Knowing how to control food, labor, and other costs is a crucial part of running a thriving catering business. Costs for ingredients, labor, equipment, fuel, and other business components will continue to rise. While you will be able to raise some of your prices from time to time, controlling rising costs will be a significant challenge. The more costs you can control and the more you can save by running your business intelligently, the more profitable you'll be.

Maximize Kitchen Efficiency

The more quickly you can prepare food for a job, the better. The lower your total labor costs, the more competitive you'll be. Over time, you'll learn how to efficiently prep for a job and how to best use your staff's talents.

Be Your Own Butcher

Butchering, cutting, trimming, and deboning your own whole birds, whole fish, and larger cuts of meat will save you money. Rather than paying for filets or Frenched lamb chops, it's important that you know how to prepare these cuts yourself.

Minimize Waste

The more you know about how to maximize food use and minimize waste, the more profitable you'll be. Don't over-peel fruits and vegetables, know how to work with cheaper cuts of meat for stews and soups, and utilize all parts of fish, meat, or vegetables in stocks, purees, and dips.

Control Portion Sizes

One common pitfall is serving sizes: Caterers often serve too much or don't keep portion sizes the same. If you're serving filet of beef to 125 people, it's important to weigh each piece and make sure that everyone gets the same portion. For buffets, it's important to have items sliced and cut into one serving size. All pies and casseroles should be precut. Have staff serve guests expensive items like lobster tails, filet slices, and large shrimp from the buffet.