2003 Catering Performance Study

Catering in non-commercial foodservice during 2002 showed double-digit growth in key performance indicators, according to the latest FSD Catering Report (see charts facing)—representing a return to year 2000 levels, if not greater.

Business bounced back later in the year as corporations, hospitals, colleges and schools resumed catering business following declines caused by a shrinking economy and the events of Sept. 11, 2001. Catering remains an in-demand and necessary service, operators in all segments agree, with some indicating that if anything, catering customers are opting for lower-cost packages and services.

Volume climbs: Average sales per event increased 26% to $622, while the gain in hospitals and B&Is was 84% and 75%, respectively. Operators averaged 25.6 events per week, up from 16.6 in 2001, with B&Is hosting 75 weekly events.

Growth is also indicated by a 34% increase in total catering food purchases, with B&Is, again, recording the largest increase: they spent 80% more on food for catering last year.

Contractors generally conduct more catering events per week than self-ops (38.9 compared to 21) and take in more revenue per event ($666 compared to $607). They're more likely to operate catering for profit than self-ops (59% compared to 30%), yet self-ops lead in average profit margin: 28.3%, compared to 23.4%.

Overall, 87% of n/c catering occurs on-premise, with colleges leading all segments in amount of off-premise activities: 21.4%. In 2001, 24% of B&I catering sales were off-premise; last year, that amounted to just under 10%.

Yet, more than one-third of all operators say, again, that economic pressures caused a decline in catering, up from about one-fifth in 2001. The average decline was 7.9%, with operators in the Northeast and West hit hardest (-9.1% and -9%, respectively). Given this, it may come as no surprise that fewer than half (46%) of operators expect catering to grow in the next year.