Catering Guidelines: 1: Research The Marketplace
Catering Guidelines: 1: Research The Marketplace
Catering Guidelines: 1: Research The Marketplace
The first step in launching a catering company is to check out who else is offering catering in
your area. Check out your competitors’ menus, their list of services, prices and customers. Visit
their websites and see if you can quickly find their unique selling benefits. You might think that
successful caterers sell food, but you’d be wrong. Sure, you start with your food, but why should
customers buy that food from you instead of somewhere else?
People who buy catering can get good food from a wide variety of local providers. When they
shop for catering, they look for more than just food—they look for a benefit.To be a successful
caterer, you’ll need to sell convenience, affordability, unique menus, or corporate style or white-
glove service.
If you’re looking to do in-home catering for private parties, contact your friends with a short
survey. Ask if they use catering services, and ask them to tell you why they hired certain
caterers, what they liked about the providers and what they’ll look for in their next caterer.
Contact your peers in the business community to find out what their companies look for in
caterers to help you determine what your potential customers want. If you don’t have personal
contacts who can help you, cold-call a few potential customers. Let them know you are not
selling anything and simply want to ask a few questions about what they would like caterers to
offer. But be sure to take time to find the appropriate person at each company to contact,
otherwise you’re likely to get the brush-off.
This will help you gather information about the services that corporate customers want beyond
food (such as set-up, take-down, staffing, a bar, etc.). You can learn how these businesses budget
for catering and how often they use catering. These interviews or email exchanges will help you
launch your business with with a benefit or benefits you know customers will want, instead of
ones you think they will want (“Everyone will love my dim sum carts!”).
3: Choose your niche.
You might think you should start with your catering concept and research how to start your
business from there—but you’re assuming people will like your idea and want to pay for it.
Starting with marketplace and customer research will better help you decide what type of
catering you should offer. Once that you know who your potential customers are, what they want
and what your price range will probably be, you can decide what you think you should offer to
attract enough customers to make a profit.
Within your niche, you can further narrow your service by focusing on a specific type of food,
such as barbecue, healthy foods, vegan, upscale menus or affordable menus.
No matter what type of small business someone starts, entrepreneurs have a number of common
startup tasks to perform. These include getting a business permit from your town or city, getting
a post office box, setting up a website and email address, looking into setting up a corporation
and buying liability insurance. You’ll need to check with your town to see if your business will
meet any zoning requirements and check your home owners’ association rules, if you’re part of
an HOA. Find more tips on small-business startup basics with our guide, How to Write a
business Plan the Right Way.
In addition to these general tasks, you’ll need to contact your state department of health to
determine how to get a food service license and what you need to make sure your kitchen,
storage, transportation and serving equipment meet the necessary standards. Some states require
that you take a course and become a certified food manager, or hire one to prepare and serve
your food.
To determine what it will cost to start a catering business and what it will cost to run it once you
are open for business, create a budget. Our recent installment on Small Business Budgeting for
Beginners tells you everything you need to know about projecting your expenses for a new small
business.
Plan on spending at least several thousand dollars in startup costs to upgrade your kitchen and
cooking equipment, get your licenses and permits, upgrade your office equipment and marketing
materials, and get the word out. Depending on how large you want to go, your initial investment
could be more than $10,000.
You will be much more likely to succeed with a catering business if you answer all of the
questions related to your venture before you start, instead of trying to address them as they arise.
A written business plan is not a difficult document to create if you work on it one piece at a time.
Don’t reinvent the wheel—just follow the steps in How to Write a Business Plan the Right
Way (mentioned before) to learn how to create a biz plan that will answer all of your questions
before you risk your first dollar.
It's very important to prepare food safely to help stop harmful bacteria from spreading
and growing. You can take some steps to help protect yourself and your family from the
spread of harmful bacteria.
Your hands can easily spread bacteria around the kitchen and onto food. It's important to always
wash your hands thoroughly with soap and warm water:
Don't forget to dry your hands thoroughly as well, because wet hands spread bacteria more
easily.
Before you start preparing food, it’s important worktops, kitchen utensils and chopping boards
are clean. If they’ve been touched by raw meat, poultry, eggs or vegetables you'll need to wash
them thoroughly.
You should change dish cloths and tea towels regularly to avoid any bacteria growing on the
material.
Raw foods such as meat, fish and vegetables may contain harmful bacteria that can spread very
easily by touching:
other foods
worktops
chopping boards
knives
You should keep raw foods away from ready-to-eat food, such as salad, fruit and bread. This is
because these types of food won't be cooked before you eat them, so any bacteria that get onto
the food won't be killed.
don't let raw food such as meat, fish or vegetables touch other food
don't prepare ready-to-eat food using a chopping board or knife that you have used to
prepare raw food, unless they have been washed thoroughly first
wash your hands thoroughly after touching raw meat, fish or vegetables and before you
touch anything else
cover raw meat or fish and store on the bottom shelf of the fridge where they can't touch
or drip onto other foods
don’t wash raw meat before cooking
wash, peel or cook vegetables unless these are described as 'ready-to-eat' on the
packaging
Check the label
It's important to read food labels to make sure everything you’re going to use has been stored
correctly (according to any storage instructions) and that none of the food is past its ‘use by’
date.
Food that goes off quickly usually has storage instructions on the label that say how long you can
keep the food and whether it needs to go in the fridge.
This sort of food often has special packaging to help keep it fresh for longer. But it will go off
quickly once you’ve opened it. This is why the storage instructions also tell you how long the
food will keep once the packaging has been opened. For example, you might see ‘eat within two
days of opening’ on the label.
Use by dates
You will also see ‘use by’ dates on food that goes off quickly. You shouldn’t use any food after
the ‘use by’ date even if the food looks and smells fine, because it might contain harmful
bacteria.
The 'best before' dates marked on most foods are more about quality than safety. When this date
runs out, it doesn't mean that the food will be harmful, but its flavour, colour or texture might
begin to deteriorate.
An exception to this is eggs, which have a best before date of no more than 28 days after they are
laid. After this date the quality of the egg will deteriorate and if any salmonella bacteria are
present, they could multiply to high levels and could make you ill.
If you plan to use an egg after its best before date, make sure that you only use it in dishes where
it will be fully cooked, so that both yolk and white are solid, such as in a cake or as a hard-boiled
egg.
Don’t complicate the menu. You don’t want to present too many options to your
attendees as lunch breaks are normally shorter. The fewer options to choose from the
more efficient lines will be. Also, don’t serve super exotic food for larger crowds, like
duck or octopus. No one wants a boring menu but you’ll want to please most of the
crowd, so select menu items that most pallets would enjoy.
Don’t make menu changes last minute. You normally have about two weeks from the
event to finalize counts and menus. If you try to change anything after that, not only
could some caterers not accommodate the changes, but it could increase costs
significantly. Plan ahead as much as possible when it comes to catering.
Don’t necessarily cut caterer suggestions to save money. If a caterer is suggesting
something, it’s because they feel it would be best to incorporate into your event. Even if
it costs more than desired, consider it before initially eliminating it. For example, if a
caterer suggests you serve teas with the water and sodas you want to serve, it’s not a bad
idea to offer that even though it costs more so attendees have more of a variety of
beverages to choose from.
Don’t become stressed! Just remember your caterer is a professional. Let them do their
job and take over your stresses so you can focus on other aspects of the event.