Catering is a notoriously competitive and cutthroat business. Unfortunately, too many go into the business with nothing but a dream, only for it to get crushed by the realities and challenges of running a catering business.
Still, this is a sector that offers tons of opportunities for savvy business owners who have a clear vision, a plan, and know how to execute it. But, in order to capitalise on these opportunities, you have to be able to identify possible mistakes you might be committing and correct them immediately. Here are some of the most common reasons why some catering operations end up failing.
One of the most tragic situations is becoming a victim of your success. In many cases, business owners end up stretching themselves too thin and can’t meet the demand. You might be eager to take on new clients, and excited by the chances of expanding your client base, but if you fail in your engagements, people will know and it will affect your business’s reputation. Not being able to deliver on time is one of the biggest sins you can commit as a caterer, and even if you have the best food, people will think twice about hiring someone they can’t trust.
They Spend Too Much Too Soon
Many people start with the impression that they need a 5-star kitchen to get started, but there are tons of ways that you can start without having to spend that much on equipment. For one, you should consider looking into renting commercial kitchen space.
As a caterer, chances are you’ll only have contracts on certain days during the week. You could also consider limiting contracts to weekends only and find kitchen space that will allow you to rent their installations on the cheap. Don’t limit yourself to restaurants either. There are various organisations, like soup kitchens, for instance, that will allow you to rent space while they’re closed.
One area, however, where you can’t cut corners, is transportation. You cannot run the risk of buying a cheap van that could end up getting you in trouble at the last minute. However, there are still ways that you can save on transportation.
One of the ways that you could save, for instance, would be to shop around for van insurance so you can get the best deal. Services like Quotezone.co.uk will allow you to compare van insurance quotes from over 60 different insurance providers. Their service is easy to use, and you’ll be able to get instant quotes from multiple insurers at the touch of a button. You’ll also be able to apply for coverage directly through their website or through the phone.
Not Having Enough Staff
Another area where you can’t afford to be stingy is when it comes to hiring people. You can’t run a catering business on your own or with a couple of family members and you will need people to work as kitchen aides, dishwashers, and helpers on the ground. Cutting costs in this area will result in delays and technical issues once you’re on the floor and will eventually reflect poorly on your business.
These are just some of the reasons why so many catering businesses fail. The good news is that you now are better informed on what you should avoid, and can start on building your catering business on solid foundations.