Catersource is part of the Informa Connect Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

The Importance of Repeat Business

Early in my career I was introduced to a man who, starting with a single tire store, grew his business into a million-dollar empire. One very important thing he told me was that “after you have been in business for 10 years, something magic happens. Customers from long ago will appear seemingly out of nowhere and significantly add to your sales volume.”

True

This fact was verified many times as clients for whom we had catered one event six, seven or eight years in the past suddenly reappeared with requests for new catering services. It was great to get a late Friday afternoon call from a previously satisfied customer who was having a big event and now needed us again.

Every day you are in business, you are building an important base of potential repeat business—event by event and delivery by delivery—and is critically important to learn how to drive that process.

“The process of retaining customers and converting new customers into repeat business is not complicated, but it does require hard work and organization.”

Catersource

I recently returned from Catersource where, of course, all attendees were looking for the magic bullet that would automatically and quickly increase their sales. As I mentioned in my seminars, no such thing exists. The process of retaining customers and converting new customers into repeat business is not complicated, but it does require hard work and organization.

Tips

Following are some ideas that will help you grow your catering organization through repeat business:

1) Always send a thank you after each order. This can be a postcard, an email, or even a phone call, but a timely customer contact after the delivery is invaluable.

2) Start multiple email lists. Have a list for frequent orderers, those who have only ordered breakfast, those that you serve only once a year, etc. By sending custom emails to selected groups you can cross-sell. It’s a lot easier to sell to a current client than to start from scratch with a cold call.

3) Send out a monthly newsletter. This can be very general and not salesy at all; just let know your client base that you are still out there.

Wisdom

Ron Vogt from Milwaukee WI (now deceased) started a catering business from a shopping mall fast food outlet and sold it after he reached the million-dollar sales mark. Ron said two words that have stayed with me for many years: “business fades.” What Ron meant was that your sales will naturally decrease because of any number of reasons, including:

1) Customers move away.

2) Customers die.

3) Customers get different jobs and don’t need to order catering from you anymore.

4) Customers are unhappy.

Learning to retain the ones you have and grow your repeat business is the best way to counteract this trend.

Call Me

Catersource was great and what I have outlined here is only the beginning. Please feel free to call or email me and we’ll talk about your operation and what The Corporate Caterer can do to help you succeed.

You can visit Michael’s website at www.TheCorporateCaterer.com or email him at [email protected].

Michael Rosman

Michael Rosman

Owner/Founder, The Corporate Caterer, Boston, MA

Michael Rosman has over three decades of experience in the catering and restaurant industry. His career began in the management-training program with Creative Gourmets in Boston, where he spent five years working in different corporate dining facilities and catering venues throughout the city. He then purchased an existing café in Boston’s financial district and eventually took ownership of a nearby pizzeria. During this time he began creating the infrastructure for a corporate drop-off catering operation and five years later, he sold his client list to the largest independent catering company in the city.

As Director of Corporate Catering with Via Lago Café and Catering in Lexington, MA, he built an almost two million...