Whether you’re an established restaurant looking to create an additional source of revenue, or a chef looking to launch a new catering business, the best way to start a catering business is with a catering business plan. It will serve as your guide to launching a successful business. Your plan will lay out why your business is relevant, how you’ll get the word out, and tactical details on pricing and marketing.
To develop your catering business plan, focus on these four key areas.
1. Be Distinct
The catering industry is growing, and that means it can be challenging to stand out in the crowd. According to a Catersource survey, nearly 42 percent of respondents say “competition has intensified,” and as a result they are looking for ways to be more distinct.
Simply going to market with a new business is not enough. What will you bring to the marketplace that is different and unique? Ultimately, all successful businesses provide for customers’ needs, wants, or desires, but the ones that solve a real problem catch fire the fastest. Use your business plan to identify the problem your company will solve. Is there a gap in the market you can fill? Do you have an innovative way to fill last-minute orders?
Put yourself in the shoes of your potential new customer and understand the steps it takes to plan an event or what types of meetings they are feeding in their office. Be sure to include detailed descriptions of how you see your business within the competitive landscape, and how you plan to rise above it. Remember, without true distinction you will find yourself competing on price (and cutting into your margins) to attract customers.
2. Capitalize on Your Existing Network
It’s not easy to find your niche right away, and you won’t have an unlimited marketing budget as you launch. You will need to find ways to capitalize on the people who you know before you can think about creating new traffic.
If you have an existing restaurant, use your catering business plan to identify who already loves your food. Who are they? Are they formal or more casual? Do you serve families or business people or college students? If you can identify the segment of the population that already visits your restaurant, you can start to pinpoint who might also become a catering customer. Just make sure it’s a natural fit. If you have a reputation as a family Italian restaurant, it probably doesn’t make sense to create a sushi catering menu.
Likewise, if you’re starting a new business, think of your own network. You know your friends, family, and colleagues well. They will be your early adopters and advocates. In your business plan, mention the ways you will connect with these people through your food and your marketing.
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3. Create Your Pricing Model
Your catering business plan should also include a section on your specific pricing model. It’s possible that different events may have different prices, but you should outline how you will make money off this business.
There are three main ways to price your services:
- Per Person: Per person pricing is a set price for each person attending the event, and includes all of your menu items. This works well for something like an office party. You can develop different types of menus with different per person rates.
- Per Item: When you charge per item, the customer is paying for each item individually. This may be for a meal where your customer may not know how many people are coming, or if they’re looking for very specific menu items. Per item pricing works well for drop off catering for offices and homes.
- Per Package: A “package” is a way to buy per item, but at a bulk rate. This is perfect for drop off catering to offices. For example, you might offer a sandwich package that includes 6 ham, 6 turkey, and 6 veggie sandwiches. The customer is purchasing 18 sandwiches, but you make it easy to serve a group and offer a special rate for the package.
Study the competition to determine which pricing model to use. Remember that you want your business to solve a problem. Pricing can be one way to help solve your customers’ needs.
4. Develop a Marketing Playbook
Once you have determined the problem you’re solving, your target market, and your pricing model, you also need to find a way to get the word out about your new business. To do that, you need to develop your marketing playbook.
Hosting a party, passing out business cards, and emailing your friends is a good start, but you will need more than that. Your catering business plan will include your marketing strategies. Spell out exactly what you plan to do. Can you handle marketing, or will you need outside help? Will you connect with Instagram influencers to share your food with their followers? Will you partner with radio stations to provide a free meal in exchange for a mention on air? Will you work with online apps like ezCater to send you catering orders? All of these are important questions to answer in your business plan.
Your marketing playbook will evolve as your business evolves, and as you see which tactics work and which don’t. However, the more thought you can put in now, the better off you will be. Once the chaos of operating your business begins, you will be focused on operations and have less time to create new marketing campaigns.
Your new business will be your baby, and it deserves a thoughtful beginning to its life. Take the time to create your catering business plan. Do the hard work to write these things down at the start. You will work through some of the initial challenges and develop strategies for those yet to come. Even if you don’t consult it day to day once you’re up and running, you’ll never regret taking the time to create a thoughtful plan.
Looking to grow your catering business? Sign up with ezCater.