Catering Business Developemnt Flashcards
1
Q
Reasons for business failure:
A
- lack of business knowledge
- lack of technical knowledge
- lack of sufficient working capital
2
Q
Developing a catering business
A
- 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.
3
Q
Market Survey Research:
A
1- Community
2- Customer
3- Labor pool
4- Competition
4
Q
Customer:
A
- includes demographics
( age, income, population growth, education level)
5
Q
Competition:
A
- Direct and Indirect competition
6
Q
Community:
A
- overall businesses
- retail sales vs total sales
- organizations in the community
- community businesses
- meeting & conference businesses
- growth of travel and tourism
7
Q
Labor pool:
A
- trained personnel
- trained restaurant service personnel
- vocational or community college
- unemployment rate.
8
Q
Influences For Analysis:
A
- 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
9
Q
Conducting a survey of competitive catering operations:
A
- Availability
-Services - Location
- Facilities
- Style of catering operation
- Marketing Materials
- Service Reputation
10
Q
Customers look at 4 factors other than the price”
A
- Availability
- Location
- Facilities
- Service
11
Q
Feasibility Statement
A
- forecasted financial report
- how long will it take to reach ROI?
Forecasting is based on: - number of functions
- group size
- average check
12
Q
The Feasibility Statement
A
- 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
13
Q
Projected Revenue:
A
Average Function Size x Average Check
14
Q
Marketing Plan:
A
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
15
Q
Cost %
A
the cost in relation to the selling price
average: 30-40% from the selling price
