The Food Service Professionals Guide To: Successful Catering: Managing the Catering Operation for Maximum Profit

By Sony Bode

This series of fifteen books - The Food Service Professional Guide TO Series from the editors of the Food Service Professional magazine are the best and most comprehensive books for serious food service operators available today.

These step-by-step guides on a specific management subject range from finding a great site for your new restaurant to how to train your wait staff and literally everything in between. They are easy and fast-to-read, easy to understand and will take the mystery out of the subject. The information is boiled down to the essence. They are filled to the brim with up to date and pertinent information.

The books cover all the bases, providing clear explanations and helpful, specific information. All titles in the series include the phone numbers and web sites of all companies discussed. What you will not find are wordy explanations, tales of how someone did it better, or a scholarly lecture on the theory.

Every paragraph in each of the books are comprehensive, well researched, engrossing, and just plain fun-to-read, yet are packed with interesting ideas. You will be using your highlighter a lot! The best part aside from the content is they are very moderately priced. The whole series may also be purchased the ISBN number for the series is 0910627266. You are bound to get a great new idea to try on every page if not out of every paragraph. Do not be put off by the low price, these books really do deliver the critical information and eye opening ideas you need to succeed without the fluff so commonly found in more expensive books on the subject. Highly recommended!

• Language: English
• Publisher: Atlantic Publishing Group, Inc.
• Release date: Jan 12, 2003
• ISBN: 9781601381095

Book preview

$19.95

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available in this series:

all the bases, providing clear explanatering

tions and helpful, specific information.

RestauRant site

BuiLding RestauRant

Plus, all titles in the series include the Location: Finding

PRoFits: How to ensure

negotiating & securing

Maximum Results

phone numbers and web sites of all

the Best Food service site

isBn # 0-910627-19-3

companies discussed.

for Maximum Profit

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"In each book you will find

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tRaining: How to

Buying & seLLing a

develop your staff For

practical, easy-to-understand, and RestauRant Business:

Maximum service & Profit

crystal clear explanations that

For Maximum Profit

isBn # 0-910627-20-7

will take the mystery out of the

the

isBn # 0-910627-12-6

given subject. They are filled to the catering

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brim with up to date and pertinent

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RestauRant MaRketing

oPeRation: ensuring

atering

information, ready for application,

& adveRtising: For Just

success & Maximum Profit

Managing the Catering Operation for

ensuring your financial success."

a Few dollars a day

isBn # 0-910627-21-5

isBn # 0-910627-13-4

— Ed Manley, CFE,

Operation

Maximum Profit

successFuL cateRing:

President and Chief Operating Officer

RestauRant PRoMotion Managing the catering IFSEA - International Food Service Executives Association

& PuBLicity: For Just a

operation For Maximum

Few dollars a day

Profit

isBn # 0-910627-14-2

isBn # 0-910627-22-3

for

contRoLLing

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Food seRvice Menus:

RestauRant & Food

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Pricing and Managing the

seRvice oPeRating

Food service Menu For

costs

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• Everything You Need to

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RestauRant design:

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designing, constructing &

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Renovating a food service

• Provides Practical and

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establishment

Realistic Examples on

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contRoLLing

Atlantic Publishing Group, Inc.

Maximizing Profits

RestauRant & Food

incReasing RestauRant

1405 SW 6th Ave. • Ocala, FL 34474-7014

seRvice LaBoR costs

• Learn How to Sell, Market

saLes: Boost your sales

Phone [phone] • Fax [phone]

isBn # 0-910627-17-7

& Profits by selling More

and Run a Profitable

www.atlantic-pub.com

appetizers, desserts,

Catering Company

contRoLLing LiquoR

& side items

Wine & BeveRage costs

isBn # 0-910627-25-8

isBn # 0-910627-18-5

12

For all your answers to questions on hospitality management go to www.atlantic-pub.com 365 InsIder secrets revealed!

SucceSSful

catering

Managing The Catering Operation

for Maximum Profit

By Sony Bode

The Food Service Professional’s Guide To: Successful Catering Managing The Catering Operation for Maximum Profit: 365 Secrets Revealed Atlantic Publishing Group, Inc. Copyright © 2003

1405 SW 6th Ave.

Ocala, Florida 34474

800-814-1132

352-622-1875 - Fax

www.atlantic-pub.com - Web site

[e-mail] - E-mail

SAN Number: 268-1250

All rights reserved. No patent liability is assumed with respect to the use of information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and author assume no responsibility for errors or omissions. No warranty is implied. The information is provided on an as is basis.

ISBN 10: 0-910627-22-3

ISBN 13: 978-0-910627-22-1

Library of Congress Cataloging-in-Publication Data Bode, Soni.

Successful catering-managing the catering operation for maximum profit: 365 secrets revealed / by Soni Bode.

p. cm. -- (The Food service professionals guide to) ISBN 0-910627-22-3 (pbk. : alk. paper) 1. Caterers and catering--Management. I. Title. II. Series.

TX921 .B58 2003

642'.4--dc21

2002013542

10 9 8 7 6 5 4

Printed in the United States

Book layout and design by Meg Buchner • e-mail: [e-mail]

CONTENTS

intrODuctiOn

1. getting StarteD

How Profitable Can Catering Be? ..................... 9

Are You Born for Catering? .......................... 10

Catering Potential in Your Community ........... 13

Choosing a Name ........................................... 14

Insurance Requirements ................................ 17

2. tYPeS Of catering

The Pros and Cons of Home-Based Catering ... 21

Off-Premises Catering .................................... 23

On-Premises Catering .................................... 27

The Best of Both Worlds ................................ 28

3. Writing a cOntract

Contracts and Deposits .................................. 31

Determining Charges ..................................... 32

Determining Function Space .......................... 35

Basic Contract Stipulations

and Considerations ................................... 36

Cancellations and Refunds ............................ 39

Sample Contract Agreement ........................... 41

4. Staffing & PerSOnnel

Grasp the Basics About Staffing

and Personnel ........................................... 43

Employee Recruitment ................................... 46

Orientation, Training and Motivation ............. 50

Compensation ................................................ 53

Uniforms ........................................................ 55

Event Order Sheets ........................................ 57

5. tHe KitcHen anD SerVice eQuiPMent Facility Requirements and Kitchen Layout ..... 59

Major Equipment ........................................... 61

Equipment You Will Need for

Your Catering Business ............................. 62

Finding Equipment for Your

Catering Business ..................................... 65

Preparation Equipment .................................. 66

Kitchen and Serving Equipment ..................... 68

6. fOOD PreParatiOn anD Menu

Essentials of Menu Making ............................ 71

Menu Trends ................................................. 72

Determining What Type of Menu to Offer ....... 74

Quantities and Portion Sizes .......................... 76

Particulars of Menu Planning ......................... 77

Food Preparation ........................................... 80

Catering for Beverage Functions .................... 82

Legal Implications of Alcoholic

Beverage Catering ..................................... 85

7. SanitatiOn, HealtH & SafetY PrOceDureS

Causes of Food-Borne Illnesses ...................... 89

Employee Hygiene .......................................... 92

Sanitation Inspections ................................... 93

Food Handling ............................................... 95

Safety Procedures .......................................... 97

8. fOOD PreSentatiOn

Creating the Wow! Factor ............................ 99

Guidelines for Tray and Platter Selection and Design .............................................. 101

Essentials of Presentation, Garnishing and Arranging ......................................... 103

Make a Splash! ............................................ 105

9. MarKeting & Pricing Why Marketing is Mandatory ....................... 109

Define Your Customer .................................. 112

Business Plan and Market Analysis ............. 113

Marketing Your Business Plan ..................... 114

Marketing Tools ........................................... 117

The Internet and E-Commerce ..................... 120

Sales and Closing the Sale ........................... 121

General Pricing Considerations .................... 123

Pricing Guidelines ........................................ 125

10. BuDgeting & accOunting

Accounting Systems ..................................... 129

Chart of Accounts ........................................ 130

Grasp the Basics of Budgeting ..................... 132

Income Statement and Balance Sheet .......... 134

Understanding Cash Flow ............................ 135

Financing and Keeping Track of Money ........ 138

Social caterers are one

of the fastest-growing

segments of the

restaurant industry.

INTRODUCTION

According to the National Restaurant Association’s Industry Forecast, social caterers are one of the fastest-growing segments of the restaurant industry. At present, for instance, the U.S. Yellow Pages lists in excess of 53,000 caterers. This figure includes off-premise and banquet facility caterers, not hotels. The annual sales of these 53,000 caterers are between $7 and $8 billion.

Catering has come a long way from the simple chicken and prime rib buffets of the past. Customers today are looking for the catered experience to be more restaurant-like,

says National Restaurant Association Chairman Denise Marie Fugo, who is also president and CEO of Sammy’s in Cleveland. Fugo and her husband, Ralph DiOrio, started doing small, private banquets and off-premises catering in 1981. Sammy’s catering eventually became so successful that Fugo closed the restaurant earlier this year to concentrate solely on catering.

While catering can be a lucrative career, let’s put things in perspective. Sure, there’s money to be made in the catering industry and the job satisfaction can be immense.

Catering, however, is also hard work with long, unsocial hours. You also need to be able to multitask and organize your time with military precision. Often, with the best will in the world, things do go wrong!

Caterer Bev Goldberg, for instance, double-checked her master list for a cocktail party in a client’s home. Linens, check. Plates, check. Glassware, check. Soft drinks, check.

Garnishes, check. Hors d’oeuvres, check. Ice, check.

Satisfied that everything needed for the party was ready and loaded into the van, she and two of her staff left for the event location. Upon arrival, she discovered no host and no guests! The person who had contracted for the party had apparently forgotten and was not at home, she 7

says with a laugh. A veteran caterer with more than 30

years’ experience, Goldberg, who co-owns Artistry Catering in Chantilly, Virginia, with her son Randy, has become used to the frenetic pace and unexpected occurrences of this growing profession. I love catering, she says. People still think this is a glamorous job, but it’s just plain hard work.

While this book can’t do the work for you, it can make the work easier! Let this book come to your rescue with its tips and suggestions for the busy caterer. Get it right – the first time!

8

C H A P T E R O N E

GETTING STARTED

How Profitable can catering Be?

Whether you plan to cater small intimate affairs every day, or huge extravaganzas for thousands of people once a year, the profit margin potential in the catering business is extremely high. Some caterers manage to walk away with 66 percent pre-tax profits. This figure may seem hard to believe, but when you stop and think about all the ways that caterers can keep their overhead costs at practically nothing, it becomes a more credible figure. About 70 percent of caterers report that they have been profitable each and every year of their last five years in business. Before plunging headlong into the world of catering, however, bear in mind, the best place to start is to take a look at the bottom line. Here are some rough figures to guide you:

• You can start out at a low investment of only $1,000 if you intend to work from your own kitchen. But, outlay can be as high as $100,000 for outfitting a professional kitchen.

• With revenue of between $200,000 and $2,000,000, the pre-tax profit could equal between $50,000 and $1,000,000.

• A restaurant doing $1,000,000 in sales could earn an additional $200,000 in net profits in the first year, if it adds a catering operation, since it’s fixed costs are already met.

9

• The secret of increased profitability is building accounts rather than sales. Increased volume does not always result in a monetary advantage.

are You Born for catering?

Are you an excellent cook and competent in artistic food presentation? Do you have some basic business knowledge and love working with people? Basically that’s what is required to be a happy, successful caterer! Do you have the cooking skills of a good gourmet cook? Do you already have a sizable repertoire of well-tried recipes? So far, so good, but remember, not only do you have to know how to prepare all these items, you must also be able to