- Among our 276 respondents, 82% offer catering. Virtually everyone in B&I and colleges provides this service, while 94% of hospitals, 74% of schools and 68% of long-term care facilities do.
- What operators offer runs the gamut from continental breakfasts to sit-down banquets. Breakfasts are handled by 88% of operators, buffet lunches by 84%, coffee/snack breaks by 83%, hot and cold buffet meals by 79%, box lunches by 78%, plated sit-down meals by 73% and cocktail receptions by 39%.
- Of the operators who say they offer catering, 37% of operators surveyed say they handle both on- and off-premise events. Most (61%) offer catering only on premises, while only 2% handle only off-premise events. For those operators who do both, 79% of business on average is on-premise, and 49% charge off-premise customers more than they do on-premise. Of those that do upcharge, the largest percentage (46%) add 10% or less.Catering revenue dropped dramatically last year. Survey respondents reported, on average, $296,000 in revenue, compared with $511,000 the previous year. B&I reported an average of $1.06 million in revenue, followed by colleges (with $733,000), hospitals (with $135,000), schools (with $44,000) and long-term care (with $35,000).
- Business appeared to be most promising in the B&I sector, a complete reversal of the previous year, as 64% of these operators reported that their revenue increased last year. In 2009, 50% of B&I operators reported that revenue had declined. Overall, 31% of operators reported an increase in revenue, 26% reported a decrease and 43% said revenue was static.Overall, catering business is fairly balanced between full-service (54%) and drop-off (46%). In long-term care facilities, business is most likely to be full-service (70%), while in B&I it is more likely to be drop-off (66%).
- Catering remains a small portion of an institution’s overall foodservice revenue; only 5% said it represents more than 30% of total business, while 70% said it makes up 10% or less. Catering is more likely to comprise a larger chunk of business in B&I; 64% of operators said it represents more than 10% of total revenue. Conversely, 73% of schools, and 62% of long-term care facilities said catering comprises 5% or less of total revenue.
- Special events, such as weddings and bar mitzvahs, tend to be pricier in B&I operations and on college campuses. The average per-person price for such events was $21.21 in B&I and $20.62 in colleges. By comparison, it was $13.18 in long-term care, $9.67 in hospitals and only $7.67 in schools. In fact, dinners and banquets generated a higher check average in schools and hospitals; $8.25 and $10.66, respectively.
- The majority of operators reported that they face competition from outside caterers, as only 46% of respondents said they have an exclusive on catering in their facilities. Colleges (65%) and long-term facilities (51%) are more likely to be the only game on campus, while schools (64%) and B&I operators (57%) are more likely to have to fend off outside caterers. Generally, the larger the catering department, the more likely it is to have exclusive rights; 58% of operators with annual catering revenue of $500,000 or more have exclusivity, while only 42% of operators with revenue of less than $100,000 do.
- Colleges (68%) are most likely to offer catering customers the option of using environmentally friendly serviceware, and they are also the least likely to charge customers extra for doing so—only 22% upcharge. By comparison, 42% of schools, 40% of B&I, 37% of hospitals and 25% of long-term care facilities add a surcharge.
EditOperations
- Sodexo's sales see a boost thanks to new business, the continued return to the office and strong retail spending
- Eating school meals associated with better diet quality among students
- Go behind the scenes at the MSU Meat Lab
- Tennessee whole milk bill gets the okay from governor
- Universal free school meals linked with reduced childhood obesity
FSD’s 2010 Catering Survey
Catering volume was down dramatically last year, according to respondents, but business is looking up in B&I. Feb. 18, 2011Want breaking news at your fingertips?
Click here or text FSD to (877) 281-7554 to receive text alerts from FoodService Director and get the news and insights that matter to your operation.
Thanks for signing up!
Click here to complete your profileMultimedia
The Latest
Listen to your daily news: FSD PodcastsNew episodes weekdays