Operations
Tips for getting quick-service catering up and running
Quick-service restaurants may find that adding a catering component adds much needed revenue as sales dip due to the COVID-19 pandemic.
September 27, 2021 by Mandy Wolf Detwiler — Editor, Networld Media Group
As more Americans return to the workplace following the COVID-19 pandemic shutdown, more companies are returning to catering for lunch options. The market size of the catering sector in the U.S. is forecast to reach approximately $12 billion in the U.S. according to Statista, reflecting an increase over $11.35 billion in 2020 caused primarily by workers leaving the office to work at home during the pandemic.
Quick-service restaurants like Jimmy John's and Chick-Fil-A have successfully added catering components to their operations based, in part, on the availability of delivery. But as more restaurants grapple with staffing issues, delivery can be difficult to achieve.
"Catering orders are extremely valuable to restaurants due to their high margins and high order values," Mike O'Hanlon, ezCatering's head of catering partner business told QSRweb. "Plus, with restaurants everywhere facing massive labor constraints, catering can help. It takes less work to fulfill a $300 catering order than it does to fulfill 30 individual $10 orders. Additionally, catering orders are often prepared outside of the typical breakfast and lunch rushes, keeping employees active on revenue-producing activities throughout the day.
"Office catering in particular is a huge opportunity for QSRs right now. With offices reopening across the country, catering demand is increasing fast because food plays an important role in the workplace. Many have moved to a hybrid workforce model, and food is a great way to draw employees in. In fact, 81% of leaders agree that offering free meals and snacks is the best way to incentivize workplace attendance."
Villa Italian Kitchen does approximately $6 million in catering annually, Stephanie Beamer, divisional vice president of catering, told QSRweb in a phone interview. Chicken parmesan is their most requested menu item, as are their Villa Value packages, pre-set packages of pasta or an entrée, salad and rolls that feed 10 guests.
Villa has a centralized 1-800 number for catering where the orders and payment are taken and then passed down to the local store. Some restaurant managers do the deliveries themselves or Villa uses third-party delivery services to get the food to the guests.
"On a scale of 1 to 10, catering is probably an 11 in order of importance," Beamer said, "especially during COVID and in this whole environment that we're in. The nature of consumers has changed in terms of how they eat. We've really catered to them in terms of offering family meals so that it's not just B2B but it's B2C as well."
Consider these tips when adding catering to operations:
- Have the technology in place to take orders.
"Those of us that have been in the business awhile have definitely seen a technology shift for catering," Jeff Rossman, chef-owner of Bunz, a quick-serve restaurant in San Diego's Mission Valley, in addition to Terra Catering and Terra American Bistro, said in an e-mail interview with QSRweb. "Online ordering and payment systems that are more consumer friendly have been at the top of the list for sure.
"The online ordering systems (Toast and Popmenu) allow the customer to order family style meals, platters and buffets that they can prepay for which eliminates an 'order taker' and 'money collector.' The orders go directly to the kitchen with time of delivery or pick-up."
A modern point-of-sale platform requires specific capabilities to accommodate catering orders, according to Jason Cigarran, director of marketing for Revel Systems. "Most importantly, it needs to process orders that can be scheduled for a future delivery date — typically in days, not hours. Secondly, it should schedule these orders to be processed during specific times such as non-peak hours so as to not cause disruption to daily operations.
"In terms of payments, catering orders often require a deposit to be made in advance -- so the POS must be able to handle partial payments and then process the final payment to close out the order. Given catering orders are much-higher volume, it's critical for the POS to have strong inventory management capabilities. This feature helps ensure there will be enough product to fulfill the order to avoid having to remove certain menu items if ingredients run out," he told QSRweb in an email interview. - Limit your menu for catering. Remember food has to travel well and set up efficiently. "Making menus smaller and easier for customers to navigate and choose from was a must during COVID," Rossman said. O'Hanlon said demand for individually packaged meals have increased five times at ezCater. The increase is due in part to ease of ordering but also in response to lack of contact brought on by the pandemic. "If you haven't already, rethink your catering menu to offer individually packaged food," he said. "Boxed lunches are especially popular right now. Be sure to label items clearly so that people don't have to open each package to tell what's inside." Consider what the consumer orders and can be made in large quantities.
"Do some research and talk to some other restaurants that are catering," Villa's Beamer said. "Get your menu and your pricing not just in line for profitability but also for the consumer, understanding that you already have fix costs in place. You already have labor in the store. Your lights are already going to be turned on. Your equipment is already going to be in use. There is a profit margin there that a lot of restaurants don't look at because catering is additional. Those fixed costs are going to be there whether you cater or not." - Remember small items like silverware, napkins and sauces. What's a McNugget without the sauce? You're likely to get repeat catering orders when you pay attention to detail.
- Packaging makes or breaks catering. "If you do not have good packaging, you're not going to be able to hold temperature, you're not going to travel well with it," said Beamer.
- Lower order minimum and expand delivery area. "Throughout COVID, ezCater has seen significant changes in needs from B2B customers," O'Hanlon said. "Many have unpredictable schedules and reduced budgets. An order minimum of $100 or less will attract more customers who need smaller orders (and they may return with larger orders later!). Expanding your delivery area to 10 to 20 miles as appropriate will also increase the number of customers you can serve."
- Be flexible. Whether it's a $30 family meal or a $200 office order, Beamer said orders can add up. "I always teach my teams catering is like a snowball at the top of a mountain. You start small and it just rolls downhill and you no longer have to push the snowball. It just builds momentum. You may be feeding the secretary at the local car dealership, but she loves it so much she has it at her son's first birthday party, and then that birthday party is going to turn into multiple events."
About Mandy Wolf Detwiler
Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.
An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living.
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