Five Ways to be a More Profitable Caterer
Catering businesses are the foundation of the event planning business. Without a great caterer, any event would be a complete mess for the hosts and guests. However, being a successful caterer is more about making sure everyone has a great meal and memorable time. Running a successful catering business is all about profit, loss, and customer satisfaction.
Every catering business is unique and uses different ways to save and gain more money with every event. With specific calculations, great style, and smart moves, you can take your catering business from successful to flourishing. Follow these five easy steps to become as profitable of a caterer as you can:
- Use fashionable disposables to reduce labor costs:
Many old fashioned caterers think using reusable tableware, such as metal silverware and porcelain plates, is more cost-effective in the long run. However, this is not always the case. The time and effort that your team has to put into gathering, washing, drying, and storing tableware does not make labor cost profitable. As a caterer, you juggle many different workers and you don’t want to waste good help by telling them to wash dishes. The extra hours that go into the work of keeping up with reusable tableware is just not worth any money you may save on the tableware. A better solution to this issue is to use high quality disposable tableware that looks elegant and feels durable. Not only will this reduce in labor costs, but this will also help alleviate your water and energy costs.
- Control cost with smaller portions and wider varieties:
Portion size is very crucial when running a successful catering business. Not only does restricting portions reduce the risk of food waste, but it also leaves open the opportunity to offer different types of foods. Letting everyone have the chance to pick out little tastes of different foods will give guests a reason to try foods they would otherwise ignore. Additionally, serving smaller portions allows guests to choose how much food they place on their plate. Giving guests more options will ensure that food does not go to waste in large amounts. Thus, this tactic will increase your profitability. More varieties of food also make a great impression on guests because everyone will have something delicious to eat, even the pickiest of eaters. Another great technique when serving guests is to plate main courses or more expensive dishes before they sit down to eat. This will avoid excess consumption on dishes that cost you more money to provide.
- Know your customers and their demands in order to eliminate waste:
Always take the time to study your customers and really understand their needs and expectations. Doing so will not only eliminate any error in execution, but this will also ensure that you fully understand what their event truly requires. Information you need to fully understand includes how many guests are expected, what their particular tastes are, and their vision. Getting a specific number of expected guests is crucial in planning a memorable and profitable event. Wasting money on excessive food is one of the biggest issues when trying to turn out profits in a catering business. Pinpointing your customer’s needs and catering your menu to them specifically will ensure that you not only exceed their expectations, but you stay profitable by being careful with your menus and dishes. Your customers will appreciate your attention to detail and sincerity when handling their every request.
- Order for different events at once to save time and money:
Many caterers make the same expensive mistake of waiting until the last minute to order tableware and supplies at the last minute. Not only does this leave room for unfixable mistakes, but it also costs you money in expedited shipping. If you stay organized and plan ahead, then you have a better chance to save as much money as possible. In most instances, many companies can offer you discounts or free shipping on large orders. Ordering ahead of time also gives you room to confirm with your customers that they like each part. You could also gauge whether or not you have enough supplies or need more. Thus, you should order everything at once and even shop for more than one event at once. This keeps you ahead of the game and will make every other part of your event fall in place more easily.
- Stay organized and devise plans to keep your business on track:
The best way to make sure your catering company is turning out profits is to keep a detailed track list of all the money going out and coming in. This will not only show you how your company is profiting, but it will also help you figure out what you should do to improve your profitability. One of the hardest, yet underrated skills, to have in this industry is organization. Staying organized is one of the basic necessities to making every aspect of your catering business working properly. Without an organized plan for every event, you may find yourself running around trying to get everything ready at the last minute. This not only allows room for careless mistakes, but it also makes a horrible impression on your customers. Not only is organization important on a party-to-party basis, but it also is key to running a smooth business. Your thought-out plans will lead to the best actions to keep your catering company profitable.