How to start your own catering business, with start up tips, advice and planning help.
Everyone needs to eat and, with busy work schedules and over-committed lives, most people don’t have time to worry about day-to-day menu planning, let alone preparing food for a party. More and more working women are calling on caterers to plan and execute birthday parties, family gatherings, holiday events and other special occasions. Catering companies, both large and small, are a growing part of the economy and this business is one that can be started up from home.
A good caterer must be able not just to prepare food, but also to fully execute the party planning from start to finish. This includes pricing, budgeting, staffing, purchasing supplies, setting up and decorating and cleaning up post-party. Organization is definitely the key to success in the catering business.
Most people who start their own catering business have either already worked in the field or have been cooking for family and friends. Either way, it is important to have some contacts initially and to be willing to do a few parties at cost just to get your name out there. The best advertising in this business is word of mouth and one successful party can yield numerous new inquiries. Every party is an audition for future work.
Getting Started
Startup costs depend on the scope of your business. To keep expenses to a minimum, start off working from your home. You will need adequate space to do prep work and a place to store supplies. Most facilities have kitchens where you can do most of the cooking and sometimes even the prep work. For smaller house parties, you may need to do the prep work at home and finish cooking onsite.
Use your own equipment and rent specialty items that you may need for a particular party. Add equipment as needed and as your finances allow. For smaller parties, the customers will most likely want to use their own china, silver and crystal. Many facilities such as churches and clubs have dinnerware available that you will be able to use. Look to buy large serving utensils, large bowls and stainless steel chafers early on. There are many online restaurant supply outlets and you should also check eBay for some of these items. Invest in some business cards to leave at events. You will also need reliable transportation that will enable you to carry equipment, food and personnel to an event.
Get the Word Out
As a newcomer, you need to let people know that you are available for parties. The best advertising is a satisfied customer who can refer others to you. Guests at parties are also good prospects. But getting that first job is crucial. Talk to your family and friends. Family anniversaries, graduations, small weddings, baby and wedding showers and birthdays are all possibilities. Friends may be involved in planning a corporate event as well. Offer to do a job at cost and then work through the process. Once you get the job, it’s time to get down to business.
It’s All in the Planning
Set up a meeting with your customer. Prior to this meeting, go online and search for “catering menus.” You can get some ideas from other caterers to use as suggestions or as the foundation for your own menu. This will give you a professional edge. You should also create a checklist that will include key points that you will want to discuss during the meeting such as:
- Date and time of the event
- Number of guests
- Style of the party (buffet, sit-down dinner, picnic, etc.)
- Approximate budget (per person or total cost)
- Nature of the facility (does it have a kitchen, availability of dinnerware, serving dishes, silverware, etc.)
- Will they want linen?
- Will there be a social hour prior to the dinner and will they need a bartender
- Will they want Hors D’Oeuvres? Dessert? Coffee?
- Consideration for vegetarian guests and children
When you meet with the customer, use this checklist as well as the sample menu that you have prepared but don’t limit yourself to only those options. “Interview” the customer and determine how they want this party to look and feel. Give them lots of options and choices.
Once you have sketched out the parameters of the party and determined a tentative menu, the question will invariably turn to money. DO NOT quote the customer on the spot. You must take the information that you have gathered and do some research. Tell them that you would like to work up a proposal for them and get back to them in a day or so. Then take the information home and get to work!
Use the checklist to come up with an action plan. Using the menu that you developed, make a list of necessary ingredients and quantities. Figure a little bit on the high end since you never, ever want to run out of food. Take the list and get some prices. A large wholesale club will be the best place to shop but for a smaller party, a regular grocery store should be fine for pricing purposes. Write down the pricing and calculate total food costs. From the list, determine what, if anything you are going to need to rent and get prices from the rental store. Are you going to need help doing this party? If so, figure out the number of hours times the number of people and then times the hourly rate that is prevalent in your area.
Add up all your costs and divide by the number of guests. Compare this figure to that which your customer indicated was her budget and what kind of profit does this allow you. If you are over her figure, you will need to cut way back on certain items. Keep a list of the items you eliminate so that you can tell the customer where the cost overruns were. She can always add them back in, knowing that they will cost extra. If you are significantly below the budgeted figure, you will be able to present a cost savings to the customer and still make money. Remember, you are paying yourself with the profits and investing in the business as well. And, don’t forget a line about gratuities.
Write this up as a formal proposal, stating all the information and including a space for the customer’s signature. This will then become your contract.
You Got the Job!
Congratulations. You just got your first catering job. Now the real work begins. Set up a timetable for work that needs to be done and stick with it. A lot of the prep can be done in advance and food frozen. Make all your arrangements with the rental company, linens, staff, etc. as far in advance as possible and check this a week prior to the party. Order specialty items in advance as well.
The week before the party, confirm all your arrangements with the customer and buy non-perishables. Also call your staff, if any, just as a reminder. Pick up perishables two days prior and begin prep work. The day before, pull all the equipment that you are bringing and make sure it is serviceable and clean. Stage these items so that you will not overlook anything. “stage” all your equipment. Get all prep work done and wrapped, and prepare the bill. Put the bill in your vehicle so that you won’t forget it!
On the day of the party, arrive two to three hours in advance and begin cooking. Get the areas set up; tables set, bar stocked and serving area arranged. Keep an eye on the time and be flexible. There may be late guests or other unforeseen circumstances that impact the schedule.
Once the party is underway, your job is to supervise and keep the food flowing. Try to “clean as you go” too. This will shorten clean-up time later. Instruct your staff to pick up dirty dishes immediately and constantly tidy up. Try to keep the kitchen as neat as possible since guests may wander in. Above all, remain calm and professional NO MATTER WHAT!
Once the party is over and you have finished cleaning up, present your customer with the bill. You should be paid on the spot. You will want to pay your wait staff on-site as well and divide up the tip according to hours worked. People will be happy to work with you if you are fair.
When you get home, make notes about how things went for future reference and then get some rest! You can do your unpacking in the morning!
Follow-up
Always follow-up with your customer a few days after the party to make sure that they were satisfied with the party. Ask if they are planning any future events and don’t be afraid to ask them to give others your name for their events. This is a courtesy that is often overlooked but is appreciated by the customer.
Starting a home-based catering business is as simple as getting a job and doing it. Once you have worked through the “kinks,” you will find that it gets easier each time. Aim for quality work and good customer service. This will certainly guarantee you success.
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