Catering Industry

This guide will help the beginners to learn what is catering industry and the various types of catering sector. Process of catering and the major challenges were discussed. will Helps to start a new catering business. Food waste and the practical challenges were explained in a short note

1. CATERING INDUSTRY
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2. WHAT IS CATERING
The term catering refers to providing food and beverage. It is to provide
food for pleasure. It has two aspects preparation, presentation and
service in an unique style.
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3. TYPES OF CATERING
Primary catering Secondary catering
(Commercial) (Non commercial)
•Hotel
•Restaurant Welfare Travel
•ODC Catering Catering
Industrial Railway
Institutional Airline
Service catering Marine
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4. HOTELS
FiveStarHotels
Theseusuallyhaveseveralrestaurants,grillrooms,ethnic(Indian,
Chinese,Italian,etc.amongthemostpopular),Europeanandcoffee
shopsareincluded.Serviceinthesehotelsisusuallyattentiveand
entertainment isnearlyalwaysavailable.Pricesinthese
establishmentstendtobehigh.
MediumClassHotels
Similartothefive-starhotels,thoughsurroundingsareless
luxuriousandpricesarereflectedinthis.
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5. RESTAURANT
FreeStandingRestaurants
Oftenquitehighclass,offeringgoodAlaCartemenus-serviceis
usuallyofahighstandard.
SnacksBar
Itispopularwiththeworkingpublicofferingeverydayfare,atvery
reasonableprices.
FastFoodCentre:
The“eatingout”of80’sgrowinginpopularityinIndiaespecially
withtheyoung,theserestaurantsofferfast,cleanserviceatpopular
prices.Serviceisminimalandturnoverishigh.
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6. OUTDOOR / RETAIL STORE CATERING
Thiscateringincludestheprovisionoffoodanddrinkawayfromhomebase
andsuppliers.Thevenueislefttothepeoples’choice.Hotels,restaurantsand
cateringcontractorsmeetthisgrowingdemand.Thetypeoffoodandsetup
dependsentirelyonthepriceagreedupon.Outdoorcateringincludescatering
forfunctionssuchasmarriages,partiesandconventions.
RetailStoreCatering
Someretailstores,apartfromcarryingontheirprimaryactivityofretailing
theirownwares,providecateringasanadditionalfacility.Thistypeof
cateringevolvedwhenlargedepartmentalstoreswishedtoprovidefoodand
beveragestotheircustomersasapartoftheirretailingconcept.Itis
inconvenientandtimeconsumingforcustomerstotakeabreakfrom
shopping,tohavesomerefreshmentsatadifferentlocation.Thusarousethe
needforsomesortofadiningfacilityintheretailstoreitself.Thisstyleof
cateringisbecomingmorepopularandvariednowadays.
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7. WELFARE CATERING
Theprovisionoffoodandbeveragestopeopletofulfilasocialobligation,
determinedbyarecognizedauthority,isknownaswelfarecatering.This
grewoutofthewelfarestateconcept,prevalentinwesterncountries.It
includescateringinhospitals,schools,colleges,thearmedforcesand
prisons.WelfareCateringismainlyaboutprovidingfoodatminimalcosts.It
doesnotservethepurposeofgeneratingrevenue.Thiskindofestablishment
doesnotpromotealucrativefoodmenu.TheymostlyfollowaCyclicMenu
thatisgoodenoughtofulfilthenutritionalrequirementsofthecustomer.
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8. INDUSTRIAL CATERING
Theprovisionoffoodandbeveragesto‘peopleatwork,’inindustriesand
factoriesathighlysubsidizedratesiscalledindustrialcatering.Itisbasedon
theassumptionthatbetterfedemployeesatconcessionalratesarehappy
andmoreproductive.Cateringforalargeworkforcemaybeundertakenby
themanagement itself,ormaybecontractedouttoprofessionalcaterers.
Dependingonthechoiceofthemenusuggestedbythemanagement,catering
contractorsundertaketofeedtheworkforceforafixedperiodoftimeata
predeterminedprice.
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9. INSTITUTIONAL CATERING
Theprovisionoffoodandbeveragesto‘studentsinschoolsorcolleges’at
highlysubsidizedratesiscalledinstitutionalcatering.Itistheresponsibility
oftheinstitutestoprovidethestudentswithacompletebalanceddiet.This
kindofcateringestablishmentmaybeundertakenbythemanagement itself
ormaybecontractedouttoprofessionalcaterers.Thefoodmenuinthistype
ofestablishmentisCyclicandismostlybasedontheseasonalavailabilityof
ingredients.Theconceptisnottoearnrevenuebuttoservetheirownsocial
responsibility.
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10. TRAVEL CATERING
Theprovisionoffoodandbeveragestopassengers,before,duringandafter
ajourneyontrains,aircraftandshipsandinbusesorprivatevehiclesis
termedastransportcatering.Theseservicesmayalsobeutilizedbythe
generalpublic,whoareinthevicinityofatransportcateringunit.Themajor
formsofmodern-daytransportcateringareairline-catering,railways
catering,shipcateringandsurfacecateringincoachesorbuseswhich
operateonlongdistanceroutes.
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11. AIRLINE CATERING
Sincenocookingfacilityisavailableintheaircraftallpreparedfoodhastobe
carriedbeforetheflighttakesoff.Becauseoflimitationsofspaceandstorage
facilitythepantriesarespecificallydesignedandequippedforholdingand
reheatingthefood.Todayairlinecateringhasbecomemuchmoresophisticated
andairlinesaretakingmorecaretoplanmoreappetizingandvariedmenu.Civil
aviationprogressedveryrapidlyafterthesecondworldwarwhenlargewarsupply
aircraftwereavailablefordisposal.From1946onwardscommercialairlines
startedfoodservice.Initiallyin-flightserviceswerelimitedandonlylightmeals
anddrysnackswerebeingserved.Thissystemcontinuedtillairlinesstartedto
makeinternationaljourneys.Thismadeitnecessarytoservemoresubstantial
mealswhichresultedinthedevelopmentofflightKitchenswhichmetthedemand.
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12. RAILWAY CATERING
Catering to railway passengers both during the journey as well as during
halts at different railway stations is called railway catering.
Travelling by train for long distances can be very tiring; hence a constant
supply of a variety of refreshment choices helps to make the journey less
tedious. On-board meal services are also provided on long distance trains.
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13. MARINE CATERING
Marinecateringincludescateringforpassengersaswellasthecrewon
board.Themoderndayluxurycruiselinershaveveryhighstandardand
equippedwithfacilitieslike,restaurants,ballroom,discotheque,casino,
swimmingpool,golfcourse,laundryetc.allonboard.Onluxuryliners
servicereachesthehigheststandard.Apartfromthedifferentmealsserved
inthemostprofessionalwaysocialactivitieslikeparties,danceetc.arealso
organized.Eventslikebirthdayparties,anniversariesetc.arealsocelebrated
toprovideentertainmentandcreategoodwill.Themenusservedare
exclusiveandquiteelaboratetoprovideampleamountofchoice.
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14. PROCESS OF CATERING INDUSTRY
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15. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
(i) Make a proper business plan and finalize your niche.
ii) Get your kitchen location and rent.
iii) Sort out the sources of your capital.
iv) Get the most important equipment first.
v) Find out your source vendors for your catering
supplies.
vi) Get your licenses and permits.
vii) Decide on food costing and menu engineering.
viii) Hire adequate and proper staff.
ix) Market your brand well.
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16. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
i) Make A Proper Business Plan And Finalize Your Niche
Your business model must revolve around your availability, the space rented and storage
requirements. It should cover all your investment costs and expenses for the initial few months. Only
after identifying your potential customers and researching the marketplace should you start to think
about the same.
In case you’re planning for a full-time catering business, you need a permanent storage and cooking
facility. Along with that, there must be enough plumbing so that it’s easier to set up your kitchen. You
could also get a place near a storefront to put in some tables and chairs for customers to taste your
food right away. If you are only looking to start a part-time catering business, you must look for a
model that includes renting the kitchen space on a day-to-day basis. This would allow you to save
money and work on the weekends or a few times a month.
After setting up your kitchen, you need to finalize your cuisine. Get authentic feedback from the
consumers and work on the negative ones. This helps you to gain more customers and pre-orders even
before the business is completely set up. Some of the niches that you can stick on are banquet lunch
boxes, contract catering service, and private chef service.
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17. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
ii) Get To Know About Your Kitchen Area And Rent!
The minimum required kitchen area one would require even in case of a small
scale catering business involving 20-25 people is around 70-80 sq. feet. Any
order serving more than 25 people will need 100 square feet of kitchen space at
the least.
Setting up your own kitchen would bring you more clients due to efficient and
hygienic food making. The rent for such places would differ for each place,
whereas an average rent for 100 square feet kitchen area would be somewhere
between Rs. 8000 to Rs 10,000, location being a prime factor.
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18. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
iii) Sort Out The Sources Of Your Capital
Thenextstephastobepenningdownthesourcesofyourcapital,andhowtousethem
efficientlyforon-siteequipment,rentalcostings,licenses,andotherexpenses.Useyour
researchskillstoknowabouttherightsourcesforyourcapital.Itcouldbecomingfrom
otherinvestors,fromyourownfundsorabankloan.
AnaveragebudgettostartacateringbusinessinIndiaisideallyaroundRs.20lakh,which
includesaninitialfewmonthsofexpenses,kitchenrent,transport,licenses,andother
permits.Thisbudgetmayvaryaccordingtoyourpreferences.Youmustalsotakenoteof
thesmallercostsinvolvedlikethatoftabledecoration,napkins,workers,etc.Youcan
seekhelpfromabankincaseofaloan.Allyouneedtodoisconvincethemwithyour
businessplanandrevenuegenerationmodel.Therearemanysuchschemesinvarious
banksthathelpyougetaloanwithoutanyhassle.
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19. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
iv) Get The Most Important Equipment First!
Once you have enough capital, you need to invest in this on-site equipment for your
kitchen. Fryers and refrigerators, storage cabinets, a few burner stoves, 2-3 compartment
sinks, and stainless steel prep tables are the major requirements for a base kitchen. Apart
from these, here is a list of other equipment that you would require.
Cooking Oven
Serving Equipment
Coffee/Beverage Station
Cambro
Tin Foil
Plastic Wrap
Garbage Bins
Disposable Containers For Storage
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20. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
v) Find Out Your Source Vendors For Your Catering Supplies
The raw materials or products for your business could come locally from farmers or
a supply distribution agency. In the initial phases, you can use a wholesale club to
buy your raw materials, as it saves up on a lot of your money plus they are fresh! It is
always easier to do business with a larger supply company.
Once you take up a few orders, start growing your network of supply vendors and
agencies. You can then use to do business with the best ones in the market.
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21. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
vi) Get Your Licenses And Permits
It’s time to get moving with your business plan now. We have listed down the criteria
for registration of a catering business in India. Once you have these in place, you can
apply for a basic vendor registration from FSSAI, which would cost you only a
hundred bucks annually. This registration is valid either for a year or five years
depending on what term you choose.
Once you expand your business and start increasing your turnover to more than 12
lakhs a year, only then you need a few other licenses and permits. But before all of
that, make sure that you get your FSSAI license by ensuring that the following
parameters are taken care of.
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22. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
•The location of your business must be free from external pollutants.
•There must be proper and adequate storage in the most hygienic condition possible.
•The stalls or counters should be clean and proper.
•The food that you’re using must be free from any contamination.
•Only freshly prepared food should go out for delivery to consumers.
•The staff that you hire to help in your business must also maintain the proper conduct
of personal hygiene.
•The containers that you use for cooking and delivery must be free from dust or any
other contamination.
•The licenses that need to be in place are mentioned here. These licenses are for
different kinds of businesses, so see which all do you need for your kind of business.
Check for Health Trade, eating the house, shop, and establishment, GST registration,
NOC from the fire department, etc.
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23. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
FoodEstablishmentLicense–Thisoneisanecessitytohaveforallkindsofcatering
businesses.Toobtainone,youwillbeinspectedbystatecompliance.Yourkitchen
spaceandthestaffshouldallbepreparedwellenoughfortheinspection.
LiquorLicense–Incaseyouareservinginanyeventsorpartiesthatincludealcohol,
youmustmakesurethatyouhaveobtainedanalcohollicense.
OtherLicensesOrPermits–Otherstateagenciesandjurisdictionsmightimpose
someadditionallicensesandpermitsonthefoodandbeveragesector.Youmight
comeacrossQualityAssuranceandHealthInsurance.Otherimportantlicensesare
Fireandwaterlicenses,sewagelicensesandpermitstoensurethatyourlaboris
above18yearsofage.
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24. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
vii) Decide The Menu
Menuengineeringhasbeenunanimouslysaidtobeoneofthetoughesttasksof
handlingafood-relatedbusiness.Youneedtoconsidertherawmaterialcost,the
quantity,thechangeinratesandsoon.Competitorsareoneofthelast,but
importantfactorstobeconsidered.Itisimportanttoknowwhatyourcompetitors
arechargingtosustaininthemarket.
Standardizingyourrecipehelpsinreducingfoodcoststoahighermarginby
definingtheexactquantityofrawmaterialsrequiredforeachdish.AproperPOS
systemwillhelpyouachievethat.Itmaintainsastandardizedrecipeforyou,
ensuringconstanttasteandquality.Yourper-platecostingmayvaryaccordingto
demandandservicesadded.Initially,trytohaveamoderaterateandconsistencyin
yourfoodqualitytogetmoreordersflowingin.Apartfromthat,themagnitudeof
theeventwillalsodecidetheprices.
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25. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
viii) Hire Adequate And Proper Manpower
Any new business needs a spoonful of dedication and hard work to come out as
successful. In order for that to happen, adequate and dedicated staff is required for
your business. In the initial stages, you could try out an agency to hire your cooks
and servers, and then hire permanent staff when you have enough funds.
Maintain a uniform for all the staff members and make sure they are well trained.
The minimum number of people that you can start your catering business with is
around 10-12 people including a head chef, junior chef, other cooks, menu designer,
and delivery people.
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26. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
ix) Market Your Brand Well
You can’t deny the importance of marketing in a newly established catering business. You need
your leads, and you need to convert them into potential customers.
Word of mouth could work wonders! –Unlike other businesses, a catering business prospers
way too fast solely on the basis of word of mouth of their existing customers. Target cold
calling and give it a personal touch.
Use powerful social media platforms like Instagram, Whatsapp, and Facebook .
Create your own website and work on your blogs –Creating your own website is highly
required in a catering business, especially in the present times. This is to showcase your work
through a catalog to people so that they are attracted to your business. This also brings about
a trust factor within customers. Along with that, your website could play a major role in getting
your prospects for potential customers.
Networking –B2B advertisements to grow your network with event planners, DJs, cake
makers, etc.
Target your consumers –Make sure that there are repeat buyers, especially banquet halls and
businesses. Put out different offers, campaigns and other upgrades that help you attract
referrals. Email-marketing could also help in your case as it helps in retaining customers by
making them realize that you care about them.
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27. A STEP BY STEP GUIDE TO START A
CATERING BUSINESS
x) Use Technology For Getting Orders And Managing Stock
Automation of your catering business becomes an absolute necessity in today’s generation as
it prevents human errors in taking orders, and saves from you situations of overlapping of a
particular order. While taking care of a particular order, you need to note down each of the
specifications to avoid any discrepancies in the future.
Along with that, it helps you to take care of your inventory and analyze your per day
consumption. Having a detailed analysis of your consumption and wastage helps you manage
your inventory better. A smart catering software would help you streamline your operations
and reduce the manual labor up to a great extent.
All in all, as we have already established that it takes more than just cooking to start even a
small scale catering business. You need to be extra careful and follow this detailed checklist.
Once you do that, we ensure you that you will be absolutely ready to start your own catering
business and a flourishing one at that!
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28. CHALLENGES IN CATERING BUSINESS
Competition:
Asmoreandmorepeoplearegettingattractedtothebusinessworld,everyperson
dreamstoutilizetheircookingskillsbyestablishingacateringbusiness.Atpresent,
thecateringindustryiscompletelysaturatedwithnumerouscompanies.Itis
challengingtoproveyourselfinthemarketandstandaheadofyourcompetitors.
Youhavetofacetoughcompetitiontodowellinthisbusiness.Ifyouareaperson
whoispassionatetoestablishacateringcompany,youhavetoknowyourunique
specialtyandpromotetoattractclients.
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29. CHALLENGES IN CATERING BUSINESS
Finances:
Anothermajorchallengefacedbymoststartupcateringcompaniesisfinance.
Duringthestartingstage,youhavetotakecareofvariousthingsforestablishing
yourbusiness.Youneedtohavesufficientfundstopurchaseandmaintainyour
equipment.Moreover,youshouldalsohirestaffstoassistyouinvariousprojects.
Thereareseveralexpensestomanagelikechoosingandbuyingtherightappliances,
trainingstaffmembersandcreatingthecompany.Itisbesttodrafttheplanand
expensesinvolvedinapaperbeforestartingthecompany.Arrangethecashand
thenthinkaboutgettingintothebusinesstomanagethingssmoothly.
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30. CHALLENGES IN CATERING BUSINESS
The scarcity of orders
Itiscommoninthecateringbusinesstoremainwithoutordersatcertaintimes.
Duringweddingmonths,thedemandwillbemorebutinothermonths,youwould
getamixofpartyandfunctionorders.Attimesofoffseason,youwouldnothave
manyorders.Thebusinesskeepsgrowinguntiltherearecelebrationsandparties
goingon.Oneofthebestwaystodevelopyourcateringbusinessistodevelopyour
cateringportfoliointhebestway.Thisway,youcantakeupvariouskindsof
cateringfoodsandfordifferentevents.Itisalsorecommendedtochooseauxiliary
sellinginthesamecateringindustrylikesellingcateringassociatedequipment.
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31. CHALLENGES IN CATERING BUSINESS
Management:
Oneofthemostimportantfeaturesofanybusinessismanagement.Thesuccessof
yourbusinessmostlydependsonhowyouhandle.Itmaybechallengingtohandle
severalthingsatonce.Agoodmanagershouldbetalentedtohandlecooks,
dishwashers,serversandalsomakesuretheymaintainhygienethroughout.The
bestcatererswereabletoaccomplishatoppositionbecauseofexcellent
managementskills.Nobodywouldwishtocompromisewhenitisfood.Everyone
wouldexpectvalueformoney.Youcangrowfasteronlywhenyouoffervaluable
servicestoclients.
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32. CHALLENGES IN CATERING BUSINESS
Food waste:
Itisanothermajorissuethatremainshighlychallengingtohandleinacatering
business.Whenyouaretryingtomeetyourclientrequirements,therearechances
foryoutocookandserveextrafood.Alotoffoodwouldgetwasteinthemajorityof
functions.Youneedtoknowhowtomanagethisissueinasmartmanner.Itisbest
totieupwithNGOssothatyoucanservethefoodthatisnotusedattheparty.
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33. CHALLENGES IN CATERING BUSINESS
Planningandcontingencies—Onechallengeisdetermininghowmuchfoodto
prepareforagivennumberofpeople,howmanystaffyouneedtodothis,andwhattodo
ifsomethinggoesamiss.Foroutdoorvenues,there’salwaystheriskofgettingrainedout;
inthiscase,youneedacontingencyplan.
Staff—Torunasuccessfulcateringbusiness,youneedalotofemployeestoperforma
numberofdifferenttasks.Eventhoughlaborcostsarehigh,manyownershaveahard
timeretainingemployeeswholeaveinsearchofhigher-payingjobs.
Leavenotrace—Ingeneral,youhavetoarriveatthesitewithallthenecessary
equipmentinperfectcondition,setitup,andthenonceyou’refinished,youmusttakeit
allawaysoitlooksasthoughyouwereneverthere.Inadditiontoservingmanypeople
andmakingalotoffood,youhavetomoveasmallrestauranttwiceinaday.
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34. CATERING INDUSTRY
SOURCE :
•Enotes
•Websites
•Expert knowledge
•Books
THANK YOU
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