Starting a business - need advice on meats

Starting a business in a time like this is a very bold move. I wish you luck.

What are you trying to put together?? Personal chef, stand, truck, or what??? Most use Shamrock, sysco, US foods, together with Rest depot and costco Business for supplies.

I guess I will ask. Trying to do it legally or just going to wing it. What part of AZ are you located. Maricopa HD can be a pain.

Have you priced out the market lately?

Because of processing shortages, product is scarce and (if available) expensive. Trying to secure 8 cases of spareribs was insanely difficult for me this past week, when normally there's infinite amounts available. Brisket is through the roof. Hopefully you live in an area where your consumers can absorb the cost inflation without complaints. Your BBQ is going to be expensive if you want to make money... Just have to make sure you deliver the goods!

I'm having the exact same problem as BuffaloDave...there's just no food around to cook and sell. Normally I buy my meat from Sam's Club or Restaurant Depot. Right now Restaurant Depots prices have more than doubled on just about all raw meat, and Sam's Club has no meat at all (outside of chicken which is limited to 1 package per customer).

When I first opened I tried getting in with some farms, but their prices were insanely high and there was no way I could make a profit. I really wanted to "buy local" and all that, but there was just no way to do it and even break even (at least in my area).

As others have asked are you doing this legally? If you are doing it legally and are working out of a commissary kitchen, then you should definitely try and get on the same delivery service as your commissary. US Foods or Sysco seem to be very popular out here on the east coast, but they won't sell to me unless I'm looking to do $3k+ per order, and that's just too much for me at this time.

Good luck!

First of all as in every business,,,know ur material/ labor costs and know what the traffic will bear for pricing of the end product

Until they get the meat supply straightened out this might be a great time to fine tune your business plan. And maybe buy a big mondo freezer so you can stock up and be prepared.

Greygoose said:

First of all as in every business,,,know ur material/ labor costs and know what the traffic will bear for pricing of the end product

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Actually, no. The first thing is to talk to as many potential customers as possible and figure out what they want and, where possible, what they like and don't like about your competitors. Define "competitors" broadly as "alternatives" to cover DIY, non-BBQ catering, etc. One of the things that can come out of this is a pricing strategy.

From what you learn, you can figure out if your business plan for facilities, equipment, labor, etc. will work. As a pro bono small business mentor for many years, I call that "plumbing and wiring." It includes things like setting up an LLC, finding insurance, getting Quickbooks set up, etc. But none of the plumbing and wiring matters a whit if you do not have customers. I can't tell you how many times I've talked to a new client who was brimming with questions about the plumbing and wiring but had not talked to a single potential customer.

airedale said:

Actually, no. The first thing is to talk to as many potential customers as possible and figure out what they want and, where possible, what they like and don't like about your competitors. Define "competitors" broadly as "alternatives" to cover DIY, non-BBQ catering, etc. One of the things that can come out of this is a pricing strategy.

From what you learn, you can figure out if your business plan for facilities, equipment, labor, etc. will work. As a pro bono small business mentor for many years, I call that "plumbing and wiring." It includes things like setting up an LLC, finding insurance, getting Quickbooks set up, etc. But none of the plumbing and wiring matters a whit if you do not have customers. I can't tell you how many times I've talked to a new client who was brimming with questions about the plumbing and wiring but had not talked to a single potential customer.

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You're splitting hairs here, but there's no point in even talking to people if your business model can't produce a profit. You need to have a solid idea of what you want your business to be before you can go and fine tune it by taking in recommendations from potential customers.

Imagine going to a person on the street and asking them about what they want in a BBQ place...you'll likely get 90%+ of people telling you to do hot dogs, hamburgers, french fries, and corn on the cob.. oh, and they want to pay $2.99 or less for a full meal which includes 1/2 Lb of meat, 2 sides, and a drink.

SmoothBoarBBQ said:

You're splitting hairs here, but there's no point in even talking to people if your business model can't produce a profit. You need to have a solid idea of what you want your business to be before you can go and fine tune it by taking in recommendations from potential customers.

Imagine going to a person on the street and asking them about what they want in a BBQ place...you'll likely get 90%+ of people telling you to do hot dogs, hamburgers, french fries, and corn on the cob.. oh, and they want to pay $2.99 or less for a full meal which includes 1/2 Lb of meat, 2 sides, and a drink.

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As you like. Just for grins how many small business startups have you been involved with? For me, the answer is probably over a hundred.

airedale said:

As you like. Just for grins how many small business startups have you been involved with? For me, the answer is probably over a hundred.

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I run my own BBQ food trailer and catering business. How many small businesses have you started yourself where your money was on the line? And, if any, how many were BBQ businesses?

airedale said:

Actually, no. The first thing is to talk to as many potential customers as possible and figure out what they want and, where possible, what they like and don't like about your competitors.

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I know you help out with SCORE, but your advice above is a bit short sighted.

After running businesses (mine and others) for over 30 years, the one thing I can guarantee for sure:
Customers have no idea what they really want (especially if it doesn’t currently exist) and if you model your biz off of this it is doomed from the start.

None of my customers have ever heard of Q-Salt 5 years ago because it didn’t exist.

Most hadn’t heard of bbq rubs without sugar or paprika, now we have a whole line of such seasonings and many of our competitors are just now trying to catch up.

I’d like to modify your statement a bit:

“The first thing is to research the industry to figure out where the gaps are and then fill those gaps”

@ SirPorkaLot, I don't think we disagree all that much.

SirPorkaLot said:

... After running businesses (mine and others) for over 30 years, the one thing I can guarantee for sure:
Customers have no idea what they really want (especially if it doesn’t currently exist) and if you model your biz off of this it is doomed from the start.

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I didn't say it was easy. But, for example, the OP is looking at golf course catering. Hopefully he has talked to all the golf course managers in his served area to find out who is doing the catering now, what are the pros and cons of what they do, what the manager thinks about a new player in the market, etc. Even some things that might not be obvious, like if he learns that it is a mostly-Jewish club, it not being a good idea to show up with a bunch of pulled pork and ribs.

People are incredibly helpful when approached for advice. They like to give advice. They do not like being sold to. After getting advice and sincerely letting the customer know it was valuable, it is much easier to go back when the business is up and running and then ask for the order.

SirPorkaLot said:

“The first thing is to research the industry to figure out where the gaps are and then fill those gaps”

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This is not much different than my approach. But I don't know how you "figure out where the gaps are" without talking to at least some customers. Admittedly Steve Jobs believed that he knew more than his customers, but that's probably much more true in a high-tech business than it is in a food business.

@SmoothBoarBBQ, to your question between investment and personal loan guarantees I had probably around a million bucks of my own money on the line in the company I ran for 12 years then sold and retired. Along the way I was a small-time angel investor in three or four more startups; $25K or $50K chunks mostly. I also had residential rental properties for around 25 years. But hey, you have a trailer so obviously you know everything there is to know.

Lots of good advice here so far. I really have no idea how the current situation will improve or get worse, or how long it will last. So this advice is for when things are "normal." There are a lot of nuances to this type of business that I think people overlook. When I originally started my part-time catering business I was like...I am going to have made to order food that is so much cheaper and better than my competitors. I assumed because my overhead was very low (I do have all my permits, inspections, insurance, etc) I would be able to offer substantially lower prices. What I didn't realize was that unless you are doing really large volumes, my costs were much higher. Not that you can't be successful, but you need to figure out what your goal is. Mine was to make money. Originally I thought that meant setting up roadside on Saturday's or at a golf course or liquour store parking lot. I quickly realized that making a sporadic $200-500 for what ended up being several days work and only clearing 50-60% profit was not what I wanted to do. So I revamped and we now do catering jobs for weddings and corporate events. We also have used our word of mouth to grow several pre-order events (Super Bowl Ribs, Memorial Day Brisket, etc...) that are really profitable. Everyone is different. Decide what you want the goal to be (how often you do it, how much you want to make, etc) and build out a business plan that accomplishes that goal. Perfect Example: I could have saved the $2k putting in a serving window on my first trailer and bought a bigger or extra fridge/freezer for example...that is way more needed for what ended up being my business model. Best of luck!

What do you offer that is 'unique' but, still within their palate profile?

Next, source your wood and meats as they are big cost drivers and can be hard to source consistently. Then, perfect your craft and consistency!

At that point, you can figure out your pricing and figure out if the profit (or loss) is worth the time and effort. If you are effectively a charity and do it because you enjoy the smell of wood smoke and feeding friends, then forget cost and availability issues!

If BBQ is a hobby, doing it as a job will take the 'fun' out of the 'hobby'! Been there, done that myself. I need to keep hobbies and business separate, you may be different!

keverhart said:

Starting a little bbq catering company out here in AZ and was curious to see where others, who are running the same type of operation, are getting their meats from? Do you negotiate something with a local butcher, find a farm, Restaurant Depot, Costco/Sams?

I need advice, because I want to make sure I've got access to enough meat each day/week.

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I don't know about Arizona, but around here in Ohio, you are not going to survive and have product available by relying on local butchers or ranchers, at least not at a price you can actually make a reasonable profit.

Look for a commissary for consistent availability and product quality.

Not sure if you have one there, but we actually have a food truck association. You may want to seek advice there if you have one around.

JOIN A BNI GROUP.

BuffaloDave said:

Have you priced out the market lately?

Because of processing shortages, product is scarce and (if available) expensive. Trying to secure 8 cases of spareribs was insanely difficult for me this past week, when normally there's infinite amounts available. Brisket is through the roof. Hopefully you live in an area where your consumers can absorb the cost inflation without complaints. Your BBQ is going to be expensive if you want to make money... Just have to make sure you deliver the goods!

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I know this isn't a business level solution but we've been lucky around here, the local grocery store is still running very good meat deals.