What is a Catering Business Plan?
Catering industry in India is consistently growing at an annual rate of 15-20% each other and the best part is that it is immune to recessions, monopolies, and completely relies on customer service, food quality, and correct price.
Preparing quality food in a large volume requires immense knowledge, expertise, experience, staff management, precision and the knack for preparing delicious food that not many have. Established caterers aim at franchising their trademark, but for a new business, a thorough business plan should be formulated.
Why do we need a catering business plan?
- The Ultimate Goal and the Appropriate strategies to run a successful catering business is a vital part of the plan
- Market research, planning and development of the product, adjusting supplies, product research and marketing strategies form a part of the plan.
- Product demands to meet, exclusive inventory and equipment to keep the catering business running and appropriate marketing channels to sell your product in the right market is also important.
- Staffing and Remuneration techniques to keep the business going
- Financial Requirement and a work-around if there is a deficit forms a substantial part of the business plan
- Understanding the prerequisites and formalities to give a head start to the onset of a great catering business plan:
- Inventory purchase
- The rightinvestment in technology
- Labour and employment
- Purchase of place/transport
- Marketing techniquesExpansion in the commercial sector.
Understanding the Catering Business
The objective and ultimate goal should be clear in understanding the need of running a catering business plan. Proper knowledge about food, recipes, nutrition, gourmets, and the correct price is substantially a priority.
You can opt for various types of catering:
- Door to Door catering:
- Mobile catering
- Hotel/Restaurant catering
- Functions/occasional catering
- Private catering
Pre-Requisites of initiating a Catering Business
While initiating a catering business, certain information needs to be figured out:
- Purpose of opening a Catering Business
To find a niche or the correct domain in which the individual is an expert in, with the best of knowledge about the product is the most important factor. The individual must decide the main reason why he wants to start a catering business – if it is to provide gourmet food, nutritious food, street food with the correct rates. Once the goal is clear, it will be become easier to conduct a thorough research on the appropriate segment of the Catering Business.
Being a saturated segment of the market, catering business can involve a lot of cost and a few of them could be hidden as well. So, a proper work around the amount that needs to be spent, must be noted. Sometimes there is a need to consult a financial consultant for the same.
- Research of the Market
Market research, surveying customers, following trends and tastes, finalising the location and settingthe menu are major areas to work on while looking at the market. Advertising and selling form a crucial part of this exercise.
- Target Market
The customer base is huge so depending on the product that you are selling, your target market will be completely based on:
- Menu – what food options are you providing
- Pricing – competitive rates are definitely more alluring. Anything more or less than the current rate can be a blow to your business.
- Understanding the current Competition:
- Advertising and Marketing
Documentation required before opening a Catering Business:
- Identity proof of applicant like a driver’s license, PAN card, voter ID card etc.
- Residential Address proof of applicant like a ration card, electricity bill, driver’s license, Aadhar card etc.
- Copy and Proof of PAN card of Business.
- Business bank statements including salary statement is working in the service industry of last 6 months.
- Passport size pictures
- Partnership deed if required
- Proof of registration of the catering business.
- Legal business documents.