2007 Catering Study: And the survey says ...

The desire to operate foodservice in a more environmentally friendly manner isn’t necessarily a driving force in catering.

Million-dollar baby: But whether caterers recycle or not, their operations are big business for their institutions or companies—especially on college campuses, where respondents averaged nearly $1.1 million in catering revenue last year. The average for all respondents was $468,000, with B&I operators reporting $561,000, hospitals averaging $239,000 and school districts only $88,000.

And it’s growing. Sixty percent of respondents said their revenue increased in 2007, led by colleges (77%) and B&I (71%). Fifty-seven percent of hospitals reported an increase in revenue, as did 44% of school districts.

Most operators (80%) attributed the growth to a higher number of catered events. Among the other causes cited were increased customer satisfaction (66%), increase in customer base (40%), menu changes (32%), and marketing and promotions (28%).

Going off-site: This growth comes in the face of continuing competition, since only 40% of respondents said they have exclusive rights to catering. Universities are most likely (66%) to have a catering monopoly, while B&I operators (10%) are least likely.

Universities are also most likely (63%) to  cater to both on- and off-premise customers, while B&I operators (27%) least likely.

Off-premise catering can be more lucrative for operators, because they can—and often do—charge more for off-premise events. Sixty-two percent of respondents said they charge more for off-premise, with universities (67%) and hospitals (64%) most likely to. Only one-third of B&I respondents said they have a two-tiered pricing structure.

That being said, catering is not necessarily a profit center, according to the survey. Only 44% of respondents said they operate catering at a profit, while 15% said it is a break-even proposition and 41% said catering operates at a loss or is subsidized. Colleges (67%) and B&I (57%) most frequently run catering as a profit center, while hospitals (58%) and school districts (42%) either subsidize catering or operate it at a loss.

More From FoodService Director

Industry News & Opinion

In an effort to boost its competitive advantage, foodservice vendor Aramark is set to buy the Avendra purchasing firm .

The deal, worth $1.35 billion, will give Aramark ownership of the hospitality services company, which was formed more than 15 years ago to combine the buying power of five large hotel chains, including Marriott and Hyatt.

“Combining Avendra’s powerful procurement capability with Aramark’s leading supply chain management expertise will bring increased buying scale and improved service levels to both Avendra’s and Aramark’s customers, while strengthening our...

Ideas and Innovation
onion slices

In an interview with Bon Appetit magazine, Sam Schiffer, line cook at Di Alba in Los Angeles, recommends cutting onions straight into ice-cold water to keep eyes from watering. Submerging the vegetable in water helps eliminate the tear-inducing gas that onions release when cut.

Ideas and Innovation
oversized portions

Here are the trends FSD's Chefs’ Council members wish would go away.

Kale Gluten-free Sriracha Chipotle Microgreens on everything Sous vide cooking Aversion to bread Healthy desserts Vegan diets Lies about local sourcing/organic food Fast food Cupcakes Pumpkin spice Fat-free or low-fat Meatless Mondays Bread cones Rigid child nutrition guidelines Bacon on everything Cajun Doughnuts with over-the-top toppings Oversized portions Fried foods Pinterest
Ideas and Innovation
Frose

Frose, sushi burgers and single-item restaurants are hot topics as of late, according to Forbes, which recently released a list of seven buzzwords in the foodservice world. Here’s what’s trending, in no particular order.

Blended burgers Frozecco and frose Goth food Hemp Single-item restaurants Sushi burger Upcycling

FSD Resources