We all love food and drink, right? But there is a marked difference between being enthusiastic about cooking and actually doing it for a living! If you feel you have the skills and passion, that's amazing. But there are some things you must consider before catering as a business.

The Financial Investment

Whether you dream of driving from location to location in a food van or want the grandeur of a Michelin-starred restaurant, catering costs a lot of money! A huge financial investment, and risk, is required. Anyone who owns a food or drink business will tell you that it's tough out there. From your van's commercial griddle to a fancy in-house bar, there's a lot your catering business needs. Sourcing loans and repaying them only adds to the stress of managing a restaurant.

Very Long Work Hours

Chefs are among the hardest-working people in any industry. Very few restaurants get by with part-time hours. You must be willing to commit up to 18 hours per day to get a restaurant business off the ground. This can wreak havoc on your home life and cause great personal stress. However, your business may also rely on employees. And these employees must be willing to put in the same amount of effort as you, and this can be a massive challenge.

Licenses for Catering as a Business

You don't have to sell alcohol in your café, restaurant, or food truck. But it can be a massive advantage for your revenue. In most cases, liquor accounts for upwards of 25% of a restaurant's income, meaning you can carry on doing what you love. But you must also get the necessary permits, or you will break the law. For instance, in the UK, you need at least two licenses, one for the premises and one for the bar manager. Yet you can allow customers to bring their own!

Timing It Right

One of the biggest secrets about starting a business that hugely successful people don't tell you is the timing! Timing it right is a huge advantage. Imagine opening a restaurant during Covid. No, that really won't work. Believe it or not, some people tried! However, what about just after COVID-19 when people began pouring back into the streets, hungry for commerce? Hospitality and catering took a hit back then. Yet it is recovering well today, so maybe now is a good time!

How About a Niche Market?

You may have heard about niches on the web. All it really means is a specific topic where you cater to a unique audience. You can apply this to any type of business. For example, there is a store at a market in London that makes nothing but doughnuts. Sounds like a bad idea. But they are so good, they can sell 20,000 per day! Finding a niche in catering is no different. Thinking outside the box for a gap in the market is key, such as vegan BBQs for winter weddings.

Summary

The financial investment alone is a crucial consideration when entering catering as a business. However, you may also need to decide whether you will sell alcohol to boost sales. However, with such a tough industry, it always helps to find a niche market and cater to that audience.

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