Catering Business Developemnt

Question 1

Reasons for business failure:

Answer 1

• lack of business knowledge
• lack of technical knowledge
• lack of sufficient working capital

Question 2

Developing a catering business

Answer 2

• to develop a successful catering business, you need to know the target market.
  Target Market: the population group that represents the primary potential customer group.

Question 3

Market Survey Research:

Answer 3

1- Community
2- Customer
3- Labor pool
4- Competition

Question 4

Customer:

Answer 4

• includes demographics
  ( age, income, population growth, education level)

Question 5

Competition:

Answer 5

• Direct and Indirect competition

Question 6

Community:

Answer 6

• overall businesses
• retail sales vs total sales
• organizations in the community
• community businesses
• meeting & conference businesses
• growth of travel and tourism

Question 7

Labor pool:

Answer 7

• trained personnel
• trained restaurant service personnel
• vocational or community college
• unemployment rate.

Question 8

Influences For Analysis:

Answer 8

• availability of expendable income
• lack of food time preparation
• population growth within age groups that require catering services
• availability of funds for community development and marketing
• strong presence of charitable organizations
• interest from outside sources in holding meeting and conferences within the community

Question 9

Conducting a survey of competitive catering operations:

Answer 9

• Availability
  -Services
• Location
• Facilities
• Style of catering operation
• Marketing Materials
• Service Reputation

Question 10

Customers look at 4 factors other than the price”

Answer 10

• Availability
• Location
• Facilities
• Service

Question 11

Feasibility Statement

Answer 11

• forecasted financial report
• how long will it take to reach ROI?
  Forecasting is based on:
• number of functions
• group size
• average check

Question 12

The Feasibility Statement

Answer 12

• determines the feasibility of making a profit
• requires estimating the number of functions
• requires establishing an average check if each type of function
• requires projecting customer counts or function sizes
• based on an estimate of operating costs & profit margin
• estimates total sales needed to cover costs and profits

Question 13

Projected Revenue:

Answer 13

Average Function Size x Average Check

Question 14

Marketing Plan:

Answer 14

successful pricing structure:
- competitors pricing
- level of importance in comparison to total menu program
- price vs. perceived value
- price range of total menu program blending into the menu price

Question 15

Cost %

Answer 15

the cost in relation to the selling price
average: 30-40% from the selling price