Competitor Name
Brief Overview of Competitor
[Sender.Company] will provide its client with the following competitive advantages:
(Competitive Advantage 1)
(Competitive Advantage 2)
[sender.company] ’s branding and positioning.
The [Sender.Company] brand is renowned for its unique value proposition within the catering industry:
[Sender.Company] is known for its extensive menu offerings, providing breakfast, lunch, and dinner customization.
The company is committed to serving top-tier cuisine prepared by skilled chefs and presented by a team of sophisticated servers.
At [Sender.Company] , excellent customer service is a hallmark.
[Sender.Company] stands out with its creative approach, offering innovative event themes and concepts.
The company prioritizes and accommodates various dietary needs, demonstrating a commitment to eco-friendly practices and guest preferences.
[Sender.Company] provides comprehensive event planning services, including venue selection, décor, and entertainment.
These unique values define [Sender.Company] and highlight its dedication to delivering exceptional catering and event experiences.
[Sender.Company] anticipates its primary customer base to encompass individuals residing or working within the area of the establishment. The company's comprehensive promotional strategy to engage this demographic comprises various components.
The catering business will proactively encourage delighted clients to refer other companies or individuals by providing financial incentives for each successful referral.
[Sender.Company] will initially invest in advertising placements within local newspapers and event publications to enhance brand awareness.
[Sender.Company] will utilize local business mailing lists and business association databases to distribute informative materials to nearby businesses. These materials will offer insights into the company's offerings, feature discounts, and incentivize individuals to consider [Sender.Company] for their catering needs.
Outreach efforts will extend to local and regional newspapers and television stations, where press releases detailing the company's launch and its unique value proposition will be disseminated.
To maintain an active online presence, [Sender.Company] will maintain an informative website and circulate a monthly email newsletter.
Proactive interaction with prospective clients and strategic collaborators on diverse social media platforms, including (List relevant social media platforms), will enable the business to remain responsive to evolving customer requirements and preferences.
[Sender.Company] prioritizes catering to a wide range of client budgets while consistently delivering exceptional catering services. Recognizing the catering industry's susceptibility to price fluctuations, often driven by external factors, [Sender.Company] is firmly committed to offering competitive pricing that appeals to a broad clientele and reduces accessibility barriers. Additionally, a robust cost management strategy will be implemented to maximize profitability.
(Payment Option 1)
(Payment Option 2)
(Payment Option 3)
(Payment Option 4)
By offering these versatile payment alternatives, [Sender.Company] aims to ensure that its valued clients have a range of choices to align with their financial needs and preferences, ultimately enhancing their overall satisfaction. These options can be adjusted to remain responsive to market dynamics and evolving customer demands.
Date | Milestone |
---|---|
(MM/DD/YY) | (Milestone 1) |
(MM/DD/YY) | (Milestone 2) |
(MM/DD/YY) | (Milestone 3) |
These milestones underscore [Sender.Company] 's unwavering commitment to making consistent and measurable strides in its pursuit of success within the (Industry Name).
Source and use of funds.
[Sender.Company] will be receiving (Amount) from (Source of Fund) to launch its catering business. The funds will be used for capital expenditures, labor costs, and acquiring supplies and equipment. The following table shows the proposed startup costs:
Name | Price | QTY | Subtotal |
---|---|---|---|
Item 1 Description of first item | $35.00 | 5 | $175.00 |
Item 2 Description of second item | $55.00 | $55.00 | |
Item 3 Description of third item | $200.00 | $200.00 |
Subtotal | $230.00 |
Discount | -$115.00 |
Tax | $23.00 |
Total | $138.00 |
These are [Sender.Company] 's pro forma financial statements for the next five (5) years. It contains the business's income statement, balance sheet, and cash flow statement.
[Recipient.FirstName] [Recipient.LastName]
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Here is a free business plan sample for a catering company.
Have you been toying with the idea of launching a catering business but feel overwhelmed about where to start?
Look no further, as we're about to guide you through a comprehensive business plan tailored for the catering industry.
Creating a solid business plan is a crucial step for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to turn your catering dreams into a thriving reality.
To streamline your planning process and get you started on the right foot, feel free to utilize our catering business plan template. Our team of professionals is also on standby to provide a free review and fine-tuning of your plan.
A good business plan for a catering business must be tailored to the unique challenges and opportunities of the catering industry.
Initially, it's important to provide a comprehensive overview of the catering market. This should include current statistics and an analysis of emerging trends, similar to what we've outlined in our catering business plan template .
Your business plan should articulate your vision clearly, define your target market (such as weddings, corporate events, private parties), and establish your catering company's distinctive approach (gourmet, budget-friendly, ethnic cuisines, etc.).
Market analysis is a critical component. You'll need to thoroughly research local competitors, understand industry trends, and identify the preferences of potential clients.
For a catering business, it's imperative to detail your menu offerings. Describe your range of cuisines, menu flexibility for dietary restrictions, and how your selections cater to the tastes and needs of your intended clientele.
The operational plan is vital and should cover the logistics of your catering operations. This includes the location of your kitchen, the layout for food preparation and storage, supplier relationships for ingredients, and the logistics of transporting food to event venues.
Quality control is paramount in catering. Your plan should highlight your commitment to food quality, preparation standards, and adherence to health and safety regulations.
Marketing and sales strategies must be addressed. How will you build a client base and foster repeat business? Discuss promotional tactics, networking strategies, and customer service excellence.
Incorporating digital marketing efforts, such as a professional website and active social media engagement, is crucial for modern businesses.
The financial section is a cornerstone of your business plan. It should outline your startup costs, projected revenue, operating expenses, and the point at which you expect to turn a profit.
Catering businesses often deal with fluctuating costs and varying client demands, making financial planning especially important. To assist with this, consider using our financial forecast for a catering business .
Compared to other business plans, a catering business plan must address specific factors such as menu diversity, event-specific logistics, staffing for different types of events, and the scalability of services.
A comprehensive business plan is a tool for clarifying your strategy and attracting investment or loans.
Investors and lenders will look for a thorough market analysis, sound financial projections, and a clear plan for managing the complexities of catering operations.
By presenting a detailed and substantiated business plan, you showcase your professionalism and dedication to the success of your catering enterprise.
To streamline the planning process and ensure you cover all necessary elements, you can start with our catering business plan template .
Here, we will provide a concise and illustrative example of a business plan for a specific project.
This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.
To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.
All these elements have been thoroughly included by our experts in the business plan template they have designed for a catering .
Here, we will follow the same structure as in our business plan template.
Market overview and potential.
The catering industry is an essential segment of the food services market, offering vast opportunities for growth and innovation.
As of recent estimates, the global catering market size is valued at several billion dollars, with expectations for continued expansion. This growth is driven by an increase in corporate events, social gatherings, and a general preference for professionally prepared meals for various occasions.
In the United States, the catering industry contributes significantly to the economy, with thousands of catering companies operating across the country, generating substantial revenue annually.
This data underscores the pivotal role that catering services play in the food industry and highlights the potential for new entrants to make their mark.
The catering industry is experiencing a shift towards more personalized and health-conscious dining experiences.
There is a rising demand for organic, non-GMO, and locally sourced ingredients, as clients are more aware of the health and environmental impacts of their food choices.
Customization is becoming increasingly important, with clients seeking unique and tailored menus to suit dietary restrictions and personal preferences, such as gluten-free, keto, or vegan diets.
Technology is also playing a role in transforming the catering business, with online ordering systems and event management software streamlining operations and enhancing customer engagement.
Sustainability practices are being integrated into catering operations, from reducing food waste to using eco-friendly packaging and utensils.
These trends are shaping the future of catering, as providers adapt to the evolving demands of modern consumers and event planners.
Several factors contribute to the success of a catering business.
High-quality food that is both delicious and presented elegantly is fundamental to a caterer's reputation and client satisfaction.
Versatility in menu offerings allows a catering service to accommodate a wide range of events and dietary needs, enhancing its marketability.
Strategic partnerships with event planners, venues, and suppliers can lead to a steady stream of business and opportunities for growth.
Exceptional customer service, including clear communication and the ability to execute events flawlessly, is critical for building trust and repeat business.
Efficient operations, including cost control, inventory management, and staff training, ensure that the business runs smoothly and profitably.
Adapting to industry trends, such as incorporating sustainable practices and leveraging technology, will position a catering company as a forward-thinking and competitive player in the market.
Project presentation.
Our gluten-free catering service is designed to cater to the increasing number of individuals with gluten sensitivities, celiac disease, or those who prefer a gluten-free lifestyle. Strategically positioned to serve both private events and corporate functions, our catering service will provide a diverse menu of gluten-free options, including appetizers, main courses, sides, and desserts, all crafted with premium, certified gluten-free ingredients.
We emphasize the flavor, presentation, and nutritional value of our dishes to ensure a delightful and satisfying dining experience for all our clients.
Our catering business is poised to set the standard for gluten-free dining experiences, enhancing the lives of our clients by accommodating their dietary needs without compromising on taste or quality.
The value proposition of our gluten-free catering service lies in our dedication to delivering a gourmet dining experience tailored to the gluten-free community. We understand the challenges faced by those with dietary restrictions and are committed to providing a diverse menu that is both safe and delectable.
Our pledge to culinary excellence and dietary safety offers peace of mind and enjoyment to our clients, contributing to their health and satisfaction.
We strive to create a welcoming atmosphere for all guests, regardless of their dietary preferences, and are dedicated to educating our clientele about the advantages of gluten-free dining.
As a leader in gluten-free catering, we aim to be a cornerstone in the community, presenting a viable and appetizing alternative to traditional catering options and enhancing the well-being of our clients.
The project owner is a seasoned professional with a passion for catering and a comprehensive understanding of gluten-free dietary requirements.
Armed with experience in event planning and a background in nutrition, the owner is driven to establish a gluten-free catering service that excels in quality, creativity, and customer service.
With a commitment to education and dietary awareness, the owner is dedicated to offering exquisite gluten-free meals that contribute to the health of clients and the success of their events.
Their dedication to culinary artistry and their zeal for exceptional service are the cornerstones of this venture, aiming to enrich the dining experiences of those in need of reliable and delicious gluten-free options.
Market segments.
The market segments for this gluten-free catering service are diverse and multifaceted.
Primary clients include individuals with gluten intolerance or celiac disease who require strict gluten-free diets for their health and well-being.
Additionally, there is a growing demographic of health-conscious individuals who opt for gluten-free meals as part of a lifestyle choice or dietary preference.
Corporate clients seeking to accommodate the dietary needs of their employees or guests during events also represent a significant market segment.
Lastly, event planners and hosts who aim to provide inclusive menu options for weddings, parties, and other social gatherings are potential customers for our services.
Conducting a SWOT analysis for the gluten-free catering business highlights several factors.
Strengths include specialized knowledge in gluten-free meal preparation, a commitment to high-quality ingredients, and the ability to offer a diverse menu catering to various dietary needs.
Weaknesses may involve the higher costs associated with sourcing premium gluten-free ingredients and the complexity of ensuring cross-contamination is avoided.
Opportunities can be found in the increasing awareness and demand for gluten-free options, as well as the potential to partner with health professionals who can refer clients with dietary restrictions.
Threats include the growing number of competitors in the gluten-free catering space and the volatility of prices for gluten-free ingredients.
An analysis of competitors within the gluten-free catering industry shows a competitive landscape.
Direct competitors include other catering services that offer gluten-free menus and restaurants with gluten-free takeout options.
These businesses compete on the basis of menu diversity, ingredient quality, price points, and service excellence.
Identifying competitive advantages such as unique menu offerings, exceptional customer service, and strong partnerships with suppliers can help in carving out a niche in the market.
Understanding the strengths and weaknesses of these competitors is crucial for developing strategies to differentiate and build customer loyalty.
Our gluten-free catering service's competitive advantages lie in our unwavering dedication to quality and customer satisfaction.
We offer a wide array of appetizing and nutritious gluten-free dishes, crafted to meet the needs of our diverse clientele without compromising on flavor or presentation.
Our commitment to educating our clients and their guests about the benefits of gluten-free dining, along with our transparent ingredient sourcing, helps to establish trust and loyalty within our customer base.
Moreover, our adaptability to cater to various event sizes and settings gives us the flexibility to provide personalized and memorable experiences for every occasion.
You can also read our articles about: - how to start a catering company: a complete guide - the customer segments of a catering company - the competition study for a catering company
Development plan.
Our three-year development plan for the gluten-free catering service is designed to establish us as a leader in the industry.
In the first year, we aim to build a strong reputation for our unique gluten-free menus and exceptional service, focusing on corporate events, weddings, and private parties.
The second year will be about expanding our reach by partnering with event planners and venues, and offering our services to a wider array of events and clients.
In the third year, we plan to diversify our offerings with seasonal and culturally diverse gluten-free menus, and to start offering cooking classes and workshops to engage with our community.
We will consistently prioritize the quality of our ingredients, customer service excellence, and innovative menu design to cater to the evolving tastes and dietary needs of our clients.
The Business Model Canvas for our gluten-free catering service targets individuals and organizations looking for high-quality, gluten-free food options for their events.
Our value proposition is delivering a memorable dining experience with a diverse range of gluten-free dishes that do not compromise on taste or presentation.
We offer our catering services through direct engagement with clients, as well as through our website and social media platforms, utilizing our skilled chefs and event coordinators as key resources.
Key activities include menu development, event planning, and client consultations.
Our revenue streams are generated from catering events, while our costs are associated with high-quality ingredient procurement, labor, and marketing efforts.
Access a detailed and customizable Business Model Canvas in our business plan template .
Our marketing strategy is centered on showcasing the quality and creativity of our gluten-free catering menus.
We plan to engage with our target market through food tasting events, partnerships with gluten-free influencers, and by providing educational content on the benefits of gluten-free diets.
Collaborations with nutritionists and dietitians will help validate our offerings and build trust with potential clients.
We will leverage social media platforms and targeted advertising to increase visibility and attract a diverse clientele interested in healthy, gluten-free options for their events.
Our risk policy for the gluten-free catering service focuses on mitigating risks associated with food preparation, ingredient sourcing, and event execution.
We will adhere to strict gluten-free protocols and cross-contamination prevention measures to ensure the safety of our clients with gluten sensitivities.
Regular staff training and quality control checks will be implemented to maintain high standards. We will also manage costs effectively to ensure financial stability.
Comprehensive liability insurance will be in place to protect against any unforeseen incidents related to our catering services.
We are committed to filling a gap in the market with our gluten-free catering service, addressing the needs of a growing demographic that values health and dietary inclusivity.
With our dedication to culinary excellence and customer satisfaction, we believe our business is well-positioned for success in the competitive catering landscape.
We are enthusiastic about the positive impact our service can have on the well-being of our clients and are ready to adapt to the industry's demands to achieve our vision.
We look forward to the exciting opportunities ahead and the chance to become a trusted name in gluten-free catering.
You can also read our articles about: - the Business Model Canvas of a catering company - the marketing strategy for a catering company
Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.
All these elements are available in our business plan template for a catering and our financial plan for a catering .
Initial expenses for our gluten-free catering business include acquiring commercial kitchen equipment designed for gluten-free meal preparation, adapting the kitchen space to comply with food safety regulations, sourcing certified gluten-free ingredients, specialized staff training for proper handling of gluten-free products, as well as costs associated with branding and initiating targeted marketing campaigns to reach our niche market.
Our revenue projections are based on a thorough market analysis of the demand for gluten-free catering services, taking into account the increasing awareness of dietary restrictions and the preference for high-quality, specialized catering options.
We expect a gradual increase in sales, beginning with conservative estimates and expanding as recognition of our gluten-free catering services grows within the community and beyond.
The projected income statement outlines anticipated revenues from our gluten-free catering events, production costs (ingredients, labor, utilities), and operating expenses (facility lease, marketing, staff wages, etc.).
This leads to a forecasted net profit that is essential for assessing the long-term viability of our catering venture.
The projected balance sheet presents assets unique to our business, such as kitchen equipment, ingredient inventories, and liabilities including loans and projected operational costs.
It provides a snapshot of the financial standing of our gluten-free catering service at the conclusion of each fiscal period.
Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial requirements at any point in time. This will be crucial for maintaining financial stability and preventing cash flow issues.
The projected financing strategy identifies the specific sources of funding we intend to utilize to cover our initial costs.
The working capital requirement for our gluten-free catering business will be diligently tracked to ensure we have sufficient liquidity to support our day-to-day operations, which includes ingredient purchases, inventory control, and payroll.
The break-even analysis for our venture will determine the volume of catering events needed to offset all our costs, including the initial investments, and to begin generating profits.
It will signal the point at which our business becomes financially sustainable.
Key performance indicators we will monitor include the profit margin on our gluten-free catering services, the current ratio to evaluate our ability to meet short-term liabilities, and the return on investment to gauge the efficiency of the capital we have deployed into the business.
These metrics will assist us in assessing the financial health and overall success of our gluten-free catering enterprise.
If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a catering company .
Elizabeth started her career at a small local restaurant close to her home. She had big dreams of owning a large catering business.
Three years later, she learned the ropes, worked hard enough to save money and was ready to launch Chefdini Catering.
Hers is a tale of overcoming all odds.
Within five years, Elizabeth expanded her operations. She employed some staff and was raking in around $5 million in revenue annually.
In an era where 20% of new businesses fail within the first two years, according to the US Bureau of Labor Statistics, how did Elizabeth pull this off?
Well, it may have taken five years, but one thing that helped her navigate her journey smoothly was:
…a Catering Business Plan.
And she’s not alone. About 70% of new businesses that manage to survive for five years follow a strategic business plan in the US.
So while several factors contribute to businesses failing within the first couple of years, there’s no doubt lack of a business plan is a major reason.
And this isn’t far-fetched.
Imagine building a house without floor plans. How long do you think it’s going to stand? Not long enough.
That’s precisely what happens when you operate your drop-off catering business without a solid plan. And this has nothing to do with how passionate you are.
Think of a business plan as a roadmap or a guide that outlines your goals and details how you intend to achieve them. It’s central to how you start and grow your business. Also, it turns your visions into a concrete action plan for success.
Having a plan is essential for drop-off caterers hoping to thrive in the current, highly competitive catering industry.
As you read this, over 12,000 establishments are vying for the same customer as you. So running a catering business without a solid plan will only give an opening for your competitors to be many steps ahead of you.
Take Abbey Duke, CEO of SugarSnap Catering, for instance.
From the get-go, part of her strategy was to always stay competitive by serving her customers how they prefer.
So when the pandemic hit and online ordering became the norm, she quickly leaned on HoneyCart’s order automation software to give customers the convenience they desired. And at the same time, to ensure she wasn’t losing sales to her competitors.
In her words:
“But I knew if we didn’t offer online ordering, we’d be losing sales to companies like Panera that make it easy to order. Busy customers expect convenience and will often choose it over quality.”
Making this kind of game-changing decision at a moment’s notice is one of the perks of having a solid business plan.
Now, you may be wondering:
“How do I create an effective catering business plan?” One that gives you an edge over your competitors and sets you on the path to success like Elizabeth.
Well, I got you covered.
We’ve developed a free catering business plan template you can customize to your specific needs. I know, creating a business plan, even with a free template, is still a daunting task for drop-off caterers.
Don’t worry.
As we progress through this article, I’ll guide you on how to create one step-by-step.
Download the free template to follow along with me:
Before we dive in, let’s take a look at some reasons why you must have a catering business plan.
1. it shows you mean business.
Today, technology has made it easy for anyone to start a catering business. Even amateurs can create an Instagram account, post some mouthwatering dishes and wait for orders to flood in.
But is this strategy going to cut it in the long run?
Absolutely not!
If you intend to scale your business, then it starts with a foolproof business plan. One that gives you insight into where your business is headed in the next five to ten years.
Having a business plan also emphasizes the commitment of you and everyone involved. It guides you in making smart decisions that will help scale your operations.
However, a catering business plan isn’t set in stone. This means you can change the plan as you progress. But the overall goals remain the same.
Take Elizabeth, the fictional character I used at the start of this article.
One reason she could expand her business within five years is that she secured investment and raised funds.
And what’s one crucial thing potential investors will ask before giving you funds?
Yep, that’s right – a well-detailed business plan.
Imagine she didn’t have one. She wouldn’t have been able to raise the funds needed to expand her operations.
Here’s why:
Investors like to see your plans for scaling the business, its financial projections, industry analysis, level of risk involved, and so on.
Not having a business plan shows you are not intentional about scaling. And this significantly reduces the chances of securing funds needed to expand.
To drive home my point, Tim Berry, founder of Palo Alto Software , did a survey asking his customers questions about their businesses, goals, and business planning.
The result?
From the above report, you’ll see that those who had business plans were almost twice more likely to grow their businesses by securing capital than those who didn’t write a plan.
This emphasizes the importance of having a business plan.
A business plan isn’t complete without researching and analyzing your competitors.
Because it helps you understand what they are doing, their offerings, pricing, and how you can improve on them.
Michele Levy , an independent brand strategy consultant agrees:
“Keeping track of who your competitors are, what people are saying about them, and what they are saying themselves can help you differentiate your business and stay ahead of trends that could impact your business.”
Furthermore, it’s a way to:
As a result, you can create a strategic plan that will improve your business.
Another benefit of creating a catering business plan is discovering new opportunities to boost your business in ways you never imagined.
Through research and competitive analysis, you may realize there are one or more niches that are underserved in your area.
So, instead of doing what every other drop-off caterer does, you can carve out a niche for yourself by doing something different.
For example, during the global pandemic that crippled catering activities, Chef Jolie of Low Country Quisine needed another source of revenue.
So she went back to the drawing board.
The result? She launched a Gourmet Takeaway Service.
By making it a habit to spot opportunities in market trends, she realized the need for an online ordering platform.
According to her:
“We needed to find new ways to generate revenue during the pandemic. We launched our Gourmet Takeaway Service and needed an online platform for customers to order.”
And if she didn’t do this, here’s what would have happened:
“We would not have been able to reach as many customers without the ability to accept orders and payments online.”
One of the goals of running a business is to hit milestones and achieve major goals.
And the only way to measure your success is to compare results with the actual plan. This way, you can see whether you’ve achieved your operational and financial goals within a specific timeframe.
For example, you set a goal of getting at least 150 customers within six months, expanding to at least four locations within 12 months, or like Elizabeth, hit $5 million annually.
By documenting these goals, not only does it make you committed to achieving them, but it also ensures you have something to measure your success against.
And it will give you a sense of fulfillment when you finally accomplish your goals. Without a doubt, a well-documented business plan fast-tracks achieving your goals.
Now that you know the importance of a catering business plan, let’s look at the essential elements of an ideal business plan.
Creating a catering business plan may sound like a daunting task. But in reality, it isn’t. It’s not much different from the usual business plan.
However, it focuses on elements specific to the food and catering industry.
So what are these elements?
Let’s take a brief look at what each of these elements should contain.
Want to create yours as you go through this guide?
Don’t forget to download (and make a copy) of the template here .
How do you ensure anyone reading your business plan doesn’t disclose the content to other people?
That’s where a confidentiality agreement comes in.
It’s an agreement between you and anyone reading your business plan not to reveal the content to any other person without your permission.
And to be on the safe side, you should have a proper legal counsel review any agreement you use in your business.
So if they do reveal the content, you will have the right protections in place.
Here’s an example of a confidentiality agreement:
The undersigned reader of [Company’s Name] Business Plan acknowledges that the information provided is completely confidential. Therefore, the reader agrees not to disclose anything found in the business plan without the express written consent of [Business Owner’s Name].
It is also acknowledged by the reader that the information to be furnished in this business plan is in all aspects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of the same by the reader may cause serious harm and or damage to [Company Name].
Upon request, this business plan document will be immediately returned to [Business Owner’s Name].
This is a business plan. It does not imply an offer of any securities.
Applicable Law
This contract shall be governed by the laws of the County of ________ in the State of _______ and any applicable Federal law.
________________________________
Printed Name
They say you only get one chance at a first impression. An executive summary is an opportunity to show anyone reading it what your catering business is about.
Chances are, if it lacks specific information or doesn’t capture the reader’s attention, they may not read further.
The executive summary should include a brief introduction to your catering business, your services, and who you cater to.
Here’s an example of an executive summary of Elizabeth’s fictional catering business.
Chefdini is a small catering business located in Georgia. It was founded by Elizabeth White six years ago. We specialize in Asian cuisine but also cater to Mexican and Italian dishes. Chefdini operates off-premise and on-premise catering with a focus on events, retreats, and social gatherings.
At a glance, this brief introduction shows what Chefdini is about, the kind of cuisines they specialize in, and who their audience is. Anyone who reads it can immediately get an idea of what to expect.
The business focus details how you’ll run your business, so anyone reading it will have a clear understanding of plans, goals, and priorities.
Information to include in your business focus are:
Dan Zarrella , an analytical marketing leader and author of four books on marketing once said:
“Marketing without data is like driving with your eyes closed.”
And how do you get this data? Through Market Research.
Market research is the process of gathering information to understand your target market better. As such, it’s a fundamental part of a business plan.
Under market research, you’ll find:
Your clients are the set of people who need your catering services and are most likely to pay for them.
To have any chance of making sales, you need to understand your ideal customers, their pain points, challenges, and how you can take them from point A to their desired point B.
So, any information related to the ideal clients like age, location, gender, income, interests, pain points, or goals would add value here.
The goal is to ensure you are not targeting the wrong audience, which would result in wasted efforts.
But when you narrow down your target audience, you will be better placed to tailor your offerings to fulfill their needs.
As I mentioned earlier, competition in the catering industry gets tougher each day, with more caterers and restaurants springing up. But this doesn’t mean there isn’t enough space in the sky for birds to fly.
However, it’s important to know how to stand out.
And one way to do this is to research your competitors to learn more about their strengths and weaknesses. This way, you’ll discover things that will give you an edge over them.
In addition, well-detailed research about the competition will help you make a realistic assessment of your chances of success in the industry.
Some of the things to add under competitor profiling are:
The word SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
A SWOT analysis is used to evaluate your business’s chances of success and develop a strategic plan. Here you analyze internal and external factors that may help scale your business or throw a wrench in your growth.
A comprehensive catering marketing strategy will be crucial to your success. After all, people will only patronize you if they know your business exists.
How do you plan to market your business? Where are you going to get catering clients from? Which channels do you plan to reach them? What’s your marketing budget?
All these are questions that need answers. So you must include your plans for marketing in your catering business plan. A solid marketing plan should contain:
Don’t forget we have sections in our free template to fill all essential marketing points listed above. Download it here if you haven’t.
Without a doubt, you need money to finance your catering business. But if you don’t have adequate financing, your business will struggle.
Because you’ll need to pay for space, pay your staff, pay for equipment and so on. All these require a sufficient amount of funds.
And if you plan to take online orders, investing in online ordering software is a no-brainer. This will help you:
So if you want to finance your catering business yourself, a financial plan helps you understand how much funds you need, where to cut expenses and what you need to do to become financially sustainable.
And if you plan to source funds through investors, it will provide them with enough information to determine whether they’ll get their return on investment.
Some of the things you need to include in your financial plan are:
Want to know what to fill in these sections? We’ve got you covered. Simply download and make a copy of our free template to fill all essential financial plans listed above.
This is where you add additional information that is referenced in the business plan.
It can include things like:
As you’ve seen, creating a business plan is not as difficult as it sounds.
It doesn’t matter whether you’ve started your business or you are just about to start. A catering business plan is crucial to the success of your business.
It helps you understand your business, your customers, and your competitors. Also, it gives you more insight into the catering industry, market trends, threats, and opportunities.
Another advantage of a business plan is the opportunity to set a budget aside for investing in important things that will contribute to your company’s growth.
For example, investing in commission-free catering software like HoneyCart helps you manage your catering operations without hiring more staff.
This levels the playing field for small business caterers, helps you save cost, and generate more revenue. Just as Abbey Duke, founder of SugarSnap Catering, realized when she switched to HoneyCart.
It automates mundane tasks to allow us to use our time as efficiently as possible. HoneyCart truly enables small caterers to compete with larger companies by having a really professional and easy-to-use online ordering system.
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If you want to start a Catering business or expand your current Catering business, you need a business plan.
You can download the Catering business plan template (including a full, customizable financial model) to your computer here.
The following catering business plan template gives you the key elements to include in a winning plan for your own catering company. In addition to this template, conducting market research for your local customer base will help you identify potential market trends and customer segments to better understand the viability of your catering business.
Below are links to each of the key sections of a sample business plan for a successful catering business.
I. Executive Summary – The Executive Summary provides an overview of your business opportunity and summarizes the business plan.
II. Company Overview – The company analysis includes information about your business concept, catering services and legal structure.
III. Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the catering industry.
IV. Customer Analysis – The customer analysis provides an overview of your target market.
V. Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.
VI. Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and search engine optimization plan.
VII. Operations Plan – The Operations Plan includes information on your company’s day to day operations and processes.
VIII. Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.
IX. Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.
Download the Catering business plan template (including a full, customizable financial model) to your computer here.
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Published Nov.11, 2016
Updated Apr.22, 2024
By: Brandi Marcene
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If you are planning to start a catering company, you need to have a professional catering business plan. OGS Capital can help you with that; we have a team of professional business personnel and writers who work with us on a daily basis to ensure that clients get customized plans for their business. We strive to make sure that we deliver the final copy of the business plans for catering companies to the customer on time, and this has so far helped us to get referrals and returning customers.
The quality of your catering company business plan will determine whether you will get capital from investors and financial institutions. Hence, it is important to make sure that every detail in the plan is factual and verifiable before presenting it to the investors or banks.
Here are four tips for writing a good business plan for your catering company.
Adhering to these four tips will help you to come up with business plans for catering companies that you will not be afraid to present and defend when pitching the business idea to the financial institution. Let us proceed and discuss the primary benefits of having an expertly written small catering business plan.
Every decision that you make will have a positive or negative impact on your catering business. It is, therefore, important to make sure that you consider all the plausible direct and indirect effects that a resolution may have on the enterprise before implementing it to avert regrets.
A good catering company business plan will act as a blueprint that will guide you through the decision-making process. Our team will work hard to make sure that each recommendation made is right for your business. Without a catering company business plan , rest assured that you would be prone to making hasty decisions that could plunge your business in deep financial crisis.
Unknown to most people is that a catering company business plan does not aim to discuss the business idea only. It goes an extra mile to provide precise details of how the funds will be spent at every stage of the business growth. For instance, it describes the total amount of money that will be used to acquisition equipment. Hence, it will be instrumental in helping you manage your funds correctly. Note that it only takes one financial mistake to compromise the financial stability of the business.
Transparency and proper management are the two primary virtues that set professional catering companies from their counterparts. Poor or lack of transparency results in losses and unnecessary disagreements. All this information will be included in the plan to not only increase your chances of getting funding but also to help you make informed managerial decisions.
The marketing teams need to have sales goals that they want to achieve after a given duration. Without these goals, they will be operating in a void, and you will also not be able to monitor their performance.
Our marketing professionals will not only help you to come up with a marketing strategy but also provide ideas on how you should set sales targets and objectives.
If you are looking for professional business plans for catering companies that will enable you to enjoy these four benefits, get in touch with us by filling this form. One of our customer care business consultants will get in touch with you to discuss our services in details.
Catering is a business in which you provide food to remote locations to serve people at parties, ceremonies, events, filming sites, and hospitals, etc. The service can sometimes also include the provision of furniture, tables, chairs, utensils, and crockery.
If you are a person who wants to start a business that holds minimum risks, takes a small team and a little investment, then catering is the right choice for you. Besides, another good thing about this business is that it starts yielding profits as soon as it is launched.
What you need to do is just ensure that you manage and market your business plans for catering companies properly. For that purpose, the first step to take is making a business plan for catering. If you need any help regarding how to start a catering business plan, you can have it from here. Here we are providing a business plan for a catering startup, Marlon Caterers.
2.1 the business.
Marlon Caterers will be a registered and licensed catering business in Atlanta. The business aims to help people celebrate their memorable events with an unforgettable dinner. Moreover, the business will also take care of the needs of patients in hospitals by offering them healthy and nutritious food according to their doctors’ advice.
The business will provide several types of catering such as buffet catering, sit-down catering, hospital catering, corporate catering, and more.
Management is a very important factor in the catering business. It’s only through efficient management that you can ensure
To maintain a good reputation among your customers, you must know all the difficulties and risks you can encounter. The risks may include budget disruptions due to sudden cancellation of orders, or any small/ large mistake during the business operations.
Before starting a catering business, you should study many catering business startup plans and then prepare a set up catering business plan for your business.
Our target customers belong to various niches. They will include the residential community, business organizations, film studios, government institutions, and hospitals.
In this how to start a catering company sample business plans for catering companies we are enlisting the business targets set by Marlon Caterers.
3.1 company owner.
Marlon Redford will be the owner of Marlon Caterers. Marlon has acquired a degree in Business Administration from McDonough School of Business. Marlon has been serving on a managerial post in New York’s top luxury wedding planner company, Colin Cowie for four years. But a few months back, he decided to quit the job and start his own business.
Marlon always wanted to have a career in which he could utilize his creative ideas to serve his community. He loved food and had an interest in cooking as well. So he decided to make a small team and start a business plans for catering companies .
The first step before starting a catering business is creating a description of catering business plan. Your catering company business plan should cover all aspects such as startup expenses, market analysis, sales strategy, personnel plan, and an extensive financial plan for your business.
In this catering company business plan example, we have listed the business strategy created by Marlon Caterers. Marlon devised his start a catering company business plan himself as he had adequate knowledge to do so. If you don’t know how to write a business plans for catering companies , you should either take help from this sample business plan for catering service. Or you should hire a professional person.
Marlon will rent a facility in Atlanta to set up his office there and keep the inventory. He will purchase luxurious crockery, flatware, tableware, chairs, tables, and sofas to host high-end events. To serve the other categories of target customers, inventory that comes in reasonable rates will also be acquired.
Besides, Marlon will hire the general staff, chefs, waiters, and some supervisors to help him run the business.
The start-up requirements, start-up expenses, total assets, funding, liabilities, planned investment, and other parameters for the successful launch of the business are given below.
Legal | $251,000 |
Consultants | $0 |
Insurance | $30,000 |
Rent | $28,000 |
Research and Development | $25,000 |
Expensed Equipment | $57,000 |
Signs | $5,400 |
Start-up Assets | $317,500 |
Cash Required | $348,000 |
Start-up Inventory | $55,000 |
Other Current Assets | $211,000 |
Long-term Assets | $227,000 |
Start-up Expenses to Fund | $396,400 |
Start-up Assets to Fund | $1,158,500 |
Assets | |
Non-cash Assets from Start-up | $1,531,000 |
Cash Requirements from Start-up | $364,000 |
Additional Cash Raised | $54,000 |
Cash Balance on Starting Date | $32,000 |
Liabilities and Capital | |
Liabilities | $28,000 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $46,000 |
Other Current Liabilities (interest-free) | $0 |
Capital | |
Planned Investment | $1,554,900 |
Investor 1 | $0 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Loss at Start-up (Start-up Expenses) | $352,100 |
Before you start a business plans for catering companies , you must identify the services you can provide under the catering domain. Including your services in your business plan about catering, can help you in acquiring the right licenses, required inventory, and relevant staff.
In this template of a catering business plan we are enlisting the services provided by Marlon Caterers.
We’ll offer on-premise and off-premise catering in the following categories.
In this catering, our waiters will lay out the food on individual tables. So, the guests will have to eat whatever is laid out on the plates for them.
In this type of serving we will serve the dishes and food in one place. The guests will have to prepare their plates themselves according to their needs and wants.
Our wedding or party dinner will be preceded by a cocktail hour. Our cocktail servings will include Manhattan cocktail, Daiquiri, Margarita, Bloody Mary, Mojito, and Hurricane.
We will supply food, snacks, and drinks to film studios, production sets, and shooting sites located near us. As the film crew works on a particular site on a weekly or monthly basis, so we’ll offer them various weekly and monthly packages.
We’ll offer fresh, healthy, and nutritious foods to hospitals for patients. Our nutrient-rich meals will help them recover fast.
If you are starting a business plan for catering companies , you should focus on doing accurate marketing analysis. Through market research, you can identify local trends and expectations. Besides, you can also select the most suitable location to launch your startup.
Marketing analysis should be completed before you create a business plans for catering companies. Because it will help you in recognizing your customers and setting your prices accordingly while also making sure that you are not running at a loss.
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The demand for the catering business has been high in the last few years. Due to a boost in average household income, more people had started utilizing private catering services to hold events. However, there is a slight problem these days. Due to the coronavirus pandemic mass gatherings aren’t allowed. So, your business might suffer a loss in the initial phases if you only provide catering for wedding ceremonies and parties. Marlon found the solution to this problem as he decided to offer hospital and film catering too.
Overall, business is surely profitable. According to First Research, catering industries in the U.S. make up above $11 billion in revenue on annual basis. More than 12000 catering industries are running in the U.S. Moreover, Statista also reports that the market size of this business has reached $12 billion in 2020.
Before you think how to write a business plan for a catering business, you should consider who will be your customers. Knowing your customers will enable you to devise customer-oriented pricing and sales strategy.
In this sample of business plans for catering companies , we have listed the market segmentation done by Marlon Caterers.
The detailed marketing segmentation of our target audience is as follows:
5.1.1 residential community.
The biggest consumer of our services will be the residents of Atlanta. They are expected to avail of our catering services whenever they host birthday or anniversary parties, gatherings, wedding ceremonies, etc.
The second category includes business organizations that will need our catering for their business meetups, events, and parties. They are also expected to contact us for arranging just a cocktail party as that contains light refreshments and drinks to boost the energy level of workers.
Moreover, film studios that happen to shoot in Atlanta will also be needing our services. This group usually spent weeks and months on a particular site and thus need catering service continuously for days. So to compel them to hire us, we’ll offer them various weekly and monthly packages.
The last category of our target customers include hospitals based in Atlanta. They are expected to contact us for making nutritious and healthy plated foods for patients.
Potential Customers | Growth | ||||||
Residential Community | 34% | 34,000 | 35,000 | 38,000 | 40,000 | 43,000 | 10.00% |
Corporates & Film Producers | 39% | 37,000 | 38,000 | 39,000 | 40,000 | 41,000 | 10.00% |
Hospitals | 27% | 26,000 | 27,000 | 28,000 | 30,000 | 31,000 | 11.00% |
10% |
Our business plans for catering companies targets to be achieved within a specified time are listed below
Our prices are almost within the same range as that of our competitors. However, we’ll be offering several discounts on our initial stage to attract as many customers as possible.
Sales strategy is also an important component of a catering business plan proposal. Through this, you can reach your qualified customers and make them comprehend that you are better than all your competitors. To give you an idea of what to include in sales strategy, we are providing the sales strategy of Marlon Caterers in this example of marketing plan for a catering business.
Our biggest competitive advantage lies in our customer service. We are highly customer-oriented and are always willing to go the extra mile to satisfy our customers. Secondly, we have developed a user-friendly mobile app that will allow our customers to
Third, we provide on-premise catering in which we prepare the food on site. This will be a competitive edge for us as just two to three competitors are offering it.
Unit Sales | |||
Sit-down Catering/ Buffet Catering | 42,000 | 44,520 | 47,191 |
Cocktail Reception | 29,000 | 30,740 | 32,584 |
Snacks For Film Production Sites | 28,000 | 29,680 | 31,461 |
Hospital Catering | 30,000 | 31,800 | 33,708 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Sit-down Catering/ Buffet Catering | $56.00 | $64.96 | $75.35 |
Cocktail Reception | $52.00 | $60.32 | $69.97 |
Snacks For Film Production Sites | $42.00 | $48.72 | $56.52 |
Hospital Catering | $39.00 | $45.24 | $52.48 |
Sales | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Sit-down Catering/ Buffet Catering | $54.00 | $60.00 | $71.00 |
Cocktail Reception | $47.00 | $57.00 | $65.00 |
Snacks For Film Production Sites | $38.00 | $45.00 | $51.00 |
Hospital Catering | $36.00 | $41.00 | $47.00 |
Direct Cost of Sales | |||
While writing business plans for catering companies you should also create a list of your required employees along with their job responsibilities.
Marlon will manage the business himself. However, he will hire the following people
Quality Manager | $13,000 | $14,300 | $15,730 |
Inventory Manager | $12,000 | $13,200 | $14,520 |
Accountant | $10,000 | $11,000 | $12,100 |
Sales Executives | $18,000 | $19,800 | $21,780 |
Catering Chefs | $48,000 | $52,800 | $58,080 |
Waiters | $24,000 | $26,400 | $29,040 |
General Assistants | $15,000 | $16,500 | $18,150 |
Drivers | $13,000 | $14,300 | $15,730 |
Front Desk Officer | $7,000 | $7,700 | $8,470 |
Web Developer | $8,000 | $8,800 | $9,680 |
As you make a catering business plan, you should also start analyzing your finances. Crafting a financial plan is an absolute need for a business as it maps the ways to minimize or even avoid loss. A good financial plan comprises a strategy to cover startup expenses with earned profits. Moreover, it also proposes a systematic approach to managing employees’ salaries, cost of business operations, and costs to cater for unexpected events.
To give you an idea of how a financial plan should look like, we are giving here the financial plan of Marlon Caterers.
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 8.13% | 8.18% | 8.25% |
Long-term Interest Rate | 8.30% | 8.39% | 8.46% |
Tax Rate | 23.05% | 24.67% | 25.90% |
Other | 0 | 0 | 0 |
Monthly Units Break-even | 5360 |
Monthly Revenue Break-even | $134,800 |
Assumptions: | |
Average Per-Unit Revenue | $239.00 |
Average Per-Unit Variable Cost | $0.64 |
Estimated Monthly Fixed Cost | $162,300 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | |||
Expenses | |||
Payroll | $168,000 | $184,800 | $203,280 |
Sales and Marketing and Other Expenses | $130,000 | $132,000 | $135,000 |
Depreciation | $2,200 | $2,280 | $2,350 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $3,200 | $3,300 | $3,400 |
Insurance | $1,700 | $1,800 | $1,900 |
Rent | $3,300 | $3,400 | $3,510 |
Payroll Taxes | $37,000 | $38,000 | $40,000 |
Other | $0 | $0 | $0 |
Profit Before Interest and Taxes | $85,600 | $202,538 | $336,174 |
EBITDA | $85,600 | $202,538 | $336,174 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $17,120 | $40,508 | $67,235 |
Net Profit | $68,480 | $162,030 | $268,939 |
Net Profit/Sales | 1.10% | 2.12% | 2.87% |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $56,000 | $60,480 | $65,318 |
Cash from Receivables | $17,000 | $18,360 | $19,829 |
SUBTOTAL CASH FROM OPERATIONS | |||
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | |||
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $35,000 | $37,000 | $39,000 |
Bill Payments | $19,000 | $19,600 | $20,000 |
SUBTOTAL SPENT ON OPERATIONS | |||
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | |||
Net Cash Flow | $14,000 | $15,000 | $16,000 |
Cash Balance | $24,000 | $25,400 | $27,800 |
Assets | |||
Current Assets | |||
Cash | $279,000 | $312,480 | $343,728 |
Accounts Receivable | $25,000 | $28,000 | $31,472 |
Inventory | $5,300 | $5,936 | $6,678 |
Other Current Assets | $1,000 | $1,000 | $1,000 |
TOTAL CURRENT ASSETS | |||
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $18,700 | $20,944 | $23,562 |
TOTAL LONG-TERM ASSETS | |||
TOTAL ASSETS | |||
Liabilities and Capital | Year 4 | Year 5 | Year 6 |
Current Liabilities | |||
Accounts Payable | $18,000 | $20,160 | $22,660 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | |||
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | |||
Paid-in Capital | $30,000 | $30,000 | $30,000 |
Retained Earnings | $56,300 | $61,367 | $67,504 |
Earnings | $195,000 | $212,550 | $233,805 |
TOTAL CAPITAL | |||
TOTAL LIABILITIES AND CAPITAL | |||
Net Worth | $268,000 | $292,120 | $321,332 |
Sales Growth | 7.31% | 8.10% | 8.97% | 3.00% |
Percent of Total Assets | ||||
Accounts Receivable | 9.35% | 10.36% | 11.48% | 9.80% |
Inventory | 5.38% | 5.96% | 6.60% | 9.90% |
Other Current Assets | 2.43% | 2.69% | 2.98% | 2.40% |
Total Current Assets | 150.00% | 152.00% | 152.00% | 158.00% |
Long-term Assets | 11.98% | 12.07% | 12.10% | 12.00% |
TOTAL ASSETS | ||||
Current Liabilities | 4.66% | 4.70% | 4.74% | 4.34% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
Total Liabilities | 7.31% | 7.37% | 7.44% | 7.38% |
NET WORTH | ||||
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 93.90% | 96.44% | 99.14% | 99.00% |
Selling, General & Administrative Expenses | 93.20% | 95.72% | 98.40% | 97.80% |
Advertising Expenses | 1.60% | 1.64% | 1.69% | 1.40% |
Profit Before Interest and Taxes | 42.00% | 43.13% | 44.34% | 33.90% |
Main Ratios | ||||
Current | 35 | 37 | 38.75 | 32 |
Quick | 33 | 36 | 36.9 | 33 |
Total Debt to Total Assets | 0.22% | 0.18% | 0.17% | 0.40% |
Pre-tax Return on Net Worth | 76.00% | 76.40% | 77.12% | 75.00% |
Pre-tax Return on Assets | 92.18% | 96.79% | 101.63% | 111.30% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 33.40% | 34.44% | 35.50% | N.A. |
Return on Equity | 55.20% | 56.91% | 58.68% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 7.7 | 7.8 | 7.9 | N.A. |
Collection Days | 100 | 100 | 100 | N.A. |
Inventory Turnover | 32 | 33.6 | 35.28 | N.A. |
Accounts Payable Turnover | 16.3 | 16.4 | 16.6 | N.A. |
Payment Days | 27 | 27 | 27 | N.A. |
Total Asset Turnover | 2.5 | 2.6 | 2.7 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | -0.03 | -0.04 | -0.04 | N.A. |
Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $237,650 | $250,958 | $265,012 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
Current Debt/Total Assets | 1% | 1% | 0% | N.A. |
Acid Test | 28 | 29.1 | 30.5 | N.A. |
Sales/Net Worth | 2.1 | 2.2 | 2.4 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
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Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
Society lacks resources for the less privileged or homeless youth population. Eugene, like all the other cities, has a migration of homeless teenagers who have run away from home. They are here for a few months of the year and then they hitch down to California during the winter for warmer weather. These are young adults who have no idea how to be part of society. They can’t provide for themselves and eventually they have children and the cycle continues.
We provide at-risk youth alternative education and career assistance in Lane County. We want to make this experience valuable for our clients. We do this through a series of curricula funded by the Lane Workforce Partnership, Oregon Youth Conservation Corps, Oregon Department of Human Resources, and the local school districts.
Our most recent program is a culinary arts program in which students learn about food preparation and safe handling and then put this knowledge to use by preparing lunches for their peers at the Chambers School. After completing the 9-week curriculum, students are placed with a local food service business for a 60-hour practical training where they can continue to develop their skills. Currently, the culinary arts program is available to five students per 9-week school term, or approximately 25 students per year. Students enrolled in the program are selected because of their sincere interest in the culinary field and their excellent attendance.
According to the Eugene Area Chamber of Commerce, “[a]t the heart of the Eugene economy are the homegrown small and medium-sized businesses. Most of Eugene’s businesses employ fewer than 20 workers. From specialty retail shops to financial service firms, from management consultancies to ethnic groceries, Eugene’s small business community is diverse, active, thriving and well-supported. Including sole proprietorships and limited partnerships, there are more than 10,000 businesses in and around Eugene.” Eugene/Springfield’s population has grown 3.95% on average since 1998 and this new growth has meant new businesses and expanding opportunities for catering companies who can serve these businesses’ needs.
Catering For Kids anticipates that Eugene/Springfield businesses have unmet demand for catered lunch meetings and other events. And unlike other restaurant and food-related businesses, business to business catering is not as cyclical as business to consumer catering. Businesses continue to have lunch meetings and employees who wish to purchase their lunches year round. In order to gain some insight into the market size and demand, we undertook some limited market research. An email survey was sent to 144 Lane County nonprofit organizations that requested their current or future demand for catering services and their interest in patronizing a nonprofit catering business. We received many responses like the ones that follow.
“I think that this is a great idea and could be a good resource for the community. Springfield/Eugene Habitat for Humanity does not host many lunchtime meetings, however there is a group of about 13 or 14 Executive Directors of Habitat affiliates that meet here about every three months that might use your service.” – Susan Brown, Volunteer Coordinator, Eugene/Springfield Habitat for Humanity
“…if we do have an event that we need catering we will call your program first. We have a policy of using nonprofit organizations for services first.” – Bob Smith, Exec Dir, Pacific Youth Corps of Oregon
“Our needs for catering are not very large, maybe a few times a year. However, you may contact me to discuss the program. My son attends Chambers School and I would welcome hearing more details.” – Mark West, Lane County Agricultural Museum
“We do have General Membership Meetings where we require a venue for 50 to 100 people. I’m not involved with arranging the meetings but do know that our organization is in need of a place to meet where food and beer can be served. Perhaps you will hear from Dave – I think the first meeting is usually in October.” – Emily, Graduate Teaching Federation Office
A number of other caterers offer boxed lunches for business clients. However, none of these businesses specialize in serving the nonprofit sector, nor are they themselves a nonprofit that benefits the local community. Catering For Kids will specialize in developing excellent relationships with its nonprofit clientele. We believe that this unique position, combined with competitively priced, fresh, high-quality meals will set Catering For Kids apart as the premier caterer for the Lane County nonprofit sector.
Catering For Kids is dedicated to providing at-risk youth with an opportunity to gain work experience and transferable skills by providing our customers with healthy, homemade foods and excellent service at reasonable prices. Employees of Catering For Kids will be students who are enrolled in the culinary arts program at the Chambers School and Career Center and are interested in gaining work experience in the restaurant and food services industry. The experiences the students have while participating in this program will assist them in making the transition from school to work and will allow them to develop entrepreneurial skills that will be transferable to any job in the future.
The following benchmark chart indicates our key financial indicators for the first three years. We foresee slow but steady growth in demand for our services and consequent increase in operating expenses. During year one, Catering For Kids will serve its internal market only, as we ramp up to serving the external market in year two.
Financing needed.
One of our revenue lines is grant funding, $15,000 annually. And we need and anticipate donations of $2,000 per month, plus some revenue from fees for lunches and event catering.
Problem worth solving.
Society has a problem, they do not have enough resources for the less privileged or homeless youth population. Eugene, like all the other cities, has a migration of homeless teenagers that have run away from home. They are here for a few months of the year and then they hitch down to California during the winter for warmer weather. These are young adults who have no idea how to be part of society. They can’t provide for themselves and eventually, they have children and the cycle continues.
The Chambers School and Career Center is one of ten tax-exempt nonprofit programs of Bright Future Youth and Family Services. Our mission is to assist at-risk youth in the Eugene/Springfield area in becoming productive citizens by providing a learning and work environment where they feel challenged, respected, and accountable as they strive to meet the demands of adulthood. We have a staff of approximately 250 employees and also utilize several volunteers each year who play a vital role in the organization. Bright Future prides itself on its diversity of funding sources that make for a fiscally strong organization. Agency revenues come from governmental contracts, charitable gifts, United Way funding, and fees for service
Market size & segments.
Market Segmentation
1. Internal Bright Future Customers:
2. Nonprofit External Customers:
3. For-profit External Customers:
Target Market Segment Strategy
Catering For Kids’ target market segment is nonprofit customers (including internal customers). We plan to target this group for several important reasons. First, we are a nonprofit organization and believe that we are better positioned to serve the needs of other nonprofits. Secondly, we believe that nonprofit organizations are more likely to try and continue to use a fellow nonprofit for catering services. And thirdly, we do not intend to jump into the commercial catering market in direct competition with for-profit caterers. Instead, this is a long-term growth opportunity that Catering For Kids may explore in the future. By postponing this direct competition, we believe our organization will be better able to remain focused on our primary objective: serving at-risk youth in Lane County.
There are several caterers in town that will compete directly with Catering For Kids for business, once we grow beyond serving our internal organization customers only. The key alternative caterers are:
Several of the above caterers, such as Napoli Restaurant, have a primary focus of operating their restaurant and may not put as much emphasis on catering details. Others, like Wild Duck Brewery, are focused primarily on large events and require a 15 person minimum for service. Still others, like Brindiamo Catering, are focused on very high-end customers and are out of the price range of many nonprofit organizations at over $12 per person. Therefore, Catering For Kids’s primary competitors are the smaller, deli-style caterers, such as Of Grape & Grain and Ariana’s Deli, whose prices are around $5-7 per person and who can be flexible with catering to small, less formal meetings.
There are also a number of low-end caterers that will compete with Catering For Kids even before we grow beyond our internal clients, as these caterers are currently used by some Bright Future programs now. These include:
Although these providers offer low-cost fare, they are unable to offer much in the way of custom menu planning and do not differentiate between retail consumers and business or nonprofit customers. Thus, their services are one size fits all – they have a fixed and limited menu and their delivery hours are restricted to their normal hours of operation. Patronizing this type of business also does not benefit the community directly as does the Catering For Kids.
Catering For Kids has the ability to provide internal and external customers with high-quality catered business lunches year round at competitive pricing while providing a valuable service to the community. We are able to provide this value because we have a pre-trained workforce – students of the Bright Future Chambers School and Safe & Sound Youth Project. These students are enrolled in the culinary arts program and have training in commercial food preparation and have food handler’s cards. This work experience will provide students with transferable skills that help facilitate their transition from school to work and provide an excellent public relations position for Catering For Kids. The instructor of the culinary arts program is an experienced restaurateur who will bring practical business management know-how to the business and serves as a role model to the students in the program.
As our organization is a school, which experiences a constant flow of students through its classes, the workforce of Catering For Kids will be constantly changing as well. This presents a challenge to the permanent staff to maintain the same high levels of customer service and quality that our customers demand, despite having an entirely new staff every nine weeks. However, we are confident that our teachers and staff members are committed to the success of this project. In addition, each class of students is quite small, which allows adequate supervision and quality control over the products created.
Our Keys to Success:
Marketing plan.
Catering For Kids strives to be the premier provider of healthy, homemade catered corporate lunches for nonprofit organizations.
The marketing strategy attempts to successfully communicate the unique value the program offers to customers. This strategy builds on the focus of high-quality lunches for catered meetings to the benefits that at-risk youth student workers gain from involvement in the program. The marketing strategy will continue to identify the needs of the corporate market and to communicate with this audience in the most effective and positive manner possible.
The growth strategy is based on continued attention to the quality of the customer’s experience in conjunction with identifying opportunities to expand the student participation in the program. Future changes in key areas, such as the facilities used for food preparation as our customer base grows will present considerable challenges for all aspects of the program.
Catering For Kids is committed to balancing its operating budget and operating on a solid financial foundation. These efforts are based on a mixture of revenues from catering events, fundraising, partnerships with local businesses and charitable gifting. Just as revenues are tracked, internal expenses will be closely monitored.
Catering For Kids is intentionally emphasizing the need to reduce reliance on donation-based revenues and looks toward revenues from catering customers to support the program. Indeed, our goal is to become self-sustaining, involving our students in the process of maintaining a profitable and competitive entrepreneurial venture that benefits our community. This is a considerable challenge, due to the number of local catering competitors, the small size of the program and the unpredictable costs in areas such as food.
Fundraising Programs
Catering For Kids will be located inside the Chambers School and Career Center at 1390 Keasey Boulevard in Eugene, Oregon. The school facility includes a commercial kitchen that is licensed by the Oregon Department of Human Services to serve the public. Currently, the kitchen is used by the culinary arts program to prepare and serve breakfast and lunch for students during each school year.
So far, only three Eugene caterers offer online ordering, which means that the primary methods of ordering catered lunches in Eugene/Springfield is still by phone or fax. Catering For Kids will offer fax/phone ordering with either trained students or staff taking orders with a minimum two days in advance of delivery. During this first year, Catering For Kids will primarily serve Bright Future internal customers only and online ordering will be unnecessary. However, in the long term as more customers become used to ordering lunch online, Catering For Kids may update its website to receive online orders.
During year two, Catering For Kids will have a website that includes its complete menu and contact information. We will include this website address on as many printed materials as possible. For example, our thank-you notes, which will be included in every boxed lunch, will have our website address printed on them. The administrative offices of Bright Future currently updates and maintains the organization’s websites and we anticipate that this department will also handle the design and creation of the Catering For Kids website.
Milestones table.
Milestone | Due Date | |
---|---|---|
July 05, 2016 | ||
Aug 08, 2016 | ||
Aug 24, 2016 | ||
Sept 12, 2016 | ||
Sept 26, 2016 | ||
Oct 06, 2016 | ||
Nov 07, 2016 |
Our key metrics are:
Our organization is led by the director with the instructor(s) reporting directly to this director. A volunteer advisory board offers a broad range of social services expertise and years of business experience to the team.
Christy Smith, the director of the Chambers School and Career Center, holds an MS in counseling from the University of Ohio and has been employed with Bright Future for the past 24 years. She has over 30 years experience in working with at-risk youth and 16 years in program management including: personnel, grant writing, fiscal management, contract compliance, public relations, and daily operations.
Monica Kraft, the head of the culinary arts program at the Chambers School and Career Center has over 23 years of restaurant business ownership experience. While she currently owns La Pequena Taqueria, a successful food booth that has been serving the Eugene Saturday Market for 23 years, she has also owned a catering business and cafe and was a founding member of the Keystone Restaurant, a fixture in Eugene since 1981. She received her teaching credentials at Kansas State University and has been teaching the curriculum she developed for the Chambers School
The Volunteer Steering Committee consists of seven talented members of the Eugene/Springfield business and education communities. Combined, they bring years over 55 years of business experience, including two MBAs, to the table. These volunteers are dedicated to the success of the Catering For Kids and to ensuring that our area youth get the opportunities they deserve.
2017 | 2018 | 2019 | |
---|---|---|---|
Manager | $24,000 | $24,000 | $24,000 |
Student assistants | $12,000 | $12,000 | $12,000 |
Totals | $36,000 | $36,000 | $36,000 |
Key assumptions.
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
Expenses by month, net profit (or loss) by year, use of funds.
Start-up Expenses
Dept. of Health Fees $100
Lease (Commercial kitchen) $8,000
Expensed Equipment $1,500
Software $500
TOTAL START-UP EXPENSES $10,000
We will also have $30,000 in mostly culinary equipment as long-term assets when we start.
We will get our $40,000 from initial fundraising to a specific grantor that will front us the money, plus an annual $15,000 grant from the Eugene Downtown Commission. Our plan assumes $2K per month in donations.
2017 | 2018 | 2019 | |
---|---|---|---|
Revenue | $63,072 | $64,482 | $65,720 |
Direct Costs | $13,354 | $14,481 | $15,472 |
Gross Margin | $49,718 | $50,000 | $50,248 |
Gross Margin % | 79% | 78% | 76% |
Operating Expenses | |||
Salaries & Wages | $36,000 | $36,000 | $36,000 |
Employee Related Expenses | $7,200 | $7,200 | $7,200 |
Marketing | $2,500 | $500 | $500 |
Admin etc | $3,600 | $3,600 | $3,600 |
Total Operating Expenses | $49,300 | $47,300 | $47,300 |
Operating Income | $418 | $2,701 | $2,948 |
Interest Incurred | |||
Depreciation and Amortization | $6,000 | $6,000 | $6,000 |
Gain or Loss from Sale of Assets | |||
Income Taxes | $0 | $0 | $0 |
Total Expenses | $68,654 | $67,781 | $68,772 |
Net Profit | ($5,582) | ($3,299) | ($3,052) |
Net Profit/Sales | (9%) | (5%) | (5%) |
Starting Balances | 2017 | 2018 | 2019 | |
---|---|---|---|---|
Cash | $10,000 | $418 | $3,119 | $6,067 |
Accounts Receivable | $0 | $0 | $0 | |
Inventory | ||||
Other Current Assets | ||||
Total Current Assets | $10,000 | $418 | $3,119 | $6,067 |
Long-Term Assets | $30,000 | $30,000 | $30,000 | $30,000 |
Accumulated Depreciation | ($6,000) | ($12,000) | ($18,000) | |
Total Long-Term Assets | $30,000 | $24,000 | $18,000 | $12,000 |
Total Assets | $40,000 | $24,418 | $21,119 | $18,067 |
Accounts Payable | $10,000 | $0 | $0 | $0 |
Income Taxes Payable | $0 | $0 | $0 | |
Sales Taxes Payable | $0 | $0 | $0 | |
Short-Term Debt | ||||
Prepaid Revenue | ||||
Total Current Liabilities | $10,000 | $0 | $0 | $0 |
Long-Term Debt | ||||
Long-Term Liabilities | ||||
Total Liabilities | $10,000 | $0 | $0 | $0 |
Paid-In Capital | $40,000 | $40,000 | $40,000 | $40,000 |
Retained Earnings | ($10,000) | ($10,000) | ($15,582) | ($18,881) |
Earnings | ($5,582) | ($3,300) | ($3,052) | |
Total Owner’s Equity | $30,000 | $24,418 | $21,119 | $18,067 |
Total Liabilities & Equity | $40,000 | $24,418 | $21,119 | $18,067 |
2017 | 2018 | 2019 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | ($5,582) | ($3,299) | ($3,052) |
Depreciation & Amortization | $6,000 | $6,000 | $6,000 |
Change in Accounts Receivable | $0 | $0 | $0 |
Change in Inventory | |||
Change in Accounts Payable | ($10,000) | $0 | $0 |
Change in Income Tax Payable | $0 | $0 | $0 |
Change in Sales Tax Payable | $0 | $0 | $0 |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | ($9,582) | $2,700 | $2,948 |
Investing & Financing | |||
Assets Purchased or Sold | |||
Net Cash from Investing | |||
Investments Received | |||
Dividends & Distributions | |||
Change in Short-Term Debt | |||
Change in Long-Term Debt | |||
Net Cash from Financing | |||
Cash at Beginning of Period | $10,000 | $418 | $3,119 |
Net Change in Cash | ($9,582) | $2,700 | $2,948 |
Cash at End of Period | $418 | $3,119 | $6,067 |
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Template 05: Full-Service Catering Plan. Designed for established catering services and catering companies ready to expand, this template focuses on operational and pricing strategies, detailed menu planning, and advanced, marketing strategies and techniques.
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Writing a catering business plan is the first step to starting a catering business.A business plan makes it easy to map out your catering business ideas and see these ideas become a reality.. Key Takeaway - The catering business is about proper and adequate preparation. From planning a menu to preparing meals for social events, there are several things to prepare for and take into account.
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A catering business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The catering business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your catering as ...
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Below are links to each of the key sections of a sample business plan for a successful catering business. I. Executive Summary - The Executive Summary provides an overview of your business opportunity and summarizes the business plan. II. Company Overview - The company analysis includes information about your business concept, catering ...
1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.
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2.4 Target of the Company. In this how to start a catering company sample business plans for catering companies we are enlisting the business targets set by Marlon Caterers. To reduce our customer acquisition cost by 20% by the end of five years. To keep our customer churn rate below 5% throughout our service years.
The key alternative caterers are: Of Grape & Grain, which specializes in deli style boxed lunches and cafe-style dining. This is the caterer currently used by Bright Future. Cravings Fine Foods, which specializes in event planning and cafe-style dining but which also offers deli style corporate boxed lunches.
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The beer is great. We tried walnut dark ale and Munhell milk stout from the menu of our own Munhell brewery. Very delicious. In addition to beer, there is a wide menu. There are appetizers, mussels, salads, soups (from simple solyanka to Thai soup), open-fire dishes, main courses, meat, pastas, side dishes, pastries, and desserts.