When it comes to adding revenue streams, catering is oftentimes one that bar and restaurant owners can easily make the transition to. However, just because it often aligns with an already established food and drink program doesn’t always make it a smart choice for owners and operators to move into. Food cost, staffing, and even systems have to be taken into account before jumping feet first into this side of the business, but for most, catering has been a boon even when having to make investments and adjustments.
“Off and on-site catering can generate great additional income for the business,” said Tara Buzan-Hardy, chef and co-owner of Wayne, Pa.-based At The Table. “Anything from booking private events on-site during days/hours that are typically closed, to bringing your business to the client's home really helps,” she added.
Cassandra Brickley, associate director of events at Hotel Per La, home to Ristorante Per L'Ora and located in Los Angeles, Calif., said that post-pandemic, catering has picked up amongst restaurants and bars as patrons found other solutions to gathering while still supporting their favorite places. Another reason? Working from home. The momentum, she said, doesn’t seem to be slowing down anytime soon.
“Remote teams are using company offsites and retreats to bring their teams together; people want to gather more socially and are constantly looking for new, unique venues to host at; and the wedding industry continues to expand,” she said, priming catering for continued growth.
And, getting creative with menus, services, and pricing is another way to bring in even more dollars and cents. Brickley noted that the catering services of their restaurant are able to act as a revenue booster in a few different ways. She explained that outside of hosting events on-site during off hours, the brand has structured a pricing plan for those events that take place during times in which the restaurant would be open.
“We’ve also structured our food and beverage minimums and space rental fees in a way that if larger events do displace revenue, they are more than making up for the revenue being displaced in our outlets,” she said.
Another bonus? Catering brings repeat business into the restaurant, whether the event was on-site or catered at another venue.
“Large catering events bring in not only additional event bookings, but amplify the property’s reach in general,” said Brickley.
However, like anything worth doing right, there are challenges to executing a catering program. Having to hire and train staff that work only on the catering side is one. Brickley noted that she has a separate staff for catering events - even ones that take place on-site. On the other hand, Buzan-Hardy selects the amount of staff on hand for each event by the needs of each client and total number of guests.
Figuring out how to factor in things like food cost and prep spaces are other challenges, especially since catering menus are usually custom-built.
Buzan-Hardy explained that, as far as food costs go, she has found a way to keep them down through her catering business. “When designing the menus, using products you typically have already is a great way to keep the bottom line tight. Also, you are able to order exactly the quantity needed, reducing any potential waste,” she said. Brickley said that anything ordered for on-site catering that goes unused usually gets used during service at the restaurant, skirting any excess waste.
Timing, however, is the most major of these challenges when building a catering program, says Buzan-Hardy. Those looking to dabble in on- and off-site catering businesses need to realize that the busiest times for catering usually coincide with the busiest times at the restaurant, so prepping, staffing, and finding an organizational process that works the best are all critical steps for execution.
“Catering is always busiest during the periods that are busiest for your restaurant, for example, the holiday season. So, therein lies challenges with needing and adjusting your prep space, prep staff, and also the logistics of storage in the walk-in. Keeping each event organized is the key to success,” she said.
But even with those challenges in mind, once the framework is built for success, Buzan-Hardy feels that catering will continue to be a great source of additional revenue for bars, restaurants, food trucks, and beyond.
“In slow times for a restaurant, a few caterings will really help. Also, when both the restaurant and catering are busy, that additional revenue allows the ability to pay off some back bills or put aside some of the catering income for times that are slower in the business,” she says.
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