Is the caterer comfortable with specializing in chicken, steak, roast beef,
prime rib, or pasta?
4. What quality standards can be created and maintained in both food and
service?
5. What price-range will the caterer charge?
6. How many days will the caterer want to work each week?
7. How many hours each day will the caterer want to work?
8. What kind of preparation skills does the caterer have now?
9. Will the menu be specialized, limited-menu or will it be a broad-line menu?
10. What are the caterer’s culinary skills and their relationship to menu design?
11. What kind of equipment does the caterer have?
12. What negotiating skills does the caterer have?
13. What is the caterer’s knowledge regarding food and service sanitation
standards?
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14. Who will assist the caterer in these functions?

15. What is the skill level of the staff?
16. What kind of personnel demands will the caterer have to confront?
17. How large or small does the caterer want to be?
18. How fast or slow does the caterer want to grow?
19. How will the caterer evolve after the business has grown in three-to-five
years?
20. How will the caterer evolve after the business has grown in ten years?

Who is the Caterer?

How the caterer define who they are begins with an analysis of their capabilities as a caterer and
how they can satisfy customers’ needs and wants. This is the starting point to establish the right kind of
catering business.
➢ On-premise or off-premise or both?
➢ Social market or corporate account or both?

Mission Statement or Purpose

Mission Statement
• A written statement which defines the sole purpose of why the caterer is in business.
• It identifies who the caterer is and communicates what the caterer can do for all
potential customers.
• It answers the questions: “Why am I in business today?”
• It may also reflect what the caterer plans to become and it guides the caterer’s decision-
making process.
• It helps communicate who and what a caterer is to the Stakeholders – employees,
suppliers, clients, guests, community, neighbors, competitors, government agencies, and
others who have direct relationship with the business.

Example:
Mission Statement
Conroy Catering specializes in partnering with our discerning clients to create elegant,
memorable experiences. Whether it is a wedding, corporate gathering, or other special occasion, we are
committed to providing impeccable service and hand-prepared cuisine in warm, timeless settings.
Our exclusive and unique venues, an innovative approach to culinary excellence, and
use of the highest quality ingredients create one-of-a-kind experiences. Our customers come first, and
our team earns their confidence through exceptional accessibility, attention to detail and a personal
approach to service.

Growing the Business

Professional Growth
• The progressive professional growth of the catering organization must be a well-crafted
part of this plan. Formulate a Business Growth Plan.
• This takes careful, patient planning.

Strategic Vision
• Is future looking.
• This strategy helps the caterer to envision where the business is headed and what kind
of demand will exert pressure on the organization.

SWOT Analysis
• A strategic management tool caterers use to match their business strengths to market
opportunities.
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• Identifying INTERNAL Strengths and Weaknesses, and the EXTERNAL Opportunities and
Threats.
• Used to interpret an overall business position.

Strengths – internal attributes, skill, characteristics, or assets that a caterer possesses which provide
an enviable position of exceptional competitiveness in the market. Ex: Quality of food, Excellent
service, Human resource.

Weaknesses – are identified as those internal areas that can limit a caterer’s ability to compete
successfully in the industry. Ex: Lack of specialized equipment, lack of physical endurance, lack of
culinary and technical skills.

Opportunities – are identified as those external, future catering events that best match the caterers’
competitive strengths and which enable him to meet and exceed guest expectations. Ex: Potential
economic growth, lack of competition, business location.

Threats – are identified as those external elements which can cause a potential loss for a caterer. Ex:
Competition, government regulations, shutdown of corporate customers.