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8 tips for starting a catering business

A catering business can be an ideal expansion as it can create another revenue channel as well as an opportunity to grow the customer base. But there are things to know upfront well before you sign on to cater a customer's party or business shindig.

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July 5, 2021 by Richard Traylor — Writer, WebstaurantStore

(Editor's note: an earlier version of this article ran on Food Truck Operator, a Vending Times sister publication.)

Before you begin buying equipment or drafting a business plan for a catering operation, it's important to understand what makes a catering business unique.

With catering jobs, you're either preparing food in an offsite kitchen or on-site. During the event, you and your food are at the mercy of the venue space, their amenities, the weather and staff you may not work with often.

It's also important to consider what type of catering business you're interested in pursuing:

Corporate events: conferences, cocktail parties, staff meetings.
Social gatherings: weddings, galas, charity events, birthday celebrations.
Personal uses: cooking a meal in someone's home for a small gathering or date night or preparing meals ahead of time that clients can take home and reheat later.

Once you've determined that a catering business is right for you, use the following steps to get your business off to a successful start.

1. Gain exposure and experience

Like any business venture, it takes a certain level of experience to successfully execute a start-up. While researching what you'll need and how to operate is helpful, it won't compare to the hands-on experience and guidance you can gain with learning from a foodservice operator who's been in the catering business for awhile.

One good practice approach is to host a holiday party for friends and family or prepare a church luncheon for a small crowd. Operating on a smaller scale first allows you to find and fix potential problems and gain honest feedback from a forgiving crowd.

2. Choose a concept

Creating a solid concept or theme can enhance the marketability of your catering business. Try to focus your concept on something you're already selling — your convenience foodservice cuisine. Or you can create a separate concept such as brunch foods, casual sandwiches, desserts, finger foods, comfort food or any idea that gives your business direction.

3. Create a menu

Create your menu before you begin to evaluate your existing work space and equipment. Figuring out what types of food you'll be cooking means you can decide what equipment, appliances and space you'll need to successfully prepare your offerings.

You need to offer a menu with versatility to accompany a wide range of tastes, preferences and dietary restrictions. Create a selection of offerings that are, for example, gluten-free, vegan, dairy-free or low carb. And if your menu items are especially spicy, be sure to offer a few less spicy or not spicy options as well.

Once your menu is established, determine how you'll price your items or event packages. It's important to have a sample menu prepared and pricing figured out before meeting with your first potential clients.

4. Test your menu

Try testing your menu concept and dishes in small, no-pressure scenarios. Gather friends and family together or offer to cook for a small gathering or fundraiser in your community.

Be sure to ask for candid feedback from your guests. You can even provide everyone with pen and paper to write their thoughts down anonymously. Once you've successfully served your crowd and received feedback, it is important to keep tweaking your recipes. Practice making them over and over again while focusing on efficiency, taste and presentation.

5. Assess liability issues

Before you cater your first event, you must apply for any proper permits (i.e., if the catered event is at a local park or public area) and ensure your kitchen and staff are well-aware of food safety practices and regulations.

6. Plan for potential problems

A little planning can go a long way when it comes to unexpected foodservice emergencies. Think about common obstacles you could encounter with your catering business, and work with staff to establish a response plan. Potential problems could include:

Inclement weather at an outdoor event.
More guests to feed than you had expected.
Shortage of staff.
No access to power.

7. Choose your staff

Finding the right staff members to help prepare and serve your offerings can be a challenging task. When choosing a catering staff and introducing them to your business, be sure to consider the following:

Decide whether your operation is large enough to hire additional employees.
Begin with a temp agency until you can grow your business.
Create a dress code or provide uniforms.
Offer adequate training in serving protocols and food safety.

8. Make a marketing and advertising plan

Once you've laid the groundwork for your catering business, it's time to promote it. Start by figuring out who your target audience is and go from there. This can be determined based on the type of catering operation you plan on running. For example, if you're interested in social gatherings, you can showcase your menu at bridal expos and contact event planners.

If you're looking to expand your convenience services business without the financial undertaking of operating a restaurant, catering could be an enticing option. And with proper planning using the steps above, your business will be off to a good start. No matter what type of catering you decide to do, be sure to create a mouthwatering menu and dynamic concept future customers will flock to.

Foodservice

About Richard Traylor

Richard Traylor graduated from Temple University in the winter of 2014 with a degree in Strategic Communications. After graduating, he taught English in South Korea for two years, during which he was fortunate enough to travel and see the world. In October 2016, he returned home and started to work in SEO Content at Webstaurant Store. This blog previously ran on Webstaurant Store.

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