DEAR SOMEONE ELSE’S MOM: My cousin and I started a small catering business the autumn prior to the pandemic. Fortunately for us both, we neither of us quit our day jobs, since you can guess what happened to our business when everything shut down.
This past summer, we were able to get back on track. It has not been easy, and because of supply chain issues and inflation, it has been an even more complicated process.
When we formulated our business plan, my cousin and I agreed to commit to using quality ingredients, and only quality ingredients. That is how we sold our services, and what people were willing to pay a little more for, once they sampled our menu offerings.
Although not everyone we were booked with before the shutdown came back to us to reschedule their events, a good number of them did. Due to changes in the wholesale market though, we have revamped our menu items where necessary to help keep costs down. The unfortunate situation I am now facing is that my cousin argues it is better to keep prices the same and make some substitutions, which we both know in many cases will lead to a lower quality finished product. I can taste the difference, and I know some of our customers have also commented on the difference between what we first offered them to sample and what we now have available. The change resulted in three brides taking their business elsewhere.
I believe it is incumbent upon us to bring the same quality food to the tasting table and event as we did previously, even if it means on some catering jobs we only break even. Our reputation is worth more than a bigger profit to me, but my cousin’s thinking is that if we fail to make enough money on all our jobs, we will not move forward and grow.
Do you think one of us is wrong-thinking? --- BACK IN BUSINESS
DEAR BACK IN BUSINESS: It’s good you and your cousin have been able to regain some lost ground with your catering business, even in these times of ongoing supply chain issues and rising costs.
I think you’re right to stick to your promise of using the best ingredients; but I also believe your menu will continue to need to be extremely flexible to accommodate ever-changing challenges. This is a reality you might want to consider sharing with your customers from the outset of working with them. If it becomes necessary at the last minute to replace an item or ingredient, obviously, it would be best if you can offer something similar in quality and price.
In the long run, I agree with you that the reputation of your company is most likely going to be made by consistency of quality and taking the necessary steps to make your customers happy — even if it may mean bigger profits come more slowly.