Many caterers are heading into 2021 wondering how they’ll make up for lost business due to the pandemic. There’s no denying that 2020 was a tough year for everyone. With live events canceled and many dining establishments shuttered (or severely limited), it will be critical for catering businesses to focus on increasing profits in the year ahead.

Here are four strategies that will help you to maximize your revenue and keep your finances in the black in 2021.

In a year where business owners everywhere are looking for ways to cut costs, it’s a good time for caterers to consider joining a GPO to reduce expenses and increase profit margins. A GPO, or group purchasing organization, is a professional association that allows its members to leverage their collective purchasing power to reap the benefits of lower pricing and better service.

Although this type of group isn’t specific to the catering industry, it has become an increasingly popular way for food service providers to save on costs. In fact, nearly 25 percent of food purchasing in the industry is done through a GPO.

With the year that we’ve had thus far, every business owner is seeking solutions to balance their books and cut their expenses. Although we don’t know how long the pandemic will impact the industry, the one thing we know is that those who spend less and earn more will be in the best position to sustain their businesses through to the other side. Our profit margins are always a top consideration, but especially in this period where we’re making up for lost time.

With a bit of creativity and forethought, you can restructure your processes in order to reduce your cost of goods while continuing to serve your clients with a top-tier experience that brings in the revenue. Here are a few strategies to implement if you’re looking to increase your profit margins.