calling all caterers :) i've landed my 1st potential catering contract

michelle

Well-known member
& I'm just writing up a contract. When do you normally expect to be paid? At drop-off, time of platter pickup? In my consulting days, we hired lots of caterers, but i was never the one paying the bill! smileys/smile.gif

 
I don't cater but have been in on a lot of arrangements.We've been asked

to do it both ways. Sometimes it was half in advance with balance upon completion. Ours usually involved extra help--not just delivery- so there was some computing at the end for hours. Don't forget to add tax if it is applicable.

 
I'll be interested in hearing your thoughts

on catering after you've done this. I had the catering bug and did several over the top dinner parties and wedding receptions. I was hoping to get established and go full time. But after doing a half dozen or so of these events, I was so sickened, disgusted, and tired, I went screaming from the catering business. In my experience, it's very hard work; mass food production is, in a word, "gross" (and I don't mean large or grand), and it's woefully underpaid for the work you do. I ended up hating what I had begun out of a love of cooking. I guess that happens with anything one does to excess.

My advice: Make sure you've calculated your time and materials accurately before submitting a quote, and don't discount that total because you think it might be too high. Believe me, it won't be. If someone wants labor intensive gourmet cooking, they get a surcharge. Fussy cooking eats your time and profits. Get a deposit up front.

 
hi richard - the catering end of things is just one part of my new business venture>>

up until now, i've been selling at the farmer's market. in my new kitchen (which is just finishing completion), i'll be doing all my food prep for the market, plus the business lunch catering businees, & corporate lunch delivery service i'll be starting right away. i have no intention of ever doing formal dinners, etc - just along the lines of business meeting lunches, etc. this is a business grand opening, & they're supplying some of the food themselves, they're just looking for a few items (like a few hundred pieces of sushi!) to add to their table, which is right up my alley. from what i've seen firsthand, the type of catering you've described does NOT appeal to me, at all!! smileys/smile.gif i would have a heart attack the 1st month, i'm sure!

 
Michelle, I really think that business has changed in that regard....being paid up front. In our

consulting business, we always got 50% on signing a contract and there was no food involved. Others did not do it that way but got a deposit instead. Now, those who can demand it, do.

People seem to expect more these days, want more guarantees and are prepared to niggle over the slightest bit of difference in opinion over the finished product. I also think more people are not paying their bills. The legal costs involved in settling accounts is prohibitive; you have to be so proactive.

In your case, I would absolutely demand 50% up front (before you do anything) and make sure that that covers all of your fixed costs of the event. Then just decide how you want to position yourself in the marketplace as the request for the final 50 may stick with you for future projects.

The clients need to know that you will not do any work on the project until you are paid the first 50 and therefore other clients can take precedence.

 
My neighbor started a catering business and forgot to get

her health department permit. All that was involved was an x-ray or skin test for TB and a small fee for the annual permit. I think they also now do a test for hepititis.

Also, since she was preparing the food in her home, she needed to have it inspected--had to keep dogs outside during preparation, etc.

Rules vary from state to state. These requirements may not apply where you live.

 
Congratulations Michelle, I do some catering and I always get paid at the event.

I don't do drop-off anymore but I always expected a check on the spot. Restaurants and banquet rooms get paid the day of an event, and so should you. If this becomes a constant customer, then perhaps you could let them pay monthly.

A deposit is in order, especially the first time. I take deposits for first-timers and large parties, but don't always bother for smaller things if I already know the customer.

The worst customer I ever had demanded to pay either with a credit card or in 30 days. I caved. It was a corporate office that did all-day training and needed lunch provided. When I arrived I thought it was odd that there was a deli in their building, yet they were calling a caterer. I ran their credit card through our other, non-food business, and then they tried to protest it! So be careful. As Marg said, some people just don't want to pay their bills.

As Richard said, it's a lot of work. It's taken me 2 years to learn to charge enough, and I'm probably still undercharging. So be sure that your customers want you because you're BETTER than the rest, not cheaper.

 
Hi Michelle, here are some thoughts from my experience

In a corporate environment, when I hired caterers, I expected them to be willing to wait 7-10 days for payment (because the company had a once-a-week check run). If they weren't willing to work within that timeframe I often went with another caterer (I wasn't really able to use 1-person catering companies then).

Individually when I cater, if it's for a large event or a wedding cake or chocolates (for wedding favors or a party), I take a 50% non-refundable deposit at the time of order with the remainder due on delivery (generally, for me, that's the day before or day of the event). I'm not catering for companies, where it can be really inconvenient for them to cut individual checks, or I'd expect to wait 7-10 days for payment. And I don't often cater for strangers anymore, generally only for people I know really well, so I allow for more latitude with the payment schedule. I still take the 50% deposit, it's almost a way of saying 'we're both serious', in order to buy any supplies. That way, if the event is cancelled, I'm not out the cost of foodstuffs.

It's well worth making sure you have the legalese in place, a standard (brief) contract, that you know is enforceable in your state in small claims court. If you both sign it, without any fanfare, then you can cater with an open mind (& heart) knowing you will get paid.

 
going on 39, actually smileys/smile.gif & no, i don't sleep much............

i forgot to mention my children's cooking-themed birthday party service that will start in september, as well as continuing with my adult cooking classes & after school program smileys/wink.gif

 
actually i already have my business licence, food safety training & the blessing of the local health

dept. the food will be prepared in my commercial kitchen.

 
actually i already have my business licence, food safety training & the blessing of the local health

dept. the food will be prepared in my commercial kitchen.

 
By the way Michelle...

You and others have been an inspiration for me. I'm going to bid on subleasing a commercial kitchen in two weeks at a corporate luncheonette/caterer that is only 2 minutes drive from me. It will be Sunday only, delivery only with a limited menu (it's in an office building). Please don't say heart attack! I'm 50 and I can hardly sleep with the excitement! I will have to get a business license and I already received two quotes on liability insurance.

My venture is probably a one shot deal (make it or break it). The area is a gold mine of apartments/condos.

Good luck with the job!

 
I admire you Michelle! You must be a ball of energy. Here are my thoughts

I agree with a lot of other comments- especially with Ruth's. Sometimes, when dealing with companies, you will have to wait for a check run but you can still get 50% deposit up front from them. If you are forced to wait for final payment, make sure you find out WHO issues the checks and their direct phone number. Absolutely have a written contract that you have approved.

When I catered I always got 50% up front and final payment- like Joe- at the event. If you are working with private parties or non-conventional companies (like some of the .com companies, for instance, who do things differently), if you get your full payment up front you are alleviating the possibility of getting a tip. I know this is "one of those" subjects but generous tips sometimes can be bigger than the entire expected profit from the event...and you WILL get tips if you do some smaller events. Of course, sometimes you work your energetic butt off and because of circumstances, you make hardly a nickel but other times the jackpot.

Congratulations to you for taking so much on- I hope you have a good feeling for the business side besides a love of cooking and feeding the world- or that you have someone around you with a good business mind to take that burden off your shoulders.

 
definitely not a ball of energy - death warmed over is more like it smileys/smile.gif the quote on my emails is:

"There is no chance, no destiny, no fate, that can circumvent or hinder or control the firm resolve of a determined soul."

that's pretty much what i go by - if someone tells me i can't do something, they've instantly set me on fire to do everything to accomplish just that!

 
Yep. Exactly what I would do. I also did the arrangements for my own company for

parties. Elaborate dinners for about 50. I used some of the best caterers available and paid them at the end of the evening. (but then, I signed the cheques, too). But I would not expect that process to be available now and I would definitely anticipate at 50% upfront payment.

 
You will pace yourself naturally after a while...because you won't be able to do it all...

you will be exhausted by all the things you said "yes" to and maybe later on you will pass on some of them. Take it from one that burned out on it.....I couldn't say NO. I learned that lesson the hard way smileys/smile.gif

 
With regard to their "furnishing some of the food themselves" you may want to

be careful of this in the future. What is on the table may be attributed to you and you want to know your standards are being met.

 
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