Competitor Name
Brief Overview of Competitor
[Sender.Company] will provide its client with the following competitive advantages:
(Competitive Advantage 1)
(Competitive Advantage 2)
[sender.company] ’s branding and positioning.
The [Sender.Company] brand is renowned for its unique value proposition within the catering industry:
[Sender.Company] is known for its extensive menu offerings, providing breakfast, lunch, and dinner customization.
The company is committed to serving top-tier cuisine prepared by skilled chefs and presented by a team of sophisticated servers.
At [Sender.Company] , excellent customer service is a hallmark.
[Sender.Company] stands out with its creative approach, offering innovative event themes and concepts.
The company prioritizes and accommodates various dietary needs, demonstrating a commitment to eco-friendly practices and guest preferences.
[Sender.Company] provides comprehensive event planning services, including venue selection, décor, and entertainment.
These unique values define [Sender.Company] and highlight its dedication to delivering exceptional catering and event experiences.
[Sender.Company] anticipates its primary customer base to encompass individuals residing or working within the area of the establishment. The company's comprehensive promotional strategy to engage this demographic comprises various components.
The catering business will proactively encourage delighted clients to refer other companies or individuals by providing financial incentives for each successful referral.
[Sender.Company] will initially invest in advertising placements within local newspapers and event publications to enhance brand awareness.
[Sender.Company] will utilize local business mailing lists and business association databases to distribute informative materials to nearby businesses. These materials will offer insights into the company's offerings, feature discounts, and incentivize individuals to consider [Sender.Company] for their catering needs.
Outreach efforts will extend to local and regional newspapers and television stations, where press releases detailing the company's launch and its unique value proposition will be disseminated.
To maintain an active online presence, [Sender.Company] will maintain an informative website and circulate a monthly email newsletter.
Proactive interaction with prospective clients and strategic collaborators on diverse social media platforms, including (List relevant social media platforms), will enable the business to remain responsive to evolving customer requirements and preferences.
[Sender.Company] prioritizes catering to a wide range of client budgets while consistently delivering exceptional catering services. Recognizing the catering industry's susceptibility to price fluctuations, often driven by external factors, [Sender.Company] is firmly committed to offering competitive pricing that appeals to a broad clientele and reduces accessibility barriers. Additionally, a robust cost management strategy will be implemented to maximize profitability.
(Payment Option 1)
(Payment Option 2)
(Payment Option 3)
(Payment Option 4)
By offering these versatile payment alternatives, [Sender.Company] aims to ensure that its valued clients have a range of choices to align with their financial needs and preferences, ultimately enhancing their overall satisfaction. These options can be adjusted to remain responsive to market dynamics and evolving customer demands.
Date | Milestone |
---|---|
(MM/DD/YY) | (Milestone 1) |
(MM/DD/YY) | (Milestone 2) |
(MM/DD/YY) | (Milestone 3) |
These milestones underscore [Sender.Company] 's unwavering commitment to making consistent and measurable strides in its pursuit of success within the (Industry Name).
Source and use of funds.
[Sender.Company] will be receiving (Amount) from (Source of Fund) to launch its catering business. The funds will be used for capital expenditures, labor costs, and acquiring supplies and equipment. The following table shows the proposed startup costs:
Name | Price | QTY | Subtotal |
---|---|---|---|
Item 1 Description of first item | $35.00 | 5 | $175.00 |
Item 2 Description of second item | $55.00 | $55.00 | |
Item 3 Description of third item | $200.00 | $200.00 |
Subtotal | $230.00 |
Discount | -$115.00 |
Tax | $23.00 |
Total | $138.00 |
These are [Sender.Company] 's pro forma financial statements for the next five (5) years. It contains the business's income statement, balance sheet, and cash flow statement.
[Recipient.FirstName] [Recipient.LastName]
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Whether you’re starting a catering business full-time or planning to operate out of your house initially , writing a business plan is essential to getting clear on the type of catering business you want to open. After all there’s some pretty important stuff covered inside of what can seem like a stuffy document.
For the purposes of starting a catering company, think about the business plan as the one place you put your operation details. Things like the cooking equipment you need to purchase and the total cost, tentative catering menu, food costs, and who your target customer is. These are all super important details you need to understand before opening! This document provides a place for you to organize everything.
By the end of this guide, you’ll be able to draft your plan and start on that first catering gig you’ve been planning to open. We also provide templates you can use in PDF and Word Doc you can download and edit. Let’s get started.
Catering spread for a Mexican food concept.
Start your business plan with an executive summary. This is a way to introduce your catering business so whoever is reading your business plan will know what to expect. This will include a brief introduction of your catering business, a description of your company, the services your catering business will be providing, and the customer focus.
A quick introduction helps the reader get a bird’s eye view of your catering business. Here you’ll be talking about what to expect and what you can offer as part of your catering service.
This section isn’t considered lengthy. This usually has two to three sentences. What you need to focus on when writing this down is by the end of it, your reader will more or less understand what your catering business is all about.
Here’s an example introduction you can use as a guide:
The Big Spoon is a small catering business headed by Lydia Smith. She specializes in Italian cuisine but can cater to American, Mexican, and Asian dishes as well. The Big Spoon can accommodate an intimate dinner for 2 up to a large party of 50 accompanied with table settings and chafing dishes to complete that delicious home-cooked meal experience.
Just by the introduction, the reader will know how big your catering business is, what cuisine they can expect to order, and how many people the business can cater for. It also gives them an introductory glance about your catering style wherein you already provide more than just food but also a table setting so they don’t have to look for a supplier for this separately.
Keep your introduction informative but also short enough. You will be able to add in more to the details later on.
Some food trailers make more than 50% of their annual revenue from catering gigs.
A little background on your catering business is needed in the company description part of the business plan. Here, you can describe the meaning behind the name for your catering business, who the owners are, and what their roles are going to be. Who will be in charge of cooking? Who will be in charge of accounts and marketing?
This may just be brief but this is a way for you to introduce what’s going to happen behind the scenes of your catering business.
Catering works great for food trucks and restaurants.
Although your catering business may sound self-explanatory, it would still be of great help to you if you mentioned the services you’ll be offering.
For example, The Big Spoon already mentioned in their introduction that they’ll be catering food and offering table settings. They could also add that they will be offering an ice cream station and even a cocktail bar.
You will describe more of this in detail later on but you can summarize it and mention it here already.
Customer Focus
For a catering business to flourish, you must know your target market early on. And though a thorough explanation of that can be found in the Market Analysis section, you can briefly state them in this portion as well.
Also, remember that your customer focus would also have to coincide with your skills. You can’t be targeting customers who are vegans if your culinary skills and knowledge do not include cooking vegan food. This is why it’s important to write this early on so you can narrow down the customers you are planning to cater to.
What’s your mission statement?
Businesses with clear goals stated from the start lead to a successful operation. Why? Because every decision you make revolves around these goals which will lead you closer to success.
Here’s a sample mission statement to picture it out clearly:
The Big Spoon aims to cater delicious home-cooked meals to its customers. Every dish that is served will contain natural and fresh ingredients. We see to it that the service we provide is top-notch so that our customers will feel as if they are being served in a fine restaurant in the comforts of their own home or wherever they choose to have us cater them.
By writing this down in your business plan, you and your staff will have to stand by the standards you’ve set for yourselves. For instance, as stated in The Big Spoon’s mission statement, no fast food will be served and no artificial ingredients will be used so you and your staff will always remember this by heart.
By following this and revolving your decisions around your mission statement, you will be able to keep such standards which will lead to pleased and returning customers.
This is the section of the business plan where you can finally put in detail the concept you’ve been planning for your catering business. Remember the things you’ve been holding back in saying in the introduction? This is the time to write them all down now.
Related Reading: 7 Powerful Ways I Promote and Market My Catering Business
You can start by answering the following questions:
You may also add in other concept ideas that are not mentioned above. Just make sure to cover everything so you can have a basis for your product line and services to be tackled later on.
A compelling catering business logo.
Planning to put your business out there means you also have to know the industry you’ll be diving into. This is to help you analyze your potential customers, the growth of the catering business in your area, and the competition.
As mentioned above in the customer focus, your skills will have to match your target market. You’ve already written a brief introduction about it so in this section, all you have to do is to explain it in detail.
The catering business has been going on for a long while now so it’s important to gather in as much information as you can regarding this industry. This is to help you figure out if there is a potential market for your business and how to put your plans into action.
Another helpful guide is to look into the type of cuisine most people in your area look for. You can then incorporate it into your business and offer it as part of your menu.
The bottom line is that analyzing the industry around you helps you plan better for the future of your catering business.
You will not be the only catering business in your area. You’ll have to consider restaurants as your competition too. Check their prices and set menus. Do a competition check by tasting their food once in a while. Knowing who the players are in this competitive business game gives you the upper hand because you’ll be aware of their strengths and weaknesses and how to deal with them on the field.
Determine the key players in your business.
A catering service is run by a few people. In this section of the business plan, you’ll list down everyone who is working on this business alongside you as well as the roles they possess in your business. This includes:
Why is this so important, you might ask? Stating clear business roles and laying out the management structure keeps everyone in check and helps avoid any misunderstandings. Most businesses that don’t define this early on end up having a messy workflow. So make sure to state each duty clearly for everyone to follow.
Burgers are a proven catering option.
This section of the business plan goes hand in hand with your company concept. Here you can present your different sample menus for all the cuisine you wish to cater to. Be sure to include the prices for the set menus per head.
You can also write down the services you plan to offer. Here are some you can consider for your catering business:
Writing them all down in this section will keep your business more organized which is very important when you start on your catering business.
Grilled chicken is another popular option for caterers.
How are you going to market your catering business? Do you plan to have an ad out in your local newspaper and on social media? Both strategies are fine but you need to find more ways to get your catering business out there.
One way to market yourself is to partner up with rental spaces such as function halls that do not provide food. Give them a proposal that when there are inquiries regarding the rental of their halls, they would present your set menus to the guests as well so they don’t need to trouble over finding a caterer.
Related Reading: How I Started a Legit Catering Business Out of My House
Partnering with several event coordinators is also a way to get your business known. People these days hire event coordinators to do all the planning for them. They expect these coordinators to answer all their questions from food, music, and decorations. By partnering up with an event coordinator, they’ll be the ones to pitch in your catering business to their customers.
Remember to uphold your mission statement as well. By providing good food and high-class standards during your catering event, you’re already marketing your products and services to the number of people you’re catering to. So always make an exceptional first impression because that will stay with the guests long enough for them to remember hiring you on their next and succeeding events.
Plan your financial future.
Knowing where you’re going to get the funds to start your catering business is a must. This is how you’ll know if your plans are going to be achievable or not. Besides, having a solid financial plan will also allow you to go through with your ideas without any interruptions.
In this section, break down your financial plan into two categories which are your plans to request for funding and your financial forecast.
Some business owners are ready to put up their catering business due to having saved enough money through the years. But what if you lack the funds to do it? Don’t fret. You can still loan from the bank and invite investors.
Whatever your plan is that deals with requesting for funding, include it here so you can document it.
Make conservative and best case scenario financial forecasts.
Reaching break-even is the ultimate goal when you’re putting up a business. You can compute how long it will take you to reach it early on in the planning stage.
You can also list down all your proposed expenses here which include the following:
You may also add in tables and chairs if you do not want to keep on renting these. But sometimes, the venue where you’ll be catering can provide these as well.
Download Now: Bakery Business Plan Templates for 2021
Be sure to include your staff’s payroll expenses. Since catering events are not done daily (unless you’ve already made a name for yourself and you’re booked every day), you can just have your wait staff be on call and pay them per catering event rather than a daily wage.
By computing these, you’ll know just how much you should allot for your startup capital and how much should your goals be to reach during every catering gig in order to profit off of it.
What’s your operation plan?
Put your plan into action by making a timeline of your operations. Here is an example:
Date Plan [Insert Date Here] – Finalize the business documents you need such as permits and registrations for your catering business.[Insert Date Here] – Start marketing your business on social media and the local news. Send out proposals for partnerships with event coordinators and function halls.[Insert Date Here] – Hire and train staff.[Insert Date Here] – Start catering when booked.[Insert Date Here] – Achieve goals and reach break-even.
The appendix section of the business plan is where you can put all your documentation. This includes photos of your food and table setting and your copies of the permits and registration for your catering business.
Here are the catering business plan samples in PowerPoint, Word Doc, Google Doc, and PDF. These are ideal for commercial or home-based catering businesses.
Throughout this entire guide, we have been referring to your readers as one of the main reasons why you should make your catering business plan easy to understand. But in truth, making this business plan is for you as well. You will need this plan when you’re requesting for financial assistance in banks and this would also serve as your work guide. So remember to keep it detailed and easy to comprehend because you will be using this on the road to putting up your business.
While opening a catering business can be extraordinarily rewarding there are a few factors you should consider before deciding to push ahead. Creating a business plan lets you understand what the factors are, what’s going to make this business become a success, and how you can profit from the venture.
If you’re serious about starting a catering business, don’t forget to sign up for our Food Business Startup Kit . This free community will give you access to exclusive interviews with catering professionals you can use to help grow your own business.
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Wedding receptions: how to pull-off an unforgettable catering service guide.
Here is a free business plan sample for a catering company.
Have you been toying with the idea of launching a catering business but feel overwhelmed about where to start?
Look no further, as we're about to guide you through a comprehensive business plan tailored for the catering industry.
Creating a solid business plan is a crucial step for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to turn your catering dreams into a thriving reality.
To streamline your planning process and get you started on the right foot, feel free to utilize our catering business plan template. Our team of professionals is also on standby to provide a free review and fine-tuning of your plan.
A good business plan for a catering business must be tailored to the unique challenges and opportunities of the catering industry.
Initially, it's important to provide a comprehensive overview of the catering market. This should include current statistics and an analysis of emerging trends, similar to what we've outlined in our catering business plan template .
Your business plan should articulate your vision clearly, define your target market (such as weddings, corporate events, private parties), and establish your catering company's distinctive approach (gourmet, budget-friendly, ethnic cuisines, etc.).
Market analysis is a critical component. You'll need to thoroughly research local competitors, understand industry trends, and identify the preferences of potential clients.
For a catering business, it's imperative to detail your menu offerings. Describe your range of cuisines, menu flexibility for dietary restrictions, and how your selections cater to the tastes and needs of your intended clientele.
The operational plan is vital and should cover the logistics of your catering operations. This includes the location of your kitchen, the layout for food preparation and storage, supplier relationships for ingredients, and the logistics of transporting food to event venues.
Quality control is paramount in catering. Your plan should highlight your commitment to food quality, preparation standards, and adherence to health and safety regulations.
Marketing and sales strategies must be addressed. How will you build a client base and foster repeat business? Discuss promotional tactics, networking strategies, and customer service excellence.
Incorporating digital marketing efforts, such as a professional website and active social media engagement, is crucial for modern businesses.
The financial section is a cornerstone of your business plan. It should outline your startup costs, projected revenue, operating expenses, and the point at which you expect to turn a profit.
Catering businesses often deal with fluctuating costs and varying client demands, making financial planning especially important. To assist with this, consider using our financial forecast for a catering business .
Compared to other business plans, a catering business plan must address specific factors such as menu diversity, event-specific logistics, staffing for different types of events, and the scalability of services.
A comprehensive business plan is a tool for clarifying your strategy and attracting investment or loans.
Investors and lenders will look for a thorough market analysis, sound financial projections, and a clear plan for managing the complexities of catering operations.
By presenting a detailed and substantiated business plan, you showcase your professionalism and dedication to the success of your catering enterprise.
To streamline the planning process and ensure you cover all necessary elements, you can start with our catering business plan template .
Here, we will provide a concise and illustrative example of a business plan for a specific project.
This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.
To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.
All these elements have been thoroughly included by our experts in the business plan template they have designed for a catering .
Here, we will follow the same structure as in our business plan template.
Market overview and potential.
The catering industry is an essential segment of the food services market, offering vast opportunities for growth and innovation.
As of recent estimates, the global catering market size is valued at several billion dollars, with expectations for continued expansion. This growth is driven by an increase in corporate events, social gatherings, and a general preference for professionally prepared meals for various occasions.
In the United States, the catering industry contributes significantly to the economy, with thousands of catering companies operating across the country, generating substantial revenue annually.
This data underscores the pivotal role that catering services play in the food industry and highlights the potential for new entrants to make their mark.
The catering industry is experiencing a shift towards more personalized and health-conscious dining experiences.
There is a rising demand for organic, non-GMO, and locally sourced ingredients, as clients are more aware of the health and environmental impacts of their food choices.
Customization is becoming increasingly important, with clients seeking unique and tailored menus to suit dietary restrictions and personal preferences, such as gluten-free, keto, or vegan diets.
Technology is also playing a role in transforming the catering business, with online ordering systems and event management software streamlining operations and enhancing customer engagement.
Sustainability practices are being integrated into catering operations, from reducing food waste to using eco-friendly packaging and utensils.
These trends are shaping the future of catering, as providers adapt to the evolving demands of modern consumers and event planners.
Several factors contribute to the success of a catering business.
High-quality food that is both delicious and presented elegantly is fundamental to a caterer's reputation and client satisfaction.
Versatility in menu offerings allows a catering service to accommodate a wide range of events and dietary needs, enhancing its marketability.
Strategic partnerships with event planners, venues, and suppliers can lead to a steady stream of business and opportunities for growth.
Exceptional customer service, including clear communication and the ability to execute events flawlessly, is critical for building trust and repeat business.
Efficient operations, including cost control, inventory management, and staff training, ensure that the business runs smoothly and profitably.
Adapting to industry trends, such as incorporating sustainable practices and leveraging technology, will position a catering company as a forward-thinking and competitive player in the market.
Project presentation.
Our gluten-free catering service is designed to cater to the increasing number of individuals with gluten sensitivities, celiac disease, or those who prefer a gluten-free lifestyle. Strategically positioned to serve both private events and corporate functions, our catering service will provide a diverse menu of gluten-free options, including appetizers, main courses, sides, and desserts, all crafted with premium, certified gluten-free ingredients.
We emphasize the flavor, presentation, and nutritional value of our dishes to ensure a delightful and satisfying dining experience for all our clients.
Our catering business is poised to set the standard for gluten-free dining experiences, enhancing the lives of our clients by accommodating their dietary needs without compromising on taste or quality.
The value proposition of our gluten-free catering service lies in our dedication to delivering a gourmet dining experience tailored to the gluten-free community. We understand the challenges faced by those with dietary restrictions and are committed to providing a diverse menu that is both safe and delectable.
Our pledge to culinary excellence and dietary safety offers peace of mind and enjoyment to our clients, contributing to their health and satisfaction.
We strive to create a welcoming atmosphere for all guests, regardless of their dietary preferences, and are dedicated to educating our clientele about the advantages of gluten-free dining.
As a leader in gluten-free catering, we aim to be a cornerstone in the community, presenting a viable and appetizing alternative to traditional catering options and enhancing the well-being of our clients.
The project owner is a seasoned professional with a passion for catering and a comprehensive understanding of gluten-free dietary requirements.
Armed with experience in event planning and a background in nutrition, the owner is driven to establish a gluten-free catering service that excels in quality, creativity, and customer service.
With a commitment to education and dietary awareness, the owner is dedicated to offering exquisite gluten-free meals that contribute to the health of clients and the success of their events.
Their dedication to culinary artistry and their zeal for exceptional service are the cornerstones of this venture, aiming to enrich the dining experiences of those in need of reliable and delicious gluten-free options.
Market segments.
The market segments for this gluten-free catering service are diverse and multifaceted.
Primary clients include individuals with gluten intolerance or celiac disease who require strict gluten-free diets for their health and well-being.
Additionally, there is a growing demographic of health-conscious individuals who opt for gluten-free meals as part of a lifestyle choice or dietary preference.
Corporate clients seeking to accommodate the dietary needs of their employees or guests during events also represent a significant market segment.
Lastly, event planners and hosts who aim to provide inclusive menu options for weddings, parties, and other social gatherings are potential customers for our services.
Conducting a SWOT analysis for the gluten-free catering business highlights several factors.
Strengths include specialized knowledge in gluten-free meal preparation, a commitment to high-quality ingredients, and the ability to offer a diverse menu catering to various dietary needs.
Weaknesses may involve the higher costs associated with sourcing premium gluten-free ingredients and the complexity of ensuring cross-contamination is avoided.
Opportunities can be found in the increasing awareness and demand for gluten-free options, as well as the potential to partner with health professionals who can refer clients with dietary restrictions.
Threats include the growing number of competitors in the gluten-free catering space and the volatility of prices for gluten-free ingredients.
An analysis of competitors within the gluten-free catering industry shows a competitive landscape.
Direct competitors include other catering services that offer gluten-free menus and restaurants with gluten-free takeout options.
These businesses compete on the basis of menu diversity, ingredient quality, price points, and service excellence.
Identifying competitive advantages such as unique menu offerings, exceptional customer service, and strong partnerships with suppliers can help in carving out a niche in the market.
Understanding the strengths and weaknesses of these competitors is crucial for developing strategies to differentiate and build customer loyalty.
Our gluten-free catering service's competitive advantages lie in our unwavering dedication to quality and customer satisfaction.
We offer a wide array of appetizing and nutritious gluten-free dishes, crafted to meet the needs of our diverse clientele without compromising on flavor or presentation.
Our commitment to educating our clients and their guests about the benefits of gluten-free dining, along with our transparent ingredient sourcing, helps to establish trust and loyalty within our customer base.
Moreover, our adaptability to cater to various event sizes and settings gives us the flexibility to provide personalized and memorable experiences for every occasion.
You can also read our articles about: - how to start a catering company: a complete guide - the customer segments of a catering company - the competition study for a catering company
Development plan.
Our three-year development plan for the gluten-free catering service is designed to establish us as a leader in the industry.
In the first year, we aim to build a strong reputation for our unique gluten-free menus and exceptional service, focusing on corporate events, weddings, and private parties.
The second year will be about expanding our reach by partnering with event planners and venues, and offering our services to a wider array of events and clients.
In the third year, we plan to diversify our offerings with seasonal and culturally diverse gluten-free menus, and to start offering cooking classes and workshops to engage with our community.
We will consistently prioritize the quality of our ingredients, customer service excellence, and innovative menu design to cater to the evolving tastes and dietary needs of our clients.
The Business Model Canvas for our gluten-free catering service targets individuals and organizations looking for high-quality, gluten-free food options for their events.
Our value proposition is delivering a memorable dining experience with a diverse range of gluten-free dishes that do not compromise on taste or presentation.
We offer our catering services through direct engagement with clients, as well as through our website and social media platforms, utilizing our skilled chefs and event coordinators as key resources.
Key activities include menu development, event planning, and client consultations.
Our revenue streams are generated from catering events, while our costs are associated with high-quality ingredient procurement, labor, and marketing efforts.
Access a detailed and customizable Business Model Canvas in our business plan template .
Our marketing strategy is centered on showcasing the quality and creativity of our gluten-free catering menus.
We plan to engage with our target market through food tasting events, partnerships with gluten-free influencers, and by providing educational content on the benefits of gluten-free diets.
Collaborations with nutritionists and dietitians will help validate our offerings and build trust with potential clients.
We will leverage social media platforms and targeted advertising to increase visibility and attract a diverse clientele interested in healthy, gluten-free options for their events.
Our risk policy for the gluten-free catering service focuses on mitigating risks associated with food preparation, ingredient sourcing, and event execution.
We will adhere to strict gluten-free protocols and cross-contamination prevention measures to ensure the safety of our clients with gluten sensitivities.
Regular staff training and quality control checks will be implemented to maintain high standards. We will also manage costs effectively to ensure financial stability.
Comprehensive liability insurance will be in place to protect against any unforeseen incidents related to our catering services.
We are committed to filling a gap in the market with our gluten-free catering service, addressing the needs of a growing demographic that values health and dietary inclusivity.
With our dedication to culinary excellence and customer satisfaction, we believe our business is well-positioned for success in the competitive catering landscape.
We are enthusiastic about the positive impact our service can have on the well-being of our clients and are ready to adapt to the industry's demands to achieve our vision.
We look forward to the exciting opportunities ahead and the chance to become a trusted name in gluten-free catering.
You can also read our articles about: - the Business Model Canvas of a catering company - the marketing strategy for a catering company
Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.
All these elements are available in our business plan template for a catering and our financial plan for a catering .
Initial expenses for our gluten-free catering business include acquiring commercial kitchen equipment designed for gluten-free meal preparation, adapting the kitchen space to comply with food safety regulations, sourcing certified gluten-free ingredients, specialized staff training for proper handling of gluten-free products, as well as costs associated with branding and initiating targeted marketing campaigns to reach our niche market.
Our revenue projections are based on a thorough market analysis of the demand for gluten-free catering services, taking into account the increasing awareness of dietary restrictions and the preference for high-quality, specialized catering options.
We expect a gradual increase in sales, beginning with conservative estimates and expanding as recognition of our gluten-free catering services grows within the community and beyond.
The projected income statement outlines anticipated revenues from our gluten-free catering events, production costs (ingredients, labor, utilities), and operating expenses (facility lease, marketing, staff wages, etc.).
This leads to a forecasted net profit that is essential for assessing the long-term viability of our catering venture.
The projected balance sheet presents assets unique to our business, such as kitchen equipment, ingredient inventories, and liabilities including loans and projected operational costs.
It provides a snapshot of the financial standing of our gluten-free catering service at the conclusion of each fiscal period.
Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial requirements at any point in time. This will be crucial for maintaining financial stability and preventing cash flow issues.
The projected financing strategy identifies the specific sources of funding we intend to utilize to cover our initial costs.
The working capital requirement for our gluten-free catering business will be diligently tracked to ensure we have sufficient liquidity to support our day-to-day operations, which includes ingredient purchases, inventory control, and payroll.
The break-even analysis for our venture will determine the volume of catering events needed to offset all our costs, including the initial investments, and to begin generating profits.
It will signal the point at which our business becomes financially sustainable.
Key performance indicators we will monitor include the profit margin on our gluten-free catering services, the current ratio to evaluate our ability to meet short-term liabilities, and the return on investment to gauge the efficiency of the capital we have deployed into the business.
These metrics will assist us in assessing the financial health and overall success of our gluten-free catering enterprise.
If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a catering company .
Every event or occasion calls for good food. And although the majority of people like good food, not everyone has the talent to cook the same.
And if you are someone who receives constant compliments for your cooking then you must have thought of having your catering business.
But having a catering business is much more than that. It all boils down to the quality of your service in the end, but before that, you need to have a strategy to attract your customers’ attention, build trust, manage your finances, and many more.
All of the above might sound a little overwhelming, but it doesn’t need to be. All you need is a catering business plan.
Here is an overview of the current state of the catering industry in 2023:
Employment scenario:, number of operational businesses:, major market drivers:, key market trends:, financial plan:.
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The catering business is one of the most rewarding careers as it not only lets you pursue your passion, it has the potential to grow into a huge business by size and volume if planned properly.
A business plan is helpful for a catering business because along with great cooking skills, great management skills are an integral part of a successful catering business.
A business plan can help you conduct your daily business activities without chaos, have good finances, help you find your desired customers, and make your unique business idea a marketable one.
Make a list of items you can serve.
Having a list of items you will serve, helps you organize your services better. It also helps your customers understand what you can offer and decide if your service is the right one for them or not.
It also becomes important that you design your menu as per your target audience’s tastes and preferences.
Figure out from where you’ll provide services, what would be the amount of rent you’ll have to pay, which location would be good for your business , etc.
Apart from that, you also need to figure out staffing costs, the size of your team, the skills required, and so on.
Getting good supplies is essential for a catering business. Because you need to pay attention to quality as well as the taste of the food you’ll offer. Having a fixed supplier helps you maintain consistency in the quality of your food.
Although many catering services work on the go and prefer to rent equipment, it is a good practice to have the basic equipment in case of contingency. It would also decrease your reliance on other people, and pose fewer challenges while gathering supplies for new orders.
Having your equipment also makes it easier for you and your team to prepare orders as you get familiar with how to use those tools.
Now that you have done the research, let’s learn how you can write a business plan for yourself.
A good catering business plan consists of a clear description of your business’s functioning, your target market, the services you offer, the size of your company, a pricing strategy, and a well-designed employee management system.
Now you might wonder, where to start from, how to go about writing a plan from scratch, and most importantly how to know if you have written a good one.
Well, you need not worry.
You can easily write a well-rounded business plan either through a pre-designed template or through online business plan software.
Moreover, online business plan software can help you write a flexible business plan that grows alongside your business.
This is the standard catering business plan outline which will cover all important sections that you should include in your business plan.
Although your plan will keep changing as your business grows, here are a few key sections that would form the foundation of your business plan:
This executive summary section would be the first one on your plan. It provides a summary of all that your business stands for. It can be divided into the following subsections:
A clear executive summary can come in handy if you need funding.
The operational strategy section helps you plan how to work toward achieving your business goals. It can be divided into the following subsections:
A good operational strategy would make your business activities less chaotic and prevent them from being all over the place.
In this segment, you’ll write down every single detail you can find out about the market. It would include the following segments:
This segment helps you understand what you are getting yourself into.
This section consists of a detailed description of the services you offer. For example, the events you cater to, the volume of people you can serve, the food options your services have, what additional services you offer, etc.
This segment helps your target audience understand your services better, it helps them in deciding whether you are the right fit for them or not. So, make sure you describe your services in a clear and precise manner.
The financial plan segment includes everything starting from the funds you need to start your business, the funds you need for procuring supplies and employing people, the projected cash flow of your business, expected profit, and loss of your business, pricing strategy, etc.
Need help writing your business plan from scratch? Here you go; download our free catering business plan pdf to start.
It’s a modern business plan template specifically designed for your catering business. Use the example business plan as a guide for writing your own.
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A business plan software like Upmetrics is the best way to draft your business plan. This incredible tool comes with step-by-step instructions, customizable templates, and 400+ sample business plans to help you get started.
So, whether starting a catering business or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.
So what are you waiting for? Start planning today!
Frequently asked questions, how do i write a business plan for catering.
Writing a catering business plan from scratch requires a lot of research, but you can report it most effectively with the help of a catering business plan example. Using our business plan software, you can also quickly finish your plan in just a few hours or less.
These are the key components of a business plan your catering plan must include to stand out to investors:
While many business plan writers are available to help you, believe it or not, no one knows your business better than you. So we recommend you write your catering business plan and outline your vision as you have in your mind. You can use AI business plan generators like Upmetrics to speed up the writing process.
Following are some of the common mistakes to avoid when writing a catering business plan:
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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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Catering Business Plan Outline
Start Your Catering Plan Here
You’ve come to the right place to create your catering business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start a new catering business or grow their catering company.
Below are links to each section of a catering business plan template example:
Next Section: Executive Summary >
What is a catering business plan.
A catering business plan is a plan to start and/or grow your catering business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your catering business plan using our Catering Business Plan Template here .
Catering services are available for a variety of different occasions including parties, weddings and corporate events.
The primary source of revenue for catering companies is individual, private events and corporate events.
The key expenses for catering companies are rent, wages and salaries, equipment and food costs.
Catering companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting a catering business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Catering Business Plan - The first step in starting a business is to create a detailed business plan for a catering business that outlines all aspects of the venture. This should include potential market size and target customers, market resarch on the catering industry, the services or products you will offer, business operations details, pricing strategies and a detailed financial forecast. You can quickly complete your catering business plan using our Catering Business Plan Template here .
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your catering business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your catering business is in compliance with local laws.
3. Register Your Catering Business - Once you have chosen a legal structure, the next step is to register your catering business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your catering business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Catering Equipment & Supplies - In order to start your catering business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your catering business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful catering business and catering business planning:
You can download our free catering business plan template PDF here . This is a sample catering business plan template you can use in PDF format.
Photography Business Plan Template Event Venue Business Plan Template
Elizabeth started her career at a small local restaurant close to her home. She had big dreams of owning a large catering business.
Three years later, she learned the ropes, worked hard enough to save money and was ready to launch Chefdini Catering.
Hers is a tale of overcoming all odds.
Within five years, Elizabeth expanded her operations. She employed some staff and was raking in around $5 million in revenue annually.
In an era where 20% of new businesses fail within the first two years, according to the US Bureau of Labor Statistics, how did Elizabeth pull this off?
Well, it may have taken five years, but one thing that helped her navigate her journey smoothly was:
…a Catering Business Plan.
And she’s not alone. About 70% of new businesses that manage to survive for five years follow a strategic business plan in the US.
So while several factors contribute to businesses failing within the first couple of years, there’s no doubt lack of a business plan is a major reason.
And this isn’t far-fetched.
Imagine building a house without floor plans. How long do you think it’s going to stand? Not long enough.
That’s precisely what happens when you operate your drop-off catering business without a solid plan. And this has nothing to do with how passionate you are.
Think of a business plan as a roadmap or a guide that outlines your goals and details how you intend to achieve them. It’s central to how you start and grow your business. Also, it turns your visions into a concrete action plan for success.
Having a plan is essential for drop-off caterers hoping to thrive in the current, highly competitive catering industry.
As you read this, over 12,000 establishments are vying for the same customer as you. So running a catering business without a solid plan will only give an opening for your competitors to be many steps ahead of you.
Take Abbey Duke, CEO of SugarSnap Catering, for instance.
From the get-go, part of her strategy was to always stay competitive by serving her customers how they prefer.
So when the pandemic hit and online ordering became the norm, she quickly leaned on HoneyCart’s order automation software to give customers the convenience they desired. And at the same time, to ensure she wasn’t losing sales to her competitors.
In her words:
“But I knew if we didn’t offer online ordering, we’d be losing sales to companies like Panera that make it easy to order. Busy customers expect convenience and will often choose it over quality.”
Making this kind of game-changing decision at a moment’s notice is one of the perks of having a solid business plan.
Now, you may be wondering:
“How do I create an effective catering business plan?” One that gives you an edge over your competitors and sets you on the path to success like Elizabeth.
Well, I got you covered.
We’ve developed a free catering business plan template you can customize to your specific needs. I know, creating a business plan, even with a free template, is still a daunting task for drop-off caterers.
Don’t worry.
As we progress through this article, I’ll guide you on how to create one step-by-step.
Download the free template to follow along with me:
Before we dive in, let’s take a look at some reasons why you must have a catering business plan.
1. it shows you mean business.
Today, technology has made it easy for anyone to start a catering business. Even amateurs can create an Instagram account, post some mouthwatering dishes and wait for orders to flood in.
But is this strategy going to cut it in the long run?
Absolutely not!
If you intend to scale your business, then it starts with a foolproof business plan. One that gives you insight into where your business is headed in the next five to ten years.
Having a business plan also emphasizes the commitment of you and everyone involved. It guides you in making smart decisions that will help scale your operations.
However, a catering business plan isn’t set in stone. This means you can change the plan as you progress. But the overall goals remain the same.
Take Elizabeth, the fictional character I used at the start of this article.
One reason she could expand her business within five years is that she secured investment and raised funds.
And what’s one crucial thing potential investors will ask before giving you funds?
Yep, that’s right – a well-detailed business plan.
Imagine she didn’t have one. She wouldn’t have been able to raise the funds needed to expand her operations.
Here’s why:
Investors like to see your plans for scaling the business, its financial projections, industry analysis, level of risk involved, and so on.
Not having a business plan shows you are not intentional about scaling. And this significantly reduces the chances of securing funds needed to expand.
To drive home my point, Tim Berry, founder of Palo Alto Software , did a survey asking his customers questions about their businesses, goals, and business planning.
The result?
From the above report, you’ll see that those who had business plans were almost twice more likely to grow their businesses by securing capital than those who didn’t write a plan.
This emphasizes the importance of having a business plan.
A business plan isn’t complete without researching and analyzing your competitors.
Because it helps you understand what they are doing, their offerings, pricing, and how you can improve on them.
Michele Levy , an independent brand strategy consultant agrees:
“Keeping track of who your competitors are, what people are saying about them, and what they are saying themselves can help you differentiate your business and stay ahead of trends that could impact your business.”
Furthermore, it’s a way to:
As a result, you can create a strategic plan that will improve your business.
Another benefit of creating a catering business plan is discovering new opportunities to boost your business in ways you never imagined.
Through research and competitive analysis, you may realize there are one or more niches that are underserved in your area.
So, instead of doing what every other drop-off caterer does, you can carve out a niche for yourself by doing something different.
For example, during the global pandemic that crippled catering activities, Chef Jolie of Low Country Quisine needed another source of revenue.
So she went back to the drawing board.
The result? She launched a Gourmet Takeaway Service.
By making it a habit to spot opportunities in market trends, she realized the need for an online ordering platform.
According to her:
“We needed to find new ways to generate revenue during the pandemic. We launched our Gourmet Takeaway Service and needed an online platform for customers to order.”
And if she didn’t do this, here’s what would have happened:
“We would not have been able to reach as many customers without the ability to accept orders and payments online.”
One of the goals of running a business is to hit milestones and achieve major goals.
And the only way to measure your success is to compare results with the actual plan. This way, you can see whether you’ve achieved your operational and financial goals within a specific timeframe.
For example, you set a goal of getting at least 150 customers within six months, expanding to at least four locations within 12 months, or like Elizabeth, hit $5 million annually.
By documenting these goals, not only does it make you committed to achieving them, but it also ensures you have something to measure your success against.
And it will give you a sense of fulfillment when you finally accomplish your goals. Without a doubt, a well-documented business plan fast-tracks achieving your goals.
Now that you know the importance of a catering business plan, let’s look at the essential elements of an ideal business plan.
Creating a catering business plan may sound like a daunting task. But in reality, it isn’t. It’s not much different from the usual business plan.
However, it focuses on elements specific to the food and catering industry.
So what are these elements?
Let’s take a brief look at what each of these elements should contain.
Want to create yours as you go through this guide?
Don’t forget to download (and make a copy) of the template here .
How do you ensure anyone reading your business plan doesn’t disclose the content to other people?
That’s where a confidentiality agreement comes in.
It’s an agreement between you and anyone reading your business plan not to reveal the content to any other person without your permission.
And to be on the safe side, you should have a proper legal counsel review any agreement you use in your business.
So if they do reveal the content, you will have the right protections in place.
Here’s an example of a confidentiality agreement:
The undersigned reader of [Company’s Name] Business Plan acknowledges that the information provided is completely confidential. Therefore, the reader agrees not to disclose anything found in the business plan without the express written consent of [Business Owner’s Name].
It is also acknowledged by the reader that the information to be furnished in this business plan is in all aspects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of the same by the reader may cause serious harm and or damage to [Company Name].
Upon request, this business plan document will be immediately returned to [Business Owner’s Name].
This is a business plan. It does not imply an offer of any securities.
Applicable Law
This contract shall be governed by the laws of the County of ________ in the State of _______ and any applicable Federal law.
________________________________
Printed Name
They say you only get one chance at a first impression. An executive summary is an opportunity to show anyone reading it what your catering business is about.
Chances are, if it lacks specific information or doesn’t capture the reader’s attention, they may not read further.
The executive summary should include a brief introduction to your catering business, your services, and who you cater to.
Here’s an example of an executive summary of Elizabeth’s fictional catering business.
Chefdini is a small catering business located in Georgia. It was founded by Elizabeth White six years ago. We specialize in Asian cuisine but also cater to Mexican and Italian dishes. Chefdini operates off-premise and on-premise catering with a focus on events, retreats, and social gatherings.
At a glance, this brief introduction shows what Chefdini is about, the kind of cuisines they specialize in, and who their audience is. Anyone who reads it can immediately get an idea of what to expect.
The business focus details how you’ll run your business, so anyone reading it will have a clear understanding of plans, goals, and priorities.
Information to include in your business focus are:
Dan Zarrella , an analytical marketing leader and author of four books on marketing once said:
“Marketing without data is like driving with your eyes closed.”
And how do you get this data? Through Market Research.
Market research is the process of gathering information to understand your target market better. As such, it’s a fundamental part of a business plan.
Under market research, you’ll find:
Your clients are the set of people who need your catering services and are most likely to pay for them.
To have any chance of making sales, you need to understand your ideal customers, their pain points, challenges, and how you can take them from point A to their desired point B.
So, any information related to the ideal clients like age, location, gender, income, interests, pain points, or goals would add value here.
The goal is to ensure you are not targeting the wrong audience, which would result in wasted efforts.
But when you narrow down your target audience, you will be better placed to tailor your offerings to fulfill their needs.
As I mentioned earlier, competition in the catering industry gets tougher each day, with more caterers and restaurants springing up. But this doesn’t mean there isn’t enough space in the sky for birds to fly.
However, it’s important to know how to stand out.
And one way to do this is to research your competitors to learn more about their strengths and weaknesses. This way, you’ll discover things that will give you an edge over them.
In addition, well-detailed research about the competition will help you make a realistic assessment of your chances of success in the industry.
Some of the things to add under competitor profiling are:
The word SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
A SWOT analysis is used to evaluate your business’s chances of success and develop a strategic plan. Here you analyze internal and external factors that may help scale your business or throw a wrench in your growth.
A comprehensive catering marketing strategy will be crucial to your success. After all, people will only patronize you if they know your business exists.
How do you plan to market your business? Where are you going to get catering clients from? Which channels do you plan to reach them? What’s your marketing budget?
All these are questions that need answers. So you must include your plans for marketing in your catering business plan. A solid marketing plan should contain:
Don’t forget we have sections in our free template to fill all essential marketing points listed above. Download it here if you haven’t.
Without a doubt, you need money to finance your catering business. But if you don’t have adequate financing, your business will struggle.
Because you’ll need to pay for space, pay your staff, pay for equipment and so on. All these require a sufficient amount of funds.
And if you plan to take online orders, investing in online ordering software is a no-brainer. This will help you:
So if you want to finance your catering business yourself, a financial plan helps you understand how much funds you need, where to cut expenses and what you need to do to become financially sustainable.
And if you plan to source funds through investors, it will provide them with enough information to determine whether they’ll get their return on investment.
Some of the things you need to include in your financial plan are:
Want to know what to fill in these sections? We’ve got you covered. Simply download and make a copy of our free template to fill all essential financial plans listed above.
This is where you add additional information that is referenced in the business plan.
It can include things like:
As you’ve seen, creating a business plan is not as difficult as it sounds.
It doesn’t matter whether you’ve started your business or you are just about to start. A catering business plan is crucial to the success of your business.
It helps you understand your business, your customers, and your competitors. Also, it gives you more insight into the catering industry, market trends, threats, and opportunities.
Another advantage of a business plan is the opportunity to set a budget aside for investing in important things that will contribute to your company’s growth.
For example, investing in commission-free catering software like HoneyCart helps you manage your catering operations without hiring more staff.
This levels the playing field for small business caterers, helps you save cost, and generate more revenue. Just as Abbey Duke, founder of SugarSnap Catering, realized when she switched to HoneyCart.
It automates mundane tasks to allow us to use our time as efficiently as possible. HoneyCart truly enables small caterers to compete with larger companies by having a really professional and easy-to-use online ordering system.
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One of the most important elements of starting a new catering business is to have a plan that lays out your plans, objectives, and activities that will be needed to get your business off the ground. Even if it is on the back of a napkin , a plan that outlines how you will get started and answers many questions for you and your investors is better than nothing at all. A catering business plan can save a great deal of wasted time and money. Using a catering business plan template guides the new business owner through the areas they need to address as they launch their new endeavor . Nothing is missed, and the template saves even more time for the busy entrepreneur.
This blog reviews what a catering business plan template is, what the important elements are that should be in every business plan and address several frequently asked questions many readers have.
A catering business plan provides an overview of a catering business that is already in operation or one that you plan to initiate. The plan looks to the future regarding expansion plans, goals and strategies, and operation plans. These goals and strategies are turned into actions that the business owner will need to execute to meet their objectives. For example, growing the business by 20% could mean adding ten employees, finding a larger building, obtaining financing to purchase more equipment, and developing a marketing plan to expand markets into other regions.
Using a catering business plan template saves you time and forces the business owner to think about and answer many detailed questions about their business plans, goals, and objectives. Using a template also means that you have a professional-looking document that will impress financiers you may need to secure funding for your expansion plans. Lenders look for specific details to be included in the business plan. Without this information, the likely hood of receiving approval for funding is low.
While using a catering business plan template saves time, developing a business plan takes a great deal of time and effort to gather all of the information and apply it to the business you want to create. Many people just want to get started with the business, which can lead to costly mistakes to be made and jeopardize the business’s success. A catering business plan properly developed using a template will save the business owner from making expensive mistakes and improve the opportunities for the business to be successful.
Creating a catering business plan in Word allows for easy formatting and editing. Loading your template in word gives you a quick base for adding the details of your business plan. Word lets you make quick changes, and save them easily. It is compatible with most text formats, and is a good choice for professional documents.
A food catering business plan should include all your start-up costs, and your plan for operating at a profit. Getting a business loan will require submitting a quality business plan. A template will show you everything to include. A clear, readable format will ensure that your business gives a professional impression.
Catering from home still requires a business plan to ensure you will operate properly. Using your homes resources for a business takes proper financial planning. Your appliances will wear out faster, and utilities will be higher. Including how to factor that into your costs and taxes will make running your business much easier.
The following are the essential elements of a catering business plan template. We will expand on each of these to provide more details.
The following are some of the frequently asked questions many of our readers have about catering business plan templates.
Business plans are extremely useful for several reasons: ᐅ Support applications for support from lenders ᐅ Planning operations, resource needs, and managing cash flow ᐅ Assessing the company’s profit margin ᐅ Setting objectives and milestones ᐅ Planning the growth of the company ᐅ Annual updates help keep your company on track
One of the reasons a catering business plan is useful to both operators and lenders is the prediction of the profit margin. The profit margin is the revenue minus expenses. Accountants can assist with the development of the predicted profit margin taking into account your predictions for sales, operating expenses, and depreciation on capital equipment. Lenders expect a positive profit margin in the first year of approximately seven to ten percent.
The food cost formula is the ratio of the cost of food ingredients vs. the revenue generated by these ingredients. Food costs must consider many factors, including the cost of the ingredients, storage, waste, inventory costs, and support costs such as napkins and garnishes. Food costs are sometimes focused on the cost of the ingredients only to determine the basic cost of a serving. Overhead costs such as storage, waste, employee, and building costs are added to this number to determine profit per meal.
A strategic plan for catering front ends the catering business plan. The strategic business plan for catering helps establish and answer questions about: ᐅ The size of the business at launch and the ability to grow ᐅ The type of catering – weddings, corporate, etc. ᐅ The location of operations and the area served ᐅ How the business will be managed? Strategic planning may include: ᐅ Market competition analysis, ᐅ Feasibility analysis ᐅ Operations analysis
The importance of a catering business plan cannot be understated. There are many advantages for the owner to develop a business plan and use it to guide his business development and growth. Is the business viable with the current plans, or do you need to make changes to elements of the business to give it a better chance of success? Will lenders loan you funds to help get the business started? When should the business expand? Which markets and what is the competitive environment in the area the business will operate in? These questions and more should be addressed in the catering business plan to help make the business successful. Using a catering business plan template saves time and guides new business owners through the topics they need to focus on as they launch their new catering business. Nothing is missed, and the template saves even more time for the busy entrepreneur. There is an advantage to reviewing the business plan at least once a year or sometimes more often to determine if changes need to be made, verify assumptions, and incorporate new facts learned during the year. These mid-course corrections can help ensure that your business reacts to a dynamic market environment. Update the catering business plan at a minimum annually and review the plan with key management personnel. Lenders may demand to see an updated plan. They want to have confidence that their money is being used wisely and that they will see a return on the investment they have made in your business. An updated catering business plan may be a condition of continuing support from lenders. Use the catering business plan as a tool to help your business adjust to changing markets, supply conditions, staffing, and competition. With a business plan, making adjustments to sales projections can tell you quickly what the impact will be on the bottom line. Similarly, with adjustments to the price of goods, staffing, salaries, rent, etc.
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If you want to start a Catering business or expand your current Catering business, you need a business plan.
You can download the Catering business plan template (including a full, customizable financial model) to your computer here.
The following catering business plan template gives you the key elements to include in a winning plan for your own catering company. In addition to this template, conducting market research for your local customer base will help you identify potential market trends and customer segments to better understand the viability of your catering business.
Below are links to each of the key sections of a sample business plan for a successful catering business.
I. Executive Summary – The Executive Summary provides an overview of your business opportunity and summarizes the business plan.
II. Company Overview – The company analysis includes information about your business concept, catering services and legal structure.
III. Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the catering industry.
IV. Customer Analysis – The customer analysis provides an overview of your target market.
V. Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
VI. Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and search engine optimization plan.
VII. Operations Plan – The Operations Plan includes information on your company’s day to day operations and processes.
VIII. Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.
IX. Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.
Download the Catering business plan template (including a full, customizable financial model) to your computer here.
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Whether you want to start your own catering business or expand an existing one, you need a business plan. the following catering business plan template lets you know which elements you need to include in a successful catering business plan., fill the form to download business plan templates.
To ensure your catering business success in this highly competitive market, you need a properly structured catering business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their catering businesses. Using the following catering business plan template, you can put together an effective business plan.
The caterer’s industry is composed of companies that specialize in providing catering services for events. The companies usually have equipment and vehicles for preparing food off-site and transporting it to events.
There are many types of events catered by industry establishments, including graduation parties, wedding receptions, business luncheons, and trade shows.
Due to low entry barriers, this industry is highly competitive based on price and product offerings.
The Caterers industry revenue is expected to recover over the 3-year period up to 2024 as platforms that connect clients with caterers gain popularity and an improving economic climate contributes to the recovery. Overall, catering industry revenues will grow at an annualized rate of 1.7% to $15.5 billion by 2024.
The main products and services offered in this industry are
Despite the challenges of the catering industry, We have identified 6 factors that can help you boost profitability, efficiency, and ultimately success.
A reasonable pricing policy is essential: The cost of food, drinks, and any other services provided must match the type of event being catered.
Accessing niche markets: Specialization or expertise in catering can give operators an edge.
Diversified location capability: Operators should be able to host events at different locations.
Multi-skilled and flexible staff: Having the ability to hire a qualified workforce is essential to ensuring quality employees.
Compliance with government regulations: Industry operators are required to comply with all government regulations, including health regulations.
The ability to control stock: Food waste must be minimized in order to reduce costs.
Preparing quality food in large quantities necessitates extensive knowledge, expertise, experience, staff management, precision, and culinary talent that few possess.
A catering business plan is a road-map for starting and growing your catering business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.
Any bank or investor you approach will require a catering business plan, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a catering business or pitching to investors or venture capitalists.
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
Catering business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A catering business plan allows you to thoroughly analyze every aspect of your potential business.
A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a catering business idea, and may help you better understand your company’s finances and competition.
Catering business owners who have a business plan grow 33% faster than those who don’t, and 76% of fast-growing businesses have one.
A catering business plan is a living document that should be updated annually as your company grows and changes.
No matter how large or how small your catering business is, you should think about your financing options. Below are four types of funding you should investigate:
Government Incentives
When choosing a business location , you can consider different community incentives before making your final choice. Government incentives can help reduce operating costs and long-term overheads.
You can begin your catering business with the help of the U.S. Small Business Administration (SBA). You can find government resources about financing your catering business by using the website’s Loans and Grants Search Tool.
Many banks offer small business loans. See if a business loan is right for you by contacting your bank. Banks also offer business lines of credit and other resources to help you find the right option.
Equipment Financing
Worried less about payroll and more about having the right tools for the job? This is where equipment financing can come in handy. Catering business owners use equipment financing to finance purchases such as industrial ovens and serving trays, among other things.
Consider finding an investor or group of investors to finance your catering company. Be sure to do your research and have the numbers and information to back up your business before you contact an investor. You will need to show progress to investors, and they will do research and investigation concerning your catering business plan. In return, investors often desire ownership of a part of your company.
Build your business credit quickly with an easy approval net 30 account from Wise Business Plans . Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .
To write a catering business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a catering business plan, or you can just download our proven sample business plan pdf to get a better idea.
Download our catering business plan in PDF and Word here.
The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.
It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.
Tell them what kind of catering business you have and what stage you’re in; for example, are you a startup, do you have a catering company that you want to expand, or do you have a lot of catering businesses?
Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.
Check out these executive summary examples to help you write a perfect one for your catering business plan.
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
The company analysis follows the executive summary as the second section of a catering business plan. Your company overview will be short and clear, similar to the executive summary.
Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.
The following sections will be included in your business plan’s Company Analysis:
You need to include an overview of the catering business in the industry analysis you performed before sitting down to write your catering business plan.
While this research may appear to be unnecessary, it helps you to build strategies that maximize business opportunities while lowering or avoiding the identified risk.
Furthermore, market research can improve your strategy, especially if it identifies market trends. As an example, if there is a trend toward low calorie catering options, make sure your plan includes plenty of healthy, low calorie options.
The third purpose for conducting market research is to demonstrate to readers that you are an industry expert.
Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.
The customer analysis section is an important part of any catering business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how your catering services will meet those requirements.
Customers can be categorized into the following segments :
Business to Business Catering , Social Events , Personal collaborations and Small events like personal gatherings , Cultural Organisations , Consumer Catering(birthday parties, weddings) , etc.
Customer analysis may be divided into two parts: Psycho-social profiles (why your catering services suits a customer’s lifestyle) and Demographic profiles (descriptions of a customer’s demographic qualities).
With regards to demographics, include information about: the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
The first step is to determine who your direct and indirect competitors are.
The direct competitors consists of other catering businesses that offer essentially the same catering services to the same people as you do.
Your indirect competitors are other options that customers have to purchase from that aren’t direct competitors.
Among indirect competitors are Hotels, Restaurants, delis, supermarkets, and customers preparing food for events at home are all included.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your catering business— but keep an eye on the indirect competition as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium catering services? Will you make purchasing your services easier or faster for customers? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your catering business plan.
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
Creating a marketing plan for a catering business involves identifying the target demographic and finding catering service that suit their preferences.
As part of your marketing plan for a catering business, you should include:
Pricing and Product Strategy
Your catering business must offer the unique lovable catering services that are different from those of your competitors.
Research what your competitors offer and how they price their catering services. Unique catering services identifies your catering business as the place to go for unique catering services and differentiates it from others.
Placing and Promotions
Place explains all your distribution methods, such as retail stores, company websites, and third-party retailers.
Promoting your catering business is the final part of your marketing plan. In this step, you will document how you will drive customers to purchase your catering services. A few marketing methods you could consider are:
You should also think about your catering company’s Unique Selling Proposition (USP), which should explain why clients should choose you over other catering businesses. Ensure that your USP is reflected in your marketing.
Recommended Article: Learn how to create a marketing plan in a business plan to create a winning catering business plan.
While the previous sections described your goals, your operational plan in business plan discusses how you will achieve them.
An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operational plan should be able to answer the following questions:
Your operations plan should be divided into two individual parts, as seen below.
Your daily short-term processes include all the tasks of meeting prospective clients, drawing up contracts, providing catering services (set-up, serving, clean-up, etc.), increase daily net restaurant sales, improve your top-selling services, and procuring supplies, etc.
Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or services, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.
It will be helpful to hire someone to write a business plan . Our Award-winning business plan writers will help you achieve your business goals.
The management team section in a business plan outlines your management team, staff, resources, and how your business ownership is structured.
This part may be easily organized by dividing it into the following points:
Ownership Structure
Internal Management Team
External Management Resources
Human Resources
This section outlines your catering business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.
This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your catering business. Ideally, you and/or your team members have direct expertise in the catering business. If this is the case, highlight your experience and skills.
Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with catering business.
An advisory board would consist of 3 to 7 people who would serve as mentors to your catering company. They would assist in answering queries and providing strategic direction.
If necessary, search for advisory board members with expertise running catering business.
Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.
The final topic to consider in the management area of your catering business plan is your human resource needs.
As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.
Pro Tips: Learn how to create a financial plan in a business plan to create a winning catering business plan
Income Statement
A profit and loss statement is more commonly called an income statement . It shows your revenue and subtracts your expenses to determine whether you were profitable or not.
As you develop your income statement, you need to develop assumptions. Will you serve 50 customers per day or 200? Will sales grow by 2% or 8% per year? Your choice of assumptions will greatly impact your business’s financial forecasts. Conduct as much research as possible in order to ground your assumptions in reality.
Create a financial statement for your business by downloading our free income statement templates.
Balance Sheet
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.
The balance sheet shows your catering business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:
The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.
Create a pro forma balance sheet for your catering business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.
Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.
For example, spending $500,000 to build out your catering will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.
Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.
Cash Flow Statement:
Your cash flow statement will help you determine how much money you need to start or grow your catering business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a catering business:
Create a financial statement for your business by downloading our free balance sheet templates.
List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.
Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.
Bonus Tip: Learn what to include in a business plan appendix when writing a catering business plan.
A catering business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the catering business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your catering business.
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Launching a catering or small catering businesses plan can be tricky for new business owners. You need to have the right financial resources, marketing strategy, and more to present your investors or bank. We prepared every content you need to launch your food service or catering company with our food catering business sample plan templates. The catering templates also provide a format and sample content suitable for launching other food businesses like a food truck or a mobile kitchen.
Tips in managing a food catering business.
Top tips for catering business planning.
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Tony Sekulich
20 min. read
Updated July 3, 2024
Free Download: Sample Catering Business Plan Template
Do you find the process of shopping and chopping, sautéing and flambéing for large groups of people rewarding and fulfilling? Would you rather die than serve a salad that is topped with anything other your homemade vinaigrette dressing? Are people constantly asking you to cook for their next gathering?
If any of this sounds familiar, you’ve probably at least toyed with the idea of starting a catering business. It’s a thriving industry which can be scaled and tailored to whatever best suits your skills and situation. This article is intended to serve as a step-by-step guide to show you how to get started.
To supplement this guide, I interviewed two seasoned veterans of the catering business:
Jean-Marc Fontaine is a French-trained chef, event planner, and sommelier who now serves as the Catering Sales and Events Consultant for Urban Source Creative Catering in the heart of downtown Toronto, Canada. Warren Dietel is the Owner and President of Puff ‘N Stuff , a full-service wedding, corporate, and holiday event caterer and planner serving the greater Orlando area and all of central Florida.
In the United States alone, the catering industry is an $11 billion juggernaut and growing every year—more than 4.5 percent between 2014 and 2019.
An industry report shows that in 2012, the average costs for the foodservice at a wedding reception in the United States was to $3,579 U.S.; wedding planning website The Knot surveyed their users and found that in 2017, the average cost was $6,528, or $70 per guest. Wedding Wire says the average cost is about $4,000, but most couples spend between $1,800 and $7,000. Not surprisingly, the largest market segment that supports the catering business is households earning at least six figures. In 2015, of households with a combined income of 100,000 U.S. dollars or more, 5.4 percent spent $500 to $999 U.S. on catered events outside the home.
Though there are major players in the catering industry, there are a lot of reasons why it’s appealing to entrepreneurs: Unlike most other sectors, the industry is highly fragmented, meaning there is no single corporate entity dominating the market share.
This means there’s room for everyone who has some skill and hustle. Large companies can leverage their ability to scale to any size event and cover multiple events at the same time; smaller outfits can push their personal touch for a competitive edge.
There’s no shortcut to determining if you are just a “weekend warrior” dazzling your friends and colleagues in your own home or someone who is a great candidate to branch out and start their own catering business. Jean-Marc Fontaine says to find success, people need to spark that burning desire from within.
“I really have a passion for food and entertaining and the reason I’m still doing this job today is because I am passionate about the food industry,” he says. “It’s a very special area, it’s not like an office job, it’s more like art—you have to really love it.”
Jean-Marc believes this passion is necessary because almost everyone who enters the foodservice industry greatly underestimates the amount of time, effort, and expense it requires to be successful. This is a lesson he has learned personally.
“Many years ago when I was in France, my brother (also a chef) and I opened a small restaurant together—30 seats so not a big operation. It was just his wife serving and we had someone helping in the kitchen. We knew it would be a lot of work; we didn’t know we’d be working literally 18 hours a day, seven days a week. So many things to think about, not just food prep but cleaning and overhead, you need equipment, you need a vehicle which means expenses for gas and parking. If you don’t anticipate all the expenses and overhead charges, it can be overwhelming,” he says.
Warren Dietel also cautions anyone thinking of entering the business against getting swept up in the glamorous portrayal they may have seen on television, as the reality of the industry is altogether different.
“Catering is not for the faint of heart, this is a hard business,” he explains. “You can’t get into this thinking this is what you see on the Food Network. I think the cooking networks have done a fabulous job of showcasing the glamorous side of what the foodservice and special event industry is, but at the end of the day, it takes hard work, grit, and determination to be successful.”
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. Before you get started, take this quiz to help you think about what it takes to start your own business.
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Caterers know exactly how many people they are expected to serve. That means you can buy only what is absolutely necessary and reduce the expense of food waste. A traditional restaurant may be prepared to serve 150 people on any given night, even if only 30 walk through the door.
Since most small catering operations only need their equipment for a few days each week, it makes more sense to rent it for only the times they will be in use. This expense is factored into the overall job quote. That means, unlike the new restaurateur, the caterer does not have to deal with a staggering amount of overhead right out of the gate.
Most catered events are buffet style, which means the catering company can get by with two or three servers for a party of over one hundred guests, whereas that same guest list in a restaurant would require at least eight to ten paid serving staff.
You’ve seen the advantages, you know what’s in store, and you’ve decided you will forge ahead and start a catering business.
Before you lease space and start advertising, there are some “test drives” you should do first. These are things that can give you a better sense of the professional landscape and either confirm or challenge your commitment to moving ahead.
As obvious as it may seem, there is no better way to prepare yourself for the realities of making it on your own. You will get a master class in everything that goes into running a successful (or not so successful) catering business.
It will also show if you have the one trait Jean-Marc believes any caterer must have to make it in the business:
“I know it sounds a little cliché, but you always have to keep a positive approach because there are so many factors that can be stressful,” he says. “A lot of things can go wrong from the get-go. It could be accidental food poisoning or the delivery van could have an accident on the way to an event. No matter what happens, you always have to have a positive approach.”
For any prospective caterer, the ability to multi-task is just as important as the ability to prepare mouth-watering dishes. The most delicious food in the world will not save an event that is an organizational train wreck.
The experience you gain from helping to plan fundraising events for your favorite charities or church functions could reap huge benefits further down the line.
This is a very common training ground for many eventual caterers.
By working as a personal chef, you not only hone your skills in the kitchen, but you can also develop a client base and begin networking, which will be very beneficial when you transition to catering.
When you’re finally ready to make a go of it and launch your catering business, the first thing you have to do is determine what makes your business unique. One way to describe this is your unique value proposition , or UVP. In a nutshell, your UVP covers: how your catering service works, what makes it valuable and unique, and why it’s better than the rest.
When you’re first starting out, you will likely be a very small operation and that makes it especially important to establish your niche in the marketplace. Large corporate events like Jean-Marc’s Urban Source Creative Catering can scale up or down depending on the order. They can be a large one size fits all operation that can be, in many ways, everything to everyone.
“A couple of weeks ago I was planning a corporate lunch for executives for one day and the next day, it was a birthday party for a five-year-old girl,” he says. “We’re flexible enough to adapt the menu to the needs and preferences of the client.”
With that in mind, it’s very unlikely you will have the same capability. Most businesses benefit from identifying their target market —and it probably won’t be everyone who needs to eat, from five-year-olds to corporate executives.
So here are some things you can do to narrow the focus of what your catering business is all about.
This is essentially determining what the DNA of your catering business will be.
What’s your most identifiable and unique business trait? Are you a target-based caterer, meaning you specialize in certain events like weddings, corporate lunches, or social fundraising events? Or are you a cuisine-based company that specializes in vegan and vegetarian dishes, Southeast Asian food, or catering for some of the more common food allergies and restrictions?
Maybe you decided that you are going to be the premier vegan and vegetarian caterer in your city. You’re going to want to find out how many other businesses out there are trying to service that same market. You need to know who else is serving your same target customers in your area. Putting together a simple competitive matrix can help you see where you and your competitors overlap, and where you stand out.
Practically every business has competition . If there aren’t any other caterers serving your style of food in your area, don’t make the mistake of thinking that you don’t have competition. Find out how your target customers are getting their needs met already. What do they do when they want to serve 30 of their friends a huge meal? How do they make it happen? Make it your business to find out.
You may be in trouble before you begin if your chosen niche is already oversaturated in the market. So, find out who has been successful locally and why. What are people saying about them? Why do they get repeat business? The answers to these questions will help you guide and shape you’re growing catering business.
If you’ve done some market research and thought about competition, it’s time to start thinking about putting together your business plan . You’ll need a formal business plan if you plan to seek a bank loan or investor funding. Check out a free sample catering business plan in the Bplans sample business plan library to give you some insight on what to include.
If you’re not planning on seeking funding, consider putting together a Lean Business Plan instead. It’s shorter by design, and it will help you make sure you’ve thought through all the critical aspects of your business.
A caterer does many things and must wear many hats, all at the same time. But, nothing is more central to the core identity of the business than the menu .
Your service and presentation must be impeccable, but it is the food that will keep customers coming back and offering referrals to their friends and associates. For many, it is the single defining aspect of a catering business.
Here are some things to consider when putting together your catering menu.
The larger corporate catering firms which often target large and expensive executive lunches can scale their operation up or down to meet any food request presented to them. Starting out, your focus will have to be more narrow, partly because for budgetary reasons and partly because that will help you create an identity.
By targeting your menu to what you do best, you put yourself in a better position to deliver a top-quality product to your client. This is something Warren Dietel believes is crucially important for new caterers.
“Know your limitations and always try to undersell and over-deliver,” he advises. “You don’t want to promise something that you can’t deliver upon.”
Food is no different from fashion, architecture, or technology in that it is nearly impossible to stay on top of all the current trends.
The advent of food and cooking television networks over the past 10 years has given rise to self-proclaimed “foodies” who are very specific about what they consume, and this is the biggest change Jean-Marc has seen in the industry in the last five years.
“We are seeing a big demand for gluten-free items these days, but it’s always changing,” he says. “Up to a couple of years ago, it was all about cupcakes, everybody had to have cupcakes. You would see cupcake shops spring up all over the place, but now that’s fading away and now we’re in the macaron phase. Everyone now wants macarons for their parties.”
It would seem keeping current has never been more important in the foodservice industry. Consider joining a food service organization or other professional group with a mission of helping food businesses succeed to help you keep your ear to the ground.
Like most other goods or services, catering businesses range from the very affordable to quite expensive. You’ll need to determine where in that spectrum your business is situated.
If you are going for high-end clients like corporate lunches or expensive wedding parties, you will need to price your meals and services accordingly. Or perhaps you’ve decided to make catering affordable to those who would normally not consider it, and so you’re going to offer delicious catered meals at a lower price.
In either case, how successful you are in your targeted market is going to depend in large part on determining the right price point.
The other side of this is putting together a sales forecast. Once you have a sense of what your price point will be, and what your materials and other overhead costs will be, put together a simple sales forecast to help you model different scenarios.
This may seem self-explanatory, but there is no faster way to put yourself out of business than by delivering amazing dishes that cost more to produce than what you are receiving from the client. Be sure to factor in all food preparation costs when deciding what you will put on your menu.
Before you can place that first order and take that first piping hot tray out of the oven, you will have to clear some logistical hurdles to get your business operational. To work through this next step, you will have to wear the hat of a shrewd CEO and CFO.
Perhaps the biggest difference between the catering and restaurant industries is that the restaurant mantra “location, location, location” does not really apply as much when it comes to starting a catering business.
Jean-Marc believes what is most important in choosing a location is what amenities are available rather than what part of the city you are situated in.
“I don’t think it really matters where you are located,” he says. “What is important is to have plenty of preparation and storage space. We have office space plus a basement for storage with walk-in fridges and walk-in freezers.”
Setting up shop anywhere you’d like is a positive, but having reliable and sizable transportation is an absolute necessity. You will have to determine if it makes sense to buy a company van or simply rent one on an as-needed basis.
Of course, there’s more to transporting food than simply loading it into the back of a van. You will need special units to keep the food properly preserved from your location to the function.
This might include:
Anyone entering the foodservice industry absolutely must protect themselves with adequate business insurance coverage .
Even with the most careful attention to detail, accidental food poisoning or other mishaps can happen and you must be prepared for all eventualities. Your serving staff will also require workers’ compensation insurance.
Pay attention to workplace safety . Catering disasters aren’t unheard of. Plan for the unexpected . Think about what can go wrong and come up with a few ideas for how you might deal with it. You can reduce your risk if you plan ahead. You’ll encounter challenges that it never occurred to you to think through. Do yourself a favor and check a few of those off the list, well before go-time.
You’re already the culinary master, you’ve taken on the role of CEO and CFO, and now it’s time to put on yet another hat: marketing specialist.
No matter how great your food is, your business won’t survive without the clientele. Here are some things to consider when it comes time to start marketing your catering business.
Not long ago, this was one of the go-to methods for getting exposure for a catering business. Handing them out a wedding or trade shows was considered a no-brainer for any enterprising caterer.
“We used to do brochures and flyers but that doesn’t really work these days,” Jean-Marc says. Instead, they now use a targeted cold-call method when they have on-site office jobs. “Let’s say we have a job in the building at 110 King Street. What we do is take business cards to the neighboring businesses and let them know who we are and what we have to offer. That has worked well for us in the past.”
Your website is the first place most people will go to see what your business has to offer and determine if it’s a good fit for them. This is by far the most effective marketing tool you will use.
Having a strong web presence is an absolute must. Make it easy for clients to reach you and understand what you’re about. Should you run your entire catering business on a Facebook page? Probably not. There are some risks associated with running your business from a platform that you don’t own and don’t have much say over. Think of social media as one arm of your marketing strategy, but not the entire thing. Especially as Facebook and other platforms have evolved to deprioritize business-related content, remember that you get what you pay for. Instagram might be a great way to generate some buzz around your food, but don’t put all your eggs in one basket.
This is a tactic that Jean-Marc has found to be very effective during his years in the business. Find a great cause you want to support, and offer to cater the event as your contribution in exchange for the organizers using your company name and logo on all promotional materials and at the event itself.
You will be incurring a significant expense at the outset, but it is a great way to penetrate a target-rich environment.
Look to develop long-term, mutually beneficial relationships with other organizations that frequently use caterers. Establishing a great working relationship with the top two or three event planners in your area is a great way to keep your business going strong.
Below you’ll find a list of different resources that can help you find out more about what goes into getting your catering business off the ground.
One visit to Amazon will give you numerous options for published guides on starting a catering business.
Some of the titles you’ll find include:
Both Jean-Marc and Warren stress the importance of patience and determination in those early days. It will be harder and more labor-intensive than you can possibly imagine, but it will also be unbelievably rewarding.
Warren said anyone new to the field must anticipate seasonal ups and downs—there will be natural ebbs and flows and it is important to be both psychologically and financially prepared.
“This is a very seasonal business . It seems we work really, really hard for eight months out of the year and for four months out of the year we get to regroup, recalibrate, reorganize,” he says. “That’s a good thing, but you just have to be sure you prepare for that from a cash flow perspective.”
So, the next time you amaze your social circle with your culinary mastery and someone says “you should really start your own catering company,” ask yourself one question—are you ready to flip the switch?
Tony has returned to his early love of journalistic writing by freelancing long form articles and blog posts. He is currently turning his TV series pilot for The New Twenty into his first novel. Tony lives in Toronto where he continues to be tormented by his beloved Maple Leafs.
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Why Creating a Catering Business Plan is Essential. In the catering industry, having a well-thought-out business plan is crucial for success. It provides a roadmap for your business and helps you make informed decisions. Here are some key reasons why creating a catering services business plan is essential:
Make a good first impression with a concise introduction to your concept and a summary of the operations of your catering business. An executive summary introduces key elements of your business plan - consider providing an overview of the budget, the business's mission and core values, and a coherent vision for your recipes and brand.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
Use this free Catering Business Plan Template to create a detailed roadmap for your catering venture, covering aspects like menu development, pricing strategies, and marketing approaches. It's a crucial resource to ensure your catering business is well-prepared for success in the competitive food service industry. .
Download your free catering business plan sample to create a plan that will wow investors. And once you've started your business, use our free restaurant invoice template to start collecting payment from each event. Download Now. Success! Click below to access the download. We've also sent you a confirmation email with a personal download ...
Catering Business Plan. If you want to start a catering business or expand your current one, you need a business plan. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their catering businesses.
Put your plan into action by making a timeline of your operations. Here is an example: Date Plan [Insert Date Here] - Finalize the business documents you need such as permits and registrations for your catering business. [Insert Date Here] - Start marketing your business on social media and the local news.
A free example of business plan for a catering company. Here, we will provide a concise and illustrative example of a business plan for a specific project. This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not ...
Sample from Growthink's Ultimate Catering Business Plan Template: The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company's planned promotions and pricing strategies. The [Company Name] Brand. The [Company Name] brand will focus on the Company's unique value proposition: • Offering extensive menu ...
Funding Forecast. Start-up Summary. Income Statement (5-Year Projections) Balance Sheet (5-Year Projections) Cash Flow (5-Year Projections) Although your plan will keep changing as your business grows, here are a few key sections that would form the foundation of your business plan: 1. Executive summary.
1. Develop A Catering Business Plan - The first step in starting a business is to create a detailed business plan for a catering business that outlines all aspects of the venture. This should include potential market size and target customers, market resarch on the catering industry, the services or products you will offer, business operations ...
Threats to your business. Understand the catering industry better. As a result, you can create a strategic plan that will improve your business. 4. Discover New Opportunities. Another benefit of creating a catering business plan is discovering new opportunities to boost your business in ways you never imagined.
Catering Business Plan Outline Template. ablis.business.gov.au. Download. Catering from home still requires a business plan to ensure you will operate properly. Using your homes resources for a business takes proper financial planning. Your appliances will wear out faster, and utilities will be higher.
Once you've landed on a business name and structure, follow the steps for registering your business. 03. Market analysis and research. Including market analysis and research in your catering business plan is essential for understanding the competitive environment and building a better business strategy.
A catering business plan is a comprehensive document that outlines the intended activities, objectives, and strategies for a new or existing catering business. ... like free-delivered pizza. A well-rounded marketing plan can effectively promote your restaurant, build a solid customer base, and drive business growth. Continuously evaluate ...
Below are links to each of the key sections of a sample business plan for a successful catering business. I. Executive Summary - The Executive Summary provides an overview of your business opportunity and summarizes the business plan. II. Company Overview - The company analysis includes information about your business concept, catering ...
How we will get there will be our business objectives which are: To create a service-based company whose primary goal is to exceed customer's expectations. To increase the number of client's served by 20% per year through superior service. To develop a sustainable start-up business.
If so, this guide will provide the tools and insights you need to write a comprehensive business plan for your catering company. This in-depth guide covers why you should write a business plan for your catering company; what information is necessary; what such plans typically include; and the best tools available for creating them.
The key alternative caterers are: Of Grape & Grain, which specializes in deli style boxed lunches and cafe-style dining. This is the caterer currently used by Bright Future. Cravings Fine Foods, which specializes in event planning and cafe-style dining but which also offers deli style corporate boxed lunches.
Get the most out of your business plan example. Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from ...
A catering business plan is a road-map for starting and growing your catering business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections. Any bank or investor you approach will require a catering business plan, so putting one together ...
13+ Food Catering Business Plan Templates - PDF, Word, Docs. Launching a catering or small catering businesses plan can be tricky for new business owners. You need to have the right financial resources, marketing strategy, and more to present your investors or bank. We prepared every content you need to launch your food service or catering ...
This is a very common training ground for many eventual caterers. By working as a personal chef, you not only hone your skills in the kitchen, but you can also develop a client base and begin networking, which will be very beneficial when you transition to catering. 4. Do your research and write your business plan.