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.
Watch Ben Vending and Catering
If you're curious about Ben's new pig roasting adventure, check this out and subscribe to his new pig roasting email list.