There is much more to catering than meets the eye. People might think it looks easier than running a restaurant because you don’t have daily operations, but a lot can go wrong if you don’t know what you are doing.
Beginners make some common mistakes in the catering business. You need to pay special attention to the following areas so you can be successful while catering events.
Quality Catering Insurance
Catering insurance is a requirement at most event venues. Moreover, since every event is different, and there is a lot to plan for, insurance helps to have peace of mind.
There is so much that can go wrong in the catering business that a business must have a comprehensive catering insurance policy. Your policy should include general liability, commercial auto, commercial property, and worker’s compensation coverage to protect your assets and employees fully.
General liability will cover your catering business from damages due to a wide range of risks associated with accidents, injuries, and legal fees. In addition, these policies will help you pay for medical payments, property damage, and legal fees, if necessary.
In order to manage risk effectively, you also need to make sure that you have your vehicle or catering van insured with a commercial policy, as a personal policy won’t cover you if you have an accident driving to one of your events.
And of course, worker’s compensation insurance is usually required whenever you have employees. In addition, worker’s compensation can help cover lost wages and medical expenses in the event of an injury.
It’s a good idea to look at bundled policies for your catering business so that you can save money by getting only the coverage that you need.
Licensed to Serve Alcohol
If you are a licensed caterer, you will need a special liquor license to serve alcohol at a catered event.
Do not assume that the event coordinator has taken care of licenses and permits, because unless you have a liquor license as a caterer, you will be selling liquor without a license if you handle the alcohol at the event.
Even if you are licensed, make sure you have a conversation with the event coordinator about whether or not alcohol will be served at an event that you cater. The requirements are different in all states and can even be different in some towns and counties, so be sure to check your local regulations if you are catering an event that includes alcohol service.
The Right Amount of Staff
Since labor is often one of the biggest expenses in any business, it is important that you properly judge how much staff you will need. Too many, and it will eat up all your profits. Too few and you won’t be able to provide adequate service.
The number of staff will depend on the event’s size and your business’s size, but generally, you need at least one server for every 25 guests. If the meal has more courses, you will need more servers, up to one server for every 8-12 guests.
There are also many other positions that you will need to staff, including a supervisor, chef, bus boys, and dishwashers. How well they are trained and how familiar they are with your operation is also a key part of how many staff you will need. Obviously, well-trained staff can accomplish much more than new staff, so consider that when you staff your events.
Catered events take a lot of planning and preparation, and working an event can be a long, tiring day. This is another important consideration to take into account.
The Right Amount of Food
Running out of food at a catered event is probably one of the worst things that can happen in the catering business, however, by planning for more people than the final headcount and budgeting that into your cost, you can make sure that you don’t run out of food.
It can be hard to judge how much food you need at a catered event no matter how well you plan, but if you know who you are serving, it is easier. Seniors tend to eat less than hard-working men, for example. Also, consider the length of the event and what type of food you are serving. The longer the food is available, the more will be consumed.
The type of service is important, too. It is different to serving a plated meal than serving a buffet, for example.
Communication
Communicating thoroughly with the event planner is critical for the success of your catered event.
When to arrive, when to serve the food and when to clean up all hinges on the schedule of events.
Food doesn’t stay hot indefinitely, and you also risk using unsafe food practices if you leave it out for too long. Make sure you know when food will be served, and how long it will stay out. Staying in communication with the event planner in the days leading up to the event and during the event will ensure that you agree about the schedule.
Planning is the Key to Success
If you plan well and avoid these common mistakes, you will be successful in your catering business. Make sure that you continue to communicate and update your plan as you get closer to the event, and you will be sure to make your guests happy.