Restaurants today are increasingly expanding into catering services—a strategic move that can improve profitability and expand your customer base. The catering industry has been growing year on year, with the market forecast to reach 378.39 billion at a growth rate of 8.2% by 2026 (Statista).
If this is an action you’re looking to take, you’ll want to put some thought into which catering services to offer. Don’t throw it all up on the wall and see what sticks, though; rather, carefully consider your brand’s strengths and market demand.
This article provides insights both for newcomers looking to get started with catering and for those aiming to improve their existing offerings. We’ve also compiled a comprehensive list of catering services to help you determine which options best suit your restaurant.
Comprehensive List of 4 Major Catering Services
Not all catering services are created equal, and it's crucial to know which ones are both profitable and in demand. Below, you’ll find a comprehensive list of catering services, plus notes on what to expect from each type of catering service.
1. Corporate catering is where you serve business clients for events such as conferences, meetings, and company parties. Restaurants that offer well-tailored menus, easy online ordering systems, and professional service can capture repeat business from businesses looking for reliable catering options. Here are three reasons you may want to specialize in corporate catering:
- Large-Scale Orders: Corporate events and meetings often require catering for large groups, leading to higher-volume orders compared to smaller social gatherings.
- Consistent Weekday Demand: Corporate catering is typically needed during the workweek, as compared to other types of catering, which tend to see more customers on weekends. This provides your restaurant with a steady stream of catering revenue throughout the week, when individual-level spending is consistently lower.
- Opportunities to Build Long-Term Relationships: Catering for businesses allows you to establish long-term relationships with corporate clients, leading to ongoing partnerships for future events and meetings.
2. Wedding catering requires personalized services ranging from menu customization to thematic food decorations. With wedding catering, you can position your restaurant as a premium provider for a once-in-a-lifetime occasion and thereby command higher prices for your services. Here are two advantages of specializing in wedding catering:
- High Revenue Potential: Weddings typically involve higher budgets, with the average US couple spending about $4,000 to $4,400 on wedding food (WeddingWire). Couples sometimes seek personalized menus, allowing you to charge premium rates for the time and effort involved.
- Brand Exposure: Catering weddings showcases your food to an audience of dozens or hundreds, potentially leading to more bookings through word-of-mouth referrals.
3. Third, social events like birthdays, anniversaries, and holiday parties provide ongoing opportunities throughout the year. While these gatherings are often smaller than corporate events, they can be easier to manage, as they typically involve a more relaxed atmosphere.
- High Frequency: Social events happen year-round and under varying weather conditions, offering frequent opportunities for business.
- Smaller, Manageable Events: These events often have smaller guest lists, making them easier to manage logistically while still being profitable.
4. Fourth, there is also growing demand for vegan, gluten-free, and culturally themed catering menus. These niche segments appeal to customers seeking unique, diet-specific options for their events and guests. Here are some advantages of specializing in one or more diet niches:
- Loyal Customer Base: Clients with specific dietary needs are often highly loyal and appreciative of services that cater to their preferences, leading to enthusiastic referrals and/or repeat business.
- Competitive Edge: Offering specialized menus sets your catering business apart from competitors who may not cater to these specific dietary needs.
3 Steps to Launch Catering Services
Successfully adding catering services to your restaurant requires more than just adding a few extra dishes to your menu. You’ll need to consider everything from logistics to staffing and menu planning.
1. Figure out the broad strokes of how to add catering services to your existing restaurant operation. Here are three individual steps to take:
- Evaluate if your current kitchen setup can handle the extra volume, and check if you need more staff or specialized equipment to manage the catering business
- Identify initial target market (corporate, social events, etc.)
- Develop a service strategy (on-site, off-site, or hybrid)
2. Design your catering menu. Stay true to your brand while accommodating the needs of different events and different clients:
- Offer core dishes from your restaurant’s menu, with event-specific tweaks available like specific colors and portion sizes
- Include clear service packages to simplify the decision-making process for clients
- Focus on presentation to make your food visually appealing at large gatherings
3. Consider all the logistics involved in setting up a catering business, including:
- Transportation of food, equipment, and staff
- Adequate staffing (chefs, servers, setup and teardown crew)
- Ensuring all event details (timing, coordination, serving, cleanup, billing, and so on) are well-managed
3 Ways to Leverage Technology in Catering
Technology plays a vital role in streamlining your catering operations. From online ordering systems to event management software, digital tools make it easier to handle large-scale events and bookings. Here’s how you can use technology to improve efficiency and boost your catering business:
- Online Ordering Systems: An online ordering system is a crucial tool for streamlining your workflow. Clients can place large orders directly through your website, eliminating manual errors and reducing the time spent on order processing.
- Event Management Software: Event management software simplifies booking processes, event planning, and even client communication. Some great options include Webex Events, Cvent, and Whova.
- Digital Marketing Strategies: Promoting your catering services via digital platforms is essential. Use social media, segmented campaigns, and content marketing to spread the word and capture new clients.
How to Run a Profitable Catering Business
Running a profitable catering operation isn’t just about offering great food; it’s about managing your finances wisely. Here’s the million-dollar question: How do you price your catering services?
Think of the answer as a balancing act; you’ll want to remain competitive while also ensuring healthy profit margins. Conduct market research and analyze your competitors’ pricing structures, calculate your costs to establish your baseline, and consider offering tiered packages to cater to clients with different budgets.
Pricing aside, cost management is also crucial to a catering business. It’s important to manage your food and staffing costs to keep your business profitable. Cost management techniques include bulk purchasing, seasonal sourcing, portion control, and efficient staffing.
Finally, you should always try to maximize your profits for your catering business. You can do this by offering upsells, such as premium beverage packages or custom dessert tables. You can also increase revenue through limited-time or special menus and package deals for frequent clients.
Meeting Catering Industry Standards and Regulations
Catering services involve specific health, safety, and legal requirements that are critical to comply with. For health and safety, here are a few things to keep in mind:
- Food Safety Standards: Adhere to local and national food safety standards, including the handling, preparation, and storage of food to prevent contamination.
- Hygiene Practices: Implement strict hygiene protocols for your staff, including regular handwashing, wearing gloves, and using clean utensils and equipment.
- Temperature Control: Maintain appropriate temperature levels for food storage, cooking, and holding to prevent the growth of harmful bacteria.
- Preventing Cross-Contamination: Establish procedures to prevent cross-contamination between raw and cooked foods, such as using separate cutting boards and utensils for different types and temperatures of food.
- Managing Allergens: Provide clear labeling and communication regarding potential allergens in food items. This is especially important when serving clients with niche diet catering needs. Train staff to handle food allergies and understand cross-contact risks.
- Waste Management: Implement proper waste disposal methods for food waste, recycling, and hazardous materials, ensuring compliance with local environmental regulations as well.
- Health Inspections: Prepare for and comply with routine health inspections conducted by local health authorities to ensure ongoing compliance with health and safety regulations.
On top of that, there are important licensing and permit requirements to consider for catering services. This includes obtaining the necessary catering permits to operate legally, ensuring compliance with health department regulations, and maintaining proper certifications for food handling throughout your entire organization.
Putting Your Services Together
If you want to grow your restaurant’s profits and unlock a new stream of revenue, catering is a great option. There’s work involved, no doubt—figuring out the logistics, designing the menu, getting your online ordering platform set up—but the key is to establish efficient systems and get everything up and running. Once you have that in place, you can grow your catering service and increase your revenue significantly.
When you’re trying to decide what type of catering to go into, remember to play to your strengths. For example, if your restaurant already specializes in vegan food or vegetarian food, it makes sense to go into specialized catering. If your team excels in creating bespoke menus and experience, wedding catering could be your niche. Ultimately, the goal is to stand out in a competitive market, attract the right clientele, and build lasting relationships with them.
Getting online is crucial to any restaurant business—especially those offering catering services. To learn more, check out Paytronix’s Guide on How to Maximize Online Ordering.
