A Business within a Business
Hi, my name is Ben Lemiere and I recently just began a venture of starting a business within an already established company. In 1999 my parents, Scott and Gretchen Lemiere, started a catering company. The company was small with tons of room for growth, they quickly became the number one premier catering company on the Central Coast of California. Since then the catering company has grown and branched out to two restaurants. In 1999 the catering company was named In Good Taste Catering, we have now shifter the name to Taste! Catering and Eatery. This was the first time I learned about a business within a business.
I never took the time to think about how or what it is like running two seperate businesses under the umbrella of one until the Corona Virus pandemic began in March of 2020. Once “wedding season” started the entire catering portion, and a lot of the restaurant portion, completely shut down. Quarantine equals no weddings. My parents, who are both relentless entrepreneurs, saw this as just another challenge that we could overcome. Through these long eleven months of the pandemic thus far; profits have had to come from the restaurant and put into keeping the catering side afloat. Before we really dive into this, I would like to give you some numbers to think about. In 2019 about 2.13 million couples tied the knot, in 2020 that number drastically shot down to about 1.11 million couples. Most of these 2020 marriages were also kept small, at home and with no catering. Now here is a graph that shows the predicted amount of weddings for the coming years.
As you can see, the wedding industry is supposed to make a major comeback this summer (Covid-19, 2020). In fact, my families company is already almost completely booked for the summer. Now this is where I am stepping in. In May we opened our second restaurant in Paso Robles, California. I know, perfect timing to open a restaurant, right? Well with this second place we were able to open a bar with a full liquor license, unlike the first location which was just beer and wine. Our company now has a full cocktail program led by our head bartender and owners. The new business within a business that I have been tasked with starting is the bar portion for catering events that we were not able to do in the past. Before we launch this new business, there is a lot of research and planning that needs to be done.
Thankfully things like our target market, problem and solution have been discovered long ago through the original catering company. Now what we need to learn before this venture begins is really just what people want. Of course we come up with great cocktails at our restaurant, but a lot of the time this is not exactly what people want for the happiest day of their lives. Meeting with the customers for tastings is something very new to me, but also very necessary. Through these we can gain knowledge on our customers likes and dislikes, it also helps the customer learn their likes and dislikes with us.
Now you may be asking, why is this what I want to do? I have been working in the restaurant industry for over eight years now, and have grown into a person who really enjoys other people. Meaning, I do not want to sit in a cubicle for the rest of my life tapping computer keys like I am right now. The hospitality industry has always been near and dear to my heart, and honestly is something I am really good at. I have learned a lot about reading people, and being able to figure out if and why they are unhappy or happy. I feel I have always provided my best service, and every interaction is different than the last which is very exciting.
This catering service will be built to enhance these special nights that people have! Whether it be a wedding, graduation or company party; we are there to be your friend, bartender and even sometimes a therapist. We will take the reins on this evening doing things from the setup to the service all the way to breaking down the equipment and cleaning the venue. Sure, this all sounds awesome, but how will we make money? Well, let me tell you!
Twenty to twenty-five percent of sales come from alcohol sales on average. Some places generate a much higher percentage than this, for example, our restaurants alcohol sales make up about thirty percent. Fifty percent of sales at Tao Las Vegas come from their alcohol sales (Thacker, 2019). This information can be seen as a mirror image in the event side of the business. We plan on alcohol sales boosting profits by about twenty percent, and thats just in our catering department. Marketing has always been an interesting topic for our company. We are not a large chain like McDonalds or Taco Bell, so mainstream marketing does not make much sense for us. Word of mouth marketing has worked for us in the past, and I believe that as being the best form of marketing. Provide great service, and the customers will love to tell their friends about us!
After all is said and done, we are adding an extension to our already established business. With the hope of providing great service and great drinks for our customers. These events are supposed to be fun and memorable, and with our team we will be sure to make that happen. Through this process we hope to boost profits, and make a comeback after this very dismal year we call 2020. It will also be a great opportunity for my personal career, as I will be making tons of connections in our area with the event sites, as well as connections with great customers who will hopefully be very loyal. Customer acquisition is the key to our success, and our number one advertising technique will be word of mouth!
Citations:
Thacker, K. (2019, September 09). Growing your restaurant’s profit Margins: Modern Restaurant management: The business of eating & restaurant management news. Retrieved February 25, 2021, from https://modernrestaurantmanagement.com/growing-your-restaurants-profit-margins/
2020 Covid-19 wedding market impact. (n.d.). Retrieved February 25, 2021, from https://wedding.report/index.cfm/action/blog/view/post/pid/1490/title/2020_Covid_19_Wedding_Market_Impact
