Doubling Down on Catering During Economic Uncertainty
In a recent episode of The Catering Cage, host Erle Dardick engaged in a timely conversation with catering experts Kelly Grogan and Cherryh Cansler about navigating restaurant catering during economic uncertainty. With shifting market conditions and operational challenges facing restaurants, the trio emphasized that now is precisely the time to invest in catering rather than cut back.
Kelly Grogan highlighted that amid rising ingredient costs and operational challenges, restaurants should focus on efficiency and relationship-building. "It can be way easier to raise prices inside of the restaurant on your regular carry-out menu... catering is not the same," Grogan noted. She emphasized that sales managers play a critical role in establishing customer relationships that deliver clear ROI, especially when budgets tighten. Rather than reducing catering teams, she advocated for doubling down on talent who can find creative revenue-generating opportunities.
Cherryh Cansler, who joined mid-conversation, shared updates about Networld Media Group, including newly designed industry publications and the upcoming Fast Casual Top 100 announcements. The conversation naturally turned to the upcoming Restaurant Catering Workshop scheduled for October 7-8 in Austin, Texas. Building on last year's successful Denver event, which drew approximately 130 attendees, this year's workshop promises more tactical, hands-on content based on participant feedback.
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The discussion highlighted a significant insight for restaurant operators: while catering might represent 20% of sales, it can account for 50% of profit due to its ability to drive more volume through existing facilities with minimal additional overhead. "You're leveraging your assets," Dardick emphasized, noting that catering provides incremental revenue on top of existing investments. Cansler added that catering represents an affordable marketing channel, putting your food directly in the hands of potential new customers.
For operators concerned about current economic headwinds, the panel positioned catering as a strategic opportunity. While some restaurant brands are pausing physical expansion plans due to increased costs of materials and construction, catering offers growth potential without requiring additional real estate. Dardick noted that community needs for gathering and connection actually increase during challenging times, creating opportunities for catering-focused restaurants.
The episode concluded with a preview of the upcoming workshop, which will be partially hosted at El Arroyo restaurant in Austin. The event promises to bring together industry experts to share strategies and build community among catering professionals. Beyond the workshop itself, Dardick highlighted the importance of year-round community building through platforms like Caterlink, emphasizing that the future of restaurant catering lies in developing leaders who understand both the operational and business aspects of this profitable revenue stream.
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