HMPE 6- CATERING MANAGEMENT

Module 2- The Caterer and the Client

After completion of the topics, the students shall be able to:

1. Explain why a caterer's reputation may influence a potential client's decision.

2. Explain how clients select caterers.
3. Describe why referrals are important to a caterer.
4. Explain how developing a market, targeting it, and working toward it creates success.
5. Explain why a caterer may refuse catering jobs and clients.

The Caterer

Catering is both art and science. It is the art of creating foods and moods as worked out by the caterer and
clients. The science part is the business of measuring money, manpower, and material.
A Caterer is one who “supplies the viands of entertainment” The word “cater(s)” means provision that is
usually considered to be more special and daintier than home production. “Acatour” is a purchaser or purveyor of
provisions or one who provides or prepares delicacies. Based on this definition your idea of catering would merely be
the special preparation of food in designated food service vicinity, transporting food to catering site, and serving
guest.
But catering involves more than preparing special meals, delivering them to a specified location, and serving
guest if necessary. There are still several variations to consider: according to location; the types of meals served,
which defined the service and equipment you will have to provide.

Why Clients Decide on a Caterer

It is important for a caterer to understand how the potential customer’s decision-making process works. A
potential client looking for a caterer who has the capabilities to do both on premise and off-premise catering is
certainly beneficial. There are many advantages that ultimately attract a potential customer. The caterer must
understand how the needs of the customer will influence their decision to select the right caterer.
Considerations a Client Uses in the Decision-Making Process
1. Reputation. It is imperative that a caterer is reliable, which means they should be able to deliver what they
promise. When choosing a caterer, the following are asked by the clients:
a. Is the caterer well respected and well-known?
b. Does the caterer do most of the catering in the client’s area?
c. Are the customers satisfied?
d. Are clients recommending the caterer to others?
If all these issues are answered satisfactorily, the client can be confident in this decision-making choice.
POTENTIAL CLIENTS WILL SUBCONSCIOUSLY REVIEW THE FOLLOWING QUESTIONS FOR INFORMATION
1. How many people will attend the event?
2. What is the maximum and minimum number of guests ever to attend their catered function?
3. Is the location convenient?
4. Will the caterer be able to serve the party in a timely manner?
5. Can the caterer take care of any unexpected needs?
 6. Can the caterer exceed expectations? (A portfolio of pictures, testimonial letters, and thank you cards can
be requested.)
7. Can the caterer solve problems? What procedures exist for emergencies?
8. Is the caterer reliable? Will the caterer supply references?
9. Does the caterer serve quality food and provide exceptional service? What are the prices?
10. Does the caterer use a contract? What are the policies?
11. How many years has the caterer been in business? How many years has the caterer been at this current
location?
12. If the function must be canceled, what will happen to the deposit?
13. Can the food be sampled at a private taste-testing session?

The client must also meet and interview the caterer. This interview will help answer such questions as:

1. Is the client comfortable with the caterer?

2. Is the client comfortable with the caterer's personality?
3. Is the client comfortable with the caterer's suggestions and promises for the event?
4. Where does the client need the caterer to execute the function (location)?

When selecting a caterer who has been in business for a long time, the caterer need not make false
promises. Their reputation, based on their track record, should be proven by a satisfied clientele.
2. Referrals
Referrals may be a caterer's best vehicle for advertising his skills and expertise. A referral in the catering trade
occurs when a customer is satisfied with the quality and workmanship of the caterer. If the caterer satisfies their
needs, clients will share their experiences with friends and associates.
Referral Concerns
Referrals also bring other issues to the caterer. One concern is when a referral is searching for something
inexpensive. A good operator must rely on personal attributes and strengths in the preparation of food and delivery.
They must avoid competing with other organizations solely on price, but in contrast compete through their own
expertise. There is always one client who is looking for a service that you cannot provide for the price they have in
mind. For example, they may prefer less service to satisfy preconceived cost estimates.
Satisfied clients who recommend a caterer to others become a caterer's best advertising agent. Remember, we
cannot be all things to all people, and therefore it would be extremely difficult to attract a client who is shopping for a
caterer with only one dimension: price. Those customers may be attracted to your competitor, the nonprofit
organization.

3. Word-Of-Mouth
Word-of-mouth advertising is the best type of advertising for a caterer. If the client is bragging about the job
executed by a caterer, the person in need of a catering service will get excited. A potential client may believe that the
caterer is as good as a friend says. Satisfied customers are always willing to recommend a caterer they are excited
about. Current functions, as well as future jobs, offer the opportunity to attract new customers from the guests in
attendance. Guests can be impressed with the food, service, or the caterer's attitude displayed during the function.
For this purpose, it is important for the caterer to project a positive attitude regarding the presentation of food and
related services. A satisfied client will potentially tell at least three friends, family members, or business associates.
Many caterers are successful at creating new business through referrals from their current clients. Several jobs
were acquired because a pleased CEO, who was golfing with his peers, bragged about the exceptional job that a
caterer had done for him. This kind of recommendation is a compliment to the caterer and ensures their continued
business growth. It is estimated that one satisfied customer will relate this experience to three others; however, an
unsatisfied customer will tell eleven other people.
 In addition, a “key success factor” repeatedly alluded today was what can probably best be referred to as
“reputation management.” Reputation, according to Becky Ellison, is a double-edged sword; something that can
either make or quickly break an entrepreneurial business. On the positive side, a good reputation leads to many
referrals and stands as a primary means of competitive advantage. A good reputation is gained by first serving
customers well, which, in turn, leads to the spread of positive word-of-mouth (WOM) communication (from one
person to another in the marketplace). On the negative side, according to Ms. Ellison: “negative word-of-mouth will
kill you faster than anything.” She mentioned this in the context of discussing how while insurance can guard against
the negative financial consequences of accidents, she must prevent accidents from happening to protect her hard-
earned reputation.

DECIDING WHETHER TO TAKE THE EVENT

A caterer must determine, in advance, the (1) specific market niche to establish for the business, then (2)
develop the market, (3) target it, and (4) work toward it.
Since caterers cannot be all things to all people, it is imperative to understand the relationship between
potential clients and their needs, the caterer's knowledge base and skill levels, labor requirements, and facility
resources and availability. Developing a market, targeting it, and working toward it will help the caterer create the
best plan and contribute to his or her success as a caterer.
We must recognize that a caterer can perform different on-premise tasks easier than can be performed at
an off-premise location. One must attempt to understand the natural characteristics of food. Foods differ in how they
are handled, stored, prepared, and served. A caterer must know the effect heat will have on the quality of food while
being held on a hot serving line or in refrigeration. A sauce should never be made that cannot withstand the required
holding period for an off-premise function (Because of the nature of some foods, they are better if they are prepared
at the last minute. If catering a breakfast event, it is best to do "eggs to order" rather than preparing them ahead of
time and transporting them to an off-premise location.

1.PersonalityConflicts

There are times when a caterer must refuse jobs based on lack of comfort with the client. Personality
conflicts will exist. The caterer must also follow intuitive feelings when it is obvious how impossible it would be to
meet a client's expectations because of extreme demands. Therefore, when a caterer develops a potential customer
list and client base, mutual respect should be perceived on all levels.

2. Unanticipated Inconveniences

A caterer must always be vigilant and mentally prepared when confronted with unanticipated
inconveniences while executing an off-premise assignment.

Bad Politics

One unanticipated inconvenience a caterer may experience is the unpleasant sting of bad politics. The
following illustration best describes this situation:
A caterer is contacted to provide the food for a client who has rented a hall for their special event. The
caterer is a third party to the event. The caterer prepares for the event and arrives at the facility with the
understanding they are to have full use of the kitchen and production area. Upon the caterer's arrival, they discover
that the kitchen and production areas are locked. Apparently a dispute between the client and the facility's
management caught the caterer in a bad position. The caterer must develop creative alternatives to serve the food
and provide the best service possible.

Hidden Costs
 Another potential problem occurs when the off-premise caterer encounters additional hidden-to-the-client
expenses from the rented facility's management. These hidden costs are not usually discussed with the client who
rents the catering hall or banquet facility.

The client has made a contract with the management of the banquet hall and has paid the rental fee for its
use. The management of this facility contacts the caterer and demands an additional catering fee per plate while they
are in the banquet facility. The caterer may have already agreed to the price per plate with the client. The client has
already paid the rental for the facility but the management levies an additional charge on the caterer for doing
business in the hall. If the caterer is overwhelmed with these hidden charges, they have one of two choices: The
caterer can absorb the additional cost per plate or can modify the client's original contracted agreement. At this point,
the contract must be voided and renegotiated to accommodate the additional charge. This could anger the client,
who has already paid for the hall and was not informed of any additional costs.

c. Gratuities

Another dilemma may occur when people are looking for financial compensation that was not included in the
contract. When the caterer is contracted by a third party to enter a banquet hall and serve the food, often the catering
hall uses their own service staff and/or bartenders to serve the food or beverages. The caterer is notified by the hall's
management to contribute a gratuity for the bartenders and servers. This additional fee, however, could be kept by
the management team and never find its way to the servers.

What Experience Teaches

How can a caterer safeguard against these poor business practices?

Explore Options

Caterers have to explore all options. Someone will say that they have cooking facilities, but their idea of
cooking facilities may be a two-burner hot plate. Touring the facility before the event is scheduled is important to help
determine what options are available at an off-premise facility. Make sure all things are in place before the event to
avoid getting caught in an unsatisfactory situation.

Research the Job

The caterer must be aware of and understand all situations that can potentially occur at the event. Food
service, personnel, the type of service be it buffet or sit-down, and the china must be decided in advance. A well-
planned catered function should include a schedule that specifies when the event will happen, where the event will
happen, and how jobs will be completed.

INGREDIENTS to Succeed in Catering Business

1 "Every customer served at the event is a possible referral."

2 "We cannot be all things to all people."
3 "Research every job."
4 "Build a relationship of trust."
5 "Everything must be 100%, 100% of the time."
6 "Never confuse being a nice person with being an astute business person."