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

The USDA analyzed the efficacy of using Medicaid data to certify students for free or reduced-price lunch, a provision included in the Healthy, Hunger-Free Kids Act of 2010. Participating states and districts reported conflicting data on changes in the percentage of students certified, number of meals served, federal reimbursements and certification costs.

The method is used as an alternative to household applications and data matching with other public benefit programs to streamline the certification of more low-income students. The program was first piloted statewide in Kentucky...

Ideas and Innovation
kids students cafeteria line

While summer feeding programs are commonplace in school districts across the country, foodservice operators still struggle to get the word out and kids in.

Many districts are scaling back or discontinuing their summer feeding programs due to low participation, citing staffing costs and other issues that make it difficult to break even and provide a profitable program.

“We need to find a way to encourage that participation,” Tom Freitas—foodservice director for Traverse City Area Public Schools in Traverse City, Mich.—told Record Eagle News . “We are open to ideas as long as...

Industry News & Opinion

Students and union representatives are petitioning Eastern Michigan University’s plan to outsource its foodservice operations, calling for the school to delay such a move to allow for further discussion with stakeholders, MLive reports .

EMU last week announced a tentative agreement to hand over its residential, catering and retail foodservices to Chartwells, a deal the university’s interim president avered would enable the school to expand and upgrade its eateries while maintaining high food quality, MLive says.

Opponents of the plan say they are concerned about what they...

Sponsored Content
whole grain pasta foodservice menu

From Barilla.

With younger consumers eager to explore new flavors and better-for-you options, whole-grain pasta is winning greater acceptance in American diets.

As more and more college and university students seek out whole grains in their meals, dishes featuring whole grains are on-deck to become menu mainstays.

At the University of Iowa, whole-grain foods have won general acceptance, says Barry Greenberg, executive chef for university dining. Two marketplace dining facilities on campus offer whole-grain pasta as a regular option and incorporate it into baked...

FSD Resources