Cat and Mouth keeps owner from hand-to-mouth existence
Nicolas Cattan has long been associated with the seemingly glamorous world of high-end catering. During his 20-year tenure as the manager of the Faqra Club, he was instrumental in establishing two of Lebanon's most prestigious catering companies, Faqra Catering and Sofil Catering. Nowadays, Cattan runs the hugely successful catering company Cat and Mouth, which he established in 1999, "because I wanted to work for myself and not somebody else."
Cat and Mouth, a share holding company, was established with an initial investment of about $500,000. Armed with years of experience and a name in the business, the newcomer quickly emerged as a market leader. It has seen annual revenues increase from $800,000 in its first year to $3.5 million last year. Despite the growth, Cattan said that the business was better in the beginning.
"There is a big difference between 1999 and now because our profit margins have been going down," he said. Cattan attributes this to a number of reasons, starting with the strengthening of the euro.
"The cost of all the products we use has increased, but we cannot in turn increase our prices because the competition is so intense," he said. On account of the present economic situation, customers increasingly shop around before they select a caterer.
"They have many choices, and in the end the quality is not really what gets you the party. It's more the price," Cattan said. "And don't forget we also offer corporate catering, which involves mass production. With mass production you can't really make a big profit."
Cat and Mouth divides its business into two main activities: Corporate and private events. The first category covers institutions such as universities and banks, while the latter covers events such as dinner parties, weddings and shop openings.
"When we started, corporate business accounted for two-thirds of revenues. Now it is 50-50," Cattan said. The company boasts an impressive list of corporate clients, including Louise Wegman schools, the Lebanese American University, Societe Generale de Banque au Liban, Yarze Country Club and the two La Voile Bleue beach clubs. It is sought after by the rich and famous for its events services. Cattan declined to name any of the bigwigs that have used Cat and Mouth, but was more candid about the glitzy events it has catered.
They include the openings of ABC Achrafieh, Aishti Seaside and AiZone.
Cat and Mouth managed to build up a clientele by word of mouth. It initially shunned advertising because "we wanted to expand at a slow pace so that we could focus on improving the quality of our services," Cattan said.
Keeping ahead in this business requires that the company constantly introduces innovative foods. For this reason, foreign chefs are regularly brought in as consultants to inject new ideas. And, to accommodate its rapid growth, Cat and Mouth has had to continuously invest in expansion.
It started out renting a kitchen in Achrafieh, but after two years found it necessary to invest close to $750,000 in a larger and more modern kitchen in Dikwaneh. "We needed more equipment and space," Cattan said.
Last year, Cat and Mouth spent another "$150,000 to $200,000" to establish a spacious head office in Sodeco. The office, which opened in September 2003, will soon feature an adjoining retail shop.
"It will sell our pastries, breads and savory items. There will also be a section for organic produce," Cattan said. He said that Cat and Mouth has no desire to get into the retail business, and that the shop "is meant to show what we do."
Like most local companies, Cat and Mouth aspires to grow via regional expansion - but not for the time being. "We first have to strengthen the business here," Cattan said, adding: "We believe that growth should be steady and not exceed the capabilities of the operations, especially in a disorganized market."
He said that whereas the hotel sector has a rating system, the catering industry is "completely unregulated." It includes countless small-scale establishments operating out of homes, as well as established caterers like Noura, La Cigale and Aziz.
"At the end of the day, everybody is a competitor. But our main competitor in the high-end catering business is Sofil - and now Faqra is restarting their business," Cattan said, alluding to the fact that the catering company he practically built became defunct after he left in 2001.
Asked how he managed to help create three of Lebanon's most prestigious catering companies, Cattan replied, rather modestly, that it all has to do with teamwork - and working one's way from the ground up.
"If you don't really know the ground, then you cannot be a good manager - especially in the food and beverage business," he said.
After completing his studies in hotel management, Cattan's first job was as a dishwasher in Monte Carlo. Thereafter, he worked as a waiter, in cost control and as assistant manager.
"I work closely with my staff in the kitchen. The interaction between the manager and personnel is very important in this business because it's really hard to work in the kitchen. Sometimes they start their day at five o'clock in the morning and finish late into the night. You have to show that you understand and are working with them. Otherwise they would become de-motivated," Cattan said.
© The Daily Star 2004
