Final Study Guide - Catering Management | HTM 2514, Study notes of Hospitality and Tourism

Download Final Study Guide - Catering Management | HTM 2514 and more Study notes Hospitality and Tourism in PDF only on Docsity! CHAPTER 1 Catering management – task of planning, organizing, and controlling SEGMENTS Commercial segment (“for profit”) - independent caterer - restaurant caterer - home-based caterer - private club caterer Non commercial segment (“for non profit”) - business accounts - college or universities - healthcare catering - recreational food catering Military segment – all catering involved with armed forces or diplomatic events ON PREMISE vs. OFF PREMISE On Premise (held within the caterers own facility (ex. Restaurants have parties) - Advantages o Produce food at a lesser cost (and can use profits to purchase better equipment) o Labor costs are built in o Don’t have to pay certain taxes - not many private or non profit caterers will cater off premise because they lack the equipment and experience 3 stratigic advantages organizations have over independent caterers 1. no labor costs (labor is “donated” by members) 2. do not pay taxes 3. many do not have to have liability insurance customer appeal – independent caterer can provide more variety and more attractive presentation (fine china, better quality food) o advantage over non profit group (ex. a church’s reception) university or college caterers – responsible for food and related services to students, faculty, administration, and guests o contracted to a company o handled internally (on premise catering) Off Premise (accomplished exclusively by the caterer) Transports food, serving products and personnel to another location other than where the food is prepared - Refrigerated trucks - Soups must be served at a min of 140* F Supermarket Catering – limited to what can be served NOT what can be prepared (1st started with offering cheese and vege trays) Dual Restaurant Catering – cater on premise events AND pursue off premise opportunities 1. strategy ( have invested in professional production equipment and thus increase efficiency) = lowers fixed cost of operation 2. strategy (pursue off premise so restaurant doesn’t have to sacrifice their dining space to hold an event) Exclusive Caterer – has rights to cater all events held at a specific location (ex. Bradley House of Catering) Distinct Competence – company has the competitive advantage (difficult for others to copy) Conventions and Weddings – two of the MOST PROFITABLE EVENTS for a caterer because of the extra purchases that can be incorporated into one event One-stop shop catering (on or off premise) – caterer will work with rental companies for the chairs, tables, etc. Mobile Catering – employs trucks with built-in facilities (ex. hot dog stands) Seasonal Niche – events occurring at an annual basis (catering company becomes prepared) Location Considerations: o conclusive to caterer’s capabilities to produce food and service needed o caterer comfortable with management of location and client o can caterer work within budget o caterer’s staff compatible with hall’s staff o background check completed on finances of both halls and clients Home-based Caterers – operate from home Usually: limited experience Smaller insurance policies Less knowledge on proper sanitation Weaknesses:  local health department requires separate kitchen from home (disadvantage = cost)  lack of professional training for staff  unfair competitive advantage  no expense of overhead of commercial equipment  no expense of professionally trained staff CHAPTER 2 *the caterer must understand how the needs of the customer will influence their decision to select the right caterer* reputation – most important considerations a client uses in the decision-making process 1. Is the caterer well respected and well known 2. Does the caterer do most of the catering in the client’s ares 3. Are the customers satisfied 4. Are clients recommending the caterer to others Client must meet and interview that caterer and ask questions - is the client comfortable with the caterer - is the client comfortable with the caterer’s personality e. Individualized Plan i. Never apply the same social plan to each dinner ii. Simple plan of delivery and menu = highest quality of food and service f. Special Care i. WHITE GLOVE APPROACH – alert of the production and service of the staff at all times (use special care!!) e. Disadvantages of Social Catering a. Caterer’s limited capabilities to satisfy the often unrealistic demands of the client b. Need to find out information before excepting job i. What is the purpose of the social event? ii. What can be supplied by the caterer or the client? iii. Will the caterer require bartenders and adequate bar supplies? (in most cases customer must supply own liquor) iv. Will the caterer’s insurance provide adequate protection for the staff as well as the guests? Did the caterer consider the legality of liquor liability? Will the homeowner have special insurance coverage for their own party? v. Has the client made any last minute, out of the ordinary special requests? vi. Are the details of the contract specifically spelled out? Ingredient for Success 6: Never confuse being a nice person with being an astute business person CHAPTER 3 Caterer’s market – group of all customers in a geographic service area who have unmet needs, wants, or demands requiring food and beverage service “Carving the Market” segment – caterer must carve the whole market of customers into smaller pieces of niches  identify customers with similar needs or wants (key questions used to identify a market niche pg. 51) Mission Statement of Purpose Mission statement – defines the sole purpose of why the caterer is in business o identifies who the caterer is and communicates what the caterer can do for all potential customers - importance of Mission Statement o caterer’s guiding light o stakeholders – employees, suppliers, clients, guest, etc. who have a direct relationship with the business (important for caterer to share long term plan) o Importance  Important for the internal organization (reflects a company’s core beliefs, values, and history)  Positions the business independently from the competition  Ingredient for Success 7: Always exceed your customer’s expectations Personal Reasons – belief that they can do it better than anyone else (good profits will be the desired outcome, but should not be the sole reason for being in business) Ingredient for Success 8: Create a strategic growth plan Growing the Business Business growth plan (answer questions) 1. What is the projected five year gross of sales figure 2. What techniques will best describe how to satisfy current customers’ needs 3. How will you describe any desire to diversify into a new market niche 4. How will new customers be attracted 5. Who will identify these needs, wants, and demands 6. What is the strategy regarding menu mix and new product development 7. How will new menu items and specialities be introduced 8. How will efficient and effective multiple catering events be executed on a daily, weekly, or monthly agenda 9. How will sustainable trends, rather than short lived fads be identified Personal Growth  must prevent uncontrollable, exponential growth (excepts too many functions in a short period of time) Strategic Vision  future looking (long term vision for the caterer)  project growth for the next 10 years SWOT Analysis  strategic management tool caterers used to match their business strengths to market opportunities  Acronym  Strengths  Weaknesses  Opportunities  Threats 1. Strengths  Internal attributes, skills, characteristics, or assets that a caterer possesses which provide an enviable position of exceptional competitiveness in the market  Creates a tactical, defensible, competitive position for the caterer to use as an offensive or defensive weapon  use strengths to match their niche with a specific catering market  Weaknesses  Internal areas that can limit a caterer’s ability to compete successfully in the industry  Examples: o Those tasks they do not execute well o Those tasks done deficiently as compared to other caterers in their industry o List on page 59  Opportunities  Those external, controllable, future catering events that best match the caterer’s competitive strengths and which enable him or her to meet and exceed guest expectations  Opportunity to work with the newest foods and products (the caterer is often the first to receive a new food from a vender)  Opportunity to work with other caterers and their staff  Examples listed on page 61  Ingredient for Success 9: Build a positive reputation  Threats  External elements which can cause a potential loss for a caterer  Government regulation  Entry of new competition CHAPTER 4 Customer base – draw current and potential clients necessary to support a catering operation now and in the future, is one of the most important business tasks a caterer must faithfully perform - Prospecting Strategies o Based on plan (discussed in previous chapter) caterer can communicate information to potential clients o Building sales depends largely on the number of people who buy the product, the proper place to begin a market analysis is with people o Starting point = understand the needs, wants, and demands of the customer - Needs, Wants, and Demands o Needs (feeling of deprivation for something)  complex  Client’s esteem needs = prestige, recognition, and self- expression o Wants (defined by the level of sophistication of the client)  Always evolving