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Private Event Catering
How to Start Your Catering Business - Introduction
Starting your own catering business can be both financially rewarding
and fun. Whether you cater events on a full-time or a part-time basis,
the opportunities are excellent. Each catered event is a new experience
and challenge with a new group of people. With the rewards and fun come
demanding work, for which you will need stamina and the ability to work
under pressure.
Getting a Catering License
Most state laws require that caterers be licensed and meet other
requirements for foodservice establishments. In Virginia for example,
the Board of Health insures that food for distribution and sale to the
public is safely prepared, handled, protected and preserved.
In general - expect the following: to obtain a license, apply to the
local Health Department. Before a license is issued, the Health
Department will inspect your business to see that it meets food
sanitation requirements. Once a license is issued, the Health
Department will conduct routine inspections of your business. These
inspections are needed to help insure compliance with food sanitation
rules developed to protect the public from foodborne illness. Outbreaks
of foodborne illness have been attributed to factors such as poor
hygiene by personnel, inadequate cooking, and improper cooling and
storage of food.
Location of a Catering Business
Most state laws require that the food operation area be separate from
the kitchen facility of your home. The Health Department will inspect
the area that you intend to use for food operation before they will
issue a license. Plans and specifications for construction or
remodeling of an area must be submitted to the Health Department for
review. Complete partitioning and solid, self-closing doors must
separate the food operation area from your home kitchen. There must be
separate sinks for food, utensil washing and cleaning. There also must
be a separate sink to be used only for hand washing. Water and sewage
supplies and plumbing systems must be approved. Equipment and
food-contact surfaces must meet regulations of the Board of Health.
If the products will be sold to retail outlets, they must be labeled.
The label must include: 1) name of the product; 2) net weight of the
product; 3) name and address of the manufacturer and 4) a list of the
ingredients in descending order by weight. All packaging used for the
products must be made of food grade sources, as recognized by the Food
and Drug Administration and the United States Department of Agriculture.
Determining Your Product and Market for Catering
The development of a business plan will aid you in planning a
successful business. Prior to starting a catering business, you need to
determine your type of business - i.e., cakes, receptions, seated
dinners, box lunches, picnics, hors d'oeuvres, or dessert courses and
the type of food you will serve (primarily convenience or "from
scratch"). Analyze your market. Ask yourself the following questions to
see if your business venture will satisfy at least one of the following
fundamental elements of success. If not, you probably do not have a
viable business idea.
The questions are:
* Will the business serve a presently unserved need?
* Will the business serve an existing market in which demand exceeds supply?
* Can the business effectively compete with existing businesses because of some "competitive advantage?"
Decide whom you will target as customers. Who is your competition? What
are their strengths and weaknesses? Where will you get supplies? Decide
how you will promote your business. Will you need to employ staff to
help with production, service, and cleanup? What other skills do you
need to make your business successful? You can usually get help from
your local Family and Consumer Sciences Extension Agent.
Start-Up Costs of Catering
You may choose to start your catering business by renting items to keep
initial costs to a minimum. You may rent the use of kitchen facilities,
utensils, tables, tablecloths, serving equipment and other items. This
will allow you to: 1) Build a reputation; 2) develop some capital for
investment and expansion and 3) evaluate how much time and money you
want to invest and the impact that this business will have on your
family.
Developing a Creative Menu for Special Events
Factors affecting menu planning include the type of event, time of
event, number of people to be served, available equipment, number of
food preparers and servers and the amount of money to be spent.
The menu needs to include a variety of foods that are acceptable to the
customer and the occasion. Be able to suggest menus that show a balance
in color, texture, shape, sizes, flavor, cooking methods and cost. Plan
to include nutritious foods from each of the food groups, including:
* Meat, poultry, fish, dried beans, eggs and nuts;
* Bread, cereal, rice and pasta;
* Vegetables;
* Fruits;
* Milk, yogurt and cheese.
Plan for eye appeal by using at least four colorful foods on each menu
or food tray. Plan for contrast in texture and flavor. Contrast crisp
foods with soft, creamy foods. Use strong and mild flavored foods
together. Balance light and heavy foods. Use foods that complement each
other.
As a caterer, you will need to decide whether you will make all foods
"from scratch," or purchase some convenience foods. If you make all
foods, consider your skills, equipment and time as you plan menus.
Also, it is important to prepare a quality product of standard
consistency. Develop a quality standard for each item. Use "high-tech"
equipment designed to produce a consistent product. After considering
skills and equipment, compare the cost of caterer-prepared items with
purchase costs. Evaluate for cost savings and quality consistency. Do
this for each item offered before determining a pricing structure.
Develop an information packet that includes sample menus and prices,
other services you provide, and past events you have catered. Develop a
portfolio of pictures that shows how food was presented at these events.
Every caterer needs to develop a contract to operate in a professional,
business manner. Write the contract in simple language that both
parties can understand and state the terms of the agreement. Have an
attorney review the contract form. Include the following items in the
contract, as applicable. These are:
* Names, addresses and telephone numbers of parties involved (buyer and seller);
* Date of the agreement and date of the event;
* Time of event;
* Location of event;
* Room set-up, decorations, tablecloths, etc., to be used;
* Type of menu;
* Estimated and guaranteed attendance;
* Service arrangements;
* Duration of activity;
* Entertainment;
* Pricing arrangements and potential price increases;
* Deposit required (25, 30, or 50 percent of cost when the contract is signed);
* Discount (if any) for full payment at the time contract is signed;
* Cancellation provisions specifying cases of cancellation because of
illness, broken engagement or death. The contract needs to specify how
much of the deposit will be retained due to cancellation.
* Applicable taxes;
* Include space for signatures at the bottom of the contract form.
Carefully consider contract terms, write them in simple language, and
print them in a size that is easy-to-read. This is to insure that
everyone understands the terms of the contract.
Provide safe food for your clients by following and practicing food
safety guidelines. Make sure that you and your employees are current
with state and local regulatory requirements for food service
establishments. This way you can rest assured that the food you provide
to your clients is safe and wholesome.
We hope you have found these general tips to be helpful. Good luck as you start your catering business |