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

Identifying prospective employees may be less challenging for foodservice operators than getting would-be recruits to complete the hiring process , according to a new study of why job applicants bail.

The report shows that nearly three out of fours applicants (74%) will drop their effort to be hired if they suspect management is racist, and two out of three (62%) will flee if they learn of sexual harassment allegations. Roughly the same proportion (65%) will halt their pursuit if they encounter indications of a gender gap in pay.

About half (45%) of candidates won’t show...

Menu Development
zoodles

Here’s how two operations are spotlighting produce this season.

Oodles of zoodles

Binghamton University underscored its growing focus on plant-based options with a recent zoodle pop-up on campus. The pop-up, which served vegetable noodle bowls in vegan and vegetarian varieties, sold out of the dishes in four hours. The Binghamton, N.Y., school aims to add zoodles to its regular menu in the fall.

A buffet boost

The dining team at Miami University in Oxford, Ohio, recently re-evaluated its buffet offerings with an eye toward adding healthy options. It updated the fruit and...

Managing Your Business
Starbucks teen

In the bid for teens’ dining dollars, Chick-fil-A may be a noncommercial operator’s biggest offsite threat. The quick-service chicken concept has nudged Starbucks out of the top slot in an updated ranking of restaurant chains by their followings among affluent teenagers.

The semiannual report from Piper Jaffray shows Starbucks maintaining its long reign as the hearththrob of teens from average-income households, a streak that began in 2011 when the coffee king pushed McDonald’s out of first place.

The study, “Taking Stock With Teens,” which Piper Jaffray updates twice a...

Industry News & Opinion

Two schools in the North Monterey County Unified School District will begin testing supper at school , reports Monterey County Weekly .

The school board unanimously approved the California district’s pilot, which is set to start this fall.

“It wasn’t really a question of what we should do,” Sarah Doherty, director of child nutrition services for the district, told Monterey County Weekly. “We knew we had to feed these kids.”

Many of NMCUSD’s students spend close to 12 hours a day at school, Doherty says, and 83% qualify for state assistance.

The pilot will be...

FSD Resources