Would you love to start a catering business in Tanzania? One that will be profitable and with little or no capital?
How can you go about it if you are starting from home? How profitable is catering services in Tanzania? Look no further because I got you covered.
We will share with you all you need to start your catering business from top to bottom. So without further ado………… lets get started.
What Is Catering Services?
Catering services simply means the provision of food and drinks at a social event or gathering. It can be done in various locations or settings such as hotels, pub, aircraft, cruise ships, hospitals and event centers.
The catering business can be a home-based business and there are different types of catering services depending on what niche you want to focus on.
We have wedding catering services, mobile catering services, internet catering services, corporate catering services, buffet catering services etc.
When offering a catering service it entails a whole lot more than just cooking food. It means coordination of how the food is being prepared, delivery of the food and presentation of the food to your client.
Catering business in Tanzania requires a lot of things to thrive as it is a very competitive and lucrative business in Tanzania.
You need to brand your business and package your services as you ensure the safety of your customers in the sense that hygiene should not be taking lightly.
How Profitable Is Catering Business and Services In Tanzania?
Catering business in Tanzania is a very lucrative business and slightly related to eatery business. Come what may, people would always have one event or another and they will require to be catered for.
So, if your services as a caterer are good i.e you provide good and delicious meals, your presentation is good and your customers satisfaction is always off the hook, I see no reason why catering business will not be profitable.
As a matter of fact, catering business in Tanzania could earn you double what was used to prepare the meals, if you know the right places to shop for things you need and your cost management is dope.
So I will say it is a very profitable business without any doubt.
How to Start A Catering Business in Tanzania 2021
Catering business in Tanzania is one you can start from home with no money, all you need is an advance payment from your first client and you are good to go.
But I have to tell you that passion for cooking and working long hours is required because catering services could be very stressful.
You also need helping hands to provide your services swiftly and run a successful catering business in Tanzania.
Like I said earlier, all you need is an advance payment from your first client, then you rent the equipment you need from rentals services.
It is important to note that the catering service is different from event planning. Event planning is a broad niche while catering service is only an aspect of event planning.
1. Decide to go Franchise or Start from Scratch
Before you kick-start a catering service business, you will have to first and foremost make a decision whether to go franchise or to start from the scratch. This is very crucial as whichever choice you decide to go with has its peculiar pros and cons.
On the one hand, if you go for a franchise catering service business, you will enjoy the benefits of retaining the franchisors loyal customer base.
The interesting thing about franchising is that it is relatively easy since almost everything had been put in place for you by your franchisor after you have paid the agreed required franchise fee and subordinate fees.
The only downside is that you have a very limited part to play in decision-making regarding the operation of the business.
On the other hand, starting your own catering service business from scratch gives you the benefits of making the decisions and running your business the way you want only that you will put in much effort to build your own customer base as well as dealing with the challenges that would come your way.
2. Choose your Niche
This is highly crucial when you are deciding to start a catering service from scratch. First, before deciding your niche, study the catering market in your desired location and look for areas that have been overlooked or areas that you feel you can excel at.
Exploit those areas. You cannot fit into all the niches of catering services. Target a particular niche and tailor it to your desired prospective customers. Below are some catering service niches that you can choose from:
- Children’s parties (graduations, birthdays, etc)
- Adult’s parties (bachelorettes, birthdays, dinner parties, etc)
- Corporate events like cocktail parties, banquets, etc
- Community events like festivals, sports events, and concerts
- Wine and bar catering services.
- Hotel/ restaurant catering services
3. Choose a Suitable Location to Start a Catering Service
The best location is one that particularly targets your desired prospective customers.
You should carefully do your research and situate your catering service business in a location where it specifically meets the needs of your desired customers.
The choice of the location for a catering business would go a long way towards determining the success of your catering service business.
4. Make research about your competitors
The next step in launching a catering company is to check out who else is offering catering in your area. Check out your competitors’ menus, their list of services, prices and customers. Visit their websites and see if you can quickly find their unique selling benefits. You might think that successful caterers sell food, but you’d be wrong. Sure, you start with your food, but why should customers buy that food from you instead of somewhere else?
People who buy catering can get good food from a wide variety of local providers. When they shop for catering, they look for more than just food—they look for a benefit.To be a successful caterer, you’ll need to sell convenience, affordability, unique menus, or corporate style or white-glove service.
5. Create Good Menu
You have decided which catering services niche you want to venture into. It is now time you worked out a carefully organized menu for your catering services.
Now you have done your market research and you know exactly what your prospective customers need.
Create your menu based on your specialties and what your market niche needs.
Check to see the prices offered by your competitors and determine the price of your services.
More often, pricing is determined by your location, preparation time of dish, the cost of ingredients and your desired profit margin.
6. Get the Necessary Equipment
It is now time for you to get the necessary equipment for your catering services.
Having created your menu, you should now have a good knowledge of the equipment you need for your catering services.
Also, the equipment you will need will largely depend on the size of your catering outfit.
Basically, the following are some of the equipment you need to start a catering service:
- Plates: This is used to serve foods.
- Cutleries (spoon, fork and knife): This is used to eat served foods.
- Glass cups: This is used for serving drinks and water.
- Pots: This is used for cooking the foods.
- Trays: This is used for serving and carrying foods and drinks.
- Tripod stands: This is for putting your pot on when cooking with firewood
- Coolers: Thus is for conveying the food to the event centre and keep it hot.
7. Get the Needed Staff
Irrespective of whether you are a good cook or you have acquired the skills and certification; you will however still need the help of others.
Catering services is a tedious work that you just cannot do all by yourself –especially if it is a medium-large scale one.
You will have to hire employees that would take care of a lot of tasks from cooking, serving, cleaning, to the more professional ones like accounting, bookkeeping, etc.
Hire the right staff and train them so that they share your business vision and goals and provide the kind of services you want.
8. Get registered and Obtain the Necessary License and Permits
Choose a business name and get your catering service business registered with the relevant authorities. In addition, you will have to fulfill all the legal requirements needed to successfully run your catering service business.
Find all the necessary business licenses you will need to obtain for your catering service business. A good place to get started is to check with the Food and Health Authority in your country.
Licences Needed For a Catering Business
If you are starting a catering business in Tanzania, there are certain licenses that you should get to make your business legit and function without any hassle.
- BUSINESS LICENSE: You may need to register your business name on Brela portal to make sure it cannot be used by any other business. It will cost you around Ksh 15,000 to register a business name.
- SALES TAX LICENSE: Running a catering business in Tanzania is taxable and so it requires you to go register at Tanzania revenue Authority where you will be given a tax identification number. It is with this number you will issue your tax yearly.
These are the major licenses needed for starting a catering business in Tanzania. Once you have gotten all these licenses you can start your catering business.
Also, your catering equipment would be accessed to make sure they are in good shape before your license would be approved.
9. Create a Business Plan
Considering all of the aforementioned steps would ensure your catering service business is headed in the right direction, but most important is that you need to create a good business plan for your catering service business.
There are so many pros to having a good business plan. Most important of which is that you would be able to secure adequate funding and loans from investors and banks respectively.
10. Market your business strategically
After properly considering the aforementioned steps, it would, therefore, become pertinent you take your catering service business to the next level where it needs maximal attention.
Get a business card (just keep it simple, it does not have to be complicated). Tell your family and friends. Ask them to help you promote your catering services by reaching out to others.
What is more important is that you go cyber. Get a website for your catering services; use social media like Facebook, Instagram, and Twitter to the advantage of your catering services.
Conclusion on Catering Business In Tanzania
Many people one to start a business but the truth is, things are not as simple as they look, most times.
Catering business and services in Tanzania also contribute to Tanzania’s economy and business owners in this section are filling a gap.
If you want to start a catering business in Tanzania, I’m sure tips in this article will have helped in many ways.