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

Amherst-Pelham Regional School District in Amherst, Mass., is updating its lunch debt policy to no longer single out students, MassLive reports.

Under the new policy, students with lunch debt will be given the same meals as their peers, regardless of how much they owe. School officials will also be communicating directly with parents of students who have accumulated debt instead of through the students themselves.

The updated policy comes just before U.S. school districts will be required to publicly list their lunch debt policies, per new USDA requirements starting July 1...

Menu Development
eureka

Since California’s state motto is “Eureka!” it seems fitting that a recent conversation with the director of hospitality at San Diego’s Palomar Health led to the biggest aha moment I’ve had in a long time.

I called Jim Metzger in late April with the purpose of discussing Palomar’s recent commitment to the goal of making 60% of its total menu plant-based by this summer. It seemed a lofty number, and I was curious how the public health system planned to get there.

But my personal eureka didn’t come while we were talking about how Palomar had cleaned up the impulse-buy zones...

Industry News & Opinion

Labeling foods with indulgent buzzwords such as “sweet sizzlin’” and “crispy” can lead consumers to make healthier food choices , according to a recent study out of Stanford University .

In the fall 2016 study, researchers labeled vegetables in one of the school’s dining halls using terms from four categories: basic, healthy restrictive, healthy positive or indulgent.

The green beans, for example, were listed as “green beans” for basic, “light ‘n’ low-carb green beans and shallots” for healthy restrictive, “healthy energy boosting green beans and shallots” for healthy...

Ideas and Innovation
sparkling water

Our carbonated soft drink sales at Earls.67 reflect a national trend; we’re continually down on carbonated soft drink sales by 8% to 9% on an annual basis,” says Cameron Bogue, beverage director at the contemporary-casual chain Earls Kitchen + Bar.

The issue with spa water

Many operators are intrigued with the offering, but they are learning that infused water can’t be offered at a cost to guests unless there is added value beyond cut-up fruit. Bogue says, “I was adamant that I didn’t want to charge for spa water.”

Agua fresca alternatives

At the original location of

...

FSD Resources