1.

1 INTRODUCTION

The tertiary sector of the economy also known as the service sector or the service
industry. Service sector is one of the three economic sectors, the other being the
secondary sector and primary sector. Goods and service are the major marketable entities
in most commercial activities. Though the traditional definition of marketing has now
expanded its scope to include ideas, people and so on, it is primarily goods or services
that most organizations try to market. Traditionally, goods have occupied a lot of space in
academic writing, as there was growing demand for them in most of the previous century.
Particularly in the western, developed world. As the growth in the market for goods in the
developed world got saturated, their attention has turned towards services. The last decade
in particular has seen the mushrooming of books, journals, etc. Devoted to the 'marketing
of services’. India has the second fastest growing services sector with its compound
annual growth rate at nine per cent, just below China's 10.9 per cent, during the last I I-
year period from 2001 to 2012, the Economic Survey for 201314 said. Russia at 5.4 per
cent is a distant third.

The fact that the service sector now accounts for more than half the GDP marks a
watershed in the evolution of the Indian economy and takes it closer to the
fundamentals of a developed economy. Services or the "tertiary sector" of the economy
covers a wide gamut to activities like trading, banking '& finance, infotainment, real
estate, transportation, security, management & technical consultancy among several
others.

The fact that hotel industry play very significant role in the growth of service
sector. Hotel is a part of the hospitality industry which is an umbrella term for a broad
variety of service industries including, but not limited to, hotels, restaurants and
casinos. Hotel is often referred as a "Home away from home". Catering service is one
of the types of Hotel Industry. Catering is perhaps one of the most important aspects to
event planning that will help make or break any business meeting, fundraising gala or
wedding event. That's why the catering manager often takes the lead to help clients
plan and execute special events and other one day programs at hotels and other
venues.

1
1.2 STATEMENT OF THE PROBLEM

India has the second fastest growing services sector with its compound annual
growth rate at nine per cent, just below China's 10.9 per cent, during the last I I-year
period from 2001 to 2012, the Economic Survey for 2013-14 said. Russia at 5.4 per cent
is a distant third. The fact that hotel industry play very significant role in the growth of
service sector. Hotel is a part of the hospitality industry which is an umbrella term for a
broad variety of service industries including, but not limited to, hotels, restaurants and
casinos. Catering service is one of the type of Hotel Industry. And many people who
enjoy choosing food and beverage dream about becoming a caterer and opening their own
catering business. The good news is that the success rate of catering businesses can be
higher than a restaurant because the overhead is much lower and employees are only
needed for planned events, according to information from the National Association of
Catering Executives.

The present study attempt to analyses the growth and activities of Catering Service, and
through this finding the growth of Catering Service in Thaliparamba Taluk.

1.3 SCOPE OF THE STUDY

The hotel industry play very significant role in the growth of service sector.
Catering Service is a part of hotel industry. And many people who enjoy choosing food
and beverage dream about becoming a caterer and opening their own catering business.
This leads to growth of catering service. This study helps to identify growth and
activities of catering service units in Thaliparamba Taluk. Because by analyzing the
response of 10 catering service units. We can find the problems faced by catering service
units if any.

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1.4 OBJECTIVES OF THE STUDY

The main objectives of the study are;

 To understand growth and future prospect of Catering Service.

 To analyses the activities of Catering Service.

 To find out the problems faced by Catering Service units.

 To ascertain the profitability of catering service Units.

1.5 RESEARCH METHODOLOGY

This study is based on 10 catering service units and hence survey method is
adopted. This study used both kind of data, namely primary data and secondary data.
For collecting primary data techniques of questionnaire is tentative schedule of
information to be sought from units and was prepared initially on the basis of
objectives of the study.

The questionnaire was filled up personally with all the respondents. Secondary
data was collected for the study from books and journals. Both primary and secondary
data are processed and tabulated to prove the objectives of the study.

1.6 LIMITATION OF THE STUDY

The major limitations of the study are;

 A detailed study could not be carried out owing to the time limit.
 Prejudicial attitude of certain units to supply correct information.
 The study does not cover all the area of problem. So, the information collected
from units is not a complete one.

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2.1 LITERATURE REVIEW
Dr. Amiya Kumar Behera, in his Report on APO Multi-Country Study Mission on Rural-
Based Food Processing Industry has reported that poverty and unemployment in the rural
areas are the two most important challenges India faces. In spite of all the industrial
development in the country, agriculture still maintains about 70 percent of the population
of the country. It is in the rural areas again where 75 percent of the population of the
country lives and they will continue to constitute at least two-thirds of labor force. It is
imperative therefore that the rural economy is improved, so the burden of poverty can be
lessened and the working population overflowing from the villages can be absorbed in
off-farm activities. The rural economy cannot be developed fully by improving only the
productivity of agriculture, although this will go a long way in improving the rural
economy; however, rural industries, subsidiary activity and food processing industry in
particular, are of great importance for a rapid transformation of the rural economy, in
India. The economic status of this population can also be improved by increasing non-
farm activities, particularly rural food processing industries.

Hans Megens in his article published in Indian Express, points out that India's
potential in food and agriculture is underestimated and opines that corporate can be
helpful in wasteland development in India. In some cases, the country will benefit by
encouraging private sector firms to become primary producers as well. India has over 100
million hectares of uncultivated and degraded wastelands which is not generating any
benefit either to the rural population or the country as a whole. Large tracks of such land
can be converted into productive cultivable land by an infusion of capital and
sophisticated technology to tap deep aquifers, install drip irrigation facilities and in some
cases green houses. The cost and technical input required to develop these lands may be
far beyond the means of small farmers in the area, but can be undertaken by agri-business
corporations. In order to reach the increased goals of food production, reduction of waste,
more value added production and increased exports, enormous investments will be
necessary throughout the whole food & agro-chain. There is ample opportunity to raise
the level of processing if the necessary investments are made not only in processing
facilities themselves but also in the supply chain through which these products have to be
delivered at the gate of the processing facility. Investments in the infrastructure and
logistics systems are extremely necessary for that purpose.

4
 Gregory Orriss, "India will benefit more by staying in WTO than by keeping out",
FAO consultant in India Gregory Orriss has extensive management & quality assurance
experience in various sectors of the food industry. He is a consultant of the Food and
Agricultural organization (FAO) in India, assisting the Government of India in further
negotiations on the WTO agreement on agriculture. Orriss was at Bangalore to attend a
seminar on Indian exports co-sponsored by the FAO. Orriss in his interview with India
mart has expressed his views on Indian food processing industry. India will benefit more
by staying in WTO than by keeping out. You have to be positive. With globalisation
Indian products gain access to the international markets. India has several products like
spices that can benefit from this. On the other hand India also will be required to open up
its market. This might have an adverse impact on certain domestic industries. To make up
for this the WTO gives developing nations like India a larger time frame to open up
markets. The industry has to have a long-term quality perspective and safe processing &
manufacturing systems. The government should set firm standards; provide infrastructure
(labs, inspection facilities etc) and guidance. The international community also needs to
step forward. It is a matter of great concern that, the countries which reject/complain
about products made here don’t back it up by offer of financial & technical assistance.
India has great technical & scientific potential; setting up systems should not take too
long. Most importantly, Indians are great traders; there is no body better in the world. All
that is Needed is awareness about WTO & its requirements.

2.2 AN INTRODUCTION TO SERVICES

Goods and service are the major marketable entities in most commercial activities.
Though the traditional definition of marketing has now expanded its scope to include
ideas, people and so on, it is primarily goods or services that most organizations try to
market. Traditionally, goods have occupied a lot of space in academic writing, as there
was growing demand for them in most of the previous century, particularly in the
western, developed world. As the growth in the market for goods in the developed world
got saturated, their attention has turned towards services. The last decade in particular has
seen the mushrooming of books, journals, etc. Devoted to the 'marketing of services'.
Partly, this is due to the growing importance of services in the gross domestic product (G
DP) of many countries around the world. As of 2009, most developed countries have 70

5
percent or higher of their GDP coming from services, and goods manufacturing has
shifted out to the developing world. Even in India, more than 50 per cent of the GDP now
comes from the service sector.
Service Sector in India today accounts for more than half of India's GDP.
According to data for the financial year 2006-2007, the share of services, industry, and
agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively.
The fact that the service sector now accounts for more than half the GDP marks a
watershed in the evolution of the Indian economy and takes it closer to the fundamentals
of a developed economy. Services or the "tertiary sector" of the economy covers a wide
gamut of activities like trading, banking & finance, infotainment, real estate,
transportation, security, management & technical consultancy among several others.

2.3 MEANING
Services cover a vast array of different and often very complex activities,
making them difficult to define. The word service originally was associated with the
work servants did for their masters. Service is economic activities offered by one party
to another. Often time-based, performances bring about desired results to recipient,
objects, or other assets for which purchasers have responsibility. In exchange for money,
time, and effort, service customers expect value from access to goods, labor,
professional skills, facilities, networks, and system; but they do not normally take
ownership of any of the physical elements involved.

2.4 DEFINITIONS OF SERVICES

According to Robin G Qui "the action of serving, helping, or benefiting: conduct

tending to the welfare or advantage of another".

Early marketing definitions of services contrasted them against goods and described
services as “acts, deeds, performances, or efforts" and argued that they had different
characteristics from goods defined as "articles, devices, materials, objects, or things." In
these early definitions intangibility and perishability were the two most cited
characteristics that critically distinguished services from goods.

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2.5DIFFERENCES BETWEEN GOODS AND SERVICES
 Higher Intangibility
Though services have many tangible like airplanes for a flight, packaging for a fast
food restaurant serving food, and uniforms for people in a hotel reception (apart from
the building and furniture, and so on) , there is an element of the service which remains
intangible. This element is usually the higher and more critical in case of many
services. The haircut, a seemingly simple service, can affect a consumer very deeply,
and the effect of the haircut is felt by him for several days. A lawyer's consultation, or
acre service, has many intangibles associated with it, in a similar way. One may argue
that goods like color TVs or VCD players may also have mysterious intangibles
associated with their usage, particularly for an average non-technical customer. But in
many cases, the intangibles are actually much greater for services than for gods.
 Lack Of Ability To Store Them For Future Sale
Many services cannot be stored for sale in the future. These are lost sales, and
cannot be made up as in the case of soap or detergent (goods) that can be stored and
sold next morning. For example might be electricity supply, because electricity itself
cannot be stored. It has to be available from the generation system when there is need
for it to be consumed. This creates problems in handling mismatches between the
demand and the supply for services. We can recall several and demand depends a lot
on the ability of a service provider to anticipate or forecast demand correctly, and
provide for the additional capacity during peak demand periods. The holiday special
trains run by the Indian Railways to cater to the holiday rush is an example of a
service provider (the Railways) doing something about this phenomenon.
 Interaction Between The Customer And The Service Factory
This implies the presence of the customer at the point of 'manufacture' of the service,
either as a participant. For example, the customer is nearby when food is being prepared
in a restaurant, or in the chair when a barber is cutting his hair, or observing the staff at
work when waiting at the airport or in flight. Compared to this, the chances of an average
consumer visiting the manufacturing site of a toilet soap he uses are pretty small.
Therefore, the service consumer in many cases is likely to be a part of the service factory,
than the goods consumer.

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  Greater Variability In Service Delivery

Due to the fact that human beings usually deliver a lot of services through a direct
interaction with the customers, there are chances that the service will be substantially
different in many cases, in the same service provider's dealings with different
customers. All hotel checkout clerks do not behave in the same manner, all waiters are
not equally polite, and all air-hostesses are not equally hospitable or courteous.
Compared to this, for many everyday goods, a soap is the same wherever you buy it
from. In fact, several companies have realized this problem with service delivery, and
have tried their best to give customers a standardized or semi-standardized service, to
the extent possible.

 Greater Variability among Service Customer's Expectations

Related somewhat to the intangibles present in a service purchase, the customers
are often very anxious at many stages of service delivery. Many times, there are no set
measures to define the real constituents of good service. A two-minute wait at a
counter in a fast food restaurant may be perfectly OK for one customer, but may cause
another to walk out. A half hour delay in a bank draft may irritate one customer,
whereas another one may find it perfectly tolerable, or even expected! Goods, on the
other hand, usually do not create these problems. A consumer of a packet of Lays
chips probably knows what he is buying, and may be unhappy only if there is tangible
and measurable damage to the pack, or if the chips are sorry. In other words, the
customer's reactions are more predictable if goods are being sold, rather than if
services are being marketed.
2.6CLASSIFYING SERVICES
The prominent ways of classifying services include:
 The degree of tangibility of the service
 Whether the service is directed at the customer or his possessions
 The time and place of service delivery
 Level of customization versus standardization
 Formal or informal relationship with customers
 Extent to which demand and supply fluctuate
 Interaction with people or inanimate objects/environment

8
  The Degree of Tangibility of the Service
As we have discussed earlier, some services are more tangible than others. For
example, the food in a restaurant is a tangible thing, though the service part may not be.
The effect of a restaurant visit may be linked with the tangible items and the satisfaction
derived from them. But in a consultant's job, a lot of things remain intangible even after
the consultancy is over. Similarly, in the car mechanic's servicing of your car, a lot of
what he has done remains unfathomable. Different service could be classified on their
extent or degree of tangibility.

 Whether the Service Is Directed At the Customer or His

Possessions
This can be a basis for classification, since some services are performed on the
customer or with his participation as a part of the service delivery, as in the case of a
haircut, hotel check-in, etc. On the other hand, some are provided to his possessions such
as car, camera or TV repairs.

 The Time and Place of Service Delivery

The location can be either the service provider's location or the customer's home or
office. The pest control has to be on site, but software services can be now provided via
internet from any location. Similarly, medical operations have to be performed at specific
sites recommended by the doctor.
 Level of Customization versus Standardization
Services can be customized, like a theme birthday party at a hotel or restaurant, or
standardized, like a standard meal at a south Indian restaurant. Some services tend to be
more customized, like lawyer's or doctors' consultation, whereas these days, there are a
few standardized services, like some of NIIT's computer courses, ambience and sew ice
pattern.

9
  Formal or Informal Relationship with Customers
Generally, entry to Clubs requires formal membership. The Disneyworld or a movie
theater only requires people to buy a ticket for entry, with no record of the name of the
customer, or any particulars. The telephone and electricity supplying companies require
your name, address and other particulars. Nowadays, the practitioners of customer
relationship management(CRM), mostly the service companies, fry and collect relevant
information from every customer, and try to use it to direct specific campaigns at some
subset of these, who could be a target market for a given objective. Some enterprising
companies even sell these address lists of themselves as a ‘product',
 Extent to Which Demand and Supply Fluctuate
For example, some services have steady demand, like a downtown restaurant.
Some other has a highly fluctuating demand base on the time of the day, or season, etc.
Like electric power, the demand for which increases or decreases with the weather. In
north Indian plains, coolers and air conditioners are of great demand in the hot months
and room heaters in the winter months. In the south, generally, the weather is more
reasonable, except for a couple of months of heat in April and May. The power demand
also fluctuates accordingly.
 Interaction with People or Inanimate Objects Environment

Some transactions could be done on the phone. Like ordering a new cheque book
from a private sector bank, or a modernized public sector bank. Others need the presence
of the customer on site, like taking a flight or eating out. Depending on the level and
frequency of the customer contact required, one can classify services into different
categories. There may be mixed models, where some contact is needed, but after that the
customer is on his own, like a fast food self-service model.

10
3.1 AN INTRODUCTION TO CATERING SERVICE
Food, accommodation and dress are the three most essential things of human. Hotel
or hotel industry alone provides two basic things: food and accommodation. Hotel
industry is a part of service sector. Hotel is a part of the hospitality industry which is an
umbrella term for a broad variety of service industries including, but not limited to,
hotels, restaurants and casinos. Hotel is often referred as a "Home away from home".
Catering service is one of the types of Hotel Industry.

Catering is perhaps one of the most important aspects to event planning that will help
make or break any business meeting, fundraising gala or wedding event. That's why the
catering manager often takes the lead to help clients plan and execute special events and
other one day programs at hotels and other venues. And many people who enjoy
choosing food and beverage dream about becoming a caterer and opening their own
catering business. The good news is that the success rate of catering businesses can be
higher than a restaurant because the overhead is much lower and employees are only
needed for planned events, according to information from the National Association of
Catering Executives (NACE).

3.2 DEFINITION
Catering is the activity of providing food and beverage for events. Caterers, which
are either independent vendors or individuals within a particular department of a facility
(such as a hotel, restaurant, institution, venue, etc.).
Catering is provided at a full range of events, including business meetings,
conferences, exhibitions, special events, weddings, and other social occasions. In addition
to responsibilities for food and beverage, many caterers also handle event decor, A/V and
•other aspects of the program. The catering manager will typically manage the staffing of
servers, chefs and others.

11
3.3 HISTORY OF CATERING

The earliest account of a major functions being catered in the United States is a 1778
ball in Philadelphia catered by Caesar Cranshell to celebrate the departure of British
General William Howe. Catering business began to form around 1820, centering in
Philadelphia. Catering being a respectable and profitable business, the early catering
industry was disproportionately founded by African Americans.
The industry began to professionalize under the reigns of Robert Bogle who is
recognized as "the originator of catering." By 1840, a second generation of Philadelphia
black caterers formed, who began to combine their catering businesses with restaurants
they owned. Common usage of the word "caterer" came about in the 1880s at which point
local directories began listing numerous caterers, White businessmen eventually moved
into the industry and by the 1930s, the black businesses had virtually disappeared.
In the 1930s, the Soviet Union, creating more simple menus, began developing state
public catering establishments as part of its collectivities policies. A rationing system
was implemented during World War Il, and people became used to public catering. By
the 1960s, home-made food was overtaken by eating in public-catering establishments.
3.4 TYPES OF CATERING
 MOBILE CATERING
A mobile caterer serves food directly from a vehicle, cart or truck which is designed for
the purpose. Mobile catering is common at outdoor events (such as concerts),
workplaces, and downtown business districts.
 CATERING OFFICERS ON SHIPS
Merchant ships often carry Catering Officers - especially fatties, cruise liners and large
cargo ships. In fact, the term "catering" was in use in the world of the merchant marine
long before it became established as a land-bound business.
 MODERN CATERERS
Catering has evolved to become an artisanal affair. Caterers now create an experience that
involves the senses.

12
3.5 TIPS FOR SUCCESS OF CATERING BUSINESS
l. GAIN CATERING JOB EXPERIENCE
Anyone who thinks they want to be a caterer should work for a caterer first. A good
option may include working as a server for an established caterer because they are always
looking for good people to work events. This is also the best experience to decide if start
a catering business is something you really want to do. It will also prepare you to realize
that catering is very physical work with long hours on your feet.
2. FIND A LICENSED COMMERCIAL KITCHEN TO RENT.
If you are ready to start your catering business, you cannot provide catering services from
your home kitchen. You must find a licensed catering kitchen in your area, and inquire
about renting commercial kitchen space by the hour.
3. SET YOUR CATERING PRICES.
This is a business like any other, so you must have profit and loss statements for
everything that you do. Make sure you tally up the hours you put into doing the event
because the best way to know if you are making money is to approach it hour by hour for
every job. 4.
RENT CATERING EQUIPMENT.
You don't have to buy everything that's needed right away. The best part about having a
catering business is that everything you need may be rented, but make sure you invoice
your client for all of the rentals that are needed for the event. This way, as you take on
more events, you can slowly build your inventory
5. OBTAIN BUSINESS INSURANCE.
Like any other business, you must make sure you have insurance. The importance of this
cannot be underestimated because it's sometimes easy to overlook. You must have the
proper business license and commercial liability insurance to cover client, vendors, guests
or anyone who is potential affected by your services in a negative way. And, if you have
hired workers, you must have workers' compensation insurance for each of them.
6. BECOME AN APPROVED CATERER
Most venues maintain a list of approved caterers who may operate in their facilities, so
this is a great way to start and maintain your business.
7. NETWORK WITH EVENT PLANNERS AND WEDDING CO-
ORDINATORS.

13
 Caterers are one of many services hired by event planners. Don't be afraid to work
for these people and give them a discount for your services. They essentially serve as
outside sales people for your company, and the discount you provide them is basically
their commission for bringing you on board — that's how they get paid.
8. PROMOTE YOURSELF AS A CATERING EXPERT
Social networking tools such as Twitter an0d Facebook are excellent ways to begin
promoting your business and establishing a group of "friends" and "followers." But don't
use this as a tool to talk about your business itself; use these sites to offer advice and
establish yourself as an expert.
9. JOIN A CATERING ASSOCIATION.
Join a professional organization such NACE or related professional associations
such as MP I or the International Special Events Society. You can attend chapter
meetings and national conferences where you meet others who are starting out or are
more established.
10. STAY FOCUSED ON YOUR CATERING BUSINESS.
You should be creative, but also remember that you are a business. The art of
catering is one of the most fun and important parts of the business, but always remember
you are in business and need to keep track of the books and paperwork

MARKETTINGOF CATTERING SEVICES

Breaking into the catering business requires excellent planning and an ambitious
marketing plan. You must compete with other marketing companies and offer something
unique to the area where you will work. Most people cannot afford to hire a marketing
team when they start the business. If you cannot hire a full-time professional, you should
develop brand and a marketing plan that will continue through your first few years of
business. Consider forming partnerships and an online presence to increase your brand
recognition. Learn how to market your catering business.

14
1. PLANNING CATTERING MARKETTING

 Do your research.
Market research is the first essential step in marketing. Hire a marketing
consultant to find out the following information, if you do not have the time or skill to
search your local area:

 Set a marketing budget.

For people without a business education, it may seem like a waste of money to
spend thousands of dollars on marketing in the first few years of your business; however,
breaking into a new area requires name brand recognition as well as good food.

 Choose a good name.

Decide on something memorable that quickly identifies you as a catering service.

Consider how well the name will catch on or how easy it will be to search for online.

 Create an exceptional sample menu.

You will need to invite clients to your business to sample food and attend fairs
where they will try it. Your menu should be versatile, original and cost effective to
produce.

 Find out who your competition is.

You should get sample menus and booking information from all local caterers.
Categorize them by price point and menus to see who will offer similar products.
 Research the major functions in the area.
You should request a list of events from popular venues so you know who to
contact to give quotes and samples of your cuisine.
 Research possible partnerships with other event services.
Your ability to build relationships in the industry will improve your chances of
success, so learn about event planners, event rental agencies, photographers and more.

 Invest in photography. Hire a professional photographer to take photos of the

food, the company catering an event and you creating signature dishes. You will
need high quality photos for brochures, websites and handouts.

15
 2. DEVELOPING A CATERING BRAND

 Create signage. Your business location should have a large, catchy sign that
caters to people in your area. Hire a graphic designer to create your logo, sign,
business cards, van decals and flyers, so you can begin building a brand image.
 Create a website. The website is the first place people will go to find out
information about you. Invest in excellent web programming, with scheduling
features for tastings and a process for starting quotes for events.
 Create an online following. Developing an online presence can help you to show
up in the first results on search engines. If you have employees that are able to
help you update your accounts, you can quickly garner a following that can
translate into high brand recognition.

 Sign up for 1 to 2 social media accounts. Only sign up for accounts that you will update
regularly. For most businesses, Face book, Pinterest and Twitter work well. Pinterest
allows you to post a visually attractive bulletin board that can be filled with your own
website content and recipes or event ideas from other sources.
 Update your Google and other online directory information regularly. You should ensure
that you have the correct address, a description of the business and photos that appear on
Google's search functions.
 Try pay-per-click marketing to increase your presence on search engines. Try Google Ad
Words and Microsoft Ad Center. Choose keywords like the city name, "catering" and
"event planning" to begin with and refine them according to what works best.
 Start a blog or video blog. You can post on WordPress, on your own website, on
YouTube or on Vimeo. Link these accounts regularly with other social media accounts.
Post information about recent events, including pictures of your work and reviews. Then,
consider doing video cooking tutorials to attract more people to your website.
3. CATERING MARKETING STRATEGIES

1. Reserve booths at bridal fairs.

Most medium to large-sized towns have several bridal fairs each fall and winter. Pay
for a booth where you will serve samples to potential brides, grooms and their families.

16
 2. Call local event organizers to ask to submit some samples and a quote.
Make sure to call up to 1 year in advance of the event. If it is too early, schedule a
time to meet with them when they are planning on choosing their caterer.
This will require some telesales. If you have not done cold calling before, practice
selling your product with employees and friends. You will need an elevator pitch about
your company, a description of services and a friendly, conversational tone.

3. Create a loyalty program.

Give referral bonuses to people who recommend you to others. Give discounts to
returning customers that help the companies and events choose you each year.

4. Contact corporations in the area.

Many companies hire caterers for training events, corporate mixers, conferences
and large meetings. Develop a versatile product to offer them and give incentives to help
them try you out.
Incentives do not have to be discounts. You can also go with "value added"
benefits, such as adding a free appetizer or some wine. These incentives help to increase
value by providing more rather than less.
5. Contact local drug company representatives.

These salespeople often hire catering companies to provide food for breakfast or
luncheon meetings. You can earn regular work with a mutually beneficial partnership.

6. Become part of a local business or volunteer organization.

Get out and meet with people in the community. Volunteer your time to handle
event organization for a charity, and you may find your relationships with other business
people will lead to more high-profile catering opportunities.

7. Review your marketing efforts quarterly.

Refine what you do to repeat things that work well and to cut out campaigns that do
not seem to be working. Online marketing can take at least a year to become lucrative, so
try to do this yourself or recruit an employee to help you.

17
3.6 LEGAL REQUIREMENTS
FOOD SAFETY ACT 1990
Under the Food Safety Act, we must not:

1 .sell (or keep for sale) food that is unfit for people to eat.
2. Cause food to be dangerous to health.

3. Sell food that is not what the customer is entitled to expect, in terms of content or
quality.

4. Describe or present food in a way that is false or misleading.

FOOD PREMISES (REGISTRATION) REGULATIONS 1991

If we are planning to start a new food business, we must register our premises 28
days before opening.

FOOD SAFETY (GENERAL FOOD HYGIENE) REGULATIONS 1995

These Regulations set out the basic hygiene rules that food businesses must follow in
relation to staff, premises and food handling.

FOOD SAFETY (TEMPERATURE CONTROL) REGULATIONS

1995

The regulations cover the following issues:

1 .the temperature at which certain foods must be kept

2. Which foods are exempt from specific temperature control?

3. When the regulators allow flexibility

4. Fire safety must always be assured

TAX CONSIDERATIONS
Tax consideration is essential during the formation of a new business and
during its entire life. When a business is just starting out, it may have little or no income
or assets and the choice of structure may not seriously affect its tax liability. However,
as the business grows, the tax implications become more significant.

18
INSURANCE
Insurance is a necessary expense. This includes product and personal
liabilities, as well as coverage on the space used for the business, equipment,
vehicle used for the business, and worker's compensation for any employees

METHODS OF PRODUCTION
Food production and assembly will take place in the kitchen. Fresh
vegetables, meat and dairy products will be used to create most of the dishes. The
chef will exercise strict standards of sanitation, quality production, and
presentation or packaging over the kitchen and service staff. The four main things
to process for good hygiene, they are:

 Cross-contamination: CMSS – contamination is one of the most common

causes of food poisoning. Soto avoid it clean work surfaces, chopping boards
and equipment are used before start preparing food.
 Cleaning: Effective cleaning gets rid of bacteria on hands, equipment and
surfaces. So it helps to stop harmful bacteria from spreading on to food.
 Chilling: Chillingfoodpmper1yhelpstostophannfulbacteria from growing.
Some foods need to be kept chilled to keep them safe.
 Cooking: Through cooking kills harmful bacteria in food. So it is extremely
important to make sure that food is cooked properly.

19
 TABLE NO.4.1
NATURE OF UNITS
Nature of units No. of units Percentage
Sole proprietorship 5 50
Partnership 3 30
Family business 2 20
Total 10 100
Source : primary data

FIGURE NO.4.1
NATURE OF UNITS

Sole proprietorship
Partnership
Family business

INTERPRETATION
The Figure No.4.1 shows that the nature of Catering Service units in Thaliparamba
Taluk, It is found that 50% units carry out sole proprietorship business and 30% units
are carry out partnership business And only 20% units carry out family business..

20
 TABLE NO 4.2
DURATION OF BUSINESS
Duration of Business No. of Units Percentage

Below 5 years 5 50
5-10 years 3 30
10-15 years 2 20
Above 15 years 0 0
TOTAL 10 100
Source: primary data

FIGURE NO.4.2
DURATION OF BUSINESS

Below 5 years
5-10 years
10-15 years
Above 15 years

INTERPRETATION
The above diagram shows that the duration of business of catering service units in
Thaliparamba Taluk. It is found that no units exceed 15 years of duration. Duration of
business of 5 units is not exceeding 5 years, 3 unit’s business exceeds 5 years but not
exceed 10years and 2 unit’s business exceed 10 years but not exceed 15 years. This is
show the utilization of opportunity in market and its growth.

21
 TABLE NO.4.3
SOURCE OF FUNDS
Source of funds No of units Percentage
Borrowed capital 4 40
Owned capital 2 20
Semi-borrowed capital 4 40
Total 10 100
Source: primary data

FIGURE NO 4.3
SOURCE OF FUNDS

Borrowed capital
Owned capital
Semi-borrowed capital

INTERPRETATION
The above diagram shows that the source of funds of catering service units in
Thaliparamba Taluk. It is found that 4 units are raised their capital by way of borrowed
fund and 4 units are used semi borrowed fund. Only 2 units are used their own fund for
capital formation.

22
 TABLE NO.4.4
REGULARITY IN REPRESENTED BORROWED FUNDS
Repayment of Borrowed No of units Percentage
Funds
Regular 3 37.5
Irregular 1 12.5
Partly 4 50
Total 8 100
Source: primary data

FIGURE NO.4.4
BORROWED FUNDS

Regular
Irregular
Partly

INTERPRETATION
The above diagram shows that out of 8 borrowed fund users, 4 of them represent
regularity in borrowed fund and 3 of them represent partial regularity in borrowed fund.
Only one unit represent irregularity in borrowed fund.

23
 TABLE NO.4.5
THE FINANCIAL ASSISTANCE FROM AUTHORITY
Financial Assistance No of Employees Percentage
From Authority
Yes 0 0
No 10 100
Total 10 100
Source: primary data

FIGURE NO.4.5

FINANCIAL ASSISTANCE FROM AUTHORITY

12

10

6
Financial Assistance
4 From Authority

0
Yes No

INTERPRETATION

None of the Catering Service unit get any financial assistance from any authority.

24
 TABLE NO.4.6
WOMEN’S PARTICIPATION
Women’s participation No of Units Percentage
Yes 7 70
No 3 30
Total 10 100
Source: primary data

FIGURE NO.4.6
WOMEN’S PARTICIPATION

Yes
No

INTERPRETATION
It is found those 70% units are having women’s participation in their catering
business. But 30% units are not having women’s participation in their business.

25
 TABLE NO.4.7
AREAS OF WOMEN PARTICIPATION
Areas of participation No of units Percentage
Cooking 9 90
Serving section 0 0
Investment 1 10
Total 10 100
Source: primary data

FIGURE NO.4.7

AREAS OF PARTICIPATION

Cooking
Serving section
Investment

INTERPRETATION
The above Figure No.4.7 and Table No.4.7 shows that majority (90%) of the women
participated in cooking area under Catering Service Units in Thaliparamba Taluk. Only
10% women participated in investment area but no one participated in servicing section.

26
 TABLE NO 4.8
NO OF EMPLOYEES AT THE BEGINNING

No of employees No of units Percentage

Below10 2 20%
10-15 5 50%
15-20 2 20%
Above 20 1 10%
Total 10 100%
Source: primary data

FIGURE NO 4.8
NO OF EMPLOYEES AT THE BEGINNING

Below10
15-Oct
15-20
Above 20

INTERPRETATION
The above Table No. 4.8 and Figure No.4.8 shows that number of employees worked
at the beginning under catering service units in Thaliparamba Taluk. It is found that 10-15
employees worked at the beginning in 50% units, but only 10% units have 20 employees
and 20% units have 15-20 employees and 20% units have below 10 employees at the
beginning.

27
 TABLE NO 4.9
NO. OF EMPLOYEES WORKING, NOW
No of Employees No of Units Percentage
Below 10 0 0
Between 10-15 3 30
Between 15-20 5 50
Above 20 2 20
Total 10 100
Source: primary data

FIGURE NO.4.9
NO. OF EMPLOYEES WORKING, NOW

No of Employees
Below 10
Between 10-15
Between 15-20
Above 20

INTERPRETATION
The above Figure No.4.9 shows that 50% have 15-20 employees working now, but
20% units have above 20 employees. But no units have employees below 10 members
and 30% units have 10-15 numbers of employees currently.

28
 TABLE NO4.10
AGE GROUP OF EMPLOYEES
AGE GROUP OF NO OF UNITS PERCENTAGE
EMPLOYEES
Below 20 0 0
20-25 3 30
25-30 4 40
Above 30 3 30
Total 10 100
Source: primary data

FIGURE NO 4.10
AGE GROUP OF EMPLOYEES

Below 10
Between 10-15
Between 15-20
Above 20

INTERPRETATION
The above Figure No 4.10 shows that the age status of employees under catering
service units in Thaliparamba Taluk. It is found that no employees are there under the age
group of below 20. 40% units, majority of the employees are under the age group of
between 25-30.

29
 TABLE NO4.11
TRAINING TO EMPLOYEES
TRAINING TO NO OF UNITS PERCENTAGE
EMPOYEES
YES 10 100
NO 0 0
TOTAL 10 100
Source: primary data

FIGURE 4.11
TRAINING TO EMPLOYEES

10
9
8
7
6
10
5
4
3
2
1
0
0
yes
no

INTERPRETATION
The above Figure No.4.11 shows that every Catering Service Units Provide training to
their employees.

30
 TABLE NO 4.12
TYPE OF TRAININIG TO EMPLOYEES
TYPES OF TRAINING NO OF UNITS PERCENTAGE
ON THE JOB TRAINING 4 40
OFF THE JOB TRAINING 6 60
TOTAL 10 100
Source: primary data

FIGURE NO 4.12
TYPE OF TRAININIG TO EMPLOYEES

on the job training off the job training

40%

60%

INTERPRETATION
The Table No 4.12 shows that 60% units provide off the job training to their
employees and 40% units provide on the job training to their employees.

31
 TABLE NO 4.13
BUSY SEASON OF CATERING SERVICE
SEASONS NO OF UNITS PERCENTAGE
April-June 0 0
July-September 10 100
October-December 0 0
January-March 10 100
Source: primary data

FIGURE NO 4.3
BUSY SEASON OF CATERING SERVICE

No of unit

10 10

0 0

April - June July - septhember october - December january - march

INTERPRETATION
The above table and chart shows the busy season of Catering Service units in
Thaliparamba Taluk. The busy season is on July-September and January-March and there
the catering business is so dull in April-June and October-December.

32
 TABLE NO4.14
IMPORTANT EVENTS OF CATERING SERVICE UNITS.
EVENTS NO OF UNITS PERCENTAGE
MARRIAGE FUNCTION 9 90
HOUSE WARMING 1 10
BUSINESS MEETING 0 0
OTHERS 0 0
TOTAL 10 100
Source: primary data

FIGURE NO.4.14
IMPORTANT EVENTS OF CATERING SERVICE

marrage function House Warming family parties others

0% 0%

10%

90%

INTERPRETATION
The above chart shows that important functions of catering service units and it is
found that marriage functions is the important functions of all units and there house
warming functions are get on some times.

33
 TABLE NO 4.15
FOOD DEMANDED BY CUSTOMERS
CATEGOREIS OF NO. OF UNITS PERCENTAGE
FOOD
VEGETABLE 1 10
NON-VEG 5 50
BOTH 4 40
TOTAL 10 100
Source: primary data

FIGURE NO.4.15
FOOD DEMANDED BY CUSTOMERS

vegitable non - veg both

10%
40%

50%

INTERPRETATION
The Figure may show that 50% units said that their customers demanded for non-veg
food items and customers were only order 10% vegetable items. But 40% units said that
customers demanded for both kinds’ food items.

34
 TABLE NO.16
METHOD OF SERVICE PROVIDED BY CATERING SERVICE

METHOD OF SERVICE NO. OF UNITS PERCENTAGE

PLATED SERVICE 5 50
SELF SERVICE 3 30
FOOD COURT 2 20
TOTAL 10 100
Source: primary data

FIGURE NO 4.16
METHOD OF SERVICE PROVIDED

FOOD COURT
20%

PLATED
SERVICE
50%

SELF
SERVICE
30%

INTERPRETATION
The above Figure shows that the methods of service provided by catering service
units in Thaliparamba Taluk.20% units said that their customers mainly demanded by
food court and 30% units said that their customers prefer self-service and majority 50% of
units said that plated service is mainly demanded by customers.

35
 TABLE NO 4.17
USE OF MODERN TECHNOLOGY
USE OF MODERN NO. OF UNITS PERCENTAGE
TECHNOLOGY
YES 10 100
NO 0 0
TOTAL 10 100
Source: primary data

FIGURE NO 4.17
USE OF MODERN TECHNOLOGY
NO OF UNITSS

10
10

2
0
0

YES
NO

INTERPRETATION
The above Figure shows that the modern technology used by catering service units
in Thaliparamba Taluk. It is found that every catering units in use modern technology.

36
 TABLE NO 4.18
PURPOSE OF MODERN TECHNOLOGY
PURPOSE OF NO. OF UNITS PERCENTAGE
MODERN
TECHNOLOGY
COOKING 6 60
PLACING ORDERS 0 0
BOTH 4 40
TOTAL 10 100
Source: primary data

FIGURE NO 4.18
PURPOSE OF MODERN TECHNOLOGY
COOKING PLACING ORDER BOTH

40%

60%

0%

INTERPRETATION
The above indicate purpose of modern technology in catering service in Thaliparamba
Taluk. It is found that most of the units 60% are used technology for cooking, 40% units
are used for both cooking and placing order. But no firm used only for placing order.

37
 TABLE NO 4.19
PAST 3YEARS PERFOMANCE OF UNITS
PAST 3 YEARS PERFOMANCE OF CATERING UNITS
UNITS 1st year 2nd year 3rd year
1 100000 120000 130000
2 -200000 50000 100000
3 200000 -25000 100000
4 300000 310000 350000
5 250000 25000 275000
6 -50000 120000 300000
7 -25000 100000 150000
8 250000 150000 -30000
9 -150000 200000 250000
10 30000 100000 180000
Source: primary data

FIGURE NO 4.19
PAST 3YEARS PERFOMANCE OF UNITS
400000

300000

200000

100000 1st year

2nd year
0 3rd year
1 2 3 4 5 6 7 8 9 10
-100000

-200000

-300000

INTERPRETATION
The above table shows past 3 years performance of catering service units. It is found
that most of the units shows increased profitability based on past 3 years performance.
This leads to growth of catering service in Thaliparamba Taluk. 6 units show losses in
particular year, but they are recovered from low performances. It is a green symbol to
caterers.

38
 TABLE NO 4.20
COMMODITIES PRICE IS AFFECTED UNIT’S PERFOMANCE
% OF PRICE NO OF UNITS PERCENTAGE
AFFECTED TO
PROFIT
10% 1 10
10%-20% 4 40
Above 20% 5 50
TOTAL 10 100
Source: primary data

FIGURE NO 4.20
COMMODITIES PRICE IS AFFECTED
NO OF UNIT %

50
40

10
4 5
1
10% 10 - 20 % Above 20 %

INTERPRETATION
Chart No 4.20 shows to what extent commodity price is affected to profits of the units.
It is found that above 20%, the commodity price is affected to profitability of 50% units
and 10%-20%, commodity price is affected to profitability of 40% units but profitability
of 40% units but profitability.

39
 TABLE NO 4.21
AVAILABILITY OF COMMODITIES
AVAILABILITY OF NO OF UNITS PERCENTAGE
COMMODITY
FROM LOCAL MARKET 10 100
FROM OTHER SOURCE 0 0
TOTAL 10 100
Source: primary data

FIGURE NO 4.21
AVAILABILITY OF COMMODITIES

10

FROM LOCAL MARKET

FROM OTHER SOURCE

INTERPRETATION
Above Figure shows availability of catering service units in Thaliparamba Taluk. It
shows all units purchase their commodities from local market.

40
 TABLE NO 4.22
SUPPLY OF DEMAND
SUPPLY OF NO OF UNITS PERCENTAGE
COMMODITIES
REGULAR OR NOT
YES 10 100
NO 0 0
TOTAL 10 100
Source: primary data

FIGURE NO 4.22
SUPPLY OF DEMAND
120

100

80

60

40

20

0
SUPPLY OF YES NO
COMMODITIES
REGULAR OR NOT

INTERPRETATION
The above Figure shows whether supply of commodities is regular or not. It is found
that there is a regular supply of commodities from local market to every catering unit in
Thaliparamba Taluk.

41
 TABLE NO 4.23
NO. OF ORDERS/MONTH
NO OF ORDERS NO OF UNITS PERCENTAGE
BELOW 5 1 10
5-10 6 60
ABOVE 10 3 30
TOTAL 10 100
Source: primary data

FIGURE NO 4.23
NO. OF ORDERS/MONTH

BELOW 5
10-May
ABOVE 10

INTERPRETATION
From the Figure No 4.23, it is obvious that the majority (60%) of the units will get 5-
10 per month.30% units will get above 10 orders but 10% units will get only below 5
orders from their customers.

42
 TABLE NO 4.24
UNITS FACE ANY PROBLEM
FACE ANY PROBLEM NO OF UNITS PERCENTAGE
YES 10 100
NO 0 0
TOTAL 10 100
Source: primary data

FIGURE NO 4.24
UNITS FACE ANY PROBLEM
120

100

80

60

40

20

0
FACE ANY PROBLEM YES NO

INTERPRETATION
From the above Figure, it is found that every catering service units in Thaliparamba
Taluk are facing many problems.

43
5.1 FINDINGS AND STUDY

1) 50% of the catering units are carrying out proprietor ship, 30% are Partnership, and
20% are carrying out carrying out family business.
2) 40% units are using borrowed capital only while another 40% are using capital
through semi- borrowed funds; only 20% are using only their own funds.
3) In Thaliparamba Taluk, catering service units do not get any financial assistance
from the above part of authority.
4) 50% units have 15-20 employees working now, but 20% units have 20 employees
and there are no catering units with 10 employees.
5) On the basis of study, employees are selected in catering service not only based on
experience but also based on educational qualification. 60% units are offer off the job
training to employees and 40% units are offer on the job training to employees, so as to
increase the efficiency and effectiveness of employees. Provide adequate training to
employees.
6) 90 % units of the catering units have get marriage functions, the catering service is
focused in marriage function.
7) In Thaliparamba Taluk 100% of units were uses modern technology
8) The profitability rates of catering service, under study are on upward trend. There it
shows a growth in the profitability of the catering service units.
9) The increasing prices of food materials are a competition in Catering Service.
10) Catering units in Thaliparamba Taluk are face more problems.

44
5.2 SUGGESTIONS
1. Considering the importance of catering service in the changing environment,
the government should initiate by offering financial assistance & subsidies.
2. Women participation can be ensured by linking catering service units with
Kudumbasree units.
3. There should be a strong system of checking hygiene and quantity of food felt
by the authorities.
4. The worker should be provided with adequate training.
5. Proper disposal of wastage should make compulsory through the implement of
law.
6. Units should exercise strict standards of sanitation, quality production and
presentation or packing over the kitchen.
7. Arrange more training programs to employees for improving their efficiency
and effectiveness of work.
8. Conduct awareness program to women, especially to Kudumbasree members
for increasing their participation in cooking, serving and investment in
catering service.

45
5.3 CONCLUSION
It is clear that the catering service business is going in a good condition and
making profits, these will leads together of catering service. Moreover, it should
create more employment opportunity in the economy. The tough competition between
catering will ensure better and quality product & service at reasonable price. It was an
experiment to rule out the actual response of units in Thaliparamba Taluk towards this
study as well as to find out the important problems faced by them which are need to
be reviewed for the ultimate growth of catering service units in Thaliparamba Taluk.

46