Optimizing Business Catering Opportunities
5 Min Read By MRM Staff
With the post-pandemic return-to-office, business catering is in full swing. In fact, according to a recent report from ezCater, 97 percent of restaurant operators expect to see year-over-year growth. But business catering is a different beast requiring different menus, operations, and technology. So, how can operators best invest in their businesses to meet the needs of local businesses?
To learn more about how restaurants can optimize and create craveworthy catering menus, Modern Restaurant Management (MRM) magazine reached out to Michelle Smart, Chief Customer Care Officer at ezCater, for real-world examples and tips.
What are the primary differences in business catering vs. party catering?
Business catering is complex and high stakes. It’s annoying if your pizza is late for a party, but if lunch is late for 400 employees or an important sales meeting, it can be catastrophic. Restaurants require different menus, operations, and technology to manage their catering business.
Business catering orders typically have a higher AOV and are often recurring. For example, restaurants like Subway see a nearly doubled average order value for business catering compared to social events.
What are simple ways restaurants can optimize their menu to capitalize on catering opportunities?
There are many ways restaurants can optimize their menu to capitalize on catering opportunities. Some simple adjustments to consider include:
- Create customized tray catering packages like build-your-own bars, bundles, and buffets with options for sides and desserts
- Offer individually boxed lunches like sandwiches, salads, or bowls for convenience
- Include and promote dietary-friendly items to attract customers with different preferences and needs
- Provide dessert and beverage options to increase average order value
- Add photos of menu items to stand out
These strategies ensure customers have a variety of options regardless of what they are ordering for and can help set restaurants apart as a go-to choice for corporate catering.
Is there a perfect catering menu or are different menus geared for business breakfasts or lunches, parties or family gatherings the better way to go?
The idea of a "perfect" catering menu is less about a one-size-fits-all solution and more about developing a versatile menu with options that can work for a variety of occasions and settings.
At business breakfasts, for example, offering portable items like breakfast sandwiches and wraps, paired with coffee and juice selections, can help address the morning rush.
Lunches and corporate gatherings offer both customizable catering packages and individual boxed meals that consider dietary restrictions and provide convenience. Meanwhile, parties and family events might want tray catering buffets.
Ultimately, the best catering menus satisfy diverse audiences, tastes, and dietary needs.
What are some things operators can do to promote their catering efforts in a cost-effective manner?
Restaurant operators can promote their catering services cost-effectively by harnessing the power of digital marketing and community engagement. For example, a well-designed, SEO-optimized website acts as the digital storefront, drawing in customers with compelling visuals and key information. Engaging content on social media platforms and can whet customer appetites and create a sense of community.
Offline, fostering relationships with local businesses and workplaces can open doors to consistent, high-value catering orders. And of course, for immediate reach, partnering with platforms like ezCater puts restaurants in front of a ready-to-order corporate audience who may be unfamiliar with local restaurants, providing a direct boost to catering orders without the long lead time often associated with traditional marketing efforts.
In what ways can operators attract business catering opportunities in their communities, while building local relationships?
Catering itself is an excellent marketing channel, and can help restaurants drum up business with both workplaces but also individual consumers. For example, the average ezCater order is over $400, with 78 percent of corporate clients ordering monthly and 32 percent doing so weekly. This provides significant brand exposure, as one order can introduce dozens or even hundreds of potential new customers to a restaurant's fare. In fact, nearly half of the employees surveyed by ezCater reported visiting a restaurant for a personal meal after sampling its catering at work.
Restaurants can also use their on-premise location as an opportunity to advertise their catering offerings, from including catering signage in doors and counters, to creating and distributing promotional flyers to individual consumers.
With the upcoming holidays, how should operators create menus tailored toward parties and celebrations, either office or family ones?
With the holidays approaching, operators should design their catering menus by focusing on variety and customization to attract customers of all kinds, as holiday celebrations vary greatly. For both workplace and family parties, build-your-own bars that allow guests to create their own plates from a selection of festive dishes can be particularly appealing, plus they make it easier to account for dietary restrictions. For family gatherings, offering traditional holiday favorites in packages can evoke a sense of nostalgia and warmth. In both cases, it's essential to include options that accommodate a range of dietary preferences and to consider offering special holiday-themed items.
What are some catering trends you are seeing/expect to see as we come into the holiday season?
As the holiday season approaches, many workplaces are starting to plan for their holiday parties and we’re already seeing some trends that reflect the evolving preferences of workplace customers.
Restaurants are offering holiday-specific catering packages, curated menus featuring traditional favorites like Thanksgiving turkey with all the trimmings, making it easier for businesses to host festive gatherings in the workplace and taking the guesswork out of how much to order for your group, packaging, utensils, etc.
Restaurants are turning to us to help them develop and optimize their holiday catering menus to meet the specific needs of their business catering customers including dietary preferences, restrictions and allergies. For example, Potbelly added vegan and vegetarian boxed lunch options in December 2023 to their lineup of boxed meals. These additions have been ordered thousands of times.
There's a growing trend towards DIY and build-your-own catering options. This includes popular choices like taco bars, charcuterie boards, and dessert stations. This trend allows guests to personalize their meals and adds an interactive element to the catering experience. For example, when bartaco joined ezCater, they invested in custom packaging for their taco trays that keep the food fresh, rep their brand, and include instructions to assemble tacos just like they do at the restaurant.
Another trend restaurants should consider exploring is expanding their dayparts, particularly breakfast. Today, breakfast is the #1 searched cuisine type and the #1 searched term on ezCater.com. Texas-based barbecue restaurant,McKenzie’s Barbeque & Burgers, adjusted its opening hours on ezCater to accommodate earlier meal times, and it has since seen an increase in breakfast orders.
We historically see a rise in company-wide holiday meals in the winter months as businesses seek to foster a sense of camaraderie and appreciation among their employees. ezCater data shows food for work improves productivity and collaboration, brings people together, and helps with hiring and retention. It even motivates people to work onsite.
What role does value play in catering and how can operators appeal to customers seeking value?
Businesses are less price sensitive than individual consumers, so corporate catering can be a great avenue for restaurants to offset the decline in foot traffic they are currently experiencing. Still, there are ways restaurants can appeal to customers seeking more budget-friendly options. Tray-catering and bundles usually are the most cost-effective options, so restaurants should include these offerings on their menu. They can also invest in rewards and loyalty to provide an added incentive for customers looking for the best bang for their buck.