Effectively (and Sustainably) Boosting Your Business's Bottom Line

Planning for a profitable 2025? You’re in luck—event budgets continue to rise as people desire creativity, novelty, and excitement. Innovative catering calls for distinctive flavor profiles and unique presentations, which are specialties that justify a higher investment.  

But if caterers want to see their bottom line follow suit, they must contend with inflation as they navigate an increasingly unstable market. More revenue means little when expenses rise concurrently, so balancing client satisfaction and profitability is vital for a business’s long-term sustainability. 

Follow these strategies to grow your bottom line without losing sight of the end goal: delivering five-star results to clients, and earning referrals and return business. 

Streamline your inventory management 

If you aren’t tracking inventory effectively, it’s easy to order more than you need or miss opportunities to save on low-value items. Consider investing in technology to manage your inventory in real-time, so you can easily identify your high-performing ingredients, adjust menus to prioritize well-stocked items, and prevent waste and overstocking. 

Reduce kitchen waste 

Ordering only what you need is one way to cut back on waste, but kitchens can also make changes to prevent spoilage and make the most of an ingredient. Extend your food’s shelf life with regular appliance maintenance, pest control, and proper storage. Then, consider how you can maximize kitchen scraps, like turning carrot tops into pesto or using onion peels to make stock. 

Related:Catersource State of the Industry 2024, Part 1

Diversify your revenue streams 

Have you considered expanding beyond event catering? Building multiple revenue streams allows you to stabilize cash flow and appeal to a broader client base. Perhaps you could offer meal delivery services or offer virtual cooking classes. Or, if you have a specialty sauce or spice blend, you could break into the retail market. Get creative! 

Invest in your team 

Labor costs often take up the bulk of a catering company’s overhead, so team efficiency is key. Develop streamlined workflows to save time, like batching prep work for several menus at once. Consider cross-training your team to handle multiple roles, too. A flexible workforce means you can adapt to an event’s needs, preventing over-scheduling and excess overtime costs. 

Negotiate on food costs 

Did you know that food suppliers are open to negotiation? Next time you place an order, see if you can reach a mutually beneficial agreement. For example, you may get a discount with a recurring order or a higher order amount. It never hurts to ask!  

Related:State of the Industry 2024, Part 2: Operations Outlook

If you don’t have the time (or patience) to negotiate, consider joining a group purchasing organization (GPO). GPOs handle the negotiation for you, working on behalf of thousands of companies to secure discounted wholesale prices for all its members. Since it’s free to join, you get an immediate return on your investment with your first order. 

In today’s evolving market, catering professionals must balance creativity, sustainability, and profitability to thrive. These strategies can help you address rising costs and protect your bottom line, all while positioning your business as innovative and adaptable by delivering exceptional experiences. With careful planning, you’ll be well-equipped for a successful and fruitful 2025!