UgoFood is a big part of our daily lives. Beyond helping us keep healthy, food is a great way of expressing our culture and entertaining guests on our special days in Nigeria.
That being said, because of how important food is to us, it provides a unique business opportunity for young people in Nigeria. I am talking about offering Catering services
In this article, I would explore what catering is all about in the Nigerian context and how this kind of business can prove to be very lucrative for young people in Nigeria.
Meaning of catering services
So, what does ‘catering’ really mean? It is simply supplying food at specific locations where customers need them. Catering service is very useful to people who have important events like weddings, birthdays, conferences etc especially those who live in urban areas.
This service has more demand than it would appear. You probably know of one event or the other that is scheduled to take place next week in your neighbourhood.
Catering is quite different from running a restaurant business (although many restaurants also offer this service). Restaurateurs operate from one or more locations. It’s like owning an ‘eating shop’. But Caterers meet customers at their chosen location. They basically bring the shop to you.
What services do caterers provide?
So caterers perform different roles for their clients. Let us go over these roles.
- They prepare high quality meals for their clients. Sometimes they have to go out of their way to meet the specific food requirements of clients.
- They also store the meals and drinks properly for the occasion. It is their responsibility to ensure food is fresh and has retained its quality when it is served.
- Caterers work with event planners to prepare the areas where food and drinks would be served. They decorate tables, ensure the environment is clean and organise seats for the benefit of goods.
- It is the responsibility of caterers to ensure that food meets various safety standards at every stage. From the kitchen, while being transported and when served food shouldn’t compromise the health of clients.
- Caterers are also responsible for planning and updating their menus for the benefit of prospective clients. They also make arrangements for necessary supplies before the events of their clients.
Is catering lucrative in Nigeria?
Yes, Catering is lucrative in Nigeria. This is because of some cultural and societal factors.
- High demand- Many people living in urban areas would pay for quality food prepared by a reliable caterer. In fact, the National Bureau of statistics reported that Nigerians spent over N4.5 trillion eating out in 2019. This is massive and reveals the perception of Nigerians about food prepared outside.
- Ecommerce- Food delivery apps and websites have made it very easy for people to order food from caterers who list their services online. There are also many competent delivery services that support delivery of food prepared by Caterers.
- Convenience- Ordering food online these days has become quite convenient. And people have become used to that convenience. In fact, it has become a big part of the daily lives of many people. This makes it much easier to sell to such people.
- Time-saving- The busy life of Nigerian urban centres has made it necessary for people to find ways to eat faster. Using the services of caterers makes it easy for people looking for time saving meals to order them and have their orders delivered.
These are some important reasons why the catering services industry has come to stay in Nigeria.
Steps to start your own catering business
How can you start your own catering business in Nigeria? I would outline the steps you can take below.
Decide on location
Perhaps the single most important factor in starting a catering services business is the location of your business. You have to note that the catering business works best in Urban areas like Lagos, Abuja, Port Harcourt etc. However, this doesn’t mean that catering services cannot thrive in rural areas although one cannot expect to have a comparable number of customers.
Consider opportunities
There are several well-established brands in the catering business in Nigeria. As a newbie, you can’t hope to compete with such big brands effectively from the start. A more effective strategy to thrive in the marketplace is to discover your niche.
You can choose to specialise in one of the various aspects of catering which include;
- Events catering
- Corporate catering
- Social catering
- Wedding catering
- Ship catering
- Industrial catering
There are various opportunities in catering services to thrive in the marketplace.
- Services for special diets- There are people who have special dietary needs, for example people with diabetes, allergies, Lactose intolerance, and people who identify as vegetarians (yes, we have vegetarians in naija). If you can prepare special meals to serve these groups then you can easily carve a niche for yourself and build a loyal customer base.
- Corporate opportunities- There are various organizations that host events especially in urban areas. Identifying such organisations and working closely with them can provide long term opportunities for your catering business.
- Collaboration with event planners- Another opportunity that can help you win long term business is working with event planners. The Nigerian event industry is huge. What this means is that a good collaboration can connect you to a lot of customers.
- Training- If you are a successful caterer you can share your knowledge to different kinds of people for a fee. These people can be hobbyists who want to improve their cooking skills or people who want to start the business.
Plan your business
Nigeria’s business environment is currently harsh so starting a business requires extra diligence. A few things you need to sort out before registering your business are;
- Get funding for your business. This can come from personal savings, loans or apply for business grants.
- Clarify the demand for your service. This often requires you to conduct market research. Ask questions that would either prove or disprove the assumptions you have made about your business ideas.
- Plan for marketing. Start thinking about branding and how to position yourself in the marketplace. Ask yourself what would be the central message of your brand. How would you connect with your customers?
Register your business
After gaining clarity on what you want to achieve, it’s time to make it official. You can register your business with the CAC to build trust with your customers. Decide on business structure, name and other legalities.
Plan for logistics
It is also important to think about how you would move food to the location of events or the homes of individual customers. There are many delivery services in urban areas that you can partner with to fulfil your orders.
You might also decide to set up an in-house logistics team. This would require you to get a delivery van or motorcycle.
Take advantage of technology
People use social media, search engines and forums everyday in Nigeria. These platforms have made it easy to reach customers. Some people even place orders on social media.
Tips for success
There are a few things you should note while starting your business which I would outline here.
Ensure safety and hygiene
Food is something that has a close connection with people’s health. People are sensitive about what enters their mouth. From the kitchen to the point where the food is served, you have to ensure that food is neat and retains its quality.
You have to ensure that those working in your kitchen maintain good hygiene when preparing food for customers.
Use the best materials
To prepare food of the highest quality, your ingredients have to be great as well. You have to develop an eye for good products. Knowing what ingredients to choose depends on your level of skills and experience as a caterer.
Achieving this often means that you need great storage equipment like deep freezers for fresh food, airtight containers, cool dry store rooms.
Master pricing
A good pricing strategy should strike a balance between affordability and profitability. This is not always easy but the idea is to satisfy your customers while still remaining profitable.
Use a simple menu design that is easy to comprehend. You can also take advantage of seasonal trends to offer price packages that increase volume of sales.
Ugo
1 comment
Wow, such a good context . The writer deserves a raise.
You should probably start writing on medium it’s gonna earn you a lot off money