Systemizing Your Catering Operation 1

Systemizing Your Catering Operation 2 Welcome to 2014! Congratulations to all of our members for your continued commitment towards building your corporate drop-off catering business. It has been a pleasure serving so many unique operations and hard-working operators from across the country. My team and I are grateful for the opportunity to work with each of you. We are humbled by the number of members who have joined our community in a relatively short period of time. We also welcome those who have recently come on board. We are glad you are a part of the journey. As a reminder, the 2013 content calendar is archived and fully accessible to you all. The topics that were covered include: Your Menu, Get Organized, Lunch Catering, Customer Relations, Delivery Representatives, Marketing and Branding, Tastings, Breakfast Catering, Vendor Relations, Employee Relations, Social Media, and Lessons Learned. They all contain useful information, tips, templates, downloads, and videos. At your leisure, review any of the topics of interest. The 2014 forecast for our industry is very promising. Leading catering sources report that consumer demand for corporate drop-off catering will continue to rise and is still an under-tapped market segment. The National Restaurant Association has suggested that restaurants seeking an additional revenue stream focus on corporate drop-off catering opportunities. The Corporate Caterer has created some innovative content and we are excited to share it with our members. Here is to a record-breaking catering business in 2014! Let s get started! ~Michael

SYSTEMIZING Systemizing Your Catering Operation 3 Introduction O V E R V I E W Let systems run the business and people run the systems. ~Michael Gerber, Business Author Systemizing Your Business is a concept we are going to focus on throughout the year. You have probably heard the term, but what does it really mean? It means that you have created and documented a logical sequence of step-by-step procedures that fit together to form a system. There will be many different systems in your business that will work independently, but some will work in conjunction with others for your business to function as a whole. This module, Systemizing Your Business, offers useful information, tips, strategies, How-To-Steps, case studies, and resources to begin the game-changing process of systemizing your catering operation. Our customized Worksheets & Checklists document offers a practical way for you to put pen to paper to start the development process. This Module addresses issues such as: What constitutes a successful business? What are the industry statistics for independents vs. franchises? What is a franchise prototype? Incorporating the franchise prototype into your business. Case study: The Standing Order. Creating your Operations Manual Mapping content for 2014 Module Resources Worksheets & Checklists Document 2014 Culinary Trends Downloadable Templates And more Additional Resources We offer a full-range of customized corporate drop-off catering consulting services. Contact us if you have any questions or would like more information about a topic.

Systemizing Your Catering Operation 4 SYSTEMIZING Information I N F O R M A T I O N Independent business owners were asked, What constitutes a successful business? This is a summary of the most common responses: 1) A consistent business that runs smoothly and produces predictable results. 2) A business that is profitable and continues to grow. 3) A business that can regularly recruit and retain exceptional long-term employees. 4) A business that will allow me the freedom to come and go as I please. While studies vary incrementally, statistics show that 86% of all independent businesses never make a profit, even after 10 or more years. The majority will either fail, lose money, or break-even. The owners, in essence, have a job not a business that can be scaled to grow. Eventually, most will throw in the towel, deciding it is too much effort for too little reward. This is not due to a marginal product or work ethic, but rather a failure to create the necessary operating procedures necessary to replicate what an owner does through his employees. The result? All of the key activities of the business are dependent on a very few people. This inhibits the business capacity to grow beyond the ability of those few employees. The concept of Systemizing Your Business is not new or trendy. According to the Department of Commerce, franchises that are established with proven systems have a success rate of over 95%! To illustrate, imagine ten people start separate, independent restaurants. Statistics show that after one year, six of the ten will be out of business. In the next 5 years, two of the remaining four will close their doors. This begs the question: what did the two restaurants that are left standing do that

Systemizing Your Catering Operation 5 the other eight did not? This is the basis of a franchise. It is taking the success formula from one business and duplicating it in another. The Success Formula is your System. E-Myth founder (and small business/entrepreneurship legend) Michael Geber explains, The way for independent business owners to achieve ultimate success is to build a franchise prototype. Your franchise prototype should clearly document the way we do it here and the resulting proprietary operating systems will ensure that tasks are always performed consistently, regardless of who carries them out. This will create predictable experiences that your customers can rely on and which in turn will help you grow and develop a true turn-key business that will be attractive to investors. If we know and accept the franchise prototype theory, (we do), why do so few of us implement it? These are some of the reasons holding us back. 1) We feel overwhelmed by the concept and don t know where to start. 2) We don t know how to document processes. 3) We don t know how to get everyone involved with the operation on board. Throughout this entire year, The Corporate Caterer is going to help you build your franchise prototype. We have created templates, tools, and instructions that will result in you creating an Operations Manual for your corporate drop-off catering division. This is no small task and will require a committed effort. But we promise you this: if you see the process thru, you will have an operation that runs more efficiently and profitably than ever before.

Systemizing Your Catering Operation 6 This is a broad stroke example of what is involved. Case Study: The Standing Order Customer: Hi, I am calling from ABC company. We are looking for a new caterer and would like to try you out. Every Monday during the month of January, we would like you to deliver assorted sandwiches for 20, tossed salad for 10, and drinks for 30. You: Great, thank you! Let s discuss some of the details and we look forward to seeing you next Monday No big deal, right? It s a simple, recurring order. Almost anyone in your operation should be able to handle this easily agreed? Guess what? Fact: Over 94% of catering companies we have surveyed are not set-up to execute this order in a properly systemized way. Ask yourself, What are the series of steps that it takes from this initial phone call, to getting paid for the first lunch delivered? What SYSTEMS and Procedures (set-by-step instructions) come into play? ACCOUNTING Accounts Receivable Billing Data Entry Check Deposit DELIVERY Food Set-Up Order Complete Confirmation Customer Interaction SANDWICH SPECS Assorted Specs Condiments Breads SALAD SPECS Tossed Specs Dressing BEVERAGE SPECS Product Mix

Systemizing Your Catering Operation 7 PAPER GOOD SPECS Plates, Napkins, Salad Bowls, Beverage Cups Forks, Knives, Salad Tongs KITCHEN PREP Sliced Cheese Sliced Tomatoes Portioned Meats Tossed Salad RECIPES Sandwiches Meats Tuna Salad Chicken Salad JOB DESCRIPTIONS Administrative Expeditor Delivery Food Prep Set-Ups VENDOR ORDERING SPECS Produce Beverage(s) Meats Dry Goods Paper Products ADMINISTRATIVE Confirming Orders Taking Orders Provide Information Answering Phones

SYSTEMIZING Systemizing Your Catering Operation 8 Tips & Strategies T I P S & S T R A T E G I E S E-Myth believes that the goal for many small business owners is to be liberated from their business, and the best way to make this a reality is to build a franchise prototype. A successful franchise prototype requires flawless systems for marketing, finance, management, operations, and leadership so that anyone can step in and not only understand them, but run them. This will ensure that the business can function efficiently without your daily involvement, or ultimately, your actual presence. Furthermore, We encourage our business owner clients to get free of their business by becoming self-sufficient, lead-generating, client-converting, customer-satisfying machines. How? By designing systems to get work done, and training people to operate those systems to produce consistent results. Throughout this year, The Corporate Caterer is going to provide tools so that you can work towards realizing this vision. You will have to make thoughtful decisions as to the way you do things. If you are diligent and detailed, you will have at the end of the process a 3-ring binder complete with every aspect of your catering operation with step-by-step instructions for running it.

Systemizing Your Catering Operation 9 From how the telephones are answered, to what specifically constitutes an assorted sandwich platter, to how many salads bowls are included with a delivery, to how a meal is set up in a clients office, to how employee are trained, to administrative and billing procedures, the ways you do things will be structured, consistent, documented, and measurable. You may feel there is a lot of work to be done. There is. But, you do not need to reinvent the wheel. When something works well, it gets documented, and then it is always done the same way. This is how you create a system. Once you have an Operations Manual, it s done. You will modify and add to it as necessary, but the guts of it will remain intact forever. You will build your Operations Manual as if you are building a business within a business. In other words, it will be done over time and step-by-step, not as a big hodgepodge thrown together. Whether you are thinking about your systems, or getting input from others, or writing scripts, or instituting specific procedures, you will create Step One of your system. When you are done with that, you will move on to Step Two. When you are done with that, Step Three, and so on. It all starts, and ends, with consistency. When everything is organized and proven, your operation should be able to successfully run on its own so you can focus on the things you want to do. It may be growing the business. It may be more time away from the business. It may be both. It can be whatever you want it to be.

Systemizing Your Catering Operation 10 SYSTEMIZING How- To- Steps H O W - TO- S T E P S A Systemized Business: Has a uniform procedure for all recurring tasks. Has documented instructions for all procedures. Has a written manual for all tasks and procedures required for the successful running of the operation. Let s take a birds-eye view of Systemizing Your Catering Operation in 2014. (1) How to Capture New Business. (2) How to Document Procedures. (3) How to Organize Your Operation. (4) How to Take Your Operation into the Future. January: Systemizing Your Catering Operation How to Capture New Business February: Prospecting and Lead Generation March: Old School Sales and Marketing April: Growing Your Client Base H o w t o D o c u m e n t P r o c e d u r e s May: Systems and Procedures 101 June: Creating Your Operations Manual Phase 1 July: Creating Your Operations Manual Phase 2 August: Creating Your Operations Manual Phase 3 How to Organize Your Operation September: Your Systems Software October: Hiring (and Keeping) a Great Staff November: Creating Your Employee Handbook How to Take Your Operation Into the Future December: 2015 and Beyond