Owning a Catering Business

Catering is generally a very difficult business to be in.  It is always difficult to setup a catering business or even purchase one that has been in business for a while. There are laws that make catering tough.  One of the more common issues with a catering business is a lack of market research.  Anytime you want to start a business you have to do research regarding the area and your potential revenue.  In the catering business you need to know what type of catering you are willing to do and what foods and drinks you are willing to sell.  If you are not going to get the alcohol license you need, this could hinder your ability to grow the business.

You also shouldn’t buy a catering business if the area and population will not fit with what you sell.  This is true of any business really, but even more so with the catering business.  Before you open or purchase a catering business you need to make sure that you talk with suppliers.  Just because the original owner of the business got a deal doesn’t mean you will get the same benefits.  It could be that the relationship between supplier and owner grew so that there were benefits.  The supplier could be the owner’s friend.  Most often if a catering business has been in business for a long time they are reaping the rewards of the long established relationship, and therefore the supplier didn’t increase certain prices to reflect the changes in the economy and pricing. 

It is always a good idea to get the suppliers set up before you finish purchasing the business.  In this way you are able to start working as soon as the sale goes through.  The suppliers will be able to deliver if they anticipate your needs.  You may also find that the old supplier will not work and this gives you time to find a new place to deal with. 

It is always imperative to deal with the staff as well.  If you are taking over the business you may not need everyone that works for the company.  For instance, if you will be the manager and head chef you will need to give out notices to the employees.  You will want to do as little restructuring as possible.  The employees who are great workers shouldn’t be let go just because you bought the business.  It will keep morale up if you keep most of the employees.  If there are changes in the employee handbook make sure everyone gets a new handbook and that they have the ability to decline new rules by terminating their position.  If you need to hire more employees you will want to have closed doors to do this as well as salary and other information handy. 

Lastly, consider the hours you will have to put in to make the business in catering a success.  You want to be able to take days off and still feel comfortable that business will run normally.