Building a Restaurant Catering Business: A Profitable Revenue Stream

Catering represents a significant growth opportunity for restaurants. It leverages your existing kitchen, staff, and expertise while opening new revenue streams. Here's how to build a successful catering operation.

Why Add Catering

• Higher margins: Typically 35-45% food cost vs. 28-32%
• Incremental revenue: Often during slower dayparts
• New customer acquisition: Introduces your brand to new audiences
• Predictable production: Orders placed in advance
• Leverages existing resources: Kitchen, staff, expertise

Types of Catering

Drop-Off Catering

• Deliver food, setup, leave
• Lower labor requirements
• Simpler operations
• Best for corporate lunches, casual events

Full-Service Catering

• Staff, serve, and cleanup
• Higher revenue per event
• More complex logistics
• Best for weddings, galas, formal events

Pickup/To-Go Catering

• Customer picks up prepared food
• Minimal delivery costs
• Good for price-sensitive customers
• Requires pickup-friendly packaging

Developing Your Catering Menu

Menu Principles

• Items that travel and hold well
• Scalable recipes
• Visual appeal when plattered
• Mix of hot and cold options
• Dietary accommodation options

Menu Structure

• Per-Person Packages: Easy pricing for customers
• A La Carte: Flexibility for customization
• Tiered Options: Good, better, best packages
• Add-Ons: Beverages, desserts, extras

Pricing Catering

Cost Calculation

Include all costs in pricing:

• Food cost (aim for 30-35%)
• Labor (prep, production, service)
• Packaging and supplies
• Delivery/transportation
• Equipment rental (if applicable)
• Overhead allocation

Pricing Models

• Per Person: Most common, easy to understand
• Per Platter/Tray: Good for drop-off
• Package Pricing: Bundles with set prices
• Custom Quotes: For complex events

Minimums

• Set minimum order amounts
• Minimum guest counts for full service
• Delivery minimum thresholds

Operations and Logistics

Kitchen Considerations

• Timing: Prep during slow periods
• Space: Storage for large orders
• Equipment: Large-scale cooking capacity
• Staffing: Dedicated catering prep

Delivery

• Reliable vehicles (hot/cold capability)
• Delivery radius boundaries
• Setup time requirements
• Delivery fees structure

Supplies and Packaging

• Chafing dishes and sternos
• Serving utensils and platters
• Quality disposables
• Branded packaging

Marketing Your Catering

Target Markets

• Corporate: Meetings, lunches, events
• Social: Parties, celebrations
• Weddings: High revenue, complex
• Institutional: Schools, healthcare

Marketing Tactics

• Dedicated catering page on website
• PDF menus for download
• Local business outreach
• Wedding venue partnerships
• Catering marketplace listings
• Social media showcasing events

Managing Catering Orders

Order Process

1. Inquiry and quote
2. Menu customization
3. Contract and deposit
4. Final headcount (cutoff date)
5. Production and prep
6. Delivery/service
7. Follow-up and feedback

Technology Needs

• Online catering ordering
• Quote and proposal tools
• Event calendar management
• Production planning
• Invoice and payment processing

Quality Assurance

• Tastings for large orders
• Temperature monitoring during transport
• Consistent presentation standards
• Post-event follow-up
• Customer satisfaction surveys

KwickPOS Catering Support

KwickPOS helps manage catering operations:

• Catering order management
• Advance order scheduling
• Catering-specific menus
• Deposit and payment tracking
• Production reporting

Ready to grow your catering business? Contact KwickPOS to see how our tools can help you manage catering orders efficiently.