FINDING HIDDEN CATERING SALES DURING THE ECONOMIC DOWNTURN
By Allan Ollett
Wednesday, October 28, 2009
Operating a catering business during an economic downturn can be a challenge. Regardless of reputation, finding a stable, steady source of income can be overwhelming not to mention downright difficult.
Heading into 2010, the lull before the holiday season offers a great opportunity to strategize to increase cash flow in the weeks and months to come. Here are a few ideas to help boost catering revenues in the new year.
COLLEGES AND UNIVERSITIES
Put together a value-added menu for universities and colleges that promise ongoing contracts. Many of these schools have course graduation ceremonies and ongoing adult education training seminars during off-peak hours. And students and faculty are often looking to grab a quick bite on their morning, lunch, afternoon and even evening breaks between classes. Offer a service of coffee and gourmet snacks during breaks. This could range from fresh baked muffins in the morning to appetizers in the afternoon.
CAMPS AND RETREAT CENTRES
Many camps have fully staffed food services operations during summer months but rely on a skeleton crew in the off-season to meet the demand of guest group bookings. Contact these retreat centres, work out a price for using their facilities and then offer to cover the rest. A caterer that is willing to oversee staffing and food purchasing can be very attractive to camp administration as it allows the camp to provide big groups with high-quality food but without the overhead of year-round staffing. And, of course, this is a workable and profitable option for caterers. For example, a group of 150 staying at a retreat centre from Friday evening to Sunday lunch will require a total of 750 meals in less than 48 hours (the norm is usually five meals and two snacks per person over this time period).
FAMILIES ON THE GO
Takeout or delivered cater trays that are ready-to-serve or ready to ‘heat and serve’ and include a variety of items, from cold or hot appetizers to main entrees, are attractive to busy working families that are planning a party and want to ‘do it themselves.’ Providing these options is also ideal for caterers as they are relatively inexpensive and require little labour to produce.
ADVERTISING: NOT AN AFTERTHOUGHT
Tapping into differing segments of the catering market often requires the creation of specialized menus for each and at times may not meet an operation’s ideal profit margins. However, doing so will provide exposure to a lot of people in a very short period of time and is a cost-effective way to advertise.
When drawing up a contract, keep in mind each function is an opportunity to advertise and showcase the catering business. Make sure the organization will allow distribution of business cards or pamphlets during the event. Most will be more than happy to allow a business to promote itself when they understand it is providing them a better price point.
Also, it is vitally important staff fully understand and are onboard with this strategy and are prepared to go above and beyond the norm. As one event booking can lead to another, the most important and effective advertising of all is word of mouth, especially in an economic downturn, so there’s no room for mediocrity or error.
Allan Ollett has 20 years experience working in the food service industry as a chef, restaurant consultant during the economic downturn in the mid-80s and then food service manager at a camp on Vancouver Island. In 2005, Allan struck out on his own to launch Heaven Scent Gourmet a custom catering company serving the Cowichan Valley in B.C. For more information, contact Allan at al@heavenscentgourmet.ca. |
