It is essential to save costs in catering wherever possible. This should include an approach which focuses on produce costs, procurement and cost comparisons between outsourcing or in-house catering.
In-house Catering
It may be cheaper to undertake the catering yourself. Even if you don’t have catering equipment, it may be far more sustainable long-term. It all comes down to whether there is an appropriate level of skills and experience, however the benefits include far more flexibility and integration with clients which gives you more control and also means that you would retain any profit.
Although in-house catering would require investment in time and leadership, it could prove to offer far more of financial incentive in the long run, but there are plenty of other ways to save money.
Outsourcing
Outsourcing has its own benefits, however it also has its pitfalls. You will certainly get central support and costs are usually capped. Another benefit is that you can control costs and won’t have responsibility for any of the legality that is associated with catering. This may not be a viable option for everyone, and consideration should be given to profit share margins and less control. A service level agreement can often manage expectations when outsourcing catering, however there is a risk that you may spend more time managing the contract in the long run.
Saving on Produce
In order to save money in catering, it is essential to constantly look at what your suppliers are charging and to ensure that you can’t get a better deal somewhere else. Looking at different brands can also help to save money by simply switching to a similar but cheaper home-brand produce. Using produce which is in season can also help to save money, as can an agreed fixed price for a set period of time.
Catering supplies can be bought at cost-effective prices from retailers such as https://www.247cateringsupplies.co.uk/.
It is also imperative to manage stock levels appropriately and this may mean investing in technology to track your spending habits. Always review your costs so you can spot anything out of the ordinary, to ensure you aren’t spending more than you should.
Managing service level agreements is key in the catering industry. It ensures that you are receiving the service that you have paid for. Don’t be afraid to challenge a service level agreement if you are unhappy.
