UNIT 2: THE CATERING BUSINESS

Learning Outcomes:
Upon studying this unit you should be able to:
discuss the benefits of entering the catering business
present a catering business concept, and
identify the success factors needed in the catering business.

Share your thoughts!

In the previous topics you been acquainted with what

catering is all about. Now, before we move on I would
like you to look into this video
https://www.youtube.com/watch?v=gNgXpu4PrbI

After watching share your thoughts on putting up

your own catering business.

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Thank you for sharing your thoughts!

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2.1 Clients on Caterers

Reasons for Acquiring Catering Services

Source: https://www.clearwatertravelplaza.com/news/5-important-reasons-to-hire-a-catering-company

 Less Stress - planning an event requires a lot of time and effort. A catering company
can assist you in planning for one of the major to-dos: food. A lot of thought goes into
what to serve at an event which can be stressful. Catering companies can ease this
worry and take care of the hard work.
 Save Time - when hiring a catering company, you don’t have to plan, cook, and serve
food, imagine how much time that will save.
 Offers a Versatile Menu – when clients are not sure what to serve for the event or how
to prepare or present ideas for a function, a catering company would sit down with
clients and explain every detail of what will be served to the guests. Caterers can adapt
to make guest visions a reality.
 Attention to Detail - catering companies take time to perfect and present food and
beverage options in a way that will wow guests. Caterers have the skills, experience,
and patience to make guests’ vision a reality. They could adapt to any venue
environment to make sure your food and beverages fit the scene and look perfect.
 Make a Statement - when an event is catered, it leaves a lasting impression with
guests. It makes an event feel more important and structured. Whether it’s a private
event like a birthday, anniversary, reunion; a special day like a wedding; or a
significant event like a business gathering, having a catering company on-site shows
that the host took time to really make the event special.

Activity 2.1: What’s your Idea?

Aside from those reasons mentioned above what would be your reason for acquiring
catering services? Why?
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Great! Don’t forget to send it to our google class…

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Client Considerations – the process of selecting a caterer in influenced by multiple factors.
 Reputation – a caterers’ reputation is one of the most important considerations that
clients look into. It is then imperative that the caterer is reliable. A customers
expectations can be based on the past performance of a caterer.
 Referrals - this happens when a satisfied customer recommends a caterer to others.
This may be a caterer’s best vehicle to advertising his or her skills and expertise in
catering.
 Word of Mouth / Reviews – a potential client may believe that the caterer is that good
based on another person’s experience with a caterer. This is the best type of advertising
for a caterer.

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2.2 Starting a Catering Business

Why Catering?
More and more food service establishments are getting into the banquet and catering business
for few simple reasons:
 The profit potential is much greater
 Less chance of failure because all details are laid out in advance (Ex. Time and place of
the event, number of people, menu, set-up and more…)

Advantage & Disadvantage of Catering

Starting a catering business is a great way to make money, but it can be a challenge. Knowing
the advantages and disadvantages of this job before you start is important for determining if
this job is right for you.

Advantages of Catering
Starting a catering business is great if you like to cook for large crowds. If you have a knack
for cooking, catering gives you the ability to showcase your talents and get creative. You aren’t
confined to the typical restaurant menu like a line cook, but you can instead create your own
menus and choose your own ingredients. Owning your own catering business is also great
because you can do it in your spare time. You don’t have to take a catering job if you are too
busy. The jobs that you do take can be very profitable, making catering a very lucrative
business. Additionally, caterers are always in demand. Even if people are trying to scale back
on expenses, events are always held and people still need to eat, so a good caterer will rarely
have trouble finding work.

Disadvantages of Catering
One of the things that deters most people is the fact that catering is very demanding. If you
cater an event you can expect to work many days up to the event preparing things. You should
be prepared to spend long hours on your feet which can be exhausting. Catering also requires
a great deal of organization. If even the smallest little detail is missed it can ruin a whole
event. This puts a lot of pressure on the caterer, so if you don’t perform well under stress this
is not the job for you. Finally, while catering is in demand, there is also a lot of competition. If
you want to be successful in this business you need to know how to market yourself. Finding
new clients can be challenge, and could be more work than you are willing to do.

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 Activity 2.2: What’s in it For You?
What do you think are the good points of having your own catering business? Write
them down below… Mention at least 3.
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Doing well there! Get ready now to share it to class…

Looking into the Catering Business?

A catering business can be wildly successful, enjoyable and fulfilling. In this business, you're
able to please clients while indulging your love of food and people. If you are driven by that
burning desire to start a catering business and are prepared for the work and accompanying
expenses, the catering industry will offer some distinct advantages over starting a traditional
sit-down restaurant.
Here is a checklist to help you organize your ideas into starting a catering business:
 What services will your catering business offer? Perhaps you’re looking into running a
full catering service, a corporate catering service, event catering business, etc.
 What about permits or local government requirements?
 Determine your start-up cost. This may include permit fees, equipment cost,
marketing, catering supplies, labor cost, etc.
 Construct a budget, forecast and projection.
 How will you finance the start-up of your catering business?
 Look into insurance needed to protect your catering business
 Where do you plan to house your office?
 How do you plan to manage your business?
 Who are the suppliers do you intend to work with?
 Will you be renting equipment or buy your own?
 What will you name your business?
 Do I have the skill to do it? Remember that having a catering business means wearing
many hats such as: accountant, manager, marketer, sales representative, and bill
collector.

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  Is my catering idea practical and is it in demand?
 Who are my competition?
 What are my advantage over existing services?
 Can I deliver a better quality service?
 Can I create a demand for my business?
 What will be my legal structure?
 How will I compensate myself?
 Do I have the right people to make it work?

Go ahead and learn more about the catering business. Visit the links below:
https://smallbusiness.chron.com/should-start-catering-business-16897.html
https://smallbusiness.chron.com/information-start-catering-business-17262.html
https://smallbusiness.chron.com/affect-target-market-selection-catering-business-25615.html
https://articles.bplans.com/how-to-start-a-catering-business/

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2.3 Success in Catering

Catering is a lucrative market for many restaurants. Catering large parties, such as weddings,
anniversary parties, and holiday gatherings is a great way to boost restaurant sales. However,
like all parts of the food industry, a restaurant catering business is a lot of work and demands
a lot of organizational skills. If done right, a restaurant catering business is one of the best
ways to get word around about your establishment.

Catering Business Success Tips

Source: https://totalpartyplanner.com/catering-business-success-tips/

Running a successful catering business is about more than wonderful food and rental
inventory; it requires business management skills, organization, and being prepared for the
unexpected.

Make delicious and good looking food and beverage.

Most caterers will start a catering business because of their passion for the culinary arts. It is
important to be flexible in terms of your menu offerings. If your customers want something
new or unique, explore different options and expand your menu. In addition, focus on making
the food pleasing to the eye. Like what’s been said over and over “we eat with our eyes first”.

Ensure quality customer service.

Customers want to be “wined and dined”, no differently than if they were in a restaurant. “You
get what you pay for”, while this is true it is still important to go beyond customer
expectations without pricing more. It is the small and minute details that helps make the
customer feel they are getting even more. Like calling the week before an event to review the
details again in case of last minute changes. Also, there is nothing nicer than a personal
“thank you” after an event. In the age of emails, think about a phone call or a hand written
card.

Hone your ability to organize events.

Your ability to stay organized is not only going to impact the dining experience, but it will
influence the atmosphere of the entire event. Forgetting to pack the chafing dishes could be a
disaster, but having a team that is rushed, disorganized, or serving everyone at different times
will make guests impatient and uncomfortable, and you will look like an amateur. You must
have a system in place to keep track of venue information, menus, pack lists, hiring, timelines,
and more.

Keep the attire professional.

Proper grooming and workable or appropriate attire adds a professional touch to the service
and tells guests who is working the event. Even if the staff uniform is not 100% identical, be
sure all clothing is clean, at the very least! Doing such creates a lasting impression for
customers as well.

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Ensure a safe and sanitary environment.
The health department will be sure to keep you on your toes in this area, and for good reason.
You don’t want to deal with any kind of liability lawsuit, or end up getting anyone sick from
the food at your event. This can be tough for off-premise events with limited (or no) kitchen
space, so be sure you’ve planned ahead.

Offer competitive pricing.

Shop your competitors! Know what they are offering and at what prices. Along those same
lines, you must understand your costs. Profitability is important in any business, so it doesn’t
make sense to drop your prices to the point of losing money. Having a good software program,
will allow you to analyze event costs to come up with the most competitive pricing and still
allow you to be profitable.

Develop excellent management skills.

Be a great leader. You will need to be extremely organized, take initiative, have solid
interpersonal skills, manage in diverse environments, focus on and preach customer service,
show confidence in your business and your products, motivate people, think clearly and stay
calm in crisis (yes, not everything will go as planned!), and know your finances. There are
many learning resources available on the Internet or in your local communities. Target the
areas above you feel weakest in and make it a point to strengthen those skills.

Keep business expenses low.

It is important to constantly review your business expenses for opportunities to lower, and
even cut, costs. Are you shopping food vendors for the best possible prices? Are you properly
portioning to eliminate waste and over ordering. Are there opportunities to use leftover dishes
and ingredients to make products for other events? Can you leverage organic referrals instead
of expensive advertising media?

Develop excellent communication skills.

You know how everything should run. You see the perfect event in your head. Don’t assume
the staff will know and visualize everything you do. Be sure to document all the details on
your event worksheets. Again, a software program is a must-have to fully organize your events
and communicate effectively with your clients and staff. Don’t let there be any surprises at the
event including details on final payment.

Factors Affecting the Success of Catering Services

The ability of a food service operation to successfully offer catering services is affected by
several factors that must be considered before deciding which catering service to offer and
whether you accept the catering service or not.
 Customer Profile & Catering and Client Relationship – When meeting clients it is
important to build rapport. Whether we like it or not first impressions create a lasting
impact. That’s is why dressing up for your clients also gives that certain impression of

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 who you are as a caterer. It is important to know your client and their event guests as
well. Why? Well this gives you an idea of what to present, suggest or recommend to
your client it may be in terms of menu, packages, styling designs, etc. Remember that
you are doing the catering service for your client and their guests’ and it is important
that you are able to deliver what is expected without sacrificing quality.
 Location & Facility - It is important to know where the venue of the catering will
happen. There are details and factors that are connected to the location of the event
which can be very helpful in perhaps writing the menu or putting together a package
appropriate to the location & facility. This details may include transportation, weather,
climate, accessibility, venue size, safety, availability of equipment, permits and so on.
 Menu – Another factor to look into are clients’ menu preference and requests. If your
clients prefer other menu options aside from those you presented it is important to
think about these: Do I have the manpower, suppliers, equipment, resources, etc. to do
it? Remember to always give recommendations or suggestions to your clients instead of
just turning down their requests.
 Style & Atmosphere – Remember when we said that catering is providing food and
beverage including other events services. Some caterer would cover all the services for
an event. So it then important to detail out very well client preference in terms of the
theme, motif, design, table arrangements, décor, color schemes, etc. Some requests or
preference might be beyond your capability, resources or may be due to other factors
like the facility, equipment, etc. Like I mentioned earlier before turning down clients’
requests or preferences it is important to give alternative, suggestions and
recommendations first so that the client may think about it.
 Dining Experience – the overall dining experience may include all the other factors
mentioned above but to help you deliver a better dining experience are also the people
who works with you. That is why it is also important to look into your manpower, this
may include your chefs, wait staff, florists, stylists, carvers, etc. Do they have the
proper knowledge, ability and skill to deliver what is needed for the catering service?

Go ahead! Learn more about success in the catering business. Visit the links below:
Success Factors: https://smallbusiness.chron.com/success-factors-affecting-small-catering-businesses-42578.html
Successful Catering Event: https://www.entrepreneur.com/article/282441
Produce Sourcing Guideline: https://www.hitchcockfarms.com/blog/guidelines-for-successful-catering
Catering Business: https://www.thebalancesmb.com/four-rules-for-a-successful-restaurant-catering-business-2888616

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