Catering Study Notes 2

what is catering?
providing food and beverages for various occasions based on pre-agreed arrangements between customers and caterers

what are some catering operations?
- food and drinks are pre-selected before event participants arrive
- cost is pre-negotiated based on the volume of event participants
- menu is limited and chosen by the client

what are some restaurant operations?
- food and drinks are selected when customers arrive
- cost is determined based on customers' requests at the time
- menu is less limited than catering operations and determined by the chef/owner

what is the difference between catering and restaurant operations?
- catered food is pre-prepared before the event, only brief final cooking, reheating, or assembly prior to service
- restaurant food is prepared after customers maker orders, start from scratch to master piece

what is institutional catering?
it provides food and beverage services on an ongoing basis

what is social catering?
it provides food and beverage services for a single event or occasion

what is commercial catering?
for a profit

what is non-commercial catering? and what are some examples?
- non-profit
- money still matters
- health care facilities, school catering, and transportation food service

what is on-premise catering?
- the event is held exclusively within the caterer's own facility
- the food production area is connected to where people dine

what is off-premise catering?
- the event is held someplace else where the transportation of food and beverages is required
- the food production area is not connected to the dining area

why do we use classifications?
- know who we are and what we can do
- know who my customers will be and what will be their needs
- know what special issues a caterer needs to handle

what makes a good caterer?
- organizational skills
- time-management skills
- ability to multitask
- friendly,

what is necessary to survive in the catering business?
create your own identity

what is a niche?
specialized product/service created to meet a unique group's needs

what are examples of special types of events?
- wedding
- business luncheons
- special clubs/groups

what are examples of special types of cuisines?
- organic foods
- special diets
- international cuisines

when would the niche market not be profitable?
when the external environment changes

how do you ensure you are in the niche market?
- don't just read cooking books or business textbooks
- get to know your customers by talking to them
- read different journals/magazines to know what is going on in the market
- not just on-line surfing, printed media should also be considered

what do you need for on-premise catering?
- enough space for kitchen, dining, and parking
- good in traffic accessibility, visibility, and security
- potential considerations for future expansion and renovation

what are benefits of on-premise catering for restaurants?
- existing kitchen facility and staff reduce the cost
- since the business already has food and beverages operations on a daily base, the purchase, the preparation, and the service will not be an issue to the caterers

what is a disadvantage of on-premise catering for restaurants?
- loss of profits form regular patrons if you close business for catering event
- it sometimes blinds caterers' awareness of their loss from regular customers and may lead to bad word of mouth

what are advantages of on-premise catering for hotels and resorts?
- having banquets will gain profits in low seasons
- packages, banquet rooms, and various room settings are attractions to consumers

what are other types of businesses that offer on-premise catering?
- restaurants
- hotels/resorts
- cruise lines
- country clubs
- private clubs
- banquet halls
- religious groups

what is an advantage of off-premise catering?
- they do not have their production area attached to their dining area, so they have the flexibility to go places based on customers' requests
- they give customers more convenience and privacy

what are disadvantages of off-premise catering?
- could be time consuming to transport foods to destination
- potential hazard to food quality
- limit availability for multiple catering events at the same time

what are reputable institutional on-site catering companies?
- Sodexho
- Aramark
- Compass

how much of the total revenue is generated by the largest 4 industry operators?
less than 10%

what are 2 barriers to entering the catering industry?
- no large or dominant firms
- stringent food handling and preparation health and safety regulations

what types of risks are involved in catering?
- financial risks
- legal regulations
- marketing
- management

what are some marketing risks?
- can you get to your niche market?
- do you know your customers?

what are some financial risks?
- do you have sufficient funds for sustaining your business?
- do you have to pay extra money, such as rent and utilities, due to the location?

what are some legal regulations?
- how long does it take to acquire business permits?
- what are the regulations?
- how about fire/sanitation inspections and standards?

what are some management risks?
where can you find your team members?

how long should you prepare to pay for fixed expenses in cash?
6 months