Why Catering is a Great Way to Grow your Restaurant

Posted by Karen Erdelac on Aug 5, 2014

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Are you a restaurant owner looking for a way to grow your restaurant? Consider offering catering services. Catering can open the door to an entirely new revenue stream that can significantly increase your profitability.

Fastcasual.com recently reported that Dickey's Barbecue,a Texas-based restaurant chain, saw a 58% sales increase after just one year of catering. Why does catering prove to be a great way to grow your restaurant? The answer is simple: catering allows you to expand your customer base and average transaction amount significantly without making a substantial investment in equipment, workspace, or marketing.

grow_your_restaurant_with_catering_2What you need to get started:

Now, you might be wondering what you need to add catering to your restaurant’s list of specialties. The largest investment that you will have to make is in a branded truck or van. The right vehicle will attract attention from potential customers and provide you and your food with a dependable means of transportation when it matters most. It may require a moderate up-front investment, but it will be a primary tool generating a new revenue stream for your restaurant. Once you have your transportation intact, consider the way that you would like to work with your new catering customers. You can opt for "drop-off" catering, where your staff prepares delivers, and sets up self-service food stations. This is a great way to grow your restaurant with catering since it requires only a slight investment. You will need an ordering system (perhaps through your website), disposable containers and cutlery, and a way to ensure that food is kept at a safe temperature at the catering site. If you plan to serve your catered foods, you should increase your investment in serving ware depending on the formality of your restaurant and your food. For a high end restaurant, purchase equipment that "looks the part" including stylish chafing dishes, linens, serving ware, and uniforms for your staff. Keep your color schemes neutral so you can easily blend with any décor. For a casual restaurant, you will still want to invest in temperature-controlled serving stations, but you can opt for chafing dishes that complement your restaurant’s style. In addition, your staff can wear matching shirts with your restaurant’s logo on them instead of formal uniforms.

Is Catering right for you?

If you already operate a successful full-service restaurant, you know how to prepare delicious fare and you know what types of dishes are successful in a commercial food service environment. You may be able to use this, combined with your restaurant’s reputation and customer base, to become a successful caterer.
Investing in a catering business might seem costly at first, but with high potential for return-on-investment, it may be a great way to grow your restaurant why not maximize your profits by offering catering services to people in your area?

Topics: Growing Your Business, Restaurant