11.1 Types of Catering Service• On-Premise Catering• Off-Premise Catering• Accommodation

11.2 Legal Considerations• Zoning• Licensing• Insurance

11.3 Procedure in Securing Permit to Operate11.4 Procedure in Obtaining a Mayor’s Permit

Chapter11:

STARTING CATERING BUSINESS

11.1 Types of Catering Service

On- Premise Catering - is catering for any function—banquet, reception, or event—that is held on the physical premises of the establishment or facility that is producing the function. On-premise caterers—such as hotels, convention centers, and restaurants—usually have the advantage of offering many services under one roof. They can also provide sufficient space to house an entire event and plenty of parking. In general, each catered event has one host and one bill.

ON-PREMISE CATERING

Off-Premise Catering - often involves producing food at a central kitchen, with delivery to and service provided at the client’s location. Part or all of the production of food may be executed or finished at the event location. At times, off-premise caterers must rely on generators for electricity, truck in potable water, devise a trash system, and otherwise “rough it.”

-Many localities have independent banquet halls, civic auditoriums, stadiums, arenas, ethnic social clubs, fraternal organizations, women’s clubs, private city or country clubs, athletic clubs, hospitals, universities, libraries, executive dining rooms in office buildings or corporate headquarters, churches, recreation rooms in large apartment or condominium complexes, parks, museums, aquariums, and restaurants with banquet rooms. Some of these facilities are often more competitive than hotels, as they have more flexible price structures because of their lower overhead expenses. Some are public facilities and are tax-exempt. A number of these facilities provide their own catering in-house, others are leased to and operated by contract foodservice companies that have exclusive contracts. Still others will rent their facilities to off-premise caterers

OFF-PREMISE CATERING

Accommodation Service - Accommodation is the common word for any kind of lodging or dwelling where people stay and sleep. Finding suitable accommodation can sometimes be tricky as demand can often eclipse supply. And often it can be hard just to find a place that is suitable for you, somewhere you are going to want to spend your time. As populations grow everywhere and urban environments get more complex and harder to navigate, accommodation services have started popping up everywhere. These services fill an important need for people, and are dedicated to making it easier for you when you are trying to find an appropriate place to lay your head.

Both on-premise and off-premise catering have much in common. Obviously, transportation by vehicle is a main difference. It complicates food safety issues such as packing safely to keep hot foods hot and cold foods cold, and to avoid spillage. This is accomplished by using:

-insulated coolers, -refrigerated vehicles, and -portable warming units.

A caterer’s reputation for high-quality food that is safely prepared can take years to develop. Any outbreak of a food borne illness could result in lawsuits, death, and the closing of the business. Safe food handling procedures are a must; there are no shortcuts.

Accommodation services exist for long term placement or if you are just looking for a holiday apartment for a few days. When you are looking for short term holiday accommodation it can often be incredibly hard to find somewhere suitable. It makes a lot of sense to enlist the help of a holiday accommodation service provider. They are specialized in this field and will have the necessary contacts needed to find all of the available and suitable places that you need. This is even more the case when you are looking for accommodation abroad. A service provider can give you a direct link with people that offer accommodation and will act as a medium when language and customs may get in the way.

There are some really cool places that you can stay in the world, from traditional huts in Africa to fantastic modern Berlin apartments, the list is almost endless. The hard part is in finding that exotic accommodation or sourcing the best price for that ecologically designed apartment. This is where a professional service can come in handy and take all of the stress and endless hours of frustration out of the process. There are many accommodation services that have a presence on the Internet, that way it is even easier for you to go and check out what they have to offer. Many have pictures and floor plans of the housing that they are offering so that there are no nasty surprises for you when you get to your destination.

11.2 Legal ConsiderationsThere are some legal aspects you must

consider before getting started like applying for a state food dispenser's license and approval of the site where you are going to cook approved by the local board of health. Selling food cooked in a place that isn't up to the law is a serious offence and can land you behind bars.

Your manufacturing practices and quality of ingredients used must also meet the standards specified by the law. You must also get the food you prepare tested to make sure it doesn't cause any illness.

ZONING

When you start a catering business, you'll need to check state and local laws. Zoning laws could affect where you do your cooking and how much of your catering business you can actually handle from home. The city you live in may require a permit. It won't be fun or easy getting everything set up legally, but when it's the law, you don't have a choice. Starting a catering business illegally is a bad idea.

Dividing an area into zones and sections reserved for different purposes such as residence and business and manufacturing etc.

Decide on a name and then create your identity.

The entire process of naming your catering business and creating an identity is known as "branding."

LICENSING

The granting of permission to use intellectual property rights, such as trademarks , patents, or technology, under defined conditions.

The facility (kitchen) where food is prepared should be licensed as a Food Service Establishment .Contact the Department of Agriculture and Rural Development, Food Division, Food Service Section; (517) 373-1060, for inspections. Generally, a person's home kitchen, where food is also prepared for family members, will not meet the regulations to be licensed.  

When starting a catering business, consider renting space in a kitchen that is already licensed, (i.e. church halls, rental halls) until the cash flow warrants the expenditure for a more permanent facility. If the facility is licensed, but the licensee does not wish to accept the liability, a separate fixed or temporary license application must be submitted for the same facility by listing the caterer or catering cook as the responsible party.  

INSURANCE

As a catering business owner, you will want to do everything you can to minimize risk to yourself and your employees. But there are many types of risk.

Insurance helps keep risk to you, your partners, your investors, bankers and other creditors minimized as well. Insurance is designed to protect tangible assets, thereby protecting your investment.

Some may consider insurance a necessary evil. In actuality, it’s your financial safety net and a requirement by law.

What are some of the ways insurance protects your catering company?

If you borrow money from a lending institution, those loans are often insured from default in case the worst happens and you’re unable to repay them. That won’t let you off the financial hook necessarily, but it will help the lender, especially if the loan is an SBA loan.

Liability insurance covers your catering business should a non-employee, such as a customer or vendor, become injured in an accident while on your premises or while you’re at a catering event. Injuries can range from falls to burns, even employee neglect that results in injury to a customer. Even food-related illnesses are covered by liability insurance coverage.

Every catering business has to be located somewhere, whether at home or location-based. If you’re a home-based catering company, you should already have homeowner’s insurance. However, since you’re running a business from your home, you should discuss with your insurance agent the possibility for greater coverage since your liabilities have changed with the changing use of your home.

For location-based catering businesses, structural insurance (fire damage, water damage, natural disasters, etc.) depends upon whether you’re leasing our location or purchasing. If you’re leasing, the building owner usually carries the insurance and passes the cost onto you in the lease amount. If you’re purchasing your catering location, your lender will require coverage.

Every catering business must have transportation. State and federal laws mandate that you carry a minimum amount of insurance for your vehicles. If purchasing new vehicles, your lender will require enough coverage to offset their financial liability (and yours).

Worker’s Compensation is also a possible need. Not every company carries worker’s comp. Some companies prefer to pay for employee injuries out of their own pockets and take their chances due to the high cost of coverage.

11.3 Procedure in Securing Permit to Operate

The usual procedure in securing a business permit is as follows:

1. Secure a barangay clearance- requirements usually are: duly filled out form, AOI or DTI Registration; lease contract, pictures of the establishment. Other requirements are imposed (in Pasig Bgy. San Antonio, they require insurance)

2. After getting the barangay clearance, you proceed to the city hall (BPLO Business Permit and Licensing Office) where they will give you a form to fill up. You must submit the duly filled up and notarized form

3. Go to the Engineering Department to get the assessment for building fee (they will ask for the building and occupancy permit). Then proceed to Electrical Department for assessment (they will require mechanical and electrical permit )

4. Go to BPLO so they can check the requirements, have the assessment and fees encoded and also to check any violations or penalties. The EDP will issue the Order of Payment.

5. Procure cedula.6. Go to Treasury department then pay the fees.

7. You then proceed to the Health and Sanitary Office where you will secure the Health and Sanitary Permit (In Pasig, they require a drug test and X-ray for all the employees). They will also require attendance in a seminar

8. You go to CENRO (City Environment and Natural Resources Office) to secure an Environmental Permit (usual requirement is Affidavit of Undertaking).

9. Then off to the BFP (Bureau of Fire Protection) for the Fire Permit Fee. Take note that all business establishments are required to have a fire extinguisher. The number of fire extinguishers will depend on the floor area of the establishment. An inspection by the BFP will be conducted before the issuance of the clearance. They will issue a Fire Safety Inspection Certificate.

10. Some LGUs do not conduct inspection anymore but rather require pictures of the establishment.

11. After all these permits are secured, then the business license is issued. However, in some cities, they issue the business permit temporarily subject to the issuance of the other permits (Sanitary permit, Fire Certificate).

11.4 Procedure in Obtaining a

Mayor’s Permit1. Business permits expire on the 31st of December

unless the permits are issued on a quarterly basis.

2. Must be renewed before the end of January.

3. Different requirements per city.

4. For new applications, the requirements usually are: barangay clearance, zoning clearance, environmental permit to operate, fire clearance, etc.

5. To secure these licenses, the requirements usually are

6. articles of incorporation for corporation, articles of partnership for partnership and DTI registration for sole proprietorships

7. accomplished form

8. Lease contract or proof of ownership

9. Sketch of the Location

10. Fire Safety Clearance

Please note that some businesses require special permits before they can be granted a business permit. Examples of such are:

1. Security agency - PNP permit2. Rice retailer (a only), bakery (a & b) and drug store (b only).

a. NFA permitb. Bureau of Food and Drug Administration (BFAD) Permit

3. Certification of exemption if exempted under any law or decree.

4. Theater/movie houses - Certified certification of registration from the movie and television review and classification board (MTRCB).

5. Sales and rentals of video tapes - Registration from Videogram Regulatory Board (VRB).

6. Gasoline station - Energy regulatory board (ERB) registration.7. Factories / private market / commercial building / importer and

exporter warehouse / garments sub-contractor - Certificate of Occupancy .

8. Factories pertaining to air / water pollution - Department of Environment and Natural Resources (DENR) clearance.

9. Buy and sell - police clearance.

10. Real estate lessor - Sworn statement of the assessed value of real property as indicated in the real property tax declaration and current real property tax payment official receipt.

11. Local employment - Certification from Philippine Overseas Employment Agency (POEA).

12. Talent promotion - Philippine Overseas Employment Agency (POEA) permit.

13. Training center - Certification letter from accredited agency.

14. Crewing / manning / shipping / agency - Philippine Overseas Employment Agency (POEA) permit.

15. Travel agency - Permit from the Department of tourism.

16. Pawnshop/bank / lending investors - Indorsement from central bank.

17. Water dealers/ water delivery/ water drilling - Permit from National Water Resources Board (NWRB).

18. School - Department of Education, Culture and Sports (DECS) permit.

19. Firecrackers and pyrotechnic devices - dilg / pnp permit.

20. Taxi / bus / jeepney operation - LTO franchise indicating number of units.

21. Receiving home, orphanage - Department of Social Welfare and Development (DSWD) registration.

22. Dental prosthetic laboratory - License to operate from the Department of Health (DOH).These requirements sometimes vary depending on the city government.

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