The catering business is a good way to make money for those who love to cook since catering is not always about making lunch for hundreds of guests. However, the sphere is quite competitive today because more and more people consider it profitable and reliable and are trying to create their businesses in the area of catering. Hence, in order not to work at a loss and lose time and money, it is necessary to develop a solid business strategy (Hill, 2019). It will enable the entrepreneur to reach success and not only recoup costs but also gain profits.
The first component of a business strategy concerns establishing a niche in the catering field. When doing that, the caterer should pay attention o those that are less competitive since, in that case, he will have more chances of reaching success. In order to find out what marketing niche not only suits a particular entrepreneur but also involves less competition, it is necessary to check what services local caterers and restaurants suggest (Hill, 2019). Then one needs to calculate an average price for the catering services in the local community as well as to analyze what dishes are the most popular among the customers. It should be done to see whether further business is cost-effective. For instance, when starting a lunchtime delivery business, it is necessary to take into account the location, the salary levels of the citizens, and their needs (Meyers, 2019). To make this business profitable, the businessman should analyze the market in order to see if there are other companies that offer better services than he is going to provide.
After finding a profitable niche that is not quite competitive, the caterer should pay attention to the legal aspect of the matter and get the business officially registered. To do that, the entrepreneur usually needs to get several licenses and permits that may vary from state to state. However, there exist several that are required in all states of the USA to open a restaurant or do other business related to the catering field. The compulsory documents for opening a catering business in the United States are an officially registered unique business name, business license, food service permit, food handler’s permit, building health permit, sales tax license, and seller’s permit. Apart from that, the businessman should have a resale permit and employee identification number. (Navarra, 2021). The licenses and permits may vary depending on the state and the type of business, but those mentioned above are the most universal and may be required in all states.
When speaking specifically about the area of lunchtime delivery that was used as an example before, caterers involved in this business should have all the mentioned above documents. Apart from that, the businessmen have to contact the local healthcare department that should give them the permits to handle and sell fruit as well as other details about the licenses needed (Meyers, 2019). Documents guarantee the entrepreneurs that they will get compensation in case of emergency and will not be sued for illegal actions.
After the niche is established and the licenses and permits are obtained, it is necessary for the caterer to think about the menu he is ready to offer to his clients. When planning the menu, one needs to consider several important aspects that will ensure the business’s profitability. First, the businessman should analyze the menus of the existing catering services and establish what dishes are the most popular among the customers. It will help organize the menu of his own restaurant and enable the caterer to base it on the needs of the customers, which will gain more profits and approval of the clients (Hill, 2019). In addition, it is necessary to take into account the cost of packaging since it is a compulsory part of the menu costs that are often forgotten by many caterers, especially inexperienced ones (Brady, 2018). Menu prices are also important for the business, but businessmen should establish reasonable prices to let the business stay profitable and competitive at the same time.
The next step in creating a catering business concerns one more important aspect: location. People who live in different places have different food needs and preferences, which is why the caterer should take this aspect seriously. When speaking about the lunchtime delivery business that is used as an example throughout the paper, it is necessary to pay attention to the location because different places have different juridical norms concerning this business (Meyers, 2019). In addition, food prices in different locations may vary depending on transportation time and price and on the preferences of the customers.
One of the final aspects that the caterer should consider concerns buying the equipment and supplies that will ensure the successful start of the business. In the initial stages, a businessman needs cooking equipment and utensils that are necessary for cooking the dishes mentioned on the menu. Apart from that, he will need the food supplies in sufficient quantities in order to provide the clients with freshly made food every day. In addition, if the business is concerned with delivering products, the caterer will need a vehicle for carrying the meals as well s containers for keeping food safe and hot during the delivery process (Meyers, 2019). The businessman should also take into account the costs of such supplies as packaging materials, napkins, disposable eating utensils, and sanitation supplies.
One more aspect some caterers do not pay attention to concerns the marketing and advertising of the business. The profits will grow if more people know about the catering services one provides. Hence, caterers should put advertisements about their businesses in the local newspapers or TV channels (Meyers, 2019). They may also choose other types of ads, such as distributing flyers on the streets or making colorful and memorable posters and slogans about their services. In addition, the Internet is a good instrument for promoting a business because almost everyone uses it today for searching and buying goods. Hence, a website or blog may serve a better promotion than ads in newspapers or on TV.
Considering all mentioned above, it is necessary to state that opening a catering business may be difficult for those with no experience in the field or who know nothing about marketing and management. However, the task is not impossible because one just needs to pay attention to several aspects that ensure the successful development of the business. They include the analysis of the competitors, providing all the necessary licenses and permits, and the development of the business strategy with clear consideration of all possible costs.
References
Brady, V. (2018). 4 ways to build healthy profit margins through catering. QSR. Web.
Hill, B. (2019). How to start a small catering business. CHRON. Web.
Meyers,J. (2019). What do I need to start a lunchtime delivery food service? CHRON. Web.
Navarra, T. (2021). Restaurant licensing: The 16 licenses and permits you need to open a restaurant. Lightspeed. Web.