Change is inevitable in any field, and the restaurant industry is no exception. Between pandemic regulations and disruptions and new technology integrations, generational gaps in expectations and continually rising prices—restaurants have a lot to contend with. Success is not impossible, and probable so long as owner-operators are willing to move with the tide and make adjustments that align with customer needs and trends that are quickly becoming the new standard.
In an effort to bridge the gap and locate new revenue streams, many restaurants are turning to a different part of food service: catering. “On June 25, technology platform Lunchbox hosted the first Catering Leadership Summit at Emmy Squared in New York City, primarily sponsored by Shift4, with additional support from 1Huddle,” reports Nation’s Restaurant News (NRN).
NRN Senior Editor Joanna Fantozzi summarizes five key takeaways from the event, which highlighted how, “in 2023, catering accounted for 11% of revenue for the food business industry, and the category keeps growing.” This is a noticeable percentage for restaurants willing to explore new opportunities to reach customers and grow their business.
The full NRN article includes important quotes and notes from key speakers at the Catering Leadership Summit. Their key advice included:
Customization. When it comes to a catering menu, customers like to know that they can tailor to the needs of their guests and event. It can be difficult to make adjustments on large orders, and owners switching to catering services should be prepared to be flexible.
Standards. While the customer should have the freedom to customize, there should be set expectations for catering orders leaving your restaurant, regardless of size. For example, determine what will be included (silverware, napkins, plates, etc.), how it will be packaged or served, and a streamlined process to make it easy for the customer to know what to expect.
Communication. High-quality food service is dependent on two-way communication. If your catering is customizable, there must be a way for the customer to communicate their needs, just like your staff must communicate to set expectations. Clear communication from beginning to end ensures that the process is smooth and that your customer’s special event goes as planned.
Marketing. Catering marketing is different, and if this is a new venture for your restaurant, how you do it matters. As part of your communication, your marketing should reflect what your catering services are, who they are for, and why it’s different from your in-restaurant experience. New catering services may be for your existing customers, but there is a chance you’ll be tapping into a totally new market.
Understand your audience. This is why it is important to do your research. If you are a fast-casual restaurant, even your catering services are probably not for high-end events or weddings. Carve out the space that makes sense for your food, your staff, and your brand. Target those people and events and know what their needs are and where they overlap with your offerings.
Richard Weil, principal and owner of National Restaurant Consultants, has had multiple years of experience in providing catering and off-site incremental business opportunities for restaurant operators. “An additional key aspect is to be sure to utilize a banquet event order (BEO) or documentation with the client/guest. This is very important to be sure that both the client and the operator fully understand the particulars of who, what, where, when and how things will be done. As noted, communication is very important to be sure that you are meeting the guests’ expectations and not over committing your own resources and capabilities.”
At National Restaurant Consultants, our consulting team has dozens of years of experience in developing and executing off site business and catering events that adds incrementally profitable sales. Contact one of our consultants for more information.