How to Make a Catering Business Successful

The catering industry is booming, with demand for restaurant-style catering services rising steadily. In the US alone, the catering services market is projected to grow at a strong annual rate of 7.7% from 2024 to 2030 (Grand View Research).  

However, success in this competitive field is anything but guaranteed, especially when you’re running your own business. To stand out and thrive, you need to dig deep to understand how to make a catering business successful (hint: it’s not just about managing the day-to-day, but also about strategic planning, customer service, and everything in between). 

This article covers everything you need to know about building a successful catering business, from mastering the essentials of daily management and employee training to refining your marketing strategy.

What Makes a Catering Business Successful? 

To successfully run your own catering business, you need a deep understanding of market needs and client expectations. Key factors for success include developing business acumen, forming a reliable team, and having a clear vision for growth. Additionally, reliable food quality, excellent customer service, and a top-tier brand presence are also crucial for building a successful catering business. 

How to Have a Successful Catering Business 

Ready to get into foundational elements? Here are six steps to take: 

1. Write an Accurate Business Plan: Map out your vision, target market, and financial projections. Include details about your niche, complete list of restaurant catering services, and events served, including corporate events, weddings, and private parties, to position your business effectively. 
2. Secure Licensing and Compliance: Ensure you have the necessary permits and licenses, including food handling, overall health and safety, and a state alcohol license.  
3. Improve Daily Operations: Streamline processes for everything from order fulfillment to event coordination. This improves efficiency and reduce errors.  
4. Develop and Launch Marketing Campaigns: Build a strong online presence, leverage social media, and seek customer feedback to refine your services. Use testimonials to establish credibility and attract new clients. 
5. Create a Positive Work Culture: Hire reliable staff, invest in training, and create a supportive environment.  
6. Choose the Right Equipment and Suppliers: Invest in high-quality catering equipment and partner with reliable suppliers to ensure consistency and quality in your offerings. 

Growing Your Catering Knowledge and Skills 

Successful catering businesses constantly evolve with industry trends. For example, the rise of plant-based and sustainable dining options is an opportunity to cater to a growing demand for vegan, vegetarian, and eco-conscious choices. Incorporate more plant-based meals into your catering menu to take advantage of this trend and attract a bigger customer base. 

To further improve your skills, immerse yourself in the latest business and consumer trends. Attend industry events, pursue relevant certifications, and keep up with emerging catering techniques. Many online resources, seminars, and professional associations offer valuable insights for catering industry professionals. 

Optimizing Your Catering Services 

Catering companies who want to differentiate themselves need to deliver innovative and unique experiences. Focus on what makes your services memorable—whether it’s curating seasonal menus with fresh, local ingredients or offering personalized dining experiences.  

For instance, introduce a "build-your-own" station at events, allowing guests to customize their meals. This level of engagement recognizes customer preferences and adds a fun, interactive element to your service. 

To further optimize your catering services, collect customer feedback and update your menu accordingly. This keeps your offerings fresh and in tune with market demand.  

Financial Planning for Sustainability 

Sound financial planning is essential for your catering business to thrive. Here are four financial tips to keep in mind:  

1. Budgeting: Set up a clear budget that includes all operational costs, including food costs. A detailed budget helps you plan for unexpected expenses and ensures your business stays financially stable. 
2. Pricing Strategies: Develop competitive pricing strategies that reflect your service quality and market positioning. Be mindful of your cost per meal, and ensure your pricing not only covers these costs but also includes a profit margin. Consider tiered pricing for different event sizes and service levels to appeal to a wide range of clients. 
3. Financial Management: Always track your income and expenses. Use accounting software to streamline the tracking and get a real-time view of your cash flow.  
4. Financial Projections and Metrics: Use financial projections to forecast revenue, expenses, and cash flow for the coming months or years. Key metrics like food cost percentage, labor cost percentage, and profit margin steer your business decisions and find areas for improvement.

Marketing Your Catering Business 

Building a strong presence in the market requires a mix of online and offline marketing strategies. Here are six marketing strategies to keep in mind: 

1. Digital Marketing: Build a professional website and optimize it for search engines. A website with an online menu, booking form, and client testimonials drives inquiries and conversions. Consider investing in Google Ads to target customers searching for catering services in your area.  
2. Local SEO: Optimize your business for local search by ensuring it’s listed on Google Business Profile (GBP) and other local directories like Yelp and Foursquare. Encourage all customers to leave honest reviews online to improve your local search visibility and boost your reputation. 
3. Social Media: Use platforms like Instagram and Facebook to highlight your catering offerings. These platforms are visual content-centric, making them ideal for sharing photos and videos of your dishes, event setups, and happy clients.  
4. Influencer Marketing: Partner with local food bloggers, event planners, or social media influencers who align with your brand to promote your catering services. Their audience can provide valuable exposure to your brand.  
5. Traditional Advertising: Place ads in local newspapers, magazines, or community boards. Host booths at local food festivals or wedding expos to raise brand awareness and allow potential clients to sample your offerings in person. 
6. Networking and Partnerships: Build relationships with event planners, corporate event managers, and wedding coordinators. These professionals regularly refer clients to catering services, especially for large or recurring events. 

Providing Excellent Customer Service 

Running a catering business goes beyond serving up a delicious meal. To encourage repeat business, focus on delivering excellent customer service. Here are four tips to keep in mind:

1. Respond promptly and professionally: Ensure inquiries, feedback, and concerns are addressed quickly and individually. Never copy and paste responses; your customers will notice. Timely responses show clients you value their business. 
2. Personalize the experience: Get to know your clients’ preferences and tailor your offerings accordingly. Small details and thoughtful touches delight your customers and provide a memorable experience.  
3. Handle customer complaints with care: View complaints as an opportunity to improve. Address the issue quickly, listen to the customer's concerns, and offer a solution. Turning a negative experience into a positive one strengthens customer loyalty. 
4. Follow up after events: Send a thank-you note or request feedback to let customers know you value their input. 

The Bottom Line 

Running your own catering company isn’t easy. It requires a blend of creativity, strong operational expertise, and the ability to adapt to an ever-changing industry.  

Catering is much more than serving a great meal. It’s about crafting the perfect menu for your customers, ensuring smooth execution, and anticipating your clients’ needs before they ask. The goal is to deliver memorable experiences that leave a lasting impression on your clients and their guests. Focus on these key elements, and your business will thrive no matter the external economic conditions. 

Once you’re comfortable with the basics, it’s time to take your catering business to the next level. Read our eBook on  how to master guest engagement and book a demo to see how our catering software elevates your operations.