The restaurant industry is a risky business. It is known to be tough, with an extremely high risk of failure. Today, when the economy can rise or fall quickly, it is important for restaurant owners to consider other sources of revenue. Catering is a great alternative that is easily forgotten or avoided altogether. The reason is that many restaurant owners think it doesn’t fit their concept, or that it would be too hard to set up and manage. Adding a catering concept should not be seen as a bad thing. Read on to see how adding a catering service to your restaurant can be a major revenue booster.
1. Boosts business during slow periods
Every restaurant has a slow period. Whether it’s specific days of the week or even months of the year, offering a catering service can be a great way to offset the imbalance. The catering side doesn’t need to start as a full-time concept for your restaurant, either. If your restaurant brings in enough business but you see catering as a growth opportunity, you can simply use it when your restaurant is closed, or for a few hours a week once the lunch rush has died down.
2. It can reduce waste
If you have another source of revenue by using surplus food rather than throwing it in the garbage, who wouldn’t see that as a win? A 2014 study found that 84.3% of unused food in American restaurants ended up being thrown out. That’s huge! More than anything, that should convince you to add catering to your food services. Catering won’t eliminate all your food waste, but it can be a great way to put it to use if you have a solid inventory management system. Remember that the secret to having good food and good ingredients lies in balance.
3. It can increase order size
Catering customers usually order food in bulk, because they are generally ordering for a large event rather than for a few people sitting down to a meal. Bulk ordering is familiar to the food service industry, because there is usually a head count before the big event, where the number of guests can change. Not every item on your menu is necessarily suited to bulk orders. That’s why most restaurants keep both a catering menu and an in-house menu.
4. It can extend your brand and increase exposure
When you offer more services, you attract different types of customers who have that need. That doesn’t mean a restaurant customer couldn’t become a catering customer; that’s a bonus. You could attract both the dining customer and the customer looking for a caterer. Your brand then reaches well beyond what happens inside your restaurant. Catering can be a great way to attract new regulars who might otherwise never have found your restaurant. They may have enjoyed your catering at a party, and next thing you know, they’re a regular at your restaurant.
5. It can help expand your menu
Catering is perfect for expanding your menu. It’s a great way to introduce new items or spice up current menu items with new ingredients. Say you want to bring themed menu items to your restaurant. Why not try them at a themed catering event or a Christmas event? These events or parties only happen once a year, so you can simply drop the item if it doesn’t work, or roll it out as a holiday special in your restaurant.
6. It can help with employee retention
When you give your staff more opportunities to work, and in different settings, it can help you keep your employees. Employees are eager to learn and to advance in their position. Catering involves new skills that restaurants sometimes can’t teach. For example, the ability to adapt to a changing venue. When you’re used to serving food in the same section every day, it’s easy to fall into a rhythm, but when your portion changes or you’re serving standing guests, it takes a different kind of attitude and finesse to succeed. What’s more, adding a catering service can give your staff more working hours, and more working hours can mean bigger paycheques.
In closing… Catering isn’t for every restaurant concept. However, it is starting to reach beyond quick-service and fast-casual concepts. It is becoming increasingly popular as a way for restaurants to increase their revenue. The reason is that the service is so versatile it can almost be moulded to the restaurant’s mission. If you decide to add a catering service to your restaurant, be sure not to lose sight of your restaurant’s concept. Stay organized, and you will be able to add a catering service to your restaurant.
