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Catering, Vending and Cooking For The Masses. this forum is OnTopic. A resource to help with catering, vending and just cooking for large parties. Topics to include Getting Started, Ethics, Marketing, Catering resources, Formulas and recipes for cooking for large groups.


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Old 10-17-2014, 10:58 AM   #1
DR
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Default Can you make money at catering?

I have toss around the idea of doing catering either on the side or as a full time gig but not sure what type of money we are talking about. I also can't seem to find much info that shows just how much money you can make at this.

So i was wondering if anyone that does this either full or part time, wouldn't mind telling me about how much margin you are making? I would love nothing more than do cater 4-5 days a week and make a good living but have no idea if that is possible.

Thanks for any help fellas.
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Old 10-18-2014, 04:42 PM   #2
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The simple answe is yes. But working 4-5 days a week at it is unrealistic. You will be working weekend, nights. If you have a day off you will be doing paper work, estimates, running errends for the next event.
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Old 10-18-2014, 07:01 PM   #3
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A lot depends on your skills at marketing, organization and purchasing. It is actually a lot easier to make money at catering than restaurant or vending. As you can know just how many people you are going to serve and when and where you will be serving.

Note, that you will be working all weekends, and holidays, and many nights. You will be making less per hour than you likely are now, however, in theory, you will enjoy the work a lot. The best money is in weddings, anniversaries, and births, the stress however, can be off the charts.

In terms or margin, as always, assume you will make 5% to 7% of total revenue as income. That is still twice what most restaurants make. A few superstar caterers I know make closer to 15%, but, they have names.
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Old 10-19-2014, 11:10 AM   #4
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Great info above fellas, thanks for all of that. Some really good points mentioned and some i didn't think of but its all good. Yes i have a great job now and make 6 figures but the stress, drive time in Houston traffic, and all the BS that comes with my job is less appealing than the good money. Im sure i will make less, but at 42 years old, my stress level is taking years off my life. I have owned 3 business in the past so record keeping, tax filing, marketing etc…. is all a piece of cake for me. If i could make half of what i make now and enjoy life, its worth it to me.

SOrry to pry and i understand if no one wants to divulge this info, but if anyone could let me know what kind of money you make, either part or full time and how long you been doing it, i would greatly appreciate it.

Thanks for any help fellas.
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Old 10-19-2014, 01:34 PM   #5
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Quote:
Originally Posted by DR View Post
Great info above fellas, thanks for all of that. Some really good points mentioned and some i didn't think of but its all good. Yes i have a great job now and make 6 figures but the stress, drive time in Houston traffic, and all the BS that comes with my job is less appealing than the good money. Im sure i will make less, but at 42 years old, my stress level is taking years off my life. I have owned 3 business in the past so record keeping, tax filing, marketing etc…. is all a piece of cake for me. If i could make half of what i make now and enjoy life, its worth it to me.
I can very much relate to you on this. I held a near six figure job for many years and the stress really took its toll....now at 41, I am happier and healthier despite not having the job anymore (lost in a downsizing) and only making approx a third of what I did before.

Best wishes to you on your new venture.
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Old 10-19-2014, 02:19 PM   #6
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It's hard to give you an idea of what you can make because we all do it differently. I have a full job during the week and set up my to go trailer on Saturdays only for now. I am very much in the same situation as you. I am basically running a 6 month test to see if I have a business. Even though I only sell one day a week I work probably 20 hrs to make it all happen. The food business brings another type of stress. Retailing on Saturdays has lead to other catering jobs, but would be very surprised if one could full service cater 5 days a week. Before giving up the day job try and test it on the weekends. You should make around 40-50% on your catering jobs. Obviously how much you make depends on volume. Good luck!
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Old 10-20-2014, 01:20 PM   #7
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all depends on where you live, and how you plan on doing it. The reason most places fail is people decide to give up their real job to pursue a business. I own a BBQ restaurant, and we cater almost every weekend. I don't know how a catering only gig could work.

Profit wise, we're small scale, and run a tight ship, we see about a 10% profit. For small scale, we still do about 400k in annual sales. So even for all the hard work and stress, I have a partner, still only "seeing" about 20k a year from it. much of that income comes in the form of being able to write off some of our daily expenses as "business" expenses. I'd never give up my full time guaranteed paycheck. The stress of worrying where your income will be coming from in light months would easily outweigh the corporate stress.
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Old 10-20-2014, 09:58 PM   #8
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I feel that if you start a business it need to make money after paying you as an employee for your time to run the company. I've been at it 4 1/2 years working hard and working 60 hours a week in barbecue planning, prepping, cooking, catering, cleaning, book keeping, etc. The question is what do you need to make in your eyes to be considered profitable? This would help me answer your question.
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Old 11-04-2014, 08:26 PM   #9
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Quote:
Originally Posted by early mornin' smokin' View Post
all depends on where you live, and how you plan on doing it. The reason most places fail is people decide to give up their real job to pursue a business. I own a BBQ restaurant, and we cater almost every weekend. I don't know how a catering only gig could work.

Profit wise, we're small scale, and run a tight ship, we see about a 10% profit. For small scale, we still do about 400k in annual sales. So even for all the hard work and stress, I have a partner, still only "seeing" about 20k a year from it. much of that income comes in the form of being able to write off some of our daily expenses as "business" expenses. I'd never give up my full time guaranteed paycheck. The stress of worrying where your income will be coming from in light months would easily outweigh the corporate stress.
Are you saying that you have over 400K in sales but only see 20K in profit? Please elaborate because im not sure i fully understand.
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