Catering is one of the most important elements of events. Whether it’s a private occasion such as a wedding or a corporate event like an opening ceremony, having good catering is crucial. Although many prefer to partner with specialized caterers, a growing number of other food service businesses have also started offering restaurant catering services. This helps restaurant success as it adds a secondary revenue stream. Furthermore, food service businesses can also use catering services as part of their restaurant marketing efforts. If you’re curious about how a restaurant can start offering catering, this post will help you. Make sure to read our article on restaurant merchandise, which is another great way to increase an eatery’s revenue.
Key takeaway: Eateries have the right kitchen equipment and staff to also offer restaurant catering services. They can do it with a better cost of goods sold as there’s no need to invest in ovens, chefs, or other equipment. Restaurant catering is primarily focused on food while services offered by catering companies are often full-scale.
Role of Catering Services in the Restaurant Industry
Restaurants are not primarily associated with catering. However, as they possess the necessary kitchen equipment and staff, they are perfectly capable of providing such service. Eateries that wish to offer restaurant catering services should invest in additional equipment as well. That includes chafing dishes, beverage dispensers, furniture, and other portable equipment and supplies. These items can either be ordered from broadline distributors or vendors that specialize in wholesale catering supplies.
How Restaurants Can Start Offering Catering Service
- Define a catering concept that matches your restaurant’s identity and cuisine.
- Create a catering menu. Most eateries that offer restaurant catering services primarily focus on dishes that are similar to the ones offered on-premise.
- Research and purchase packaging supplies, disposable & reusable tableware, and all other equipment needed.
- Set the pricing. Don’t forget to include delivery fees, minimum order quantities, and other service charges such as furniture rental price.
- Make all delivery arrangements. Some businesses might choose to use their means of delivery while others might opt for third-party food delivery services.
- Focus on marketing and sales. Once all arrangements have been made and your establishment is capable of offering restaurant catering services, it’s time to market this service. That includes promotion via social media, email marketing, paid advertising, information on the restaurant’s website, and more. Read our post on how to advertise a catering business.
- Track, adapt, and optimize your restaurant catering service in order to constantly improve them.
Creating the Right Restaurant Catering Menu
The catering menu of a restaurant often reflects the eatery’s core flavors and includes some of its typical dishes. For example, the catering menu of a BBQ joint is likely to revolve around meat. On the other hand, an Italian restaurant that offers catering services is going to offer best-sellers such as mini pizzas, pasta options, Mediterranean salads, and traditional Italian desserts.
It’s optimal for a restaurant catering menu to include all meal courses – appetizers, main dishes & sides, and desserts. Including beverages is also important as they are more profitable compared to meals. Most caterers also offer packages and group combos that serve a set number of people.
Allowing clients to customize their catering is also crucial. That includes offering vegetarian options, allergy-friendly meals, and dishes suitable for people with dietary restrictions. This increased value can also allow restaurants to increase their profit margin.
Catering Marketing Ideas
There are many things that a restaurant can do to market its catering services. Here are a few ideas.
- Offer bundles and promo deals;
- Promote your restaurant’s catering on already established channels like website and social media;
- Offer unique value that gives you a competitive advantage. For example, an eco-friendly restaurant can offer zero-waste catering service and invest in eco-friendly wholesale restaurant supplies;
- Develop the service in different directions. Check some of these catering business ideas;
- The restaurant catering service and the on-premise dining service should support each other in terms of marketing and restaurant customer acquisition;
- Include other revenue streams such as sales of restaurant merchandise that will help you build a recession-proof business;
- Follow the latest restaurant technology trends in terms of marketing, equipment, and management.
Catering Business VS Restaurant Catering
What is the difference between an eatery that offers restaurant catering services and a traditional catering company? There are some distinctions for sure. Most restaurants that offer catering services are primarily focused on the food. In fact, some of them might provide drop-off only service instead of the traditional full-service catering. On the other hand, a catering business specializes in all types of catering (read what are the different types in our post about what is catering). That’s why, when organizing an event, customers choose whether to order food from a restaurant or from a caterer based on their preferences and the type of event.
Another difference between catering businesses and restaurants that offer this service is that the former usually has a more thorough menu. On the other hand, a restaurant catering menu commonly revolves around the dishes offered by this eatery and their style.
Frequently Asked Questions about Restaurant Catering
A post on restaurant inflation, a guide on restaurant inventory management, and resources on B2B sales – these are just some of the useful posts from various niche markets that you’ll find on BlueCart’s website. Allow us to answer some popular questions on restaurant catering as well.
What Restaurants Do Catering?
Not all food service businesses offer catering services. It’s more common for casual or fast-casual restaurants to offer catering in addition to their main service. Examples of popular chains that also offer catering include Olive Garden, Chick-fil-A, and Chipotle. Fast food restaurants rarely offer catering as their operations are very strict and they have little flexibility to offer additional services. Fine dining establishments might also offer restaurant catering services for special occasions such as weddings. However, as their business model is all about additional value and high-end service, ordering catering from a fine-dining restaurant is uncommon.
How to Start a Catering Business?
Starting a catering firm is fairly easy. In fact, you can start as an at-home caterer and then scale and grow your business. Instead of investing in expensive food preparation equipment, a small catering company might choose to use the services of a commissary kitchen. The biggest investment for a catering business is in supplies and mobile equipment. Many catering companies also rent out furniture such as folding tables, chairs, tents, and linens. Purchasing those from a catering equipment distributor can also increase the investment significantly.
Are Catering Services Profitable?
Yes. If managed correctly, a catering business can be profitable and scalable. On average, caterers have around a 10% profit margin. Companies that specialize in high-end catering services can increase their profit margins even more. Offering restaurant catering services can be even more profitable as food service businesses already have the equipment, know-how, and personnel to offer catering for events. That’s why offering catering services is one of the most common ways to grow a restaurant business. In addition to their profitability, catering services can also help a restaurant’s marketing efforts and expand the reach of your business.
BlueCart: The Wholesale Marketplace for Restaurants and Caterers
If you operate a food service business and wish to optimize your inventory and make wholesale ordering seamless, BlueCart is the right platform for you. Thanks to our solutions, companies in the restaurant industry can compare prices between different suppliers, analyze and track bulk orders, and integrate our wholesale ordering software with other business tools. Distributors also can benefit from BlueCart in multiple ways. From the chance to expand their business and increase wholesale sales to the opportunity to create eCommerce catalogs and automate various tasks, suppliers can make the most of BlueCart.