How to Start a Niche Catering Business

A catering company that offers pet foods is an example of a niche business.

Harvard Business School professor Michael E. Porter identified the niche strategy as one of three generic business strategies. A niche strategy in catering involves focusing on a narrow, focused market. This can allow you to develop a specialized service that fits the needs of your clientele.

Instructions

1. Use publicly available data to identify groups of customers that could benefit from your catering business. Look at population demographics from the U.S. census and consult your local municipality about demographic changes in the community to look for emerging groups to serve. For example, if you see that there is an increase in the number of immigrants from a specific region, you might start a niche catering business that caters to their culinary needs.

2. Contact local catering companies and ask them if they offer the niche service that you are planning to offer and learn as much as you can about them. Find out what prices they charge for their services and what they offer customers. Assess the current strengths and weaknesses of the existing players in the market and develop your catering business plan to focus on their weaknesses. These might include services that are no being offered, but that there is a market for.

3. Hire staff that have experience in the niche area you plan to operate in. For example, if you plan to operate a catering business that specializes in foods for children's parties, you should look for kitchen staff who are experienced in preparing children's party foods.

4. Develop a menu of specialized foods to fit your niche. Avoid including items that do not fit your focus. For example, if you decide to operate a catering service that focuses on upscale dinner parties, most of your offerings should fit this niche. You may, however, want to include a few options that your clients may want to select as alternatives for picky guests.

5. Advertise your catering business. One of the advantages of a niche catering business is that you have a smaller market to target with your advertising. Advertise in local publications that serve your desired clientele. For instance, if you start a catering business that specializes in ethnic foods, advertise in publications aimed at immigrants. If your catering business will focus primarily on business clients, buy ads in local business and professional publications and contact potential clients directly to introduce yourself and talk about your services.

References

• "Streetwise Restaurant Management"; John Randall Jame et al.; 2003
• Marketing Teacher: Generic Strategies