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

Industry News & Opinion

Just over 100 foodservice workers at Mayo Clinic in Rochester, Minn., have voted to join a branch of the Service Employees International Union, KIMT reports.

SEIU Healthcare Minnesota said that 89% of the ballots cast during last week’s election were in favor of unionizing.

The workers are employed by Sodexo, Mayo Clinic’s current foodservice vendor. The clinic recently announced plans to switch vendors to Morrison Healthcare Food Services, a move that has sparked backlash from workers and led to a lawsuit from the SEIU .

Read the full story via kimt.com .

Sponsored Content
pasta dish from NC State

From Barilla.

Good-for-you food doesn’t do much good if it’s a hard sell to get diners to eat it. Luckily, pasta is nearly always a crowd-pleaser, especially with student athletes who benefit from its nutritional boost.

“One thing about pasta is that students like it,” says Lisa Eberhart, a registered dietician and director of nutrition and wellness for North Carolina State University, where they serve Barilla pasta. “It’s also a great source of slow-burning carbohydrates.”

In fact, 57% of Gen Z consumers and 58% of millennials call pasta a “preferred food,”...

Industry News & Opinion

The Los Angeles Unified School District has lifted its ban on flavored milk in an effort to reduce food waste, the Los Angeles Times reports.

After implementing the ban in 2011, the district noticed that many students would simply throw away their unused milk containers, causing them to end up in landfills. In order to combat the problem, the district’s board is launching a four-part study in 21 schools that will examine different ways to encourage kids to drink more plain milk.

One of the theories proposed is that students will be more likely to drink plain milk if they...

Industry News & Opinion

As Harvard University’s dining staff strike continues , the school has added an extra $25 to student accounts, providing more flexibility for students to eat outside of the dining halls, The Harvard Crimson reports.

The extra funds were added to Crimson Cash and BoardPlus accounts, which students can use to pay for food both on and off campus.

Aside from some technical issues with payment processing, students are grateful for the extra money, according to The Harvard Crimson.

Since the strike began two weeks ago, students have complained about food quality in the...

FSD Resources