FSD 2008 Catering Study

Innovation and diversification could be key to non-commercial caterers surviving 2009.

The 2008 Catering Survey: With these comments as a backdrop, FSD presents its 2008 Catering Survey, begining with a snapshot of the survey respondents. The largest percentage of responders, 27%, were schools. Another 24% came from hospitals, 20% were from colleges and universities, 14% from long-term care and 12% from B&I or contract management headquarters. Demographically, 35% of respondents hail from the Midwest, 29% from the South, 21% from the Northeast and 15% from the West. 

Seventy-nine percent of respondents offer catering: 45% of them report less than $100,000 in annual catering revenue, 29% have revenue between $100,000 and $499,000, and 26% have more than $500,000 a year in catering business. The average revenue among our respondents is $507,818.

Fifty-three percent generate all of their revenue from within the confines of their institution or company, while 44% offer their services both on- and off-premise. Of all respondents, only 3% operate off-premise catering exclusively.

As a percentage of business, 19% of respondents said catering represents only 1-2% of total revenue. Another 18% said it makes up 3-5% of revenue, and the largest percentage, 23% said it represents 6-10% of all foodservice business. For another 18%, the figure is 11-20%, for 11% it is 21-30% and 8% said it represents more than 30% of business.

In all markets except long-term care, operators who have exclusive rights to catering are a minority, with the industry average being 39%. Sixty-five percent of operators in long-term care say they are the only caterer allowed in their facilities. In colleges, that figure is 46%, in hospitals it is 45%, in B&I/contractors it is 27% and in schools the number is 26%.  

Colleges and universities (60%) are most likely to conduct business both on and off campus, while long-term care operators are least likely (35%). Among operators who offer both, more than three-quarters of revenue is generated by on-premise events. Two-thirds of respondents say they charge more to cater off-premise events. Colleges/universities and hospitals  most often charge a premium, at 76% each, while only half of schools and 40% of B&I/contractors do. The upcharge is usually up to 20%; only 20% of operators charge more than that.

More From FoodService Director

Ideas and Innovation
coffee shop trailor graphic

A familiar face is coming to the roads of Rutgers University this fall: the Starbucks mermaid. The New Brunswick, N.J.-based school is testing a Starbucks truck throughout the upcoming semester, NJ.com reports . The company began testing trucks on college campuses in 2014, and now has mobile locations at Arizona State University, James Madison University in Virginia, East Carolina University in North Carolina and Sacramento State in California.

The trucks will serve the full lineup of Starbucks beverages that’s available at the outlet’s brick-and-mortar location at Rutgers,...

Industry News & Opinion

A study from Virginia Tech has found a connection between school meal participation and obesity in students. From data that predates the Healthy, Hunger-Free Kids Act , the findings raise questions over whether nutrition standards go far enough.

The research evaluated data from 1998 to 2007, comparing first through eighth grade students who partook in free and reduced-price lunch and those who qualified but opted out. Wen You, associate professor in the Department of Agriculture and Applied Economics at Virginia Tech, says she expected to validate theories that increased breakfast...

Industry News & Opinion

Buffalo Public Schools is turning to local chefs and a little competition to help create new menu items, the Buffalo News reports .

In October, local chefs will compete against each other and a team of seven to 10 students led by chef Bobby Anderson, a former contestant on “Hell’s Kitchen,” to create lunch recipes that comply with USDA nutritional requirements and use seasonal produce sourced locally.

“This Chef Challenge is another way to engage our youth in a fun, friendly competition with local area chefs who can help create appealing recipes that will be incorporated...

Industry News & Opinion

After being sued by the Services Employees International Union over its decision to change vendors from Sodexo to Morrison, the foodservice arm at Mayo Clinic continues to face backlash from staff.

Foodservice employees at the Rochester, Minn., hospital last week handed over a petition 1,200 signatures deep asking that they remain with their current employer, Fox 9 reports .

While a Mayo Clinic spokesperson said that staff will be given similar positions and pay rates under Morrison, SEIU Healthcare Minnesota—the union representing much of the hospital’s foodservice staff—...

FSD Resources