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Starting a small catering business. Comments please?

 
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Jmes

posts: 98

Dec 15, 2008 9:36 AM ET    Quote  Report Abuse
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I came up with this idea after eating yet another tasteless meal in the company I work for
A lot of big firms use big catering services to feed their employees during lunch, but what about the medium/small companies?
How about starting a small catering service... just making home-made foods and maybe pastries, BUT! make it a small shop in an industrial area and offer small and medium businesses to feed their employees for lunch

Does anyone have any thoughts on this matter?
The costs involved?
The market?

I haven`t done any research on the subject, as this is really far from the type of business I`m looking to start... but would like to see people`s comments
Would help me see where my head`s at, and if I`m looking at things the right way

Thanks in advance

Jmes



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CraigL

posts: 9051

Dec 15, 2008 3:48 PM ET    Quote  Report Abuse
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If you`re not familiar with the catering industry, you have no research, and this isn`t what you intended to do for a business, the likelihood is that you`ll have troubles beyond those you`d expect with a startup. It`s hard enough getting a business up and going when you DO know the field. 

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jwatkins

posts: 145

Dec 15, 2008 4:56 PM ET    Quote  Report Abuse
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What you`ve found is a perceived need. I don`t personally know of any small businesses that buys lunch for their employees except maybe during the holidays. A sandwich truck usually does well in areas like this.




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MiteyMite

posts: 489

Dec 15, 2008 6:34 PM ET    Quote  Report Abuse
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Consider exploring this from an angle other than the niche. Everyone NEEDs food so that`s a gimme but not everyone needs or wants fire for hire. Research. Catering can be a good business to get into if you`re passionate about food and servicing people. Are you passionate about food and servicing people? You can start on a small scale with a very small investment and build it up from there. However, if you`re not into servicing people, forget about it.  
Jmes

posts: 98

Dec 16, 2008 2:02 AM ET    Quote  Report Abuse
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Thanks for your replies.
As I mentioned in my post, it was just an idea. and not 1 I would follow... I just wanted to see if my first analysis of the situation is a good one

Your comments sure did help me look at things from different angles though, so thanks

Jmes



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mrfranchiseman

posts: 42

Dec 17, 2008 7:14 PM ET    Quote  Report Abuse
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Catering...
 
Why not buy an existing company and then incorporate your ideas into the menu-easier than a Start up. Remember the seasonality, marketing effort, and cash flow cunch in lean times, not to mention companies cutting back on some of these discretionary expenses......
 
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Nick25

posts: 6

Dec 19, 2008 1:46 AM ET    Quote  Report Abuse
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Catering...
 
Why not buy an existing company and then incorporate your ideas into the menu-easier than a Start up.
 
mrfranchiseman.com



I agree. Buying an existing catering business is a better idea than starting up from scratch. Much of the groundwork has been done and as the new owner you can focus on improving the business right after the purchase. You are also buying a recognized brand so people`s awareness for your product is already there. What`s more, buying an established business also comes with a ready pool of customers. It`s much easier keeping them than finding new ones. If you`re from the US here`s a list of Catering businesses for sale that you may want to check.


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dsilverio

posts: 1

Dec 31, 2008 7:53 PM ET    Quote  Report Abuse
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Personally I think you should go for it.  It is alot of work but the rewards will be wonderful.
 
TAWIK

posts: 1

Feb 01, 2009 12:03 AM ET    Quote  Report Abuse
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Funny thing that I run accross to your question, I have exact same thing on my mind and currently searching how to start home base catering business to corporate meetings and company special events, and renting a warehouse and convert into catering facilities.  
WebJunky

posts: 549

Feb 01, 2009 6:37 PM ET    Quote  Report Abuse
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what an excellent thread. my mom started doing something similar....she prepared tiffin boxes from home (good for a meal or two) and people came by to pick them up before office time.  in some cases she delivered them. very lucrative, low cost but time intensive. margins can be very high. your idea of high volume catering sounds excellent! its a local market so research your area for suppliers of this service and see if it makes sense to go for it!

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