Catering Revival Is a Boom for Restaurants
Restaurants see a surge in catering sales as companies lure employees back to the office with free lunches, driving the market to $72.7 billion in 2023.
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By Nancy Luna | For The Prep
In February 2020, the catering business at Isabella’s Brick Oven was thriving. However, after the COVID-19 pandemic shutdown, corporate meal deliveries diminished as remote work became mandatory—and later, the norm.
“Covid was crushing us,” said Dan Stewart, owner of the Baltimore-based family restaurant. “For two and half years, we were delivering to almost empty buildings.”
But catering is making a comeback, leading to a bump in sales among restaurants.
In the US, the category reached $72.7 billion in 2023. The total market size is expected to jump to $124.4 billion by 2032, according to Expert Market Research.
At Isabella’s, the resurgence in catering sales is primarily linked to corporations compelling workers to return to the office, with the most enticing perk of all – a free lunch.
“They're feeding them and that's a little extra incentive to soften the blow for saying, ‘You’ve got to come back to work,’” Stewart said.
As of mid-summer, Isabella’s catering revenue was up 47 percent year over year. Catering represents approximately 25 percent of Isabella's overall revenue.
“It’s really bounced back,” Stewart said.
Or Ohana, CEO of Bakey in Boston, said his catering sales are also on the rise.
Catering now represents about 12 percent of the company’s total revenue, doubling from 2022. Much of that is due to corporate catering.
“People are going more into the office,” he said.
The resurgence of catering is good timing for restaurants, which have been experiencing declining traffic over the past two years. About 51% of operators reported a decrease in visits from 2022 to 2023, according to the 2024 State of the Industry by the National Restaurant Association.
Stewart said catering is a sure thing.
You know exactly how much money is coming in, and how much labor you need to execute. That takes the stress of the day-to-day business, where it’s hard to predict traffic patterns, he said.
“I see it as money I might not have made if I had just waited for people to come in the door,” Stewart said. “Some days we make the whole day’s revenue by 11 a.m.”
Most of Isabella's catering revenue is generated through the third-party catering platform ezCater. The average value of an ezCater order at Isabella's exceeds $400. That’s slightly above the platform’s average order of over $375.
The average ezCater order serves 23 people, providing restaurants with valuable brand exposure, the Boston-based tech firm told The Prep.
That exposure often leads to new customers. About half of employees have ordered food from a restaurant again after first trying it during a catered meal provided by their employer, according to ezCater.
Still, catering is tough and labor-intensive, so Ohana and Stewart offer advice for success.
First, keep it simple. "Don’t try and create more menu items for catering," Ohana said.
That being said, the catering menu must be flexible to accommodate a variety of palates, Stewart said. That includes offering allergen-free and vegetarian options.
“Be flexible,” Stewart said. “You have to be able to provide vegan bread, gluten-free bread, gluten-free sides and desserts. If you have a group of 30 people and you don't have gluten-free for one of them, they're gonna go somewhere else.”
Lastly, both said don’t ignore branding, as catering showcases your product to new customers.
At Bakey, Ohana created an eye-catching 24-inch bright red takeout box, resembling a box for long-stem roses, but filled with bagels and Jewish baked goods like babka.
Photos: L&R Instagram @bakeybabka | Center: Courtesy Bakey
"One guest is ordering a big order, but 30 guests now will be exposed to your product," Ohana said.
Now, everyone in Boston is familiar with his brand. "When you see a red box, you know it's Bakey," he said.
Nancy Luna is a freelance writer based in Southern California. She can be reached at fastfoodmaven@gmail.com
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