Why Starting a Catering Service Is Like Opening a New Restaurant
The catering industry is experiencing a significant transformation, with multi-unit restaurants recognizing the untapped potential of off-premises revenue streams. In a recent podcast episode featuring Kelly Grogan, a seasoned expert in the field, several key insights emerged about the state of catering in the restaurant industry and its future prospects.
One of the most striking observations is the underutilization of catering as a revenue channel by many restaurant operators. Grogan emphasizes that for a 100-unit chain, catering could potentially generate an additional quarter-million dollars per year per location. This substantial incremental revenue is equivalent to opening one or two new restaurants, yet many operators fail to allocate sufficient resources to develop their catering operations fully.
The integration of technology in catering operations is another crucial topic discussed. While there's a push for full integration of systems, Grogan suggests that catering may require its own infrastructure within the restaurant's ecosystem. The focus should be on creating seamless ordering experiences for customers while maintaining the human touch that is essential in building and maintaining relationships. As automation and AI become more prevalent in the ordering process, the challenge lies in preserving the personal connections that are at the heart of the hospitality industry.
The role of leadership in driving catering success cannot be overstated. Grogan points out that many companies claim to be "doing catering" but aren't truly working on growing this channel. She advocates for dedicated leadership at the corporate level to champion catering initiatives, likening it to the necessary infrastructure required when opening a new restaurant. This includes not just a leader but a full support team to ensure the program's success.
Looking to the future, the podcast touches on the emerging "food at work" movement, which extends beyond traditional catering to encompass various B2B food service opportunities. This shift is opening new avenues for restaurants to fill gaps left by disrupted contract catering services post-pandemic. As the industry evolves, operators need to stay agile and consider these expanding market segments.
Grogan's final piece of advice for companies looking to expand their catering channel is simple yet powerful: make catering a topic of discussion in every team meeting. By consistently considering how each department can contribute to catering growth, operators can unlock new opportunities and drive sales across the board. As the industry continues to navigate challenges and opportunities, keeping catering at the forefront of business strategy will be crucial for restaurants looking to thrive in the evolving food service landscape.