A December 2022 survey conducted by the National Restaurant Association found three in four consumers planned to eat at a restaurant or order takeout during the holidays. Restaurants can capitalize on that demand this season by offering catering.
Catering has several advantages, which we’ll dive into shortly. But to be successful, restaurants must invest in proper training and infrastructure, such as additional staff, equipment, a reliable ordering platform, and logistical considerations.
Keep scrolling to find out why catering is worth the effort, plus get best practices to help you maximize profit with catering this holiday season.
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Advantages of Offering Catering
The average catering order value is higher than ever at $350. As such, catering can be a lucrative revenue stream for many restaurant brands.
Catering allows you to tap into a new market segment, such as corporate events, weddings, and parties, which can provide a steady source of income beyond dine-in and delivery. The diversification of services can make your brand more resilient to fluctuations in the market and slow periods.
Catering is also a great way to boost guest retention and acquisition. Existing guests become more valuable to your brand when they place catering orders, and on the flip side, satisfied catering guests may become regulars. By adding catering to your service offerings, you can increase brand awareness and reach a broader audience.
When people experience your food and service at off-site events, they are more likely to visit your restaurant and tell their friends about it. Similarly, catering creates networking opportunities with event planners, venues, and other vendors.
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6 Holiday Catering Best Practices
With businesses, families, and friends gathering for the holidays, there’s no better time to kickstart or grow your catering business. To help you maximize your restaurant revenue during the holidays, here are some catering best practices to follow.
Streamline Your Menu
When crafting your holiday catering menu, make sure it’s easy to produce* and meets the needs of your guests—especially those with high lifetime value. To help control costs, use ingredients that overlap with those featured in your regular menu items. Incorporate items and flavors that people typically associate with holiday gatherings and consider putting a unique spin on them.
*Pro Tip: To maximize resources in the kitchen and boost staff efficiency, use off-peak hours to prepare catering orders.
Create a Frictionless Ordering Experience
The process of placing a catering order should be as frictionless as your online ordering experience. Consistency—from branding to payment options—is critical for fostering trust and repeat business. Existing guests will expect the same level of service they typically receive from your brand, so be sure to go above and beyond. To encourage repeat catering orders, give high-value guests flexibility in payment options with house accounts (essentially, a line of credit).
Seize Upsell Opportunities
Offer customized catering menus and services, which can result in higher average ticket sales. Special requests, add-ons, and unique offerings can lead to upsell opportunities. For example, your restaurant could offer basic and premium catering packages, the ability to add drinks or desserts—think pumpkin pie, gingerbread cookies, etc.—or even a team to serve event attendees.
Use Capacity Management Tools
When evaluating catering software, look for an enterprise-grade solution that integrates seamlessly with your existing mealtime ordering platforms, has a robust ordering engine, and provides seamless order management. Take advantage of capacity management tools, including lead time and order throttling, to ensure your restaurants aren’t overwhelmed during the holiday rush.
Overcommunicate With Guests
There’s no such thing as overcommunicating when it comes to catering orders. Guests pay a lot for catering, and the pressure of a high-stakes event can set them on edge. To help put guests at ease during an already stressful holiday season, check in the day before or the day of the event to assure them their order is on track* and will be prepared/delivered on time. Don’t forget to follow up for feedback and to show appreciation.
* Pro Tip: Pack slips can help ensure you have everything you need for each order before you hand it off for delivery or pickup.
Spread the Word
Make sure existing and prospective guests know about your catering program using in-restaurant signage, your website/app, social media, email/text, and ads. Tell local businesses, schools, and groups about your holiday offerings, and leverage your restaurant marketing database—including high-value guest segments—to ensure your festive digital ads get in front of the right people. An initial discount or free item is a great way to attract guests. And within your catering campaigns, you can cross-promote services like delivery or takeout.
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Getting Started With Catering
Ready to get started with catering or scale your existing program? Request a demo of Catering+, Olo’s enterprise-grade catering solution.
Catering+ is a direct ordering channel connected to the rest of Olo’s solution suites. This enables you to take control of your catering orders and all of the associated data, which is seamlessly integrated with your other restaurant systems.
See how Catering+ works in our Fall Release video and start a conversation with our team of experts to maximize your profit this holiday season and beyond.
Photo Credit Elle Hughes from Pexels
