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Table of Contents
Why Start Catering 4Necessary Resources 6How To Succeed 7Resources 8-19
Labor 9Space 10-12Delivery 13-17Packaging 18
Operations 19-30Operations- Pre 22-23Operations - Present 24Operations - Post 25Operations - Continuous 26Lead Time 28Menu Creation 29
Marketing, Sales, & Technology 31-39Budget Marketing 32-34Marketing 35Sales Strategy 36-37Digital Strategy 38
Resources 40About the Author 41
$58 BillionCatering marketplace according to
Technomic’s 2017 “Catering Usage and Preferences” report
$22 Billion B2B$36 Billion B2C
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Why Start Catering
Catering is growing 6% YOY. As restaurants are struggling to grow same store sales, they are looking for more ways to reach customers in new areas. Individual delivery is one option. The other is large group-style orders. There are two types of catering customers; B2B and B2C.
B2B Consumer★ 70% order at least once a month★ $ per transaction is higher★ Meetings, presentations, events, working
lunches, special occasions★ Food style: box lunches, platters, “build your
own” food barsB2C Consumer★ <50% order at least once a month★ Family gatherings, special events (birthdays,
weddings, holidays, sporting events)★ Food style: Hot, family-style, shareable items
Rand, Jim. (2019, May 8) . The Basics of Building a Catering Business [Blog Post]. Retrieved from https://www.ezcater.com/lunchrush/restaurant/the-basics-of-building-a-catering-business/
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We’ll be focusing on B2B
Want B2C insight? Upvote it
5
Necessary Resources
Here are a few questions to ask yourself before starting your catering business:
➢ Point person for catering?➢ Enough staffing?➢ Adequate prep, staging, and storage space?➢ Delivery strategy?➢ What operation style to set?
○ What lead time to set?○ How to create a catering menu?
➢ POS system to organize catering orders?➢ Capital to invest in all the above?
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How to Succeed
Now that we identified the resources necessary for a catering business, we now must create a strategy, process, and standards. In this Catering Playbook we will:
★ Assess current capabilities★ Identify areas that are lacking and make
adjustments★ Operational execution strategy★ Sales and marketing strategy
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Resources
Labor
Besides food, labor is restaurant/catering’s largest cost factor. Not properly managing adequate staffing can be detrimental to a business. Too much staffing will balloon your payroll. Too little staffing can cause mistakes and risk quality of food and operations.
Is your current staffing able to handle catering orders?➔ Assessment
◆ Can foods be prepped the same way?◆ Can foods be cooked or assembled the same
way?◆ Can catering orders be done in conjunction with
prep work? ◆ Can employees make deliveries?
➔ Conclusion◆ Add or keep staffing hours same towards
catering◆ Keep labor costs within your business ratio
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Space
Does your current space allow you to handle catering orders? Can you have 2 staging areas so that one area can serve regular customers and the other for catering. Chipotle build their stores out with a separate assembly area specifically for catering orders.
➔ Assessment◆ Do you have a second staging area
besides primary?➔ Conclusion
◆ Utilize your prep kitchen to prep catering orders● If you do not have the luxury of a
2nd staging area, your back-of-house prep kitchen can serve a dual purpose for preparing catering orders
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Ronley, Rome. 5.1 Kitchen Layout. 2011, May 17. http://princesscastillo.blogspot.com/2011/05/menu-engineering-assignment.html
Sample Space Layout
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Space
It is surprising how much you can cram into a finite space. Be creative with storage and utilize any surface area as fair game.
◆ Storage Room Assessment● Add additional shelving● Utilize top of refrigerators and
freezers● Store paper goods in office,
mechanical rooms, other areas if storage is at capacity
● Reconfigure racks in refrigeration
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Delivery
When figuring out a delivery strategy you have 2 choices: In-house v. Third Party. For In-House you must consider factor the following for cost:
➔ Car➔ Car insurance➔ Company insurance covering employee
making delivery liability➔ Paying delivery driver/employee
If you are comfortable with these factors then proceed with in-house delivery.
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In-House Calculator
Car Optional Fixed $
Car Insurance Optional* Fixed $
Company Insurance Coverage
Necessary Fixed $
Driver Payroll Necessary Hourly (Multiply Hours * Hourly Rate)
$
Existing Payroll Necessary Hourly (Multiply Hours * Hourly Rate)
$
Cost Total $
Forecasted Sales
Necessary Fixed $
Ratio Cost Total/Forecasted Sales
%
Target Ratio 25-35%
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In-House Delivery
The old way of delivery was setting delivery fee + maximum range. In a modern delivery strategy you can devise a multi-prong approach.
Things to consider:1. Delivery range
a. Maximum mileage capable to deliver
2. Minimum ordera. $ amount needed to deliver
3. Delivery fee4. Tiering out 1-3 into multiple levels
a. Ex. 0-5 mi, 5-10 mi, 10-15 mi, 15-30 mi.
Different ways to charge a delivery fee:➔ Flat fee➔ Flat fee + service fee➔ Fee-based off distance➔ Percentage of food order➔ Flat fee or a reduced fee if food order is over
X amount
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Supply-Chain Logistics End Point (SCLEP)
This is your Third Party Delivery strategy.
Things to consider:➔ Are they trained to handle catering orders?➔ Do they carry warming bags or Cambros?➔ Will they uphold your brand and food?
◆ Can they handle your food exactly how you would if you personally delivered
Current Options➔ DoorDash ➔ Postmates➔ DeliverThat ➔ Dropoff ➔ ezDispatch
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In-House vs. Third PartyDelivery
In-House Third Party
Lower Delivery Fee Higher Delivery Fee
Better Food Handling Expectations Inconsistent Food Handling
Inconsistent Driver Availability Consistent Driver Availability
Costly Liability Liability Absorbed by Third Party
Shorter Delivery Times Longer Delivery Times
Protect Internal Data Shared Data
Telesca, Jenna. (2019, June 21). 7 restaurants that are third-party delivery naysayers. Retrieved from https://www.nrn.com/casual-dining/7-restaurants-are-third-party-delivery-naysayers
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Packaging
What containers are you putting your cold food? Hot food? Upon arrival, how will you keep your food remaining hot? At the end of the day customers eat with their taste buds. Below are packaging ideas:
➔ Cold Food◆ Pint or Quart Deli Containers
◆ Salad Bowls
◆ Sandwich Platter Trays
◆ Disposable Paper Take Out Food Container
➔ Hot Food◆ Half/Full Aluminium Trays
◆ Containers (with vents or padding to prevent soggy)
◆ Insulated Food Containers or Warming Bags
◆ Chafing Set-Up
● Fuel Wire Rack, Water Pans, Fuel Cans
➔ Miscellaneous◆ Disposable Utensils, Plates, Napkins
◆ Disposable Serving Utensils
◆ Disposable Sauce Bottles
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Resources Notes
Labor:
Space:
Delivery:
Packaging:
Operations
Operations
Operations can result in the coveted 5 Star rating or the “kiss of death” 1 Star rating. Process in everything organization is crucial to the success of execution. Too much or too little process can be detrimental as well. Finding the right balance is the key to success.
The following steps will provide best practices for processes in executing a catering order.
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Operations - Pre
When the order arrive1. Receive order - cross-check date and time
to see if you can take the order2. Check staff coverage and availability3. If the order sheet is not concise with the
amount to prep - begin creating prep sheet4. Create or fill out the prep sheet (convert any
daily prep sheet into a catering prep sheet https://www.restaurantowner.com/public/Daily-Prep-Sheet.cfm)
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Operations - Pre Extended
The day before the catering event:1. Print out food labels
a. Helpful to mark items: any allergy considerations, vegetarian, vegan, gluten-free
b. Two waysi. Full print out of items providedii. Individual items print out -
one-sided or tent style2. If delivery - plot out a course to the
destination - provide extra 50% time for unforeseen traffic, security, elevators, etc.
3. If delivery - check to see if there are special instructions such as loading dock or security
4. Pre-prep cold food, for hot food - pre-prep what is necessary before cooking
5. Package utensils, napkins, plates, serving utensils
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Operations - Present
The day of catering event:1. Re-confirm order2. Cook and/or assemble food3. Package in appropriate food containers4. Keep food warm in warming solutions
(hot-hold stations or cambros) and cold food in refrigerators until pick-up or delivery
5. Adhere to food safety guidelines from Steps 2-4
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Operations - Post
Things to consider before and after the catering event:● Communicate with the customer if there are
allergen concerns● Communicate with the customer if a specific
item is not available● Communicate with the customer even if the
order must be rejected○ Be transparent, explain why order was rejected,
convert into future customer
● Follow-up with the customer after catering an event to get feedback - positive or negative
● Add the customer to a Customer Relationship Management (CRM) solution for future marketing
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Operations - Continuous
Ongoing Operational Considerations:● During food inventory/ordering: tack on an
extra 20-40% towards items that are frequently used for catering. This calculation can be roughly done by the % of catering is to your overall sales.
● Make sure to black out or temporary close your store for any known future event that would prohibit store from producing a catering order
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“48% of catering orders are indeed booked on short
notice - three hours or less”
~ Nicholas Leonard, Catering Growth Manager at ezCater
Gromfin, Ryan. (2018, April 3) . Strike Gold with Better Delivery Lead Times [Blog Post]. Retrieved from https://www.ezcater.com/lunchrush/restaurant/how-to-boost-your-catering-business-with-delivery-lead-times/
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Lead Time
It’s ten o’clock, office manager in the middle of a project when gets an email from your boss. “Having the marketing department get together for an office lunch meeting at noon today in the conference room. Can you take care of it?” Sure! With a wide smile from ear to ear.
Expectations of Caterers: 24-48 lead timesExpectations of Customers: Same day or <24 hours
Things to consider:1. Shrinking product offering (Your most popular
items most likely will have ample inventory vs less popular items)
2. Adjust notifications - you can get access to email and text with smartphones
3. Software to manage ordersa. https://www.capterra.com/catering-software/
Sara. (2014, January 23). Admin Assistance: How to Organize a Last-Minute Office Lunch [Blog Post]. Retrieved from https://www.waiter.com/blog/catered-lunches/admin-assistance-organize-last-minute-office-lunch
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Menu Creation
Offer a Varied Catering Menu❏ Proteins - add a variety -
beef, chicken, sausage, shrimp (chicken is heavy favorite)
❏ Vegetables - travel well❏ Starches❏ Starters/appetizers -
conversation starter❏ Desserts - simple and travels
well - high shelf life❏ Offering Breakfast and
Beverages
Rand, Jim. (2019, May 8) How to Build a Profitable Catering Menu for Your Restaurant [Blog Post]. Retrieved from https://www.ezcater.com/lunchrush/restaurant/how-build-catering-menu-restaurant/
Studies have show people normally look at the top right of a page. Have your best option on the top right.
Research Your CompetitorsWant to know who in your area is doing catering? Go to ezcater.com or https://work.grubhub.com
Limit your catering-menu line-up❏ Use the Rule of 3 - people
like choices but not too many choices
❏ What are your best sellers?
❏ Which dishes travel well?❏ Which dishes take way too
long? - exclude these
Offer Bundled Meals to Boost Margins
Let Customers Build Their OwnTaco bar, burger bar, pasta station, etc
$1.00
$2.00
$3.00
$5.00
$4.00
Power Lunch
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Operations Notes
Pre-Operation:
Present Operation:
Post Operation:
Continuous Operation:
Lead Time:
Menu Creation:
Marketing, Sales, & Technology
Budget Marketing
They say spend 10% on marketing. Did they realize they’re speaking to food companies here? Cash flow is tight. How can you get the most out of budget marketing tools until you’re ready for more sophistication. Below are a list of vital tools to propel your brand.
○ Customer Relationship Management software■ Keep all your contacts, prospects,
customers under one database■ Tool Stack: Salesforce, Hubspot
○ Outreach■ How are you creating thought
leadership in the food you sell? Are you blogging?
■ Toolstack: Hubspot, Privy, Sumo,
Wordpress, Canva, Unsplash
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Budget Marketing
○ Lead capturing■ Lead generating tool. This may be
obtaining information from patrons entering your storefront.
■ Tool Stack: Zenreach○ Email marketing
■ Keep your customers up-to-date on latest offerings or product updates
■ Tool Stack: Constant Contact, MailChimp,
○ Search Engine Optimization■ Be on the 1st page of Google. How
to track and measure your search engine rankings.
■ Tool Stack: Yoast, Google Analytics, Google Keyword Planner
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Budget Marketing
○ Social Media■ The digital medium towards free to
low-budget marketing. Create a fan-base and fuel their hunger for your micro content.
■ Tool Stack: Yelp, Google, Instagram, Facebook, Twitter, LinkedIn
■ Emerging Tool Stack: YouTube, Snapchat, Tik Tok
○ Social Media tools■ Help automate your micro content
across multiple social media channels.
■ Tool Stack: Buffer, Hootsuite, Tweetdeck, Stencil
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Marketing
Know your customer. Know their characteristics, their needs, their objectives, their fears of not placing a catering order. Creating a Buyer’s personal will help you better market and sell.
○ Buyer’s Persona■ Create a Buyer’s persona of your
customer base■ Semi-fictional representation of
your ideal customer based on real data (not by your own opinions)
■ Helpful resource● https://www.hubspot.com/res
ources/buyer-personas
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Sales Strategy
Having a great marketing strategy is useless unless you convert them into a paying catering customer. How do you prospect to win? Will you hire someone to sell for you? How do you close the win?
○ Prospecting■ Buy office list directory■ Look at restaurants who are also
delivering in the area■ Keep an eye out for new buildings being
constructed■ Call offices■ Go on LinkedIn and search for keywords:
Office Manager, Office Administrator, Pharmaceutical Sales, Training Coordinator
■ Door-to-door - give out catering samples■ Social Selling - follow certain hashtags
and comment on them: #officelunch #officeculture
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Sales Strategy
Conversations with your prospective will be fairly transactional. But for the larger offices and clientele, you may want to uncover their larger goals. This can equate to monthly or better, weekly, catering orders.
○ Work off a Prequalified Framework - based off Hubspot Inbound Sales ■ Challenges - find multiple challenges customer
faces■ Goals - what are the goals that are preventing
them from achieving■ Plans - ask them how they will plan■ Timeline - when do they need this by (urgency)■ Consequences - what happens if they don’t do
catering?■ Implications - what is the positive outcome if
they do catering?■ Budget - direct question of financial solution■ Authority - what needs to be involved? Who’s
paying?
Hubspot Academy. Understanding the Buyer’s Context. Retrieved from https://academy.hubspot.com/lessons/understanding-buyer-context
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Digital Strategy
If you cannot create a sales force selling catering. Partner with third-party partners to find customers for you.
★ Third Party Catering Partners○ ezCater
○ DoorDash
○ Grubhub for Work
○ Cater2.me
○ Caviar
○ Postmates
○ Platterz
○ CaterCow
★ Online Ordering○ Olo
○ ChowNow
○ Toast
○ ezOrdering
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Sales & Marketing Worksheet
Marketing:
Sales:
Digital:
Resources
Rand, Jim. (2019, May 8) . The Basics of Building a Catering Business [Blog Post]. Retrieved from https://www.ezcater.com/lunchrush/restaurant/the-basics-of-building-a-catering-business/
Lalley, Heather. (2019, May 6). 6 Easy Ways to Jump-Start a Catering Program [Blog Post]. Retrieved from https://www.restaurantbusinessonline.com/operations/6-easy-ways-jumpstart-catering-program?mkt_tok=eyJpIjoiTTJFNE5UZzJNMkk1TTJZeiIsInQiOiJEcGJPWWNKc3R2b213TEJpbjJDcEt1eEdnd0dVVlZQRUlRVmwzbHI5RXlwSlwvWDc1VXloaHpxMVk5Tkk4UkYwSTdaTzFwTXRwU2M3cHVnK3JuNmpLQWRhVWV5UHZlXC9VY1lCNnZKc3A4UVwvQytkbDVONzAwQ3RSem5NUVlNUGp4bCJ9#page=0
Rand, Jim. (2019, May 8) How to Build a Profitable Catering Menu for Your Restaurant [Blog Post]. Retrieved from https://www.ezcater.com/lunchrush/restaurant/how-build-catering-menu-restaurant/
Kalb, Ira. (2013, May 5). Marketers Must Understand the Power of Three. Retrieved from https://www.businessinsider.com/using-the-power-of-three-to-your-marketing-advantage-2013-5
Hubspot Academy. Understanding the Buyer’s Context. Retrieved from https://academy.hubspot.com/lessons/understanding-buyer-context
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About the Author
Adrian J Wong is a reformed restaurateur previously founding Beta Burger - the first commercialized sous vide burger. Adrian created the catering business arm of Beta Burger from scratch. Grew that division to become 30% of the business’ sales and propelling the business to be profitable after 2 ½ years in operations.
Prior to Beta Burger, Adrian was a reformed Financial Advisor at Morgan Stanley. At his 6 years with the firm, he helped contribute $20 MM in net new assets to The RGL Group.
Currently, Adrian is a Senior Account Executive at ezCater consulting restaurants and catering groups about catering. Adrian is the creator and author of www.catering-guide.com - an online resource and guide for catering professionals.
https://www.linkedin.com/in/adrianjwong/
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