Driving Catering Success: Insights from Nick Panos
In the competitive restaurant industry, catering represents a high-margin opportunity for growth, as demonstrated by Nick Panos's innovative approach to restaurant catering. Panos, who grew up in the restaurant business after his parents opened a Mellow Mushroom franchise, recognized early that selling catering to 200 people is far more profitable than selling individual slices. His strategy focuses on B2B drop-off catering, emphasizing the importance of logistics, time management, and customer experience.
The key to successful catering lies in building a robust operational foundation. Panos recommends operators start by developing a dedicated team and creating a clear vision for catering growth. He emphasizes the critical nature of timeliness and communication, noting that one late delivery can permanently lose a customer. To address this, he developed an in-house technology solution called "Cater Eyes" that tracks order data, manages driver assignments, and provides photo evidence of deliveries.
Technology plays a crucial role in catering success. Panos's approach integrates automation and data collection, allowing restaurants to track order frequencies, customer behaviors, and operational efficiencies. By separating catering transactions from in-store point-of-sale systems and creating a dedicated tracking mechanism, restaurants can gain valuable insights that drive strategic decision-making and improve profitability.
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Leadership is paramount in developing a successful catering operation. Panos believes leaders must bring enthusiasm and a growth mindset, inspiring their team to see catering as more than just a side business. He personally works closely with location managers, handling complex tasks like customer interactions, lead generation, and strategic initiatives such as improving local SEO presence for catering services.
For restaurants looking to expand their catering channels, Panos offers critical advice: focus first on fulfillment capabilities. Before aggressively pursuing sales, ensure you have the team, systems, and processes in place to consistently deliver high-quality service. This means investing in team development, creating clear operational structures, and maintaining a commitment to customer satisfaction.
Collaboration and continuous learning are also essential. Panos recommends joining professional communities like CaterLink, which provide opportunities for peer networking, knowledge sharing, and staying updated on industry trends. By connecting with other operators, restaurants can gain insights, learn from shared experiences, and continuously improve their catering strategies.