Establishing the Right Kind of Catering for You

Establishing the Right Kind of Catering for You Chapter 3 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Catering Market • The catering market is a group of customers: – In same geographic service area – With unmet catering needs and wants • Caterer must carve the market into niches. – Group customers with similar needs. – Understand own strengths and market’s opportunities © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Who is the Caterer? • Analyze capabilities as a caterer. • How to can satisfy customers – Specialize in on- or off-premise catering? – Corporate accounts or social market? © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Mission Statement or Purpose • Identifies who the caterer is – Why you’re in business – What you plan to become – What you can do for potential customers – Relation to competition • Guides the decision-making process – Type of business, including current customers – Types of catering functions – Where the events will be executed – How to solve the current needs of present customers © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Importance of the Mission Statement • Reflects the company’s culture – Guides the employees – Contains the core beliefs, values and history • Separates a business from its competition – Communicates differences and expertise – Helps to exceed the competition © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Growing the Business • Professional growth – Controlled growth is a management quandary. – Create a strategic growth plan. • Strategic Vision – Create a long-term vision. – Project growth over the next ten years. • SWOT analysis – Internal strengths and weaknesses – External opportunities and threats © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Strengths • Internal attributes, skills or assets that signify exceptional competitiveness in the market • Tactile, defensible positions for the caterer to uses as an offensive or defensive weapon • Make it difficult for other caterers to compete © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Weaknesses • Internal areas that can limit a caterer’s ability to compete successfully in the industry – Tasks the caterer does not execute well – Tasks the caterer does deficiently • Lack of: – Physical endurance and stamina – Culinary, technical or management skills – Specialized knowledge or equipment © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Opportunities • External, controllable future events that best match the caterers’ competitive strengths • Potential, profitable growth zones • “Build a positive reputation. ” • Opportunities include: – Potential economic growth – Recognition of sustainable trends – Ownership of professional production equipment © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Threats • External elements which can cause a potential loss for a caterer • Threats include: – Government regulation – Changes in interest rates – Decrease in the demographics of the area – Entry of new competitors – Lack of certain skills and abilities © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.