Whether there is a financial crisis or not, people continue to buy food and eat, no matter how much money they have. Of course, in this situation, there must be someone to supply them with the raw material.
This is why I decided to talk to you about the food business that is profitable regardless of the weather conditions, the standard of living, or culinary preferences.
From the small family business with a traditional restaurant to building a catering company or just the bakery at the corner of the street, there are only a few steps. To open a catering company, you have to consider some aspects that I will showcase below.
First, set out the steps of the process and:
- establish a business plan;
- know the strengths of the business and the weaknesses of the business. A SWOT analysis is useful in this case;
- identify the mistakes made by those working in the field and be prepared for similar situations;
- take into account the clients’ recommendations and to constantly improve the services offered;
- be interested in the best suppliers when discussing food but also the equipment needed for your business;
- learn how to save money and develop gradually.
A catering business does not necessarily require a high-street presence, even if this aspect is preferable; speaking of which, it allows you to save some of your future efforts. Most catering businesses focus on delivering food at home, at the office, where many orders are collected.
An organized business that starts at a time when you already know who your customers are can only bring benefits. You can make calculations about investments, profit, or the delivery costs by considering the distance to the customer, even before opening for the first time. Of course, you do this with a well-defined list of clients. Once you have selected your companies and the number of employees, then you can analyze the costs required for the initial investment.
An average conversion starts at 1-2% but can reach up to 5%, depending on the type of business. Now think about what this conversion means to a food business because, whether or not an individual chooses to buy a cosmetic package from a certain campaign, in the case of food, things are different.
I have a few friends who happen to work together in a company with about 100 people. I was curious to ask how many people order food from the catering company and how many bring it from home. Not only was the answer encouraging, but also amazing!
40% of them place orders constantly, another 40% bring food from home and the rest either do not take lunch or are limited to snacks or sausages. So here’s how such a business can make a profit from the first months of its establishment.
Also, think about the different types of services a company offers, or the range of products they manufacture. Depending on these, you can think about what kind of staff work in the respective company, what categories of people, age, etc. The younger the company staff is, the shorter the time allocated to cooking, thus the possibility for them to order food from you increases.
Do you have anything to add? Feel free o comment below 🙂