Special: The Handout From A Recent Speech

Note: I'd like to share with you the educational handout I gave to attendees at a recent speech I gave...

Managing Your Catering For Maximum Profit with Michael Roman, President & Founder
Catersource Magazine, Conference & Tradeshow

A. FIRST THOUGHTS: Customer service, creative menu presentations, plus real or perceived value, seem to be what buyers of catering are seeking. 2011 will continue to be a year for change, adjustments, and analysis with catering departments creating their own luck.

Catering Trends in U.S. Foodservice
http://www.reportlinker.com/p0358447/Catering-Trends-in-US-Foodservice.html
“Going forward, we believe that sales will rise 9.1% in 2011 and 6.5% in 2012.”

B. Thoughts on Catering in On-Site Foodservice Programs: 
1. Catering is either a “service” or “expected” as part of your contract.
2. Catering can be a profit center, lost leader, or just a necessary evil.
3. A viable catering unit helps renew existing contracts while selling new ones.
4. Staff considers catering exciting, creative, and rewarding or just a lot of extra work.
5. Important to separate “drop-off” and “full-service” catering.

C. What We’re Telling Commercial Caterers: 
1. Think “Walmart” instead of “Costco” when it comes to product line development.
2. Shopper’s want an “iron chef” experience.
3. Some shoppers want to get to the end quicker.
4. Grasp the importance of your inbound marketing procedures and scripts.
5. Talk less about your food and more about your people, service, and presentation.
6. Value is saving money, looking good to others, or getting a “favorable” answer to a request.
7. Identify and sell your “Grandmother won’t get wet” benefits.

D. Simple and Inexpensive Marketing Ideas: 
1. Launch a tasting and/or demonstration blitz… get in front of old and new buyers.
a. Start in your public and food dispersion areas then move away if you sell the public.
b. Host “Food Critic” tastings.
c. Hold referral open houses.
d. Show-off what you do with food or you will lose market share.
2. Market and sell what your product/services do for clients… not just what they are.
3. Form Customer Advisory Boards.
4. Twitter, Facebook and YouTube.
5. Publicly thank your customers in a “testimonial” fashion.

E. The Current Catering Trends: 
1. How the food is presented and served is more important than the food itself.
2. Restaurants are going “big” while catering is going “medium to smaller”.
3. It’s important to talk about organic, green, and sustainable, but few will pay for it.
4. All-day inclusive catering packages for meetings are back strong – they represent value.
5. Branded foods are selling very well.
6. Food trends are being set by food network programs.
7. Most shoppers want to negotiate with the caterer for something.
8. Sanitation and food borne illness are now a topic of conversation during selling.
9. If you can sell weddings – go for it!

F. A Few Thoughts On Pricing 
1. Use matrix pricing – offer middle, higher, and lower packages all at the same time.
2. Sell down to sell up. Sell up to sell down. Sell up and down to sell the middle.
3. Use “per guest” instead of “per person.
4. Test oddball pricing - $38.37 per guest instead of the rounded-off price of $38.00
5. Resist selling “A” menus at “B” prices. Create “B” menus to sell at “B” prices.
6. List value of “no-charge” items on bids and invoices.
7. Offer “volume” discounts for size, frequency, and other loyalty factors.

G. Sales Scripts That Work: 
1. “Let me take a moment and share with you why our catering team is so special.”
2. “From what you’ve told me so far, I can assure you that we will have some very exciting solutions that will give your guests a memorable experience while offering value.”
3. “You’ve selected a very busy date for your event. I suggest we move as quickly as possible to insure that we are able to assist you.”

H. Final Thoughts: 
1. Sell “non-embarrassment” not just food, ballrooms, and meeting rooms.
2. Understand the differences between order taking and selling events.
3. Stop asking “What is your budget?” and start offering solutions at three price points.
4. Develop and practice “selling scripts”.
5. Catering will not fully succeed until it’s a stand-alone product line and profit center.
6. Tell shoppers the questions they should be asking and then answer them.
7. Catering really is a “growth” segment – please get your full share!