With the new year upon us, caterers often spend a bit more time working on the business instead of in it. This is the time of year where caterers analyze every part of their company, figuring out which ingredients work and which could be improved.
One of the main concerns for caterers in 2015 and 2016 was profitability. Okay, so you've built a strong client list and have no problem with sales, but maybe you're still not making as much of a profit as you'd like. And even if you are making strong profits, you might be interested in refining your processes. Either way, these four helpful tips from caterers will increase your business' profitability and start 2017 off right.
1. Target better events
"Getting more of the right kind of sales" is important, says CEO of Two Caterers, Angela Petro. A simple way to increase your profit margins is to "analyze what is profitable and focus on selling to that segment."
Michael Malecot, owner and CEO of The French Gourmet, also recommends that you, "concentrate on events that have a larger number of guests, as they can create much more profit than smaller events."
2. Control all costs
Abbey Duke, owner of Sugarsnap LLC, noted that price isn't the only important part of profitability; costs can be just as critical. She recommends using "discipline in managing expenses," because they tend to add up without being obvious.
Additionally, B&A Warehouse owner Susan Mason advises that caterers to, "watch the little things that we tend to give away—ice, garbage services, plasticware—when not requested." These can also be unnecessary costs.
3. Raise specific prices
Though it seems like an easy thing to do, raising prices can be a difficult decision for caterers. However, if you "constantly monitor food prices and adjust menus to compensate for market changes," as Peggy Liversidge, owner of Kitchen Chicks, suggests, you can sell at prices that truly reflect the cost you incur.
4. Encourage word of mouth
Every caterer wants happy clients, but they can be more useful than you might think! Joann Roth-Oseary, president of Someone's in the Kitchen, recommends that caterers, "work hard and keep clients happy—they will keep coming back and refer you to friends. Word of mouth is my best tool!"
Shellie Morrison, president of The Event Group Corporate & Social Catering, also added that a "concentrated sales effort on relationship-building with venues" can mean that you get more clients from coordinating with one organization.
We hope these tips help you increase profitability in 2017 and can't wait to see the creative, innovative, amazing events that you'll cater.
All caterers included in this article are proud members of the International Caterers Association. To learn more about the ICA, visit http://www.internationalcaterers.org. Meet other members of ICA at Catersource 2017! Learn more at http://conference.catersource.com.
