ELECTIVE 3 – CATERING MANAGEMENT

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MODULE 5
Planning: The Basic Catering
Management Function

Introduction

This chapter provides the general explanation of planning in the catering

management function. In recent decades, the term planning has become
popularized widely in management circles. Most managers today in business
and service organizations are at least familiar with this term and its general
applications. Planning is a critical management activity regardless of the type
of organization being managed. Modern managers face the challenge of sound
planning in small and relatively simple organizations as well as in large, more
complex ones, and in non- profit organizations. This chapter also includes the
explanation and process of the HACCP system in relation to the catering
management functions.

LEARNING OUTCOMES

After studying this chapter, you should be able to:

 Apply skills in formulating a strategic plan for the event.
 Apply skills in planning appealing and profitable menus.
 Demonstrate skills in formulating a Business Plan
 Explain the usage of HACCP system as food protection tool
 Describe and evaluate the principles involved in implementing HACCP
system

LEARNING CONTENT

This learning unit covers the following lessons:

Lesson 1- The Meaning & Importance of Planning

Lesson 2- Formulating a Catering Plan
Lesson 3- The Menu: A Tactical Plan
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Lesson 4- Planning for A Catering Event

Lesson 5- Barriers to Planning
Lesson 3- Business Plan
Lesson 5- Hazardous Analysis and Critical Control Point (HACCP)

LESSON THE MEANING & IMPORTANCE OF PLANNING

1

 Planning is the continuous process by which a manager scrutinizes past

performance, reviews its applicability in the light of environmental
changes, internal and external to the organization, and forecasts future
trends.
 He then sets the goals for the establishment and bases its activities
towards achieving them. The planning process is generally initiated by an
awareness of an opportunity or a problem, which can be foreseen in the
future.
 In the light of forecasts, the establishment is scrutinized for its strengths
and weaknesses, and new objectives and goals are established on the
basis of certain assumptions.
 These are also referred to as planning premises and include forecasts
pertaining to technological advancement, economic and social factors,
governmental controls, customer attitudes and competitive forces.
 A successful caterer is well-focused and organized through planning.
 Each event must have in independent sub plan based on client needs
and the caterer’s plan.
 The best caterers always think about upcoming events.
 Details are critically important.

Importance of Planning

1. Planning provides directions:

 By stating in advance how work is to be done planning provides
direction for action.
 Planning ensures that the goals or objectives are clearly stated so
that they act as a guide for deciding what action should be taken
and in which direction.
 If goals are well defined, employees are aware of what the
organization has to do and what they must do to achieve those
goals.
 Departments and individuals in the organization are able to work
in coordination.
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 If there was no planning, employees would be working in different

Planning: Keeping the objective in view directions and the
organization would not be able to achieve its desired goals.
2. Planning reduces the risks of uncertainty:
 Planning is an activity which enables a manager to look ahead and
anticipate changes.
 By deciding in advance the tasks to be performed, planning shows
the way to deal with changes and uncertain events. Changes or
events cannot be eliminated but they can be anticipated and
managerial responses to them can be developed.
3. Planning reduces overlapping and wasteful activities:
 Planning serves as the basis of coordinating the activities and
efforts of different divisions, departments and individuals.
 It helps in avoiding confusion and misunderstanding. Since
planning ensures clarity in thought and action, work is carried on
smoothly without interruptions.
 Useless and redundant activities are minimized or eliminated. It is
easier to detect inefficiencies and take corrective measures to deal
with them.
4. Planning promotes innovative ideas:
 Since planning is the first function of management, new ideas can
take the shape of concrete plans. It is the most challenging activity
for the management as it guides all future actions leading to
growth and prosperity of the business.
5. Planning facilitates decision making:
 Planning helps the manager to look into the future and make a
choice from amongst various alternative courses of action.
 The manager has to evaluate each alternative and select the most
viable proposition.
 Planning involves setting targets and predicting future conditions,
thus helping in taking rational decisions.
6. Planning establishes standards for controlling:
 Planning involves setting of goals. The entire managerial process is
concerned with accomplishing predetermined goals through
planning, organizing, staffing, directing and controlling.
 Planning provides the goals or standards against which actual
performance is measured.
 By comparing actual performance with some standard, managers
can know whether they have actually been able to attain the goals.
 If there is any deviation it can be corrected. Therefore, we can say
that planning is a prerequisite for controlling.
 If there were no goals and standards, then finding deviations which
are a part of controlling would not be possible.
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 The nature of corrective action required depends upon the extent

of deviations from the standard.
 Therefore, planning provides the basis of control.

Three Main Steps of Planning

1. Gathering information for chalking out broad policies relating to building,

standards, finances, staff needs, food service methods, type and number of
customers that can be expected. In short, any information for making a
workable scheme.
2. Developing a blueprint of the structure, arrangement of spaces and activity
details that can be conveniently translated into action from the information
collected.
3. Setting goals or targets to be achieved in a predetermined period of time. The
goals must be related to a fairly accurate forecast of future events, since they
cannot be based on absolute certainty.

Strategies Emerge Through Planning

 Ensures the caterers future

 A Blueprint or map

Strategic plan- established to guide the entire catering operation over the
long term
Tactical plan- specifically created to guide the caterer in a much shorter
time frame.
- enables the caterer to establish achievable objectives.
Objectives- are established to serve as benchmarks to measure progress.
“What If’s Scenarios” - Helps to minimize unexpected surprises
Swiss Cheese Approach- is where a caterer breaks down the master plan
into smaller, more manageable segments.

LESSON
FORMULATING A CATERING PLAN
2
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Figure 2.1. Planning Sequence

 Formulating a catering plan requires the knowledge of certain elements
before the planning can begin.
 Five required elements that must be identified before any plan can be
created are budget, menu, location, number of guests, and labor
requirements.
 Other concerns include the decorations; floral arrangements; service
style; and type of china, silverware, and table cloths.
 The caterer transforms the initial catering proposal into a multitude of
objectives or benchmarks that give life to the proposal as a plan emerges.
 Benchmarks pertain to competitor’s best practice against which the
caterer’s own performance is compared and measured against.
 The main purpose of an objective is to guide the caterer through the
process.
 In formulating a catering plan, the following objectives should be
considered:
o Financial objectives. This is setting a target based on the
financial goals responsive to the needs of the client. Caterer’s
financial and professional needs
o Customer-satisfaction objectives. These are developed by the
caterer specifically to the client’s needs and wants; goal is to
exceed these objectives.
 The plan must also reflect:
o When it will be done
o How it will be done
o How much it will cost
o The potential profit
Budget

 The budget is a financial plan used to set the parameters for each event.
Each event will have its own budget that reflects the needs of the client.
It is critical to establish the client’s budget early in the process. The
client could be looking for a low-end event, an upscale event, or
something nestled in between.
 It is a tactical, single-event, management tool used to explain how
resources will be acquired (revenue or gross sales), and how these will be
consumed in the operation of the business (expenses) to arrive at a
predetermined profit for the specific event. Therefore, a budget also
functions as a financial plan.
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Figure 2.2. Building the blueprint for the event plan: The basic questions .

The budget plan is further broken down into departmental plans.

Each event is assigned its own objectives based on the budget plan.
The kitchen manager will submit a budget detailing the number of
hours consumed in production, transportation, serving, and cleanup
tasks. An alternative is for the kitchen manager to establish
production standards of hours based on 100 meals. Other budgeted
items may include the cost of implementing a marketing plan.

Caterers’ costs are less when they use their own facility because there
are no transportation costs. Transportation costs can be excessive
based on the distance and amount of time required for travel.
Remember, from the employee departure time until their return, they
will be on the payroll.

A well-constructed budget is an important part of the catering

management control plan. A budget guides the caterer before the
function as a control tool, and after the function as an accountability
to make comparisons between the budgeted standard and the actual
cost incurred in the execution of the event. It is used to evaluate the
effective and efficient utilization of organizational resources by the
caterer in the execution of the operation.

LESSON
THE MENU: A Tactical Plan
3
 The menu is the single most important factor contained in the overall
catering plan.
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o Menu format
o Standardized menu
o Complexity of plan
 Caterers must create budgetary objectives based on the menu. They
construct menus with special attention to satisfying perceived client
need, staff skills, seasonal availability of food, quality and relative cost of
food, cost of labor, predetermined profit margins, nutritional needs of the
client, presentation and service style, and kitchen production
capabilities.
 Standardized menus are created by caterers to offer a variety of food,
beverages, and service styles. These menus may be presented to each
client regardless of the client’s specific needs. A caterer can use a
standard menu format to penetrate the low-end market niche.
 Caterers can also use another method of menu planning.
 Master menu is a standard list offering a variety of both entrees and the
side dishes based on the caterer’s skill level from which a client selects to
create his or her own menu based on individual needs and budgetary
requirements.
 In menu planning, it should:
o Satisfy clients’ needs
o Staff skills
o Seasonal availability of food

Menu Format

 A caterer will select one of three basic formats when presenting a menu
to the client:
o First, a caterer will construct a new menu based solely on the
needs, wants, and demands of the client. After the client has been
interviewed, the caterer will build a menu to match the client’s
tastes and budget. This technique is time consuming because it
often requires market research to ascertain product availability
and costs. However, greater customer satisfaction is achieved when
a caterer creates a menu based on the client’s needs, wants,
demands, and budget.
 One important advantage a caterer has when designing a menu for a
client is the ability to set the selling price based on the needs, wants, and
demands of that client. A caterer will set the selling price on a customer-
by-customer basis.
 A caterer must know how the psychology of the set price affects the
customer’s perception of value.
o Example 1: One customer might believe a menu priced at $10.00 per
person infers poor value and would be much happier to pay the
caterer $20.00 for the same menu. This reflects the “price versus
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value relationship”. On the other hand, another customer might

be more conservative and accept the economical value of $10.00
with great enthusiasm.
o Example 2. A client, Scott, may be planning a wedding reception. He
wishes to spend approximately $20.00 per plate and wants to serve
a stuffed chicken breast as the main entree. During the initial
interview, the caterer can upscale the event by suggesting Chicken
Cordon Bleu. Or, the caterer can suggest two entrees, a smaller
stuffed chicken breast and a small steak on the side for $5.00 more
per person. By reducing the cost of the chicken and increasing the
cost per plate by $5.00, the caterer can include the cost of the steak.
The customer will perceive this as a much more elegant event. The
addition of the steak will help the customer’s perception with the
guests and increase the caterer’s profit margin. Although this
method is an excellent way to increase customer satisfaction, one
disadvantage may be an increase of production time in the kitchen.
 These examples illustrate why the caterer must interview the
customer. By interviewing the customer, a caterer can determine a
client’s budget and whether the menu can be upgraded. Always
remember that each client has certain desires and tastes.
Therefore, even though a caterer is trying to maximize income and
build profit structure from the event, customer satisfaction is still
the most important consideration.

Standardized Menu

Caterers will create a series of standardized menus, offering a variety

food, beverages and service styles. These menus may be presented to each
client regardless of the client’s specific needs. These may exist as standard
menu “A,” “B,” “C,” “D,” “E,” and “F.” The client selects the menu with the best
fit to their needs and price range and is not usually permitted to substitute
items.
A caterer can use a standard menu format to penetrate the low-end
market niche. Using a standard menu format will permit a caterer to adapt a
small production facility, lack of available skilled labor, and minimal
production equipment to successfully exceed a client’s needs. A standardized
menu format can offer a choice between only two vegetables, two salads, two
potatoes, and a limited variety of simple entrees. However, by offering a lower
cost menu, the caterer must generate a higher volume of sales to make
sufficient profit margins.
The advantages for the caterer having a standardized menu are
simplification of inventory, a limited menu based on the skill level of the staff
and the layout of the kitchen, predetermined costs and contribution to profit
margins.
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The disadvantages of working with a standardized catering menu

include the possible lack of creativity, working on a tight budget, and a
predetermined profit margin. When creating individual menus, the caterer has
the ability to increase the profit margins much easier than with a standardized
menu.

Master Menu

Caterers can also use another method of menu planning. Some caterers
provide a master menu from which the client can select food and beverage
items. This method permits the client to create their own menu based on their
budget. The caterer will present a variety of menu selections from a master
menu, similar to an a la carte menu. The highest price the customer begins
with may be a selection of the roast beef entree at a base price of $10.00.
Stuffed chicken breast or roast chicken may start at $7.50. Then, as the
customer selects additional items from the menu, the base price will increase.
Add-ons include options for starches, vegetables, salads, beverages, and
dessert items. This type of menu has advantages for the caterer. The caterer
has preselected a familiar menu of items his staff can competently produce
using the kitchen and production facilities. This can eliminate customers
requesting a rare ethnic dish the caterer is not trained to produce.

Complexity of the Plan

The complexity of the plan grows when the size of the event increases.
First, the logistics for executing a catering event for 7,000 are different from an
event for 100 people. Much more detail is required to ensure the event runs
smoothly. When serving an event for 7,000 instead of 100, the menu must be
simplified.

LESSON PLANNING FOR A CATERING EVENT

4

 To formulate a successful plan, all caterers must identify objectives,

which are derived from identified customer needs and wants.
 The caterer must know what the customers expect by discussing events
with them.
 A caterer can do little things beyond the customer’s expectations to
increase the success rate of an event.
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 Objectives are translated into operational tasks which are those singular
activities that must be expected to accomplish an objective.
 All common tasks should be bundled to create a job. Putting the plan
into action, the process of implementing each piece of the plan into the
day-to-day activities, becomes the next step for the caterer.
 A key catering management task is the careful coordination of the front-
of-the-house and back-of-the-house activities.
 Ingredient for Success 20: “To satisfy customer needs, the caterer must
overproduce to exceed customer expectations.”
 The caterer is similar to an artist. Every event is a new creation—
different and better and exceeding customer expectations. Creativity is a
skill resulting from a caterer’s experience, and when combined with the
skill of interpreting customer needs, it helps a caterer to plan a
successful catering event. However, remember Ingredient for Success 2:
“We cannot be all things to all people.” This must apply to each and every
potential customer.

Objectives Become Operational Tasks

 Objectives are translated into operational tasks, which are those singular
activities that must be executed to accomplish an objective.
 Each individual task from turning on the light in the morning to turning
it off at the end of the event must be organized and bundled together.
 All common tasks should be bundled to create a job. Since the caterer
cannot physically do every task, this step enables the caterer to identify
the approximate number of employees required to execute each job for
an event. This task facilitates employee scheduling, contributes to
identifiable and controllable labor and its related costs, and leads to the
creation of a budget for the event.

Delegation

 Each bundled task is delegated to a management team member, who

then assigns those jobs to employees.
 Appropriate levels of responsibility and authority must be delegated to
each team member.
 Common catering management control techniques used to produce
results are a combination of management team meetings and one-on-one
interaction with key people.
 Planning will alert a caterer to the necessity of acquiring rental items in
advance. This is especially true when planning for seasonal events: If an
event is booked in February for July, a tentative order with the supplier
should be placed in February. This permits the caterer to have the
flexibility to adjust the order.; If a tent is needed to cover an area of 5,000
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square feet, only a specialized rental company will most likely handle this
type of tent. The caterer must know where to find such a tent and its
approximate rental cost.
 Understanding costs are important so when the caterer meets with the
client, reliable prices can be quoted. Ingredient for Success 21 states:
“Outside suppliers are as important as a caterer’s own key personnel.”

Implementation of the Plan

Putting the plan into action, the process of implementing each piece of
the plan into the day-to-day activities, becomes the next step for the caterer.
This requires a caterer to have all schedules for the event finalized. A key
catering management task is the careful coordination of the front-of-the-house
and back-of-the house activities

Post Event Meetings

When the event is over, performance evaluation based on predetermined

objectives closes the planning sequence (Figure 2.1). The management staff
must meet and discuss issues focusing on continuous improvement in all
phases of the planning cycle and event implementation. Caterers seek answers
to such questions as: What could have been done to improve all aspects of the
operation? How could the implementation of the event have been made easier?
What could have been done more efficiently to help save money, cut costs, or
increase customer satisfaction?
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Flexibility of Plans

Plans must be made so they are flexible. Details laid out in a plan
provide guidance and direction, however, flexibility is important because clients
often
change details before the day of the event. A caterer must anticipate changes
and have contingency plans set to respond quickly as the details of the event
change.

Control Features

 During the development of a plan, care must be taken by the caterer to

build in control features.
 Controlling costs using catering management techniques will help
achieve predetermined budgetary objectives regarding food, beverages
and labor.
 A caterer will depend on some type of standard or measurement as a
relative point of reference to compare actual costs against a
predetermined cost standard. Controls set standards to be used by a
caterer in different ways. A standard is used in the selection of approved
suppliers who provide the highest quality products at a competitive price.
Control of labor and its related costs are also an integral part of
achieving budgetary objectives. Proper scheduling and cross training
ensure catering employees are doing their jobs during a catering event.

Staff and Planning

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 Key personnel must be trained so they have an understanding of how the

caterer wants the tasks completed. It is important for the caterer to have
access to trained personnel. This is especially important in areas where a
caterer may experience seasonal variations in business. Often, catering
itself is seasonal business. Catering is not usually prevalent in some
areas during the winter months. A caterer will place employees on
temporary layoff status immediately after the holiday season. Some of
these people will seek other, more permanent jobs.

Figure 4.1
 Employees are the ambassadors of the catering company. Often, a client
will interact with a caterer’s employees at the actual event. The employee
must be professional, look professional, act professional, and be pleasant
and personable to all guests (Figure 4.1). The training and education of
each employee is a must. Even the servers must know what type of food
is being served so they can be prepared to answer guest questions and to
help them navigate through the buffet line.

LESSON
BARRIERS TO PLANNING
5

What type of barriers must a caterer overcome to create and implement a

successful catering plan? There are always barriers that will challenge the
caterer, however, there are two basic barriers that will affect all caterers
sometime in their career.

Two Basic Barriers

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1. Operational Barriers. These are barriers that disrupt the physical

elements of an event.
- Barriers will also interfere with the tangible elements of
production or implementation of the event.
- These can prevent the successful implementation of a
plan.
Example:
 At an off-premise event, if cooked vegetables fall when being pulled from
storage, they cannot be used. How can the caterer handle this? The
vegetables are already on the menu. Can the caterer call back to the
facility and have more vegetables sent? Or, must the caterer spread food
out in a different order or format to give the appearance of more food than
is present?
 Other operational barriers deal with time. In the production of the
food, has the caterer adequately planned enough time to get the food
prepared? If equipped with electric convection ovens, how will the product
get cooked in the event of a power failure? One solution is to have propane
or natural gas ovens available. Can the food be prepared at another
location and heated on site at the event?
 Natural disasters can create barriers to the plan. Storms, lightening,
floods, and blizzards will disrupt even the best made plans, however,
there is little the caterer can do in many of these situations.

•Human errors
•Accidents
•Time constraints
•Natural disasters

2. Human Resource/Communication Barriers. This is a type of barrier

caused by a member of the staff that disrupts the element of a catering
event.
- Human error, unfortunately, is the biggest barrier
against effective communication. Employees just
“forget” elements of a well-thought plan. Usually,
employees forget equipment, food, and other staff
members, and this list can be endless.
- Lack of communication among members of the catering
team is always dangerous to the proper formulation and
implementation of a plan. Human nature may cause
certain employees to add their own procedures to a
task, which is potentially dangerous. It must be strictly
enforced through policies and rules that all standard
operating procedures are followed and not permitted to
be changed on a whim of whomever is on the job. As
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long as the standard operating procedures deliver

optimal value to the client, they are to be maintained.
- The caterer can create many solutions to these types of
barriers by using their own creativity and experience,
and knowing where the local convenience store is
located relative to the catering site. Convenience stores
offer ice, soft drinks, small wares, and other items to
satisfy endless needs.

•Human errors
•Lack of communication
•Deviation from standard operating procedures

REFERENCES

 Mattel, Bruce. 2016. CATERING – A Guide to Successful

Business Operation. 2nd ed. The Culinary Institute of America.
John Wiley & Sons, Inc., Hoboken, New Jersey
 Samson, Janil Jose F. and Mitchen Antonio Borja. 2018. Food
Production Management. Mindshapers Co., Inc., Manila
 Shiring, Stephen Sr. B., et al. 2000. Introduction to Catering:
Ingredients for Success. Delmar Thomson Learning Asia,
Singapore.
 Entrepreneurship and Small Business Management Third Edition.
Roberto G. Medina