Is there a market in your area for your food idea? After all, there is no point in deciding to specialise in wedding breakfasts or making wedding cakes if the area is full of retired people. And it would be equally futile trying to sell very expensive chocolates in an area where most people are on a tight budget!
To find out whether you will be able to sell the foods and services on your ideas list you will need to do a little basic market research.
Start by deciding on your catchment area. Draw a circle on the map outlining the area within which you could easily travel to deliver goods or to cater for dinners and parties.
Next, try to assess that area in terms of spending power and tastes. To help you do this, answer the following questions about the area.
Is the area a wealthy one?
Are the people living in the area likely to be able to afford luxury foods or to employ outside caterers? A chat with one or two local estate agents or a local council official will help you to identify more expensive areas.
What sort of people live there?
Are they young people with young families, middle-aged people with grown-up families or is it a retirement area? Remember that different groups will have different requirements and different tastes.
What potential sales outlets are there?
Your list should include markets, specialist grocers and butchers, delicatessens, coffee shops and cafes, wine bars, pubs and gift or souvenir shops in your area.
What sort of businesses are there?
Try to assess what the outside catering requirements of local businesses might be.
Is there any competition?
If so, can the area support more than one supplier in the same field?
You should now be able to finalise your list of possible money-making activities.
Marketing Research for Restaurants and Catering Businesses.
Businesses can survive for some time with poor record-keeping, insufficient finance or a lack of management skills, but they cannot survive without a market.
Want to know more about restaurant and catering marketing?
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What our foodie entrepreneur says…
“Linda has a vast knowledge of restaurant and catering management. Lots of information relevant to my business. I’ll definitely download more of her user-friendly eBooks in the near future.” Vanitha Lang (Kastury’s Indian Cuisine).
