The catering industry in South Africa offers excellent opportunities for entrepreneurs. From corporate functions and government events to weddings, school feeding schemes, and private celebrations, there is consistent demand for quality catering services. However, many catering businesses struggle to grow, not because they lack cooking skills, but because they make costly business mistakes.
Whether you’re a startup or an established caterer, avoiding these common pitfalls can help you improve profitability, build a strong reputation, and win more catering contracts.
1. Quoting Without Understanding the Client’s Requirements
One of the biggest mistakes catering businesses make is preparing a quotation before fully understanding what the client needs.
Every event is different. A buffet lunch for a corporate conference requires different planning, staffing, and equipment than a wedding reception or a school feeding programme.
Before submitting a quotation, always confirm:
- The number of guests
- Event date and venue
- Menu requirements
- Dietary restrictions
- Serving style (buffet or plated)
- Equipment requirements
- Staffing requirements
- Event duration
The more information you gather, the more accurate your quotation will be.
2. Underestimating Food Costs
Many new caterers calculate only the cost of the main ingredients and forget about everything else that goes into preparing a meal.
Your food costing should include:
- Meat or protein
- Vegetables
- Rice, pasta or starch
- Cooking oil
- Herbs and spices
- Sauces
- Desserts
- Bread
- Beverages
- Garnishes
It’s also important to account for food preparation waste, cooking losses, and fluctuating ingredient prices. Accurate food costing protects your profit margin and ensures your pricing remains sustainable.
3. Forgetting Labour Costs
Preparing food is only one part of delivering a successful catering service.
Depending on the event, you may also need:
- Chefs
- Kitchen assistants
- Waiters
- Bartenders
- Drivers
- Supervisors
- Cleaning staff
Remember to include overtime, staff transport, UIF contributions, and any additional labour costs in your calculations. Labour is often one of the largest expenses in a catering business.
4. Ignoring Equipment and Hire Costs
Many caterers own some equipment but still underestimate the cost of using it.
Whether you own or hire equipment, your quotation should account for:
- Chafing dishes
- Serving utensils
- Pots and pans
- Gas burners
- Crockery
- Cutlery
- Glassware
- Tables and chairs
- Food warmers
If equipment needs replacing or regular maintenance, those costs should be built into your pricing.
5. Not Charging for Transport
Fuel prices and vehicle maintenance continue to increase, yet many catering businesses either undercharge or forget to charge for transport altogether.
Transport costs may include:
- Fuel
- Vehicle maintenance
- Staff transport
- Delivery
- Collection after the event
- Toll fees
If the venue is outside your normal operating area, be sure to include the additional travel costs in your quotation.
6. Showing Your Profit Margin to the Client
Many first-time entrepreneurs make the mistake of adding a separate line that says “Profit” on their quotation.
Professional catering businesses don’t do this.
Instead, they prepare an internal costing sheet that calculates all operating costs and builds the desired profit into each pricing category before the quotation is presented to the client.
The quotation should display only the final prices for food, labour, equipment, transport, and other services. Your pricing strategy should remain confidential.
7. Accepting Every Job Without a Deposit
Food purchases, staff wages, and transport costs all require cash upfront. Accepting bookings without a deposit exposes your business to unnecessary financial risk.
For private events, many caterers require a deposit before purchasing ingredients or confirming staff.
Your quotation should clearly state:
- Deposit amount
- Payment due dates
- Cancellation policy
- Refund terms
Having these conditions in writing protects both you and your client.
8. Poor Communication with Clients
Many disputes arise because expectations were never clearly discussed.
Confirm important details in writing, including:
- Final guest numbers
- Menu selections
- Serving times
- Venue access
- Setup times
- Payment arrangements
Maintaining clear communication before, during, and after the event builds trust and reduces misunderstandings.
9. Competing on Price Instead of Value
Many catering businesses believe they must be the cheapest to win contracts.
This approach often leads to reduced profits, lower food quality, and an unsustainable business.
Instead of competing on price alone, focus on delivering value by offering:
- Fresh, high-quality ingredients
- Professional presentation
- Reliable service
- Hygienic food preparation
- Well-trained staff
- Clear and professional quotations
- Excellent customer service
Clients are often willing to pay more for a caterer they trust to deliver a successful event.
Also Read: How to Get Your Produce Into SPAR: A Guide for Emerging Farmers
Build a Catering Business That Lasts
Running a successful catering business requires more than preparing delicious food. It requires careful planning, accurate costing, professional communication, and sound financial management.
By avoiding these nine common mistakes, you’ll be better positioned to prepare profitable quotations, manage events efficiently, and build a reputation that leads to repeat business and referrals.
Remember, every successful catering company started somewhere. The businesses that thrive are those that continually improve their systems, learn from experience, and treat every event as an opportunity to showcase their professionalism.
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