Caterers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 12,500 caterers in the US provide food and beverage services for a variety of events, including weddings, parties, luncheons, and trade shows. Additional services include equipment (tables, chairs, dinnerware) rental, floral/centerpiece design, and event planning/design. Weddings account for slightly more than half of industry revenue, corporate events are about a quarter, and social events are 20%.
Competition from Alternative Sources
Caterers compete with a variety of alternative sources, including restaurants and food retailers, such as warehouse clubs and grocery stores.
Seasonal, Uneven Demand
Demand for catering services can be seasonal and uneven, driven by holiday events and special occasions.
Industry size & Structure
The average caterer operates out of a single location, employs 17 workers, and generates about one million dollars annually.
- The catering industry consists of about 12,500 companies, employs about 213,000 workers, and generates about $12.5 billion annually.
- The industry is highly fragmented; the top 50 firms account for 15% of industry sales.
- Some large restaurant chains offer catering services.
Industry Forecast
Caterers Industry Growth
Recent Developments
Jan 6, 2025 - New High For Employment
- Employment by caterers jumped 10.5% in October to a record high level as the industry staffed up for the busy holiday season, according to the latest US Bureau of Labor Statistics data. Employment by the industry is somewhat seasonal, peaking in the second half of the year before falling steeply in January. Meanwhile, average industry wages were relatively unchanged year over year in October, rising just 0.3% to $23.40 per hour, and down from their peak in December 2023, BLS data show.
- Return-to-office mandates in 2025 would provide a boost to corporate catering companies that saw business dry up as workers stayed at home. Now with big employers including Amazon, AT&T, and Starbucks announcing requirements for employees to return to office full-time this year and President-elect Trump wanting federal workers back in the office five days a week, will 2025 be the year workers return en masse to their offices? Probably not, according to human resources executives from PwC, Canva, Magnit, and EY, who all told Fortune magazine in December that they expect hybrid schedules to continue to be the norm this year. The strong preference among workers for the flexibility and cost-saving at-home work provides means companies that enable a hybrid approach will have a competitive advantage attracting top talent.
- Catered lunches are an opportunity for employers looking to lure employees back to the office, according to ezCater’s Third Annual Lunch Report. The survey of 5,000 full-time US employees found that nearly 6 in 10 hybrid workers (58%) would work on-site three days a week if their employer provided free lunch. “Lunch breaks are often sacrificed due to tight schedules, but they can play a major role in bringing people together and improving employee well-being,” said Kaushik Subramanian, ezCater’s Chief Revenue Officer, adding “Organizations can be intentional in encouraging employees to take a break, and bringing in lunch is a great way to do that.” Employees increasingly are skipping lunch due to inflation and work pressures, including too many meetings, even though they recognize the benefits of lunch breaks on their job performance and productivity.
- The latest USDA food price inflation forecast for 2025 provides a mixed picture for consumers and food service providers, with grocery prices expected to tick up while restaurant prices fall. For 2025, grocery prices are projected to rise 1.6%, up from 1.2% in 2024, while restaurant prices are forecast to increase 3.4%, down from 4.1% this year. Beef prices are expected to rise 5.5% this year and 2.2% in 2025. Pork is forecast to increase 1.7% and 2.2% in 2024 and 2025, respectively. Egg prices continue to show volatility, with 2024 costs projected to rise 8.8%. The 2025 egg price increase was recently revised to 10.5%, a sharp jump from the 4.7% projected in September. The USDA noted that bird fly outbreaks have significantly reduced the US egg-layer flock, contributing to the surge in price.
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