The Catering Revolution: How Smart Restaurants Are Building Million-Dollar Off-Premises Businesses
In a recent episode of Restaurant Masterminds, host Paul Barron and co-host Anna Tauzin welcomed industry legend Earl Dardick to discuss what might be the most underutilized revenue stream in the restaurant business: catering. As Senior Partner at Off Premises Growth Academy and Co-Founder of CaterLinked, Dardick has witnessed firsthand how restaurants can transform their operations by embracing catering as a core business strategy rather than an afterthought.
The CEO Buy-In Problem
Dardick was emphatic about one critical success factor: "If your CEO is not bought in, don't do it. Period." This isn't about putting up a "we cater" sign in the window and hoping for the best. According to Dardick, successful catering programs require fundamental changes to operations, technology, and culture. He pointed to brands like Jason's Deli, which has been doing catering for 30 years across 220 locations, as examples of how deep integration and cultural commitment separate winners from wannabes. The difference between franchisees doing 50% catering versus 10% often comes down to owner-operator commitment and understanding that catering is "a different business" that leverages existing restaurant assets.
The Technology Stack Challenge
One of the biggest obstacles facing restaurants today is their fragmented technology infrastructure. "Our tech stack within the restaurant space is so fragmented," Dardick noted, explaining how point-of-sale systems lack the business logic needed for complex B2B catering orders. He warns operators to be skeptical of vendors claiming to have "catering modules," arguing that catering requires its own dedicated solution rather than being treated as an add-on feature. The complexity increases when restaurants must manage multiple channels—dine-in, takeout, delivery, and catering—all funneling through a single operation while maintaining quality and efficiency.
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The Numbers That Matter
Perhaps the most compelling part of the conversation centered on the financial opportunity catering represents. Dardick has seen independent operators achieve over 50% of their revenue from catering, and he regularly shows restaurant brands that adding catering is "like adding 40 more stores without opening stores." His analysis reveals that catering can represent 20% of a restaurant's business while contributing 50% of its profit. When Anna Tauzin asked about the largest successful scale, Dardick confirmed he's seen plenty of independents cross the 50% threshold, with the key being intentional strategy around whether you're pursuing drop-off catering, event catering, or both.
Local Community Focus in an AI World
As the conversation turned to emerging technologies and AI, Dardick made a surprising pivot back to fundamentals. While acknowledging that AI agents and automated ordering systems are coming, he emphasized that "first party transactions" and local community engagement will be the differentiator. "Teaching your people the skills they need to retain and acquire customers locally is going to be paramount," he argued. This human-centered approach becomes even more critical as the industry faces increasing automation and platform consolidation, with companies like DoorDash expanding into advertising and potentially banking services.
The Investment Reality
The episode concluded with a reality check about what it takes to succeed in catering. Dardick uses a spreadsheet to show brands the investment required—often $5 million across 200 locations—and watches as executives initially balk at the number. But when he presents the five-year projection showing the equivalent of adding 40 stores without the real estate headaches, the math becomes compelling. The message is clear: catering isn't a low-investment, high-return side hustle. It's a legitimate business channel that requires serious commitment, proper technology, cultural integration, and yes, significant investment. For restaurant operators willing to make that commitment, the rewards can be transformational.