The catering industry is growing at an unprecedented rate, with the industry reported being worth more than £1 billion in the United Kingdom alone. Consumers are spending more on food than ever before, and as such, catering businesses are popping up in all four corners of the country, offering delicious foods at great prices. That
The catering industry is growing at an unprecedented rate, with the industry reported being worth more than £1 billion in the United Kingdom alone. Consumers are spending more on food than ever before, and as such, catering businesses are popping up in all four corners of the country, offering delicious foods at great prices. That means more competition for your consumers – meaning you need to go the extra mile to keep them happy. Here’s how…
Target events to increase profitability
Finding the right customers allows you to increase your profit margins and keep your staffers busy every day of the week. One of the best areas to target is targeting events with larger numbers of guests, as they’ll allow you to scale your business and generate more profit than the smaller events you’re typically catering for. Create a portfolio of your work, collect some client testimonials, and go into full sales mode until you’re too busy to take on new clients.
Use an agency to hire
Finding the right staffers to grow your business can be hard work, which is why we recommend working with one of the many catering recruitment agencies dotted around the UK. Not only do they save you time and money, but they present to you only the most appropriate and experienced candidates for your needs, ensuring every hire you make is impactful and increases your return on investment. There’s no room for dead weights!
Raise prices where possible
Another way to improve your bottom line is to increase prices where possible. Sure, this can be a difficult decision to make for caterers, as competition can dictate pricing, but you should constantly monitor food costs and adjust your pricing accordingly to ensure you’re profiting. As long as you’ve built a reputation for your business and food is of high quality, customers will come back to you time and time again, even if you’re a little pricier than your competitors.
Control your costs
As well as pricing, you should also think about your costs, and looking for ways to streamline and drive efficiencies where possible. When managing expenses, be strict and remember that little things can add up pretty quickly. The smallest of elements, like offering guests ice or plastic cups when reusable tumblers would suffice, will not only help to save you some money but actually position you as an environmentally-conscious business in the process.
Encourage customers to spread the word
Finally, take advantage of your satisfied customers and ask them to spread the word to their friends and fellow business owners. Word of mouth recommendations are the number one way catering businesses grow, so focus on satisfying customers, building relationships, and asking for a referral every now and again to keep your business in the green. It takes time, but you will get there, and outlast your competitors who cannot get the referrals they need.
Catering is a competitive but highly lucrative industry. Take your time and you’ll soon find success – we wish you the very best of luck with your venture!