Items to consider before expanding your foodservice into catering and event operations

Items to consider before expanding your foodservice business into catering and event operations
By Cynthia Hollidge
August 12, 2013

 
Items to consider before expanding your foodservice into catering and event operations

After enjoying success for several years as a restaurateur, many operators can eventually find themselves answering calls to expand their foodservice business into catering and event operations. While this can be an enticing proposition which offers intriguing revenue possibilities, it is also a huge leap that must be taken with care and a lot of planning.

For over 25 years I have been running, designing, creating and marketing everything from banquet halls to full-service event and drop-off catering operations. So here are some of the most important things you should know about running a successful catering operation:

Catering is not take-out

No matter what size or type of event is being planned, every customer engaging your company for catering services has a laundry list of expectations. A catering order is vastly different from a typical take-out order in terms of risk. There is much more at stake in the mind of a customer organizing an event, which inevitably raises their level of anxiety. The what if’s run amok in the client’s mind. (What if… You’re not on time? You didn’t provide enough food? No one likes your food?) Whether it’s the boss’s business luncheon, a seminar for a new product launch or a major, once-in-a-lifetime family celebration, falling short in even the slightest manner becomes catastrophic to the client, potentially leading to the loss of that customer and irrevocable damage to your company’s reputation.

Setting up for success

 
Remember what it took to open your existing operation and what it takes to keep it running smoothly: Countless hours of prepping and planning, stocking, recipe-testing, hiring and training staff, devising systems to stay organized – the list goes on.  Now imagine doing that every day for every event – it’s like setting up a new operation each time! Your customers trust that you have thought of everything. The need to ensure you have an extremely organized and efficient operation is paramount to your success.

Start by deciding what type of catering you want to offer. There are two distinct types of catering services: full-service and drop-off. Drop-off catering is what I like to call the bread-and-butter business and is the easiest type of service to integrate into your existing foodservice operation. Once you have dropped off the order you no longer have any involvement in the event. No need to set up, serve or pick up anything at the end. It also allows a potential large-scale event customer to sample your offering at a smaller event.

Assessing the challenges

Ardent Mills Organic 2016

On the other hand, social or full-service events are fraught with organizational challenges. For every phone call you field for a drop-off catering order, you are likely to have closer to a hundred for a full-service event. This truly is like setting up a restaurant for one night every time. You will need to arrange all of the details for front and back of the house, from portable kitchens, utensils, tables and flowers right down to the salt and pepper on the tables – not to mention the staff to coordinate and execute the event. Today’s event catering is so elaborate you need to ensure you have a team that is professional, organized and, most of all, creative.

Having personally developed catering divisions for many different types of foodservice operations – from casual and fine dining to upscale grocery stores – I’ve learned that integrating the new division without hurting the day-to-day operations is a key priority. An initial period of observation and feasibility study of the physical environment, work flows and existing menu offerings are required to determine whether your operation can sustain the impact of a catering division.

Following this assessment, the planning process must be broken down into three key components: equipment, people, and budget. Does your existing operation have all the equipment it takes to succeed? Is there sufficient staff to handle order intake and customer service? Do you have the financial resources to get the catering operation off the ground? Only when all of the budgeting and an execution plan have been completed will you be ready to get started on a menu.

Your menu offering

When creating your catering offerings, don’t create menu items you are not known for or with which you are unfamiliar. Know your market, understand the demographic of your existing clientele and create an offering that will speak to them.

I remember working for a very high-end restaurant several years ago when we began receiving requests for large special event catering. One of our clients was throwing an elaborate party and asked to add hot dogs to the menu. We were known for very high end, incredibly innovative food, and hot dogs were not on the menu. Simply and graciously, we had to tell her we could not do hot dogs, but we did come up with a compromise that was both whimsical and in line with the level of product offering we were known for.

Putting it out there

Now that you have organized who will do what: what you are going to offer and how much you are going to charge? How do you get your message out? In every operation I have created or worked for, we always designed a catalogue for the drop-off division and a brochure for the event division. This is the key component when it comes to creating a comfort level in the mind of the consumer. If they can visually see what they are looking for, if they like what they see and the price is right, you are halfway there. If you deliver it according to their expectations , you then have a repeat customer that will go out of their way to tell everyone what a great experience they had with your company.

Once you have the catalogue or brochure completed, you will need to broadcast your message across a combination of channels (website, social media, direct mail). Even if you are not going to take orders online right out of the gate, you will need to have a website that allows your potential customers the opportunity to do a little research about your offering.

Higher stakes mean being prepared!

The catering client’s laundry list of expectations raises both their level of anxiety and the stakes for your performance. Proper preparation is the key to ensuring your success in this game. If you’re not ready, take a step back. There’s nothing to be gained by rushing in. Assess your operation, create a demographically driven menu and communicate your offerings through effective marketing incorporating photography. Falling short on what may seem like a minor item on your client’s list can mean the loss of your client. In this business that relies very much on word of mouth, the loss of one client can equal the loss of hundreds more.

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About the author

Cynthia Hollidge is president of Toronto-based foodservice marketing firm CCS Creative. A recognized expert in the food presentation, marketing and distribution industry in North America, she has over 25 years experience serving in managerial and executive positions in the food industry. With a unique ability to visualize the overall picture, her insight is a much sought-after asset valued by her clients.

 
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