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Catering Business Plan


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cateringbusinessplan

A catering business is exciting, but it is hard work at the same time. It is also part of a booming $7 billion industry, which is not surprising. People love food, adore entertaining and often do not or cannot manage the amount of work it takes to cook and serve food to a room full of people. There are as many types of events needing catering as there are recipes in a recipe book. The catering business must clearly describe the types of events and types of clients that make up the targeted niche market. Niche markets can include home and family events like birthday parties, large business banquets and workshops serving lunches, home and office deliveries of individual or group meals, weddings and other special occasions, restaurant and bar specialty foods, and so on. There are also niche foods like kosher foods, southern foods, low-fat foods and many others. The caterer has to decide if alcoholic drinks will be provided and served. The catering business plan describes:

  • Whether supplies like tables and chairs, linens, flatware and buffet chafing dishes will be rented or purchased

  • How hot and cold foods will be safely transported while maintaining temperatures required by law, i.e. are custom vans and equipment required

  • What marketing strategies will be used to attract clients, i.e. internet marketing, business sales calls, industry trade shows, networking, etc.

  • How the catering business is unique compared to its competition

  • Access to a commercial kitchen that meets state health laws, i.e. purchased or leased building with kitchen or rented commercial kitchen

  • The type of equipment needed, in addition to delivery vans, i.e. dishwasher, stove, kitchen tools and appliances, computer, etc.

  • Required staff, including the chef, cooks, kitchen help, food delivery and setup assistants, servers, etc.

  • Suppliers for food ingredients


Since startup expenses can be kept low by renting many of the supplies used at the events and leasing one or more vans, additional funding is usually requested for the purpose of purchasing assets, opening a storefront business that sells and serves over-the-counter takeout food or in-house meals, or expanding an existing business. In the catering business plan, the qualifications of the business owner are critical, and potential investors need to know the entrepreneur understands the ins-and-outs of the industry. Unlike many businesses, the catering business can often achieve profitability within a year. The important thing is to make sure all expenses are identified on the income statement and that cash flow is well-managed.

 

We can help to develop a catering business plan


OGS Capital professionals work with entrepreneurs who want to develop a catering business plan but are unsure of how to start and complete a document of such great importance to success. In addition, OGS Capital helps business owners locate investors likely to be interested in funding this type of business. Completing the contact form is all that is necessary to get the process started.
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