Many people have turned their love of cooking and entertaining into a good life by starting catering businesses.
Catering is a multi-billion dollar industry in the U.S. And as one of the fastest growing segments of the food and beverage industry, the catering business offers great opportunities for those who want to start a small business. with a low initial cost.
In this article we will look at the profits, earnings and salaries of catering companies and how much money it is really possible to make in this industry. Then we’ll examine some of the things that separate really successful players from fans.
Is an annual profit of $ 100,000 in catering possible?
Many people consider a salary or profit of $ 100,000 before taxes to be a benchmark for success and wonder if they can achieve this level of profit in catering.
Most hard-working small catering business owners can expect to make between $ 20,000 and $ 40,000 in profit per year for the owner for the first few years. After a couple of years in business, you can easily scale to a ‘six-figure’ annual income from restoration.
Tips for getting to the ‘six figure’ level
1) Forget catering in your home kitchen if you want to reach this salary level. Business-savvy catering service providers make volumes that require them to rent commercial kitchen space by the hour, arrange after-hours access to restaurant kitchens, or focus only on “on-premises” jobs and utilize your customers’ kitchens.
2) Successful gamers love spending time creating menus, following food trends, and interacting with people without neglecting the business aspect of catering.
3) Start building a powerful brand from scratch with your logo, company values and a unique service that will become a valuable asset that will allow you to get a premium price for your catering services in the market.
4) Develop systems for every part of your business to streamline day-to-day operations. Take a look at the way you and your staff work and strive to increase productivity.
5) Understand that there are “niche” markets within the catering industry that you would never think of until you actually start looking. The best catering service providers find these untapped opportunities and create a business that caters to the specific needs of these groups.
6) Hone the consulting process with new clients and learn to politely sell them on some of their more expensive offers.
7) Keep in mind that you are leaving money on the table if you don’t sell additional event-related services to your customers.
8) Learn how to hire, train and organize a small team to help you with food preparation, delivery, service and even sales if you want to have a realistic chance of reaching an income level above $ 100,000.
9) Don’t neglect traditional advertising methods, but also look for other modern marketing methods such as networking, cross-promotion, and guerilla marketing.
10) Successful caterers also recognize the importance of customer referrals. Customers can introduce you to their friends why they like your food and services, but there are other ways to get them talking about your business as well.
To get started on the right track, read all you can about general small business management and the catering business specifically. Many highly successful caterers have published start-up guides and you have the opportunity to learn from their mistakes rather than make your own and can benefit from their expert advice and expert advice.
It is possible to make a lot of money in the restaurant business if you put in the effort. Reaching an income level that allows you to earn a ‘six figure’ salary from your catering business is entirely possible within your first two years in business.