SSM - CATERING

INTRODUCTION
Catering definition This industry comprises establishments primarily engaged in providing single event-based food services. These establishments generally have equipment and vehicles to transport meals and snacks to events and/or prepare food at an off-premise site. Banquet halls with catering staff are included in this industry. Examples of events catered by establishments in this industry are graduation parties wedding receptions business or retirement luncheons and trade shows.

Restaurant or Foodservice definition !rgani"ations in the #ood $ervices and %rinking &laces prepare meals snacks and beverages to customer order for immediate on-premises and off-premises consumption. $ome provide food and drink only' while others provide various combinations of seating space waiter/waitress services and incidental amenities such as limited entertainment. The organi"ations are grouped based on the type and level of services provided. The industry groups are full-service restaurants' limited-service eating places' special food services such as food service contractors caterers and mobile food services' and drinking places. (atering is not only about appealing to the taste buds of the individual but also to all the other five senses of a human being. )ith the right atmosphere it is possible to appeal to all of these senses making the occasion unforgettable. !f course beautifully prepared food can alone do this but now days caterers want to reach out to the customers in all possible ways and bowl them over. The venue The menu The d*cor

SSM - CATERING These are certain areas which the caterers aim to cover for an all round win. . )hatever may be the occasion' a bachelor+s party or the annual meeting of a corporate' deeply satisfying the guests are the sole aim. (atering seems pretty straightforward and simple, -ou cook some food and serve it right. That is the basic idea but there/s more to it. #ood maybe the most important thing in the catering world but its only one part of the service. 0any catering companies today include full event planning. There has been a change in approach of the companies and while extending their services' other activities are also concentrated upon. 1t/s not that food is no longer a focal point but rather that it is part of a broader mission.

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PEST ANALYSIS
POLITICAL FACTORS Price hi e in L!P!"# This is going to have a direct effect on catering industry. This increase comes after 2ovt. reali"ed the shortfall in demand and supply of Butane and 1sobutene constituents of 3&2. 4ence prices were increased by 5s.67. although this quite a substantial increase but caterers are not in the mood to pass it on to consumers. Food and Drug ad$inistration, 2ovt. has recommended the formation of #8! of 1ndia which has plans to make registration of all caterers mandatory to ascertain a fix standard below which quality of food served will be prohibited. %an on P&astic 'ags, a ban on plastic bags means difficulty in carrying/storing/transporting food or food items. 9s today services like :#5EE 4!0E %E31;E5-: has become a part of expected service. 4ence any inability to provide these types of services may affect the (aterer+s image. 9lso it will increase the cost of replacement or finding a better substitute than plastic. Service Ta(# imposition of indirect taxes is definitely going to affect the industry. 9s these taxes are not borne by $ervice &rovider but by the consumer who will have to shell out <7.=> of the bill amount. 9lso other taxes like Entertainment tax etc. will increase consumer+s outlay. Rise in Fue& )rices, increase in #uel rates will affect caterers who provide mobile services as it involves transportation of services. 9nd this will directly be proportional to distance traveled. 4ence an increase of 5s.6-? per litre seems unfavorable for this industry. But this @ust seems to be the small picture as prices of !il tends to rise in international markets 2ovt. will not be able to provide a cushion for any further increase.

SSM - CATERING Po&icies of FCI, better known as #ood (orporation of 1ndia it is a regulatory authority which decides a price range for agricultural consumables. But it fixes only on estimates of %emand and supply. 4ence any unreasonable increase in produces is restricted and is working in favor of catering industry. 4ence 2one are days when onions made people cry by selling at exorbitant prices. "ovt! shou&d ta e u) initiative of setting up more number of 9&0( markets.A9griculture &roduce 0arketing (entersB. The reason for this is that villagers/farmers can directly sell goods in these markets without intermediaries coming in to picture which obviously decreases the prices of raw materials required in catering industry. 9ccording to a study :;egetables fruits: etc offered in local market are extrapolated to an extent of <77> of their cost prices. Per$its* Licenses, as in case of caterers who offer additional services like 3iquor etc certain types of permits are required which are for limited time-periods. 9lthough this is a socially good move but it still hampers the industry as it is said Cit is not what goes in is bad but it is what comes out is badD. 1n addition there are other restrictions like time limits Aafter << pm drinks will not be served etc.B and with a ban on certain category of bars it is anticipated some pressure will shift on (atering industry A4otels etc.B. There are a&so &ega&+constitutiona& factors which have impact on this industry. like The Bombay 4otels and Establishment 9ct which states that if any hospitality or catering industry which employing more than <E persons Ainclusive of 6 part timersB will be classified as an establishment and thus will have to offer benefits like 0inimum wages etc. According to recent UN surve,* 1ndia ranks <<Fth in doing business whereas it &akistan at G7th and (hina at F7th positions respectively. 4ence forget $hanghai even Harachi seems to be a distant dream. As Catering* out&ets re-uire quite a large amount of space but 2ovt. focus on 4ousing sector may affect the caterers in negative way. 9 recent IJ study sad that we need to build E777 houses per hour or

SSM - CATERING GF 777 houses per day only then will we be able to provide sound accommodation to our populace. 9lthough this may sound a windfall for caterers but looking at space constraints it seems impossible. ECONO.ICAL FACTORS# Consu$er s)ending has increase tre$endous&, given the explosion of choices available to him. 9nother factor contributing to the increase in spending is that (ost of living has skyrocketed. 4ence it is not an option but compulsion to spend more even on necessities like food. 9 recent study indicated that consumers+ spending for food is approximately 67> of their total income in %elhi and <K> in 0umbai.

Touris$ a&so )&a,s an i$)ortant ro&e. 9s tourism and (atering go hand in hand. This is because as number of tourists increases it gives rise to variety of menus which can be restaurants etc. thus giving them an opportunity to encashed upon. 4ence tourism as a sector should given top priority for development of catering industry. 9lthough 1ndia ranks amongst top ? tourists destinations there is still a great scope of improvement. /ith %usiness c,c&es running at )ea . $ensex violating K777 mark and inflation rates down to ?.F?> it is spendthrift+s heaven. )hat this means is economic stability has a spillover effect on people. 1t is @ust like a self-fulfilling prophecy. &eople think economy seems healthy and they spend money but as it goes the other way economy prospers as they spend money increasingly. The Earning ca)acit, has a&so ta en a -uantu$ &ea). #or the year 677?-7E the per capita income was around 5s.6=777 AL=E=B p.a. in urban areas whereas in rural areas it around 5s.<<=77 AL6==B p.a. whereas per capita income of &akistan stood at LFG7 p.a. hence with an increase in income levels people tend to spend more.

SSM - CATERING Jote, the earning capacity should not be confused with spending capacity as they both are different terms. They differ as earning include saving which are not included in expenditure.

S)urred ', the &i'era&i0ation )rocess* there has been a gradual move away from a supply-constrained economy to a demand-driven one. 0oreover the typical 1ndian consumer/s mindset has changed as well. 9usterity is no longer considered a virtue debt is not a taboo any more in a typical middle-class 1ndian family and with easy availability of cheap (onsumer #inance and there are positive signs of growth for catering industry. /ith econo$, o)ening u)* and catering sector should be encouraged and #%1 limit should be increased as analysts say the limit should be raised to <77> or at least F7> with #E09 restrictions be abolished so as to encourage investments in catering sector.

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SOCIAL FACTORS#

$ /esterni0ation, The )est has tremendous impact on 1ndians.

The mindset of people today is :to live for the day: attitude. They believe to live in present and not to risk their present for their future. 4ence they believe in spending whatever is earned.

$ %and1agon effect, this refers to people aping others either due

to their status power etc. hence it effectively means that people try to imitate each other so as to prove their superiority. This also affects the spending behavior of consumers.

$ The Average age of India is around 23 ,ears. 4ence it is said

that 1ndia is very young at heart whereas average age of (hina is ?? years. 1n addition amount spent by youths Aage group 67-?=B is more than amount spent by any other age group. 4ence catering/restaurants in fast foods that cater to taste of youths have n> scope of expansion with such a wide consumer base.

$ Catering is one those fe1 sectors 1here there is no formal or

necessary training required. 3ike there are no prerequisites except to the fact the need of capital and to earn fast buck is the need of the day for everybody.

$ "iffen effect, according to $ir 5obert 2iffen when prices of any

superior goods fall people instead of buying low priced substitute tend to offset the decrease by purchasing superior quality goods given the same outlay. 9nd so even though cost of living has

SSM - CATERING increased earnings capacity has superceded it by many times. 9nd with fierce competition and choices prices have come down. 4ence this psychology makes people go for plush restaurants occasionally offsetting with low quality consumables.

$ Parado( of 4a&ue, it means that items that are of prime

importance without which no one can do are sold at quite low and affordable prices. 9s water food etc. are things without which nobody can do. They are of utmost importance and which makes them invaluable but in fact they are the one that are priced the lowest Athe necessitiesB. Thus encouraging their consumption and to make it available within everybody+s reach.

$ There has 'een a change in )eo)&es attitude to1ard a&$ost

a&& t,)es of catering #or example the way to a man+s heart is through his stomach. This little bit of advice is being taken very seriously by airlines 0enus are being designed selected and prepared with both eyes firmly fixed on the customer+s tastes. The traveler of today it has been reali"ed no longer accepts what is dished out. 4e knows what he wants and nothing less than the best will do.

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TEC5NOLO"ICAL FACTORS# The catering industry has various facets where there is direct dependence on the technological advancements, Te$)erature contro&&ed environ$ents6 the transportation is one of the main aspects of catering services. !ften the kitchen and the service delivery site are far and wide away form each other. 4ence to reach the required food and drinks to the site without deteriorating the quality of the food it is important to maintain a controlled environment. Transporting the food in specially modified carriers or vans which have a conditioned environment nowadays does this. %urners6 traditionally the caterers have been using the gas burners and 3&2 cylinders to fuel them. but now slowly but steadily especially in the five star catering the companies have started using the latest electric burners popularly called /4ot &lates/. These do not emit any smoke heat or fire. They heat only when come in contact with metal. 4ence they automatically shut down when not in use.

SSM - CATERING Co$)uter soft1are- the hospital catering is generally an avid user of this technology. There are various software+s in use. )hen one feeds in the data or name of a particular food dish in to it it straight away lists the required ingredients in precise quantity as per the patient+s calorie intake allowance. $uch software+s have made the life of hospital caterers quite easy and accurate. %esides the a'ove6$entioned s)ecific factors* there are many other small n undetected points which go often unnoticed. These can be-the dish washers- pressure boilers- electronic weighing machines- laser blade knives etc.

These factors together have made the catering industry an up to date 6<st century service industry. 1n addition the increasing competition has made use of these almost an essential art of business. )ith this the ease in payment one can now pay from their cell phones etc have removed all the hassles.

PRODUCT .I7
Leve& <. 6. ?. T,)e of service Catering Basic core #ood and beverages. product Expected service 9ugmented service &otential service 4ygiene taste banquet services etc. )orking as per the customer needs by providing specialties. The best of the specialties. #or e.g. the desserts at $ea princess

E.

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Product &ines# 1. /idth, it refers to the number of different services offered by the caterers. #or e.g. airlines railways hospitals corporate meetings etc. 2. De)th, it refers to the variety of services offered. 1t may differ from sector to sector. #or e.g. airlines need the food which is dry and portable and can be preserved for little linger. 4ospitals require nutritious food which does not affect the health of its patients. $chools provide their students with the balanced diet etc. thus the needs change according to different fields.

3. Consistenc,# it is the relationship maintained between the different services. The ultimate motive of catering is to supply food that is to be consumed by its customers. #or e.g. food provided in hospitals parties schools are all finally consumed.

CLASSIFICATION OF CATERIN" INDUSTRY# The catering industry can be divided into three categories <. (ommercial (atering 6. Transport (atering ?. )elfare (atering Co$$ercia& Catering# 9s the name suggests it is catering for commercial purpose. 9nother thing that becomes implied is commercial activities are performed with the aim of making profits. But in present settings where the customer is the king it is not possible to make profit at his cost. (ustomer satisfaction ranks equally with profit making.

Two different kinds of (ommercial (atering are,

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5esidential (atering Jon residential (atering Residentia& Catering This involves providing food beverage along with accommodation facilities 1. 5ote&s, they provide for food beverages and accommodation facilities. 9nd depending upon the type of service offer they can be classified on the basis of stars or on the basis of clientele can be classified as business transit etc. 2. .ote&s6 these are situated on the highways and cater mainly to the travelers. They provide facilities like parking refueling and garage along with basic provision for food and beverages and accommodation. The stay of the customers here is generally very short and is mainly during a halt in an overnight road @ourney. 3. Resorts 8 S)as# they are hotels located at places away from the city mainly at sea side or on hill stations. These resorts are very distinct in off seasons as the places are used more during the holidays. The stay of guests is much longer than those in motels. E.g. (lub 0ahindra 4. F&oate&s, 3ocated on floating boats which provide food beverages and accommodation facilities. 9ccording to the si"e of the floatels the facilities vary. E.g. 4ouse boats 5. "uest 5ouses, the standard of accommodation here is not as good as a hotel or a resort. The services offered are not very professional and the menu is also not very elaborate. Expenses are much less than other establishments and people who cannot afford to avail the luxuries of hotels or resorts prefer these guesthouses. 6. Lodges, provide only 9ccommodation facilities. They are generally located near railway stations or near bus stops.

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SSM - CATERING 7. Circuit 5ouses, similar to guest houses but the standard is better. They are generally owned by the $tate government and are used by the government officials. 8. Youth 5ote&s# these are necessarily cheaper than hotels. 9nd provide for accommodation though may or may not serve food. E.g. -0(9 -)(9.

Non6Residentia& Catering 9s the name suggests these provide for food and beverages but not accommodation. 1. Restaurants# %epending on the type of food served they are classified as specialty restaurants .Eg. (hinese Thai #ast food 0exican or multi cuisine restaurants. 5estaurants can be associated with hotels or may be independently present. 2. %ar# these places serve only alcoholic drinks along with light snacks. They may or may not be attached to restaurants or hotels. 1n 1ndia the rules and regulations governing the bar are very strict which limit the scope and working of this place. 3. Fast Food Out&ets, generally independent outlets and deal in food and beverages which can be prepared and consumed quickly. They don+t serve alcoholic drinks. Emphasis is mainly on quick preparation and service. 4. Discothe-ues, these are business premises which provide facility for large gathering of people to dance along with music played by the %M. They may have a small bar in the corner. 4owever the emphasis here is more on the dance and the music rather than the food items served. 5. 4endors, they are generally present on railway station and provide food and non-alcoholic beverages. They cater mainly to the weaker sections of society.

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Trans)ort Catering# 1. Rai&1a, Catering, 1n this case pantry cars are attached to the trains where the food is cooked or in most cases catering is done by outside contractors. The 1ndian 5ailway mainly did earlier catering only. 4owever private players have been coming in the picture leaving less market for the 1ndian railway catering. E.g. 5ecently. 0c %onald+s along with 5adha Hrishna 4ospitality $ervices 3td. has bagged the first private railway contract. 2! .arine Catering# This is the catering mainly done for the crew and the passengers. 1n the modern day the cruise liners have become much known and have a very high standard of catering. They are equipped with facilities like restaurants bars discotheques golf course swimming pool laundry ball rooms casinos etc. !n theses liners the service reaches its maximum. 9part from different kinds of meals

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SSM - CATERING served social activities like parties dance etc are also organi"ed to earn good will and provide customer satisfaction. 2. Air&ine Catering, Today airline catering has reached a high level of sophistication. Inlike earlier where only limited items were listed on the menu today the menu is much more elaborate. $peciali"ed training is provided to the airhostess and the crew for rendering professional services. Eg. 5ecently 9mbassador $ky (hief bagged contract in 9ir 1ndia. They are to serve 6K 777 meals per week. This is the only caterer that serves meal on the 9ir 1ndia.

/e&fare Catering# This catering involves catering without profit. 9lthough loss is not the ob@ective either. 1t is generally out of compulsion or obligation or a legal requirement or charity. 1. Industria& Catering, (arried out in big industrial or manufacturing units. %ifferent levels and types of employees are served in different canteens. The employees contribute very small amount of food cost and are served buffet meals. The company itself may either carry out this catering or the contract may be given to any private body. 2. Institutiona& Catering, This type of catering is carried out in schools and college canteens or in institutional hostels. 4ere the price charger to the students is very nominal. This is generally run by the institution itself or sometimes by the students. ;ery rarely it is given to outside contractors. 3. Service Catering# This is done in @ails and in military services where no money is charged at all from the consumers. The food is either cooked in-house or is outsourced. 15

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9 I:S
INTAN"I%ILITY Product &ife c,c&es can 'e short - Inlike manufactured items which tend to a have relatively long product life cycle service delivery systems often change for example microwaves cannot be used while catering the customers in the flights which makes warming up the food a hectic @ob. !n the other hand items of food being perishable commodities tend to have a short life cycle. $o if the food is not preserved properly it might lead to loss of essential nutrients and thereby making it unable to consume. It is difficu&t to 'ui&d 'rand &o,a&t, - This is because in service businesses copying is very easy. 1f one caterer decides to come up with a new dish or make a different kind of presentation or some new arrangements the other caterer copies it within no time. That is why it is necessary to be innovative again and again and come out with new service features. Thus they have to keep themselves distinguishing from competitors. 9t the same time #!!% is such a commodity that can lead to a lot of service failures if adequate care is not taken to preserve thereby leading to a bad rapport on the part of the customer towards a customer. E(a$)&e, $uppose if there are <7 functions arranged and of those even if 6 of them are not catered properly it affects the prospects of other future customers leading to hesitation in giving orders. They might feel there is a lack of authencity in the catering company though the actual reasons may nary in nature. Co$)an, re)utation is crucia& 6 (ompany reputation is crucial in service businesses because consumers are unable to measure with any accuracy the quality of service they are getting. 1n the catering industry what affects the most is the word of mouth. Even if a single fault is spread to other people the customers perceive that they might probably go through the same. Thus the number of customers diminishes.

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SSM - CATERING IN4ENTORY There is no 'uffer fro$ f&uctuations in de$and 6 %ue to the characteristics of services' there are no inventories to buffer fluctuations in demand. (aterers do not prefer to stock up the inventory. Even if they do it+s for a very short duration because they mainly have to deal with fruits vegetables and other food items which are highly perishable. But the caterer should have a good amount of back up so as to meet the demands of their customers. $ervices do not have inventories that can be used to buffer the imbalances between the supply of products and the demand for products. %ecause there is no decou)&ing of the various stages of )roduction* )&anning and contro& can 'e co$)&e( ; they have to be good at forecasting and planning with the help of their past experiences. #or example if more guests turn up in the party than expected they cannot ask the guests to leave or to stay hungry. 9ll this requires a good back up. The caterer for the purpose of customer satisfaction should meet even the urgent demands. That is a perfect example of how planning and control are so complex when you don/t have an inventory to buffer the demand. -ou cannot tell the customer that there are no seats and that you will put them in an inventory box until tomorrow when the flight arrives.

INCONSISTENCY Difficu&t to esta'&ish standards es)ecia&&, 1ith res)ect to )s,cho&ogica& as)ects of service 6 1t is much easier to define a commercial product than a service offered because all people have different tastes and preferences. #ew may stress more on presentation whereas others might go for much better tastes. Even establishing the specifications is more difficult than it is with a physical product. 5ard to ensure standards are 'eing $et 6 #or the same reason it is much more difficult to measure whether or not set standards are being met. !n each airline flight that you take you can be treated very differently. )ithin the same flight you might be treated well at one moment and terribly at another moment. 9s management how do you know

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SSM - CATERING other than customer/s letters that your customers got the level of service you want to deliver. <ua&it, contro& in recruiting and training is crucia& 6 Nuality control in this context comes in large part from recruiting and training. 1f you have a certain part of your service or aspect of your service concept that you are trying to deliver you have to recruit the right kind of people. 1f personality is important you have to get people who have good personalities. 1f the service is being catered to some wedding more often the workers are locali"ed. 1f it+s some big party the people are hired from the hotel management institute so the can present well according to the kind of guests. )hereas if it+s some important corporate meeting the staff who has to serve is owned and not temporary as the need to present and behave well. 4ave a good knowledge and experience about the quality of service to be provided.

INSEPARA%ILITY Since custo$ers $ust co$e to the )&ace 1here the service is )rovided* each service faci&it, has a &i$ited geogra)hic area it can serve 6 This is a reality of the service business unlike a manufacturing business where you can produce a product and ship it around the world. 1n a service business it is very difficult to deliver over a distance. #or example if a person is asking $ea princess 0ahal for catering a function that is to be held at Bandra they would recommend $ea princess lands end rather go all the way from (hurchgate to Bandra carrying all the necessary equipments.

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CORE+SUPPLE.ENTARY PRODUCTS IN SER4ICES

INFORMATION PAYMENT CORE PRO!UC T BILLIN OR!ER"TA#IN CONSULTANCY

E$CEPTION %OSPITALITY

SAFE"CUSTO!Y

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SSM - CATERING 0any service products consist of a bundle as it were that includes a variety of elements and even some physical goods. 1t is important to distinguish between the core product that the customer buys and the set of supplementary services that often accompany that product. 1n the (atering 1ndustry the core product is the food offered for a particular event and the supplementary service may include decoration arrangement of chairs tables etc the theme hospitality etc. Jow the decision faced by the firms in planning and configuring the service delivery process a combination of both core and supplementary products are summari"ed as follows, 1. INFOR.ATION# Isually first step in service delivery providing information regarding the service information regarding processes cost benefits etc. $o in the (atering industry $E9 &rincess+s outdoor catering service has been taken as an example. 1t starts with a phone call here the customer is informed about the different schemes provided by $E9 &51J(E$$ may be for a lunch dinner or @ust a get together etc information regarding the menu extra facility if wanted etc. 1n short he is given an overview of the service which is going to be provided. 2. CONSULTATION# This is one step further after the customer is informed the customer requirement is found out and solution development takes place. (ontinuing with the example of $E9 &51J(E$$ the customer may choose a scheme suitable to him and make the necessary changes regarding menus themes decoration cost etc. 3. ORDER TA=IN"# This is a specific detailed document includes what the customer has asked for in the form of order reservation and application. 9t $E9 &51J(E$$ it is done very systematically. Every customer+s requirement is documented in a 0!# Amenu order formB that systematically includes items like number of people venue menu beverages timings prices Apre-determinedB themes crockery etc. 4. 5OSPITALITY# 1ndicates O to ensure that their employees treat customers as guests. )hen $E9 &51J(E$$ goes for outdoor catering depending upon the number of people attending there are people

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SSM - CATERING roaming around asking about the taste of the food escorting the guests etc. 5. CARE TA=IN" ; SAFE CUSTODY# 1ndicates taking good care of customers+ belongings. 1n catering O it would be to take care of the health of the guests so proper hygiene to be maintained while preparing heating serving the food and also the venue which belongs to the customer should be taken proper care of. 6. E7CEPTIONS# 1ndicates doing things for the consumers that are not normally undertaken in the normal course of service may be special requests problem solving complaints handling etc. 2iving an example the order for outdoor catering in $E9 &51J(E$$ is to be done before EK hours of the events but for regular customers or at emergency situation the order a day before is also undertaken with the same kind of quality at times at the same cost. 7. %ILLIN"# &roviding a detailed billing to educate customers regarding description of the payments that have to be made. $E9 &51J(E$$ provides a detailed bill showing cost of each item provided i.e. a selfexplanatory bill. 8. PAY.ENT# &ayment refers to the mode or the method of payment. This has to be pre-decided keeping in mind O ease to the customer. 9t $E9 &51J(E$$ they operate in =7,=7 ways where =7> of the money in advance and =7> post-service. This ratio may be changed based on the customer is receiving the service.

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PRICE
=INDS OF CONSU.ERS# Hnowing the type of customer is as essential as knowing the difference between salt and pepper. %udget consu$ers#

These are the type of consumers who are very cautious of the money they spend on food and prefer economical food. They eat outside more out of necessity than choice. %ue to the everyday nature they prefer light homelike food rather than heavy restaurant food. E.g., students and employees residing in hostels would fall under this category. The people having long working hours beginning early morning also can be considered as budget customers. 4ariet, see ing consu$ers#

They are those kinds of consumers who frequently visit food @oints. 9s they eat by choice variety of food is the essence. They may visit a food @oint once every week E.g., a family going out every week would not wish to have the same food on every outing. )ouldn+t it be as monotonous as eating at home. Their basic intention is recreation. (ollege students are another good example. Occasiona& consu$ers#

They are consumers who hardly eat out or visit restaurants and prefer home made food due to health or other economical reasons. E.g., 0iddle and !ld age would fall under this category of consumers as they usually prefer home made food to outside food and occasionally would go visit a restaurant. 9lso a 3ower middle class family could be an occasional consumer for the simple reason that he cannot afford to visit frequent restaurants or eat out.

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%u& regu&ar consu$ers# These are the consumers who generally purchase the raw materials or prepare food in large quantities on a regular basis. There is also the likelihood that these consumers may have entered into a contract with the catering or other enterprise to provide the requirement on a regular basis. E.g., 9 vada pav wala may purchase the commodities that he requires in bulk everyday. This is also typically observed in case of canteens. Even the food in college canteens are prepared in large quantities' making them bulk customers.

%u& occasiona& consu$ers# These are the consumers who purchase food in bulk i.e. in large quantities but in certain special situations or on certain special occasions like in case of wedding or party orders.

PRICIN" STRATE"IES Cost6%ased Pricing This approach involves setting prices relative to financial costs. The firm should set a price sufficient to recover the full costs- variable semi variable and fixed- of producing and marketing a service and then add a sufficient margin to yield the desired level of profit at the predicted sales volume. $ervice businesses with high fixed costs include those with an expensive physical facility or a fleet of vehicles or a network. !n the other hand the variable costs for such businesses of serving one extra customer may be minimal. Inder these conditions managers may feel that they have tremendous pricing flexibility and be tempted to price very low to make an extra sale. $ome caterers promote loss leaders which are services provided at less than full cost to attract customers who will then be tempted to buy profitable service offerings from the same organi"ation. 0anagers need to keep track of the actual costs associated with loss leaders so that the amount of promotional subsidy is fully understood.

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SSM - CATERING 4owever there can be no profit at the end of the year unless all relevant costs have been recovered. 0any service businesses have gone bankrupt by ignoring this fact. 4ence firms that compete on the basis of low prices need to have a very good understanding of their cost structure and of the sales volume needed to break even at particular prices. #or example, $ea princess has its profit margin of about F7>. )hereas a small caterer has about ?=> to E7>. The profit margin is decided keeping in mind the reputation as well as the goodwill of the firm. Perceived va&ue )ricing, (ustomers are the value maxi misers within the bounds of search costs and limited knowledge mobility and income. (ustomer perceived value is the difference between the prospective customers+ evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customers value is the perceived monetary value of the bundle of economic functional and psychological benefits of costs customer expects from a given market offering. Total customer cost is the bundle of costs customer expect to incurs in evaluating obtaining using and disposing of the given market offering. 4e adds up all the values from the four sources i.e. product services personnel and image. Thus while pricing its services the firm has to keep in mind the image of its services in the market. Even other aspects such as attributes benefits values culture personality and the user have to be considered while targeting the customers to whom the services are to be offered as well as while setting the prices. $ome basic strategies are, &remium strategy# this is what $ea princess offers i.e. high quality and even charges high for the services offered. !vercharging strategy# in social parties and weddings the caterer offers medium quality of food but charges high price looking at the environment and the kind of people approaching. 0edium-value strategy# in railways the services offered are of medium quality and even the price charged is moderate keeping in mind the status of the travelers which is not so high. 2ood-value strategy# in this case the quality of service is moderate whereas the price charged is quiet low. This kind of strategy is

25

SSM - CATERING mostly seen in college and school canteens so that it becomes affordable for the students. Economy strategy# here the quality as well as price both is low. 1t is mainly seen in shops which are on streets such as @hunka bhakar etc. (ustomer Type &ricing $trategy

&roduct Type

4otels 0otels 5esorts and $pas 3odges/2uest 4ouses 4ostels 5estaurants %iscotheques #ast food @oints ;endors 5ailways 9irlines 1ndustrial 1nstitutional $ervice Bars

!ccasional Budget !ccasional Budget Budget !ccasional/ seeking !ccasional/ seeking Budget Budget !ccasional Budget Budget Budget

&remium Economy &remium Economy 2ood-value ;ariety &remium ;ariety !vercharging Economy 2ood-value

Economy 2ood-value Economy

26

SSM - CATERING

OR"ANISATIONAL STRUCTURE AT SEA PRINCESS

!rgani"ational chart Catering office

Banquet sales office

!perations office

4ead

&urchase 0anager

&ublic relations 0anager

0anger

9ssistants 4ead waiters (hefs

$tewards 4elpers

9ssistants

Inskilled employees

27

SSM - CATERING

PRO.OTION
Through promotion marketers inform existing or prospective customers about service features and benefits price and other costs the channels through which the service is delivered and when and where it is available. 1n catering business generally the caterers or entrepreneurs do not follow aggressive marketing strategy. 9 general rule of the thumb in catering is that the more customi"ed your catering services the lesser is the aggressiveness of the marketing strategy. #or instance it is the least aggressive in off-premise catering. The target market from various sources can receive this information. .essages Trans$itted Through Production Channe&s# 1n this category communications are developed within the organi"ation and transmitted through the production channels used to deliver the service itself.

Front6&ine staff# 1n catering services employees in front-line position i.e. wait staff serve the customers directly. They promote services of the organi"ation through excellence in service delivery technical knowledge. Service out&ets# Both planned and unintended messages reach the customers through the medium of service outlet and environment created. 1n catering business factors like hygiene etc promote the organi"ation.

28

SSM - CATERING .essages Trans$itted Through .ar eting Channe&s# 1n catering business very few well established catering firms like fast foods chain etc undertake these tools of promotion. Advertising# 1n catering business advertising is done through &rint media and )ebsites. &. Print# &ublici"ing the achievements of your service organi"ation like the chef winning some award. 5estaurants can offer to provide recipe columns to newspaper publications. 1f the offer is accepted you have a medium which is effectively saying that yours must be a good product otherwise it wouldn+t be allowed to be a part of the publication. '. Direct .ai&# 3ocal 5estaurants use direct mail to provide CflyersD and Ctake-away menusD for home delivery services in the neighborhood area market. This provides local market coverage at low cost. (. /e'site, Jowadays the catering firms have their own websites to promote their services. Sa&es Pro$otion# The ob@ective of sales promotion is to accelerate the purchasing decision or motivate customers to use the service sooner. &. Sa$)&ing, This is generally used in function catering whether held in banquet halls or off-premise. '. Cou)ons# local restaurants use this. #or example restaurant gave special discount coupons to the winners of (!3!$$EI0.

(. S)ecia& offer, offerings that encourage customers to persuade others to @oin them in using the service. #or example CBring two friends and the third person eats freeD.

29

SSM - CATERING ). "ifts# 0c%onalds give gifts on the purchase of C4appy 0ealD pack. .essages Originating Outside the Organi0ation# $ome of the powerful messages about a company and its product come from outside the organi"ation and is uncontrollable by the organi"ation. /ord6of6$outh# 5obert 3ewis professor at 2eulph Iniversity has observed that someone who purchases a service may go away empty-handed but not empty-headed. They have memories which can be shared with others. 1t is the @ob of service provider to make these memories as pleasant as possible. 1n off-premise catering word-of-mouth is the most important means of marketing. 9s it is viewed to be more credible than those initiated by the firms are. .edia Editoria&# 0edia coverage initiated by broadcasters and publishers. 0any maga"ines and newspapers employ restaurants critics to evaluate restaurants for their reader. #ood guide books give details of different eating places in different places and rate them on the quality of food service menu surroundings and price

30

SSM - CATERING

PLACE
%ecisions on where to deliver service have a great impact on the nature of customer+s service experience because they determine the type of encounter if any with service personnel price and other cost incurred to obtain the service. Thus product can have an effect upon the location of any kind of restaurant and vice-versa. Elements to be considered before deciding the location of distribution outlet, aB bB cB dB eB fB gB hB $ocio-economic status and spending power of the

local residents.

(ustomer+s age group Eating out habits.Afrequent / occasional B Ethnic origins of the local population. (ustomer+s self-perception Aadventurous/ conservative attitude toward foodB &roximity to competitor+s outlets. 9ccessibility 5eal estate costs.

Thus we can say that choosing the right location has a lot to do with the success of a restaurant. %ecision regarding location in off-premise catering is not a matter of concern for the caterer. 1n catering business the fast food or quick service outlets should be built in a central location where there are crowds of people 6Ehours of day. This is a ma@or reason why this @oint are found near the railway stations sub-ways etc. The best location for a high-class restaurant is in a selected area of town in a mansion or stately home where it is a part of the attraction. #or example 0umbai branches of hotels like Ta@ !beroi M) 0arriot are all 31

SSM - CATERING located along the seashore giving it a beautiful view of the sea 0umbai being the city of seven islands. (offee-shops snack-bars etc are usually do well at transport interchanges movie theatres department stores and hypermarkets.

PEOPLE
1n high O contact services like catering personnel is central to service delivery. Their presence makes the service more tangible and in sometimes more personali"ed. Thus from the firm+s perspective service staff is crucially important as the service levels and the way service ids delivered can be an important source of differentiation as well as competitive advantage. #rom the customer+s perspective the encounter with the service staff is an important aspect of service and based on this encounter the customer @udge the performance of the service. 5ire the right )eo)&e# 1n catering services it is an important stage due to its high contact nature. But selecting the right kind of staff who is good at customer service can be difficult. Talking about catering business the first @ob that comes to our mind is cooking / chef. But that is not the case. The itchen staff covers aB 4ead (hef Achef de cuisineB bB 9ssistant 4ead (hef Asous chefB (* &astry (ook Achef pPtissierB dB #ish (ook Achef poissonierB +* 5oast (ook Achef rQtisseurB fB ;egetable (ook Achef entremettierB gB $oup (hef Achef potagerB

The dinning roo$ staff covers# aB 5estaurant 0anager bB 4ead )aiter cB 5eception 4ead )aiter

32

SSM - CATERING dB eB fB $tation )aiter (ommis )aiter )ine-waiting $taff.

The number of staff is determined by the operation and can be scaled down to suit all types and si"es of kitchen. The personnel officer or manager of a catering business must know the qualities to look for when recruiting new staff. $taff must be selected on their capabilities or potential for the particular post. Those who have to deal directly with customers must possess the necessary social skills as well as the practical skills of the @ob. Employees working at the front of the house which includes waiting and reception should be selected for their personality appearance on duty stance and body language use of eye-contact facial expression composure and manner of speech. The intuition of the personnel manager can be backed up by a psychometric test and the candidate+s reference from school college or previous employer as well as the keenness of the applicant to get the @ob. (atering enterprises recruit staff for the entry level positions from the 4otel 0anagement 1nstitute and other institutes providing courses in catering business. These recruits have knowledge about the practices and routines involved in catering. #unction caterers rely mainly on on-call staff rather than permanent parttime or full-time people due to the unpredictability of business and constantly changing workload.

Ena'&e the )eo)&e# 1n catering it mostly on-the-@ob training for their particular operation by utili"ing the skills and knowledge of their own supervisory members of the staff who are capable of giving instructions on the company+s methods and policies.

33

SSM - CATERING $ome have a philosophy of encouraging the staff to become more accomplished by positive encouragement and the prospect of incentives to staff that show a willingness to increase their capabilities. $ome establishments will give support to staff that wishes participate in national and local competition. $enior staff may be sent on a visit or tour of other establishments in other countries where they can gather ideas for new techniques and new dishes. There are several commercial firms of trainers who offer their own tailor-made courses to various grades of staff employed in a catering business. $uch courses aim to increase the capabilities of all members of staff from waiter to middle-rank manager. They are on the client+s premises or at the training firm+s own school. The courses are conducted by experienced trainers who are capable of drawing out better results from staff whether new recruits or longserving hands taking a refresher course. The aims are to widen the hori"ons of each member of staff to give pride in their @ob to boost morale and make them more effective at their @ob. #or example Jew -ork city+s -ippee offers training programs at two skill levels. The first is a basic program that conveys elementary information and traditions about table service' this basic course is suitable for new recruits. The other programs are more advanced in nature designed to enhance the skills of experienced professionals who could benefit from coaching on the finer points of table service. .otivate Peo)&e# $taff performance is a function of ability and motivation. 4iring training are nothing but keys to motivation. 9s a catering manager one has to motivate and encourage his staff specially the front line wait staff. 9s they may be facing a high level of emotional labor. Emotional labor arises from the discrepancy between the way frontline staff feel inside and the emotions they are expected to be cheerful compassionate sincere or even self-effacing, Aemotions that can be conveyed through facial expressions and gestures and wordsB. 1n the

34

SSM - CATERING event they don+t feel such emotions they are required to suppress their true feelings in order to conform to customer expectations. &erformance incentive can also be provided to stimulate their competitive nature. #or example employee of the month appraising the chef for coming up with innovative dishes.

ESSENTIAL SER4ICE!

S=ILLS

RE<UIRED

FOR

RUNNIN"

CATERIN"

&* Co$)etenc, in coo ing and food )re)aration, 9 high degree of skill in cooking as well as ease efficiency and speed in food preparation are the most important pre-requisites for a successful small caterer. '* P&anning and organi0ation, 9 high degree of skill is required in planning and organi"ing of off-premise catering. $ome areas of catering demand only a modest amount of these skills, industrial catering with a mobile kitchen large-event catering is relatively simple to conduct. But off-premise catering compels to plan and organi"e for each event. (* Efficienc,# 1n catering it is essential that the food that the guests are waiting for arrives at their table as quickly as possible. &reparation time must be kept to a minimum and only a high degree of efficiency can achieve this. )* A'i&it, to 1or under )ressure, To be a caterer one must be able to live with and work under pressure and not show it. Jothing is predictable during an event. The guests at each one are completely different' they prefer different food eat different portions and interact with the wait staff completely differently. +* S i&& in )ro'&e$ so&ving and crisis $anage$ent, !ff-premise catering is bound to have unexpected problems. )hen so much equipment food drink staff and peripherals must be transported and set up for a complex event problems will crop up at times. ,* A'i&it, to dea& 1ith c&ients confident&, and successfu&&,, !ne has to deal with the clients personally most of the time. The personal interaction with the client decides whether there will be any future business from him.

35

SSM - CATERING

DESIRA%LE S=ILLS#

aB )ell-developed marketing and selling techniques. bB 2ood record and bookkeeping skills for administrative chores. cB 9bility to deal with staff. dB $olid financial and budgeting skills.

36

SSM - CATERING

P5YSICAL E4IDENCE
A$'ience# Those characteristics of the environment pertain to our five senses. The ambience atmosphere is composed of several design elements and details that have to work together to create the desired service environment. The resulting atmosphere creates a mood that is perceived and interpreted by the customer. aB. F&avour, 1n catering services flavour of food is very important. This is one of most crucial criteria against which the service is @udged. &laying pleasant music cannot compensate a customer+s disappointment with food quality of the catering establishment. $uccess of the caterer depends on this factor. The basic flavor Asour/ bitter/ salty/ sweet/ pungentB of a dish comes from the main ingredient which can be enhanced or diminished by adding seasonings and flavors but should not be entirely baked. 4isua& Environ$ent, (olor plays a big part in creation of atmosphere and contributes to the Cfeel goodD factor which helps put the customers at ease in a restaurant. There must be a perfect blend of colors including the surrounding walls and windows carpet and curtains lampshades pot plants and floral arrangements the table and chairs etc . (ool blue and green colours give a feeling of relaxation while warm yellow gives a more stimulating feeling. This is why fast-food outlets are decorated in warm light colours which help speed up the rate of turnover. 1n case of an up market restaurant deep colours give a sense of warmth and security. 3ighting is also important in creating atmosphere and includes natural light from windows and doorways. There are recommended lighting levels for the various sections of a dining room and kitchen depending on their si"e and use. 0any different kinds of lamp bulbs are available each giving a particular effect which can help create the desired atmosphere of a room. (andles are used-to create a co"y environment especially for evening meals and special occasions. The overall requirement is to make the room look inviting to help customers look their best and to enable them to read the menu

bB.

37

SSM - CATERING easily. Emergency lighting is obligatory in case an incident occurs that demands a hasty exit or in the event of a power failure. cB. Auditor, Environ$ent, $ound is an essential element in the creation of atmosphere in a dining-room because it can give customers a feeling of belonging and of participation in the activities. $ilence makes the room feel eerie and loud noises such as a dish or piece of cutlery accidentally dropped by waiting staff will cause consternation. The pleasant hum of conversation however can add to the mood of the dining room. $taff should be taught to work quietly and not to engage in idle chatter between one another or to start up a conversation with the guests. Background music such as piano or tape might be suitable for the venue. Ther$a& Environ$ent, (ustomers will en@oy their meal more if the temperature of the restaurant is @ust right. 9ll public areas should be kept at a constant room temperature using unobtrusive airconditioning. This will provide comfortable conditions. Scent# 9n ambient smell is the one that pervades in the environment. The presence of scent can have a strong impact on our mood and thus influence our buying decision. 1n catering business aroma of food is a very crucial factor. 9fter a customer has looked at the colour of the food placed on the table it is the aroma that takes over and excites the appetite. #or example many restaurants like to serve garlic bread as an appeti"er. 1t works very well for cafes pi""erias.

dB.

eB.

.enu#

!n entering a catering establishment of any kind a customer looks at the menu to see what dishes are available and at what prices and from this information decides what to choose. 9 caterer views the menu as an outward expression of the business. 1t demonstrates how professional the people who run the business are. 9 menu is the Cmodus operandiD of catering business which it has to work from. 9 menu is the means of communication between the caterer and customer and therefore must be written in the language they speak and understand. #rench being the international language of cookery top hotels use #rench names and terms in their menu usually with a description written underneath each entry. 1n catering business whether restaurants or off-premise a menu should be compiled bearing in mind the following points, 38

SSM - CATERING aB dessertB bB (* dB eB fB gB The sequence of courses Astarters main course $uitability of dishes. $election of dishes and balance of menu. (apability of staff 9vailability of equipment. $eason of the year. 9vailability of resources.

La,out# 1n catering the planning of layout is often advisable to work backwards starting not at the goods delivery bay but at the customer+s entrance and dining room. This is the first place the customer sees and is the main revenue producing area. 1t is essential to know the total area available and approximate amount of space to be allocated to each component part like kitchen stores and other ancillary areas in addition to the dining room. 1deally the kitchen dining-room bars and ancillary areas should be located on the same floor so that communication and movement of food beverages and personnel between them is easy. The physical layout should reflect, a. Jeeds and demands of customers. b. &olicy of the firm. c. The menu and its range of products.Aproducts and techniques of service and presentation.B d. The nature of establishment. 1n off-premise catering the caterer has to customi"e the layout for every event in accordance to the space available. 4is floor plan should include the smallest of details like where to place the floral displays. E-ui)$ents# 1n catering business a large part of the investment is in the form of equipments which include both fixed and mobile items. The need for equipments will vary depending on the type of operation. 3arge-scale cost sector catering operations work to a fairly restricted menu. Thus those equipments will be needed which are suitable for bulk cooking. (ommercial

39

SSM - CATERING firms offer a fairly wide range of dishes and therefore work with smallscale equipment. These include, =itchen e-ui)$ents, heavy-duty or fixed equipment like the cooking range etc. general kitchen machinery used for chopping cutting mixing like mixer food processor etc. $mall kitchen equipment like pans and moulds cutting instruments other utensils etc. Dining6Roo$ E-ui)$ent, furniture like tables chairs etc. crockery glassware cutlery serving dishes linen floor coverings.

&.

'.

Staff Dress Code# Jow a day in catering business staff dress code is becoming a necessity. The more formal the catering business is the more dressed up the staff should be. #or example in a caf* or pi""eria the staff would probably have particular colour combination to be used as uniform. )hile in a high-class restaurant the wait staff will probably be dressed in a tuxedo. To foster a neat appearance of frontline staff mirrors can be placed where staff can be automatically check their appearance before going Con stageD to meet customers. 1n off-premise catering the client appreciates having uniformed staff serves as it looks more professional and businesslike. Before taking off for an event it is important to make sure that everyone+s uniform and appearance is acceptable.

40

SSM - CATERING

9 sample dress code in a catering business would include, Black trouser or skirt. )hite tux shirt. Black shoes Aclean and shinyB 4air pulled back Aneat and cleanB Jo large or dangly earrings. Jo earrings for men. Black socks for men. (onservative make-up. )ell-kept hands Anails short and cleanB Custo$er A$enities# 9 good restaurant should offer facilities other than the room where meals are taken, reception area cloakroom for men and women and foyer for waiting. (loakroom and toilet facilities must be kept clean and secure at all times' many customers @udge an establishment by the quality of these facilities.

41

SSM - CATERING

PROCESS
FLO/ OF SER4ICE .APPIN"

(9TE51J2

&9-0EJT/ B1331J2

#15$T %9TE

(!0&391JT 49J%31J2 9T $1TE/9#TE5 T4E E;EJT 1$ !;E5

&5!&!$93

TE0&!595H1T(4EJ

095HET1J2 &39J$

$T9##1J2

&5E& T10E

$ETI&

B12 E;EJT 42

SSM - CATERING

SER4ICE .APPIN" DIA"RA. The $ervices &rocess 09&&1J2 displays the activities you may need to execute to achieve successful implementation and in-service management of your services program. These activities are intended as guides for consideration as you plan your services program. They are structured for a services program in which the prime services contractor will provide all human resources ancillary equipment and all space and facility modifications. >The $o$ents of truth for an outdoor event are three ti$es greater than for an event he&d in* sa,* a 'a&&roo$*> 9mong the forces that can literally rain on your parade, bad weather high winds local laws bugs and power shortages to name a few. The key to a successful outdoor event is to Rmap out every detail and potential problem prior to the event. 1t/s easy to figure out what/s right about the spot but our @ob is to find out what/s wrong -- or could go wrong.R 9nd while it might seem cheaper to head for a park instead of a hotel ballroom that/s hardly the case. R!utdoor functions almost always ending up being more expensive than traditional ones R

43

SSM - CATERING (I$T!0E5 9J% B9JNIET 09J92E5 1JTE59(T1!J %&ue )rinting for 'an-uet Services 4!I$EHEE&1J2 9J% #EE%B9(H

&5E$EJT 0EJI 9J% !T4E5 #9(131T1E$

$E5;E% T! 2IE$T$

%1(I$$1!J )1T4 (9TE51J2 (4E# 9J% &39(1J2 !5%E5

$E5;E 1J (49I##1J &39TE$ 9J% %E31;E5E% T! B9JNIET

4E9% (4E# 1J%EJT$ 5ENI1$T1!J

2ETT1J2 5ENI1$T1!J T! H1T(4EJ 9J% &5E&95E #!!%.

44

SSM - CATERING The First Date ?service encounter@ STA"E A 9 popular mantra in the catering business is R4ow can 1 make it happen for you.R #or most this isn/t an empty statement. 9 caterer worth his or her salt Aand all the other spices in the spice rackB stands firmly behind this phrase. 9fter you make contact with a catering firm the caterer/s first @ob is to figure out what you want and decide how their company can create it for you. This process usually begins with a client-caterer meeting -- sort of like a first date. )hether it happens during the initial phone call or a scheduled appointment the client services representative wants to get as much information as they can to help them prepare a proposal for you. The way client is treated would effect the perception of the person towards the company. - $hould essentially connect you to the right person immediately " The receptionist would be pleasant and helpful " The official will give an immediate date for meeting. 9s a client you should be ready to answer these questions, )hat is the proposed date and time of the event. 1s this a social or professional function. %o you have a general budget in mind. 4ow many guests will attend. 4ave you selected a venue or setting. !f course depending on the type of function other questions can Aand shouldB come into conversation. Heep in mind that this initial discussion is critical because it will be the backbone of the caterer/s proposal. $o if you have certain ideas in mind you need to be as explicit as possible. This -- what/s in the client/s Rminds-eyeR -- is the most important thing to discover. )hat is their favorite kind of food. %o they like formal or informal functions. )hen they entertain what are their gatherings like. %o they prefer small or large groups. )hat do your parents like to do in their spare time. )hat/s their favorite vacation destination. .O.ENTS OF TRUT5# 45

SSM - CATERING

)hat is a moment of truth. 1t is any episode or event in which the customer gets an impression of the builder/s products service or people. Jothing is neutral about a moment of truth. 1t leaves a positive or negative impression on the customer/s mind. 0oments of truth can build or destroy trust and confidence in the minds of prospects and homeowners. 0oments of truth can and often do dictate buying decisions. 0oments of truth become word-of-mouth advertising. The key is to ensure that every moment of truth is a positive one for the customer. Each encounter you or an employee has with a customer is a moment of truth. The customer/s perception ArealityB of your company is formed by every encounter. To deliver superior customer service every encounter must result in a positive experience for your customer. #or example every time the phone rings at your business it is a moment of truth. 9re your customers/prospects greeted with a cheerful professional and efficient handling of their call. 4ow each call is handled provides one of the most opportune moments of truth for you to make a positive impact and help customers RfeelR good about doing business with you and your company. The Pro)osa& ?STA"E 2@ The foundation of a proposal is the information gathered during an initial inquiry or meeting with the prospective client, type of event date time guest count venue favorite foods or menu ideas 9rmed with these guidelines the caterer can build a detailed proposal that includes the actual menu beverages an itemi"ed listing for equipment rental the staff requirements and any necessary food or beverage taxes. 4ow much it will cost him for extra facilities and main course. (ost per person is being given to him. Then host and banquet manager executive chef sits together and decide upon a menu. 9fter menu had being compiled details are filled in banquet catering checklist.

46

SSM - CATERING )hen planning a proposal caterers generally consider several other factors in addition to the basic information. #or example the (9TE51J2 staff usually knows that their social clients usually eat less food A<K-66 bites -- think bite-si"ed candy bar or an orange wedge an average si"ed bite of foodB than their corporate clients A66-6K bitesB. The time of day and length of an event can also dictate how much food you need. 9 party held right after work during Rcocktail hourR say from =,77 to S,77 p.m. could center on hors d/oeuvres and other light fare because the guests will probably have plans for dinner after the reception. !ther menu planning considerations include, %a&anced $enu - a standard menu should include a balance of two proteins Ameat poultry or seafoodB one vegetable and one starch Apasta rice or potatoesB. Courses - for seated dinners with multiple courses each course should complement the next and there should be some variety. %uffets - the number of buffet stations corresponds to the number of guests. 9 good rule of thumb is one buffet per S= guests. 1f the guest list is large say S=7 or more you can increase the number of guests per buffet ratio to one buffet per <77 guests. )hen the proposal is ready the caterer gives it to the client for his or her perusal. 9fter the client accepts the proposal the caterer schedules another meeting to discuss the decor and layout and to plan a detailed timeline of the event.

.a ing P&ans ?STA"E B@ (aterers and other event planners today have many useful tools to assist them in planning the perfect event. !ne product called Roo$ 4ie1er

47

SSM - CATERING automates the process of drawing up floor plans for events and parties. )hether indoors or out no matter the shape or specs of the room blue printing helps the caterers utili"e the space to its best potential. 0eeting &lanners #acilities 0anagers (aterers $pecial Event &lanners 5ental (ompanies &roduction and 9udio ;isual (ompanies Blue print lay out an entire function from the buffet tables to seating arrangements to floral displays. Jot only does it help in the planning phase but it/s useful during the execution of the pro@ect too. (aterers can make printouts showing exactly where everything should go Aeven down to the placement of utensilsB so the catering staff will have a precise map of the event. These blue prints are especially helpful when caterers work with outside vendors such as equipment rental companies that supply everything from tables and chairs to linen and china. Each vendor is given a printed diagram of the event plan to use for planning and setup. The staff required for this purpose is, < (oordinator per event < $upervisor per event < Buffet 9ttendant per buffet / station < 5unner per buffet / station < Hitchen 0anager per buffet station $tewards n waiters as per requirement E&'o1 Roo$ Jo one likes to attend cramped functions where you feel like you/re going to knock something over on the way to the buffet. To ensure adequate space here are some general guidelines,

The %ig Da,Cs A&$ost 5ere? STA"E 9@ On Schedu&e

48

SSM - CATERING !ne of the most valuable tools in planning and executing an event is a detailed schedule. %epending on the nature and length of an event these schedules can be several pages long covering each moment from setup to service to breakdown almost minute-by-minute. 3arge events may have <77 or more staff members on hand. These schedules are a script of exactly what should happen and when' providing direction to each of the many staff involved. (aterers have to consider several factors before finali"ing the schedule. $et-up time is a big consideration. #or example if an event is outside with no set structures the caterer might need a couple of days to get the site ready depending on the number of tents decor and layout. (leanup is also a ma@or concern. #or standard functions they generally like to have at least ? hours for setup and a couple hours for breakdown. The caterer also needs to consider the nature of the gathering. 1f it/s a wedding reception being held in a different location from the ceremony will all the guests arrive on time. 1f there is a cocktail reception how long should that last prior to the dinner. The caterer also has to leave time for a bouquet toss toasts and the cake cutting. 1f the event is at a rented facility with a strict end-time the team has to precisely time and execute all this according to the schedule. Heep in mind that some facilities do book more than one event in a day. 1f you/re arranging a morning function and have the place booked until ?,77 p.m. that means you all of your guests the catering crew and all their equipment and supplies must be off-premise by ?,77 p.m. sharp.

Pre)6Ti$e

The timeline for this work definitely depends on the si"e of the function. #or a corporate event for ?77 people for example the kitchen staff would order food about E days in advance and start the actual food prep < night before. 9 smaller gathering perhaps =7 guests or so doesn/t require as much time. The staff would order the food 6 days ahead of time and the food prep would start a morning to the event. (atering kitchens are similar to restaurant kitchens in that the staff gets most of the foodstuffs and supplies from large distributors but goes to local markets or specialty shops for specialty items. $o everything is planned and ready to go let/s see how the big day unfolds...

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The %ig Event ?STA"E D@ "etting to the Site on Ti$e The big day has arrived. This is when the catering team finally puts the itinerary to use. 1t/s time to load up all the equipment supplies and foodstuffs. )orking from an extensive packing list the crew loads vans and trucks with all the supplies. Jothing goes unchecked - the crew accounts for every linen glass and chafing dish tray pot pan and silver piece on the packing list. They even itemi"e small items like aluminum foil saran wrap and garbage bags. #inally when everything else is on board they load the food. 9t this point you might be thinking RBack-up there a minute O C-es T (aterers use an array of portable appliances and heavy equipment -- ovens fryers hot boxes and dishwashers to name a few as backups. 9lso keep their suppliers ready of any unexpected demand. The Set6u) The catering crew transports the supplies to the event site and unloads it all. 1f the site has cooking facilities the crew unloads the cooking equipment Apots pans serving dishes etc.B and food right away. Then they set up the tables and chairs according to the precise floor plan. Typically the client services representative or coordinator that planned the event manages all the setup work. $ometimes the firm has to execute this front-house setup in connection with other vendors. This is where the detailed schedule floor-plan and layout come in handy. Thanks to the detailed plan the florist knows where to place arrangements' the orchestra knows where to set up their instruments and so on. #or an outdoor event without cooking facilities things get a little more interesting, The crew has to assemble a temporary kitchen immediately. The team divides the tents into two staging areas one for presentation and serving and one for cooking. 9 hanging wall separates the two areas of each tent. !n the kitchen side tables line the outside walls and run down the center. 1f the caterer is serving the food buffet style the crew will set up stations with serving platters and chafing dishes around the event. The kitchen staff cooks and prepares the food and buffet attendants and

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SSM - CATERING runners keep the stations stocked. $terno cups keep food warm and dry ice keeps food cold. STA"E E 9fter the entire function is over equipments are brought back to hotel and housekeeping comes in picture. There are men employed to clean the plates and other utensils. 3ater on feedback is taken form the host about the service provided.

CRITICAL AND NON6CRITICAL INCIDENTS# 6

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SSM - CATERING 9 critical incident is any crisis event with sufficient impact to overwhelm the usual coping skills of an individual. 1n the case of services it could be something that causes the customer to dislike the a certain service to such an extent that he does not use that service anymore and he does not let his family and close friends also use it. The Examples of critical are, <. 1n the case of hospital catering the caterer has to keep in mind what the doctor has prescribed for the patient while preparation of individual patient+s food. This is because if there is a single incident also where the patient after having his food started feeling worse and the cause was found out to be the food and then the caterer would be removed from his contract. 6. 9nother incident that could happen is in the case of educational institute caterers. 1f any student falls sick and he complains to the management then the caterer+s contract would be with the institution would be over. These incidents are critical incidents for the caterers as they could lose their customer+s therefore they have to pay more attention to the food preparation. I$)ortance of Critica& Incidents# 6 These incidents are important from the service provider+s point of view because he know that occurrence of such events could lead to a loss for his company. 1f such incidents occur then the caterer has to lose the institution as a customer and it might so happen also that the management of the institute might spread the dissatisfaction to other institutes. 9lso the finding out of such incidents can help the service provider to find out a way in which such incidents do not occur where he is providing his service' in this case it would be the place where he is offering food. Therefore the caterer has to make sure that the above-mentioned incidents do not occur so that he can safe guard his company.

The fo&&o1ing are the F ste)s to ensuring custo$er satisfaction so that such critica& incidents do not ha))en#

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A! Encourage Face6to6Face Dea&ings This is the most important part of interacting with a customer. 1f you/re not used to this sort of thing it can be a pretty nerve-wracking experience. 1t/s important to meet your customers face to face at least once or even twice during the course of a pro@ect. The customer finds it easier to relate to and work with someone they/ve actually met in person rather than a voice on the phone or someone typing into an email. E.g. 1n $ea &rincess in the case of out-door caterers the caterers involve the customer in the entire process at every step and therefore gain his loyalty. 2! Res)ond to .essages Pro$)t&, 8 =ee) Your C&ients Infor$ed This goes without saying really. )e all know how annoying it is to wait days for a response to an email or phone call. 1t might not always be practical to deal with all customers/ queries within the space of a few hours but at least email or call them back and let them know you/ve received their message and you/ll contact them about it as soon as possible. Even if you/re not able to solve a problem right away let the customer know you/re working on it. E.g. 1n $ea &rincess when there is a delay in the setting of the food table the caterer approaches the customer and explains to him about the delay and asks the customer to keep the guests engrossed for some more time so that there isn+t any dissatisfaction on the part of the other customers. B! %e Friend&, and A))roacha'&e 1t/s very important to be friendly courteous and to make your customers feel like you/re their friend and you/re there to help them out. 1t/s vital that you keep a clear head respond to your customers/ wishes as best you can and at all times remain polite and courteous. E.g. 1n $ea &rincess normally during weddings the parents of the married couple are very anxious about whether the reception is going as per planned or not and therefore they come again and again to the

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SSM - CATERING caterer+s inquiring whether everything is in order. %uring this time the caterer tries to be calm and polite to the customer. 9! 5ave a C&ear&, Defined Custo$er Service Po&ic, This may not be too important when you/re @ust starting out but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. 1f a customer has a problem what should they do. 1f the first option doesn/t work then what should be done. $hould they contact different people for billing and technical enquiries. 1f they/re not satisfied with any aspect of your customer service whom should they approach. There/s nothing more annoying for a customer than being passed from person to person or not knowing who to turn to. E.g. 9t $ea &rincess making sure they know exactly what to do at each stage of their enquiry is of utmost importance. $o they make sure their customer service policy is present. D! Attention to Detai& 4ave you ever received a 4appy Birthday email or card from a company you were a client of. These little niceties can be time consuming and aren/t always cost effective but remember to do them. Even if it/s as small as sending a 4appy 4olidays email to all your customers it/s something. 1t shows you care' it shows there are real people on the other end of that screen or telephone' and most importantly it makes the customer feel welcomed wanted and valued. E.g. 1n $ea &rincess in the case of out-door caterers they remember the day of the event for which they were called for example for marriages engagements etc. They send cards to these customers every year on that day.

6. Antici)ate Your Custo$erCs Needs 8 "o Out Of Your /a, to 5e&) The$ Out

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$ometimes this is easier said than doneT 4owever achieving this supreme level of understanding with your customers will do wonders for your working relationship. E.g. 1n $ea &rincess sometimes the customers do not now which venue to select or which decorators to call. The caterers provide them with this information and help them out.

F! 5onor Your Pro$ises The simple message, when you promise something deliver. E.g. 1n $ea &rincess they make sure that all the arrangements have gone as per the customer satisfaction and there isn+t a single guest from the party who hasn+t completed en@oyed every aspect of it.

Conc&usion (ustomer service like any aspect of business is a practiced art that takes time and effort to master. 9ll you need to do to achieve this is to stop and switch roles with the customer. )hat would you want from your business if you were the customer. 4ow would you want to be treated. Treat your customers like your friends and they/ll always come back.

SER4ICE FAILURE# FIS5%ONE

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FIS5%ONE ANALYSIS The following are the reasons that lead to delay in service, A! Custo$ers# - !ur customers too can lead to a service delay. 1n the catering industry the information provided may be inadequate or wrong. The information required would include the no. of people the venue the menu the date and time. 9nother fault of the customer that leads to service delay is last moment changes. 1n the case of out door functions everything is finali"ed a day in advance. 1f the customer wants to change something in the information provided by him it would cause the service provider in- convenience and it could lead to a delay in service.

2! Other Causes# - The other factors that play a role in service delay are the weather conditions the owner of the venue and transportation. Bad weather could cause the caterer in losing some of his materials during transit. The kitchens in open air can sometimes be completely made unusable by a sudden rain shower. The caterers have to come at least a day in advance and set up their equipments for a smooth flow of the function. But it could so happen that

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SSM - CATERING the owner of the venue has another function planned for the earlier day and it would not be possible for them to set up the equipment. This could lead again to delay in service.

B! Faci&ities and E-ui)$ents# - The equipments involved in catering would be the furnace crockery the table and chairs the table cloths trolleys mixers for drinks etc. $hortage of these items can cause a service delay. #or instance if the delivery of ice creams AdesertsB is to be made to a certain place during the summer the desert van has to be of high quality and well maintained. 1f not then the desert could melt and cause total damage of the food even before delivery.

9! .ateria& su))&ies# - The food items are the core of the service of the caterers. 1f the raw materials are not on time or up to mark then it can lead to various problems. The quality of raw material required for cooking not being adequate or spoilt could lead to a service delay. The source of raw materials is far from the kitchen site or the raw materials are unusable on arrival. The chefs may be hasty in cooking up the meals if the raw materials are late on arrival. The food quality may be unsatisfactory if the raw materials are not of good quality. D! Front Stage Personne&, - The front line staff would be the waiters serving drinks and food. $ervice delay here could be that the waiters outside could have given wrong information to the kitchen and this could lead to the food not coming on time. 1t also could be due to delaying in heating the food or delay in taking the food outside to the buffet table.

E! %ac stage Personne&# 6 The catering service is a very people oriented industry. 4ence the personnel whether front or backstage have to be of the best quality possible. The people responsible for delivery of produce i.e. the food items on order basis are unprofessional. The delivery vehicle is loaded with food items in a hapha"ard way causing spillage and damage. The goods are not in the same condition as expected by the customers and the

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SSM - CATERING chef. The decorative appeal is lost. The caterer faces a set back due to the carelessness of the backstage personnel.

F! Procedure# - 4ere delay in service would be due to faulty service mapping. #aulty service mapping means that the time allotted for traveling or the time between the courses could have been calculated wrongly and which could lead to a service delay. The recipes of certain caterers are so famous that they are known to have gained business because of their unique tastes. 4owever inconsistency in the tastes of certain food items has also lead to problems for caterers everywhere. The techniques and level of skills used by different chefs are different. 9n item made by a chef on a particular day may not taste the same as made by another on another day. This happens as they both are separate individuals with different backgrounds. The food items taste different and the customers are confused as to what has happened. The caterer loses credibility and reliability as far as the quality and consistency of the service is concerned. 3! Infor$ation# - 4ere there are two kinds of information. The information provided to the customer about the set up of the entire function and the information given to the other customers at the venue. The information provided by the caterer to the customer could be about the seating arrangement etc. This could create a problem for the customer if he wanted to have his guest seated in a certain manner. The other information would be the information provided by the waiters and other employees at the venue about the location of the food Aespecially where different types of cuisines are preparedB and drinks. 4owever there can be gaps and misunderstandings at any given time. The caterer may underestimate the expectations of the customer and misguide the chef about the importance of the operation. The chef hence will not be too particular about the presentation and decoration of the tables and food items. The customer is not happy about the presentation of the service and the food items on the table. The customer expresses his dissatisfaction to the caterer or the manager who in turn may fire back at the chefs and waiters for their lapse in service delivery.

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SER4ICE RECO4ERY# 9lthough many firms may aspire to offer /"ero defects/ service the possibility of service failures cannot be wholly eliminated simply because of the variety of factors that may impact on the delivery process. (onsequently the manner in which firms respond to service failures is increasingly seen as a factor that may separate the more successful firms form the others. This response termed service recovery is defined as the process by which the firm attempts to rectify a service failure. $ome researchers suggest that a firm/s response to failures can either reinforce customer relationships or exacerbate the negative effects of the failure. 1n fact some assert that it is often a firm/s response to a failure rather than the failure itself that triggers discontent. 5ecoveries are critical because customers perceiving poor recovery efforts may dissolve the buyer-seller relationship and purchase elsewhere. $uch customer turnover can be costly especially given that it costs more to win new customers than it does to retain current ones. 9s a consequence service failure and recovery encounters have been recogni"ed as critical moments of truth for organi"ations in their efforts to satisfy and keep customers. E7A.PLE# DA%%A/ALAS The clients of the dabbawalas are an extremely satisfied lot. They have no disputes with the dabbawalas policy-making things simpler. 1f in a particular case the clients tiffin gets misplaced or lost the dabbawala takes the responsibility for it. 1t was primarily the responsibility of the dabbawala who is under the respective clients contract to ensure the safety of the tiffin. 4e has taken his own decision to delegate the @ob delivery to another member and hence he has to bear the loss for the misplaced tiffin-box. Therefore this policy being simple as it is the client is quite satisfied because there are no disputes and claim issues. 1n case of absence of the usual dabbawala the client is not deprived of services as there is a back up in most cases.

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SSM - CATERING CO.PLAINT 5ANDLIN" C%o it right the first time all though this is the first law of quality no quality minded business can afford to be without contingency plans as to how to act when things go wrong. Even the business that generally performs well on providing quality service still has to deal with dissatisfied customers sometimes. The catering business is also not immune to this. The core reason of the occurrence of a problem in most of the cases is due to internal failure. These may vary from rude staff to lengthy delays or billing errors. 9nother factor causing these failures is eternal issues such as failure in public infrastructure personal troubles of the customers etc. $ome of the complaints are made during or before the service is delivered. 3ike if the caterer gets into contract with the school catering but is not able to purchase raw material as per the requirements of the client. 1n such case the client will put forth a complaint to the caterer. 9t times complaints appear after the service is provided. Taking the above case in mind if the caterer is not able to provide adequate amount of food to the children then again the client may feel dissatisfied. The restaurant industry has experienced a dramatic increase in customer complaints over the last several months. 9 large ma@ority of complaints are received via web sites. This method of communication makes it easier for your customers to complain. )hen consumers have a problem with something they tell someone about it. They talk about companies that have overcharged them provided poor service or who have rude employees. 1n fact research shows that people who have a problem are likely to tell eight to ten people about it. 4owever fewer than one in twenty people who have a complaint will formally complain to the company itself. Top restaurant managers and owners welcome complaints because complaints are customer feedback which can be used to improve service performance/reduce cost. They make it easy for customers to complain even encourage complaints and then they bend over backwards to set things right and make changes so that future customers do not experience similar problems. 5estaurants find that effectively handling customers with problems is critical to their reputations. 0ake it easy for your customers to complain and your customers will make it easy for you to improve.

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SSM - CATERING <UALITY !ne definition of quality is that the product has a distinguishing characteristic which shows a superior standard of excellence as compared with a lesser product. This means that dishes must be @udged on their appearance as well as their taste. The following points are aspects of quality, %escriptions The dishes suit the tastes of a cross-section of the customers The dishes are appropriate to the kind of meal and the occasion The food is fit for human consumption and is produced in compliance with legislation The standard si"e portions give value for money The food is prepared and served to retain its nutritional value The dishes have a degree of originality but are true to their names and menu The meals contain a proper balance of taste texture seasoning and aroma The dishes are neatly and artistically arranged to make them visually attractive The dishes are served at the correct temperature and to the correct standard.

T5E PERCEPTUAL "AP &erception is the process of detecting and interpreting information from the external world. The knowledge is stored processed and used as required. 1t helps us make sense of daily occurrences and how to deal with them. )aiting staff have to make use of their perception when dealing with customers and take action to prevent any barrier building up between them and their customers. Nuality of service is @udged by the ways that staff in the restaurant look speak behave and dress and how knowledgeable they are about food and drink and the finer points of service. The lack of any of these attributes could cause a gap to form between server and consumer which could prevent the latter from en@oying the meal and the former from

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SSM - CATERING getting @ob satisfaction. )aiters should try to put themselves in the place of the customer and imagine what it is like to be kept waiting to be served. The perceptual gap that exists between the producer who evaluates a dish according to its quality and what it cost to produce and the customer who evaluates a dish according to its look smell taste and value for money. 1t is important that efforts are made to bridge the gap to ensure customer satisfaction. This can only be achieved through empathy or adopting the perspective of the other party <UALITY CONTROL The main use of quality control in the catering industry is for aspects of hygiene and health in cook-free"e and cook-chill production units which produce meals on a large scale. The control must extend from the purchase of ingredients to the regeneration of the meals at the ultimate destination. 1deally quality control should be implicit in all kitchens and services. $tatistical sampling is an inherent part of the process. Nuality assurance is an aspect of quality control which sets out to ensure that the quality of products on sale meets the needs of customers. 1t means serving meals which fulfill customer expectations at the price level of a particular establishment. The restaurant of a luxury hotel will have a large menu and wine list filled with expensive dishes and wines to meet its customers/ requirements of gourmet food and skilled service. 9t the other extreme a small restaurant tucked away in a back street can fulfill its customers/ requirements from a very limited list of food and drink and operate as successfully as the much grander hotel restaurant. Each gives good-quality food of its kind in relation to the charges it makes. Nuality assurance has been a ma@or factor in the success of some of the IH/s biggest food retailers who in the annual reports and accounts make mention of the research they carry out for new products and commitment to quality assurance of all their goods. Nuality assurance concentrates on the actual product. 1n this way an organi"ation develops a framework enabling quality to be achieved at all levels. This highlights the need to train staff of all grades in order to develop their awareness of quality standards and to give them a sense of involvement. $taff must be encouraged to put forward new ideas that could improve the operation of the business. 9 working party consisting of departmental heads and members of the workforce should meet regularly to

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SSM - CATERING establish goals and how they may be achieved with the aim of promoting a culture which will encourage all to work to their highest possible standards.

RATER

Re&ia'i&it,# %oing something by the certain time if they promise to do so. )hen customers have a problem firm will show a sincere interest in solving it. )ill perform the service right the first time. )ill provide their services at the time they promise to do so. 5eliability is very important in function catering when the client is giving the responsibility of serving the guests to the catering firm. Assurance# Behavior of employees will instill confidence in customers. (ustomers will feel safe in their transactions. Employees will be consistently courteous with customers. Employees will have the knowledge to answer customer questions. The wait-staff can assure the customers regarding the food. They can even tell the customers as what item he would as per his requirements. Tangi'&es# )ill have modern-looking equipment. ;isually appealing. Employees will be neat in appearance. 0aterials Ae.g. menuB associated with the service will be visually appealing. E$)ath,# )ill give customers individual attention. )ill have employees who give customers personal attention. )ill understand the specific needs of their customers 1n restaurants there are station waiters who are responsible for a group of E-= tables i.e. it is their duty to see to it that there is no error in service delivery on these tables. 1n this manner individual attention is 63

SSM - CATERING given to the customers. Empathy is also very important in function catering as the caterer has to consider the specific needs of the clients.

Res)onsiveness# )ill always be willing to help customers. )ill give prompt service to customers. )ill never be too busy to respond to customer requests. #or example, the wait-staff willingly answers to the queries of the customers regarding a particular food item.

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