How to Start a Catering Business: How to Open a Hotel or Restaurant

How to Start a Catering Business?

Catering business has taken the shape of a flourishing industry today. There was a time when people who had enough resources would enter the business. Now, it has become a business sector that is dominated by skilled and trained professionals. Educational institutions and universities are offering degree and diploma courses in the food and beverage services.

It has put catering profession at more consolidated position.

If you have a penchant for catering services and you are wondering how to start a catering business, here we offer the best solutions.

Starting a catering business would require you to first get in touch with your local health department. It would lead you towards getting necessary permits, inspection certificates and insurance.

Then, you would require to determine whether your proposed catering service would offer chef services (in-home catering) or you prefer to launch a catering business. In case you opt for the later, you require to get an industrial kitchen on rent.

The next important step is menu planning. In this regard, you should pay specific attention towards the type of food you are going to serve.

At the beginning, do not include dishes in the menu that contain exotic ingredients or that take complex process in its preparation.

How to Open a Restaurant?

Starting a restaurant business requires to consider several factors which include:

  • Developing business plan
  • Choosing location
  • Design and layout
  • Licenses and permits
  • Choice of equipment
  • Prices of the menu

However, choosing the concept of your proposed restaurant business has great importance. Currently, popular concepts that dominate restaurant business include:

  • Quick service restaurants
  • Family dining restaurant
  • Casual dining restaurant
  • Fine dining restaurant
  • Ethnic dining restaurant

There are some variations, as well, in the concept of a fast-food restaurant business. These variations include casual restaurants as well as catering trucks. Fast casual type is a restaurant which has more sit-in ratio where customers take their seats and get their orders served to their seats. Catering trucks are generally parked outside worksites. They serve food mainly to factory workers.

How to Start a Hotel Business?

Starting a hotel business may have high potential of income. If you are thinking over how to start a hotel business, you first require to determine whether you would own it or buy a franchise of any popular hotel. However, there are several pros and cons in either of the options.

How to Start a Hotel Business

Starting a hotel can always be a profitable business, particularly in India, a preferred tourist destination in the world. The growing economy of the country has also made it a favored destination for the business community. All this has made hospitality industry a very profitable sector in the country. Setting up a hotel guarantees you a great and successful future. However to start and run a hotel one needs proper planning.

How to Write a Hotel Business Plan?
A hotel business plan will help you operate your business in a very smooth and efficient manner. It serves as a roadway to your success. You business plan must include every aspect of the hotel business. Things which must be part of you hotel business plan include:

  • Who will be your guests? Will you target business people or holidaymakers or a broad cross-section of guests?
  • Where will the location of the hotel be? To tap tourists you need to have a seaside location or hills. For business people you must have your location close to major business centers or in the centre of the city.
  • How big will the hotel be? Your plan must also include facilities you will offer to guests, the number of staff required, and provision for staff accommodation

What Services will you Offer if you want to Start a Hotel Business?

  • Will you have a bar?
  • Will you offer restaurant meals and for this will you employ a chef?
  • Will your restaurant and bar be open to non-residents?
  • What will the bedroom facilities in hotel be? Will you have tea and coffee making facilities, TV, AC, mini-bars, hairdryers, WiFi Hotspot access etc?
  • What all hotel facilities will you offer, such as sports room, child care facility, TV lounge, gymnasium etc
  • Will you have a conference room, a discotheque or a function room?
  • Will you offer an online booking service
  • What policy will you have to counter wastage, theft and other stock losses –

Investment you Need to Start a Hotel Business
It is difficult to make a beginning without external investment. This is particularly true if you start your investment from scratch.  So you need to have a plan which will convince potential investors.

The best place to go for finances is a bank.  All banks will want to have a thorough look at your hotel plan before they sanction money for it. So, always keep a realistic and feasible business plan ready. For your financial assistance you can also look forward to avail grants and advice from a variety of bodies. You can opt for equity, capital or debt finance.

Common Mistakes you Should Avoid Before you Start a Hotel Business
You need to avoid two common mistakes when you set out to start new hotel business:

  • Failing to Seek Professional Help
    It is only an experienced professional aware of local government’s ins and outs can help you set up a hotel properly. They will help you in devising plans and in procuring licenses and permits on your behalf.
  • Getting the Insurance Wrong
    Insurance can buffer you from all types of unforeseen calamities which usually take toll on human lives. You need to make sure you insure the hotel itself from fire and thefts. Apart from property insurance, you will need workers compensation insurance and liability insurance for customer.  Search for the best available policy.
  • Purchasing a Hotel that is up for Sale
    Starting your hotel business with a hotel that is up for sale can ease matters for you. You can refurnish it or just carry on with the business. However you need to take factors into account before buying one. This includes

    • Enquire about the reasons for the sell off.
    • Make a good estimate of how much you need to spend to make the hotel up to your standards.
    • Your chosen property should have growth prospects. A dead property will be a wrong investment

If you have the dream to make it big, the hotel industry is where you need to invest in.