Understanding the Target Market in Catering: A Comprehensive Guide

 

Who Are the Target Market of Catering Business? Unveiling Your Ideal Customers

 

 As a catering equipment supplier with years of experience, I have worked with many catering businesses over the years. This experience has taught me that a deep understanding of your target market is essential to succeed in the catering industry. In this blog, I will be sharing what I have learned about identifying and reaching the perfect customers for catering businesses.

 

 

The Critical Importance of Knowing Your Target Market

 

At the start of my catering equipment work, I realised quite quickly that knowing the customers was key to success. Catering businesses must understand their target market - beyond knowing just potential buyers - and understand the needs, preferences and behaviours of consumers. 

 

I have personally seen how this understanding can change a struggling catering business into a massively thriving catering business. For example, a small catering company in Dublin was getting slow business. When they identified their target market, the game changed. They refined their menu and marketing strategy (to young professionals seeking healthy lunches) and suddenly within six months, they had twice as many bookings. 

 

This experience opened my eyes to how important defining a target market is in every aspect of the catering business, including:

 

• Menu planning
• Pricing strategies
• Marketing efforts
• Customer service approach
• Equipment and supply needs

 

It's not just about attracting any customer - it's about attracting the right customers who will value your unique offerings.

 

 

Segmenting Your Catering Market: B2B vs B2C

 

In my catering experience, I have found that the market can be broadly divided into two main segments: Business Catering (B2B) and Social Catering (B2C). There are different characteristics and needs for both. 

 

Business Catering (B2B)

 

Business catering is an important part of the catering industry. It typically involves providing food for corporate events, meetings, and other business-related gatherings. 

 

In my experience, the customers of Business Catering usually share the following characteristics. 

 

1. Frequency of Orders: B2B customers often place regular, recurring orders. According to a recent industry report, 80% of companies frequently order business catering - at least once a month.

 

2. Order Size: The average order size for B2B catering tends to be larger than B2C. Industry data shows that B2B orders can average from €15 to €120 per person.

 

3. Preferred Catering Styles: In the B2B world, convenience is key. Box lunches, platters, and buffet-style catering are particularly popular. These options are easy to set up and require minimal cleanup, which is ideal for busy office environments.

 

4. Decision Makers: The key decision-makers in B2B catering are often office managers, administrators, and event planners. There's also a growing trend of medical sales professionals frequently ordering catering for their client meetings.

 

Social Catering (B2C)

 

Social Catering, also known as B2C catering, also takes up a large portion of the market. It includes catering for weddings, birthdays and other special occasions. 

 

Below is what i have learned about B2C customers::

 

1. Frequency of Orders: B2C customers tend to order less frequently than B2B customers. A consumer survey found that only about 54% of B2C customers order catering at least once a month.

 

2. Order Size: The average order size for B2C catering can vary widely depending on the event with formal events like weddings often costing more per head.

 

3. Preferred Food Styles: B2C customers often prefer hot, family-style, and shareable food options. These types of dishes encourage guests to mix and mingle, which is ideal for social gatherings.

 

4. Decision Makers: In B2C catering, the decision-makers are typically individuals planning their own events or professional event planners working on behalf of clients.

 

The differences between B2B and B2C and our understanding of them helps our clients tailor their services and marketing strategies effectively. 

 

 

Creating a Detailed Customer Profile

 

Another lesson I have learned is how important it is to create detailed customer profiles. It goes beyond just knowing whether the target market is B2B or B2C. You must understand who your customers are on a deeper level. 

 

I always recommend catering businesses to gather as much information as possible about their customers. Below is a step-by-step guide to creating an extensive customer profile: 

 

1. Gather Demographic Information:

• Age
• Location
• Income level
• Occupation
• Education level
• Family status

 

2. Analyze Psychographic Factors:

• Values
• Interests
• Lifestyle choices
• Attitudes
• Opinions

 

3. Study Ordering Habits:

• Frequency of orders
• Types of events they order for
• Average order size
• Preferred menu items
• Peak ordering times

 

4. Identify Pain Points:

• What challenges do they face when ordering catering?
• What are their main concerns or hesitations?
• What are their unmet needs in the catering market?

 

5. Examine Decision-Making Process:

• Who makes the final decision?
• What factors influence their choice?
• How long is their typical decision-making process?

 

6. Analyze Communication Preferences:

• Preferred communication channels (email, phone, social media)
• Response to different marketing messages
• Engagement with various types of content

 

7. Evaluate Budget Considerations:

• Typical budget for catering services
• Price sensitivity
• Perception of value

 

8. Assess Brand Loyalty:

• Frequency of repeat orders
• Likelihood to recommend to others
• Engagement with loyalty programs (if applicable)

 

To gather this information, I recommend using a combination of methods:

 

• Customer surveys
• Follow-up calls after events
• Social media interactions
• Website analytics
• Sales data analysis
• Customer feedback forms
• In-person conversations at events

 

A client of ours (a catering company) that specialized in corporate lunches, implemented a brief survey after each order. This helped them immensely, allowing them to refine their menu offerings and improve their service which in turn, resulted in a 30 per cent increase in business over six months. 

 

Creating customer profiles is an ongoing process. Customer preferences and market trends do not stay the same - they tend to change over time. Therefore, you should always update and refine the profiles.

 

 

Effective Strategies for Reaching Your Target Market

 

After you have decided what your target market is and created the customer profiles, you need to try and reach these potential customers effectively. In my experience, what works best is a combination of traditional and digital marketing methods. 

 

Traditional Marketing Methods

 

Yes, digital marketing is becoming very popular and is no doubt important, but I have also found that traditional marketing methods can be effective for catering businesses. This holds true especially for targeting local markets. 

 

1. Flyers and Brochures: Simple but effective particularly for B2C catering businesses. Your business can have great success just by handing out flyers at local events. 

 

2. In-Restaurant Signage: For catering in restaurants, in house advertising can be effective. For instance, one of our clients, a restaurant that offers catering services, had a 20 per cent increase in catering inquiries just by putting signage about their catering services around the restaurant. 

 

3. Networking Events: Going to local networking events can be key to reaching potential B2B clients. I recommend businesses I am working with to be active members of their local business community. 

 

4. Local Partnerships: You should also try and form partnerships with complementary businesses as this can be a good way to reach new customers. For instance, a catering company can set up a partnership with a local event venue to cross-promote services. 

 

5. Direct Mail: This may seem old fashioned, but targeted direct mail campaigns can be very effective - particularly when trying to reach local businesses. 

 

Digital Marketing Strategies

 

Nowadays, a business should always try and have a strong online presence. The following are some digital market strategies that work exceptionally well for catering businesses. 

 

1. Social Media Marketing: Facebook and Instagram are essential for showcasing food services visually. Let’s face it, our feeds on both are filled with pictures of delicious, aesthetically pleasing food - and a catering business should capitalize on this. The platforms can be used very effective to build brand awareness and to attract customers. 

For example, a study by Sprout Social found that social media ads are the leading source of brand awareness among internet users aged 16-34.

 

2. Local SEO: For most businesses including catering, showing up in local search results is so important. If businesses optimize their websites and Google My Business listing for local SEO - this can increase visibility to potential customers. 

 According to Hubspot, 46% of all Google searches are looking for local information.

 

3. Email Marketing: This is important in particular for B2B catering businesses. Newsletters, special offers and other content (like tips to planning a hit event) can keep your customers informed and it can keep your business top-of-mind for clients. 

Campaign Monitor reports that email marketing has an ROI of 4400%.

 

4. Content Marketing: Blog posts, recipes or guides on different catering topics can also help establish expertise and attract customers. According to HubSpot, businesses that blog get 55% more website visitors than businesses that don't.

 

5. Online Advertising: Google Ads and other social media advertising can be key to attracting potential customers. They let you target specific demographics or businesses close to your own business. 

 

Hyper-Targeting Techniques

A new development I have seen recently is hyper-targeting techniques. This allows businesses to reach specific segments of their target market with tailored messages.

 

1. Geo-Targeting: With this, you can target potential customers in very specific geographic areas. For instance, your business could target ads to office managers that are within the area of their kitchen. Studies show location based marketing can boost click-through rates by up to 50 per cent compared to generic campaigns.

 

2. Behavioral Targeting: This means targeted ads based off of online behaviour. For example, say someone has recently searched for wedding catering - you can target ads to them which works very effectively.  Epsilon research shows that 80% of consumers are more likely to make a purchase when brands offer personalized experiences.

 

3. Lookalike Audiences: Different platforms such as Facebook allow you to create lookalike audiences based on your existing customers. This is very effective as it means reaching potential customers that share similarities with your best clients. 

 

From what I have seen, implementing these hyper-targeting techniques can be a very effective way at garnering new customers. For instance, one of our clients used Linkedin's targeting features to reach office managers and event planners in their area. They saw an incredible 40 per cent increase in B2B inquiries in less than three months of implementing the method. 

 

 

Emerging Trends in Catering Target Markets

For catering businesses, it is more important now than ever to stay ahead of the emerging trends that might impact your target market. Below are some trends in the catering industry: 

 

1. Health-Conscious Consumers: There's a growing demand for healthier catering options. According to a Market Analysis Report, the health and wellness food market is expected to reach $1596.1 billion by 2030, growing at a CAGR of 9.4% from 2024 to 2030. This trend is particularly strong among younger demographics and in corporate settings.

 

2. Sustainability Focus: Sustainability is becoming more and more popular. This usually includes locally sourced ingredients, offering different dietary requirements (such as veganism and plant-based options) and using eco-friendly packaging.  A study by Unilever found that a third of consumers are now choosing to buy from brands they believe are doing social or environmental good.

 

3. Experiential Catering:There is now a demand for catering that means the whole event experience - not just the food. This experience often means interactive food stations, themed menus or fusion cuisines. The Experience Economy, a concept introduced by Pine and Gilmore, suggests that businesses must orchestrate memorable events for their customers, and that memory itself becomes the product.

 

4. Personalization: Nowadays, customers want personalized experiences. This could include customizable menus, dietary accommodation etc. .

 

5. Technology Integration: From online ordering systems to virtual tastings, technology is becoming increasingly important in the catering industry (see Caterboss).

 

Final Thoughts

Knowing who your catering business is targeting is half the battle. Identifying your niche and catering to it will make all the difference in the growth and success of your business. Clients want a caterer to be an expert at specific events- be it corporate lunches, family birthday dinners etc. By understanding this and accommodating it, your company can obtain a name as one of the best in the business. Between traditional word of mouth and digital word of mouth - the news will spread and clients will come. Use the above recommendations and advice and you will see an increase in the growth and popularity of your business. Happy to help - Happy Catering.