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

Sodexo has appointed Cathy Desquesses as its chief people officer, the company announced on Friday.

Before joining Sodexo, Desquesses held multiple leadership roles in the human resources department at General Electric, where she worked for 20 years. Most recently, she was the global HR leader for GE Power Gas.

Desquesses will begin her new role on July 1 and will report to Sodexo CEO Denis Machuel. She will replace Juan Pablo Urruticoechea, who is moving into a new position at Sodexo.

Photo courtesy of Sodexo

Managing Your Business
woman in the kitchen alone

The #MeToo movement has turned sexual harassment into the top labor-related regulatory issue for all employers, triggering action from three out of four companies, according to a new survey on workforce concerns.

About two-thirds (66%) of employers rank the issue among their top two employment-related legal worries, even without a change in the pertinent laws and regulations, the canvass found.

What has changed, concluded surveyor Littler Mendelson, one of the nation’s largest labor-focused legal firms, are employee expectations and the social climate.

“No company...

Managing Your Business
Starbucks college campus

Noncommercial dining centers are often filled with their own Starbucks, Burger Kings, Panera Breads and dozens of other nationally recognized brands. Branded concepts, whether corporate brands or self-operated, offer diners familiar names, menu items, and a sense of place. This translates into more money spent and more diner loyalty for foodservice operators.

However, the success of branded concepts vary greatly. There can be significantly different results depending on whether noncommercial operators decide to franchise, lease or develop their own branded concepts. There’s no one-...

Menu Development
pizza oven

Wood-fired ovens take the biggest slice of the pie when it comes to pizza-cooking preference for consumers. Just fewer than half (45%) of consumers say they prefer a pizza cooked in a wood-fired oven compared to other oven cooking methods. Here are the styles of ovens pizza consumers prefer most.

Wood-fired oven 45% Gas oven 13% Electric oven 11% Grilled 4% Coal oven 4% No preference 23%

Source: Technomic 2018 Pizza Consumer Trend Report , powered by Ignite

Photo courtesy of Thinkstock

FSD Resources

Code for Asynchronous jQuery Munchkin Tracking Code