Catering is a smart and profitable addition to your mobile food business. When you collect a catering deposit up front on your jobs, you protect yourself in case of cancellations.
Should You Collect a Catering Deposit?
YES! You should collect a catering deposit! Why? Say you book a catering gig, buy the food and supplies, hot dogs, side dishes, drinks, a whole hog or whatever… And then the customer cancels the event. What happens to all the money and preparation you put into the event? If you didn't collect a deposit, you are stuck with all that food and no money. Hopefully, you can store it or sell it quickly, but what if you can't? That could be a big money loss for you.
Jason (Love Food Truck Co.) has some great insight into why and how you collect a deposit on your private events. The amount of your catering deposit depends on what you feel comfortable asking for. We suggest 30, 40, 50% deposit on your event contracts. And then Jason requires full payment a week before the event. That way, you're not stuck at the event having to chase around the customer to get paid before you go home.