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
Sep 6, 2024 - Near Record High Employment
- According to the latest US Bureau of Labor Statistics data, employment by caterers grew 11.6% in July compared to a year ago and is up nearly 30% from January as the industry staffs up for peak wedding and event season. June and September are the most popular months for weddings, which account for about half of the catering industry’s revenue. Meanwhile, the average industry wage rose 2.6% year over year to $23.17 per hour in July, according to BLS data.
- Multicultural weddings are both a challenge and an opportunity for caterers to showcase their culinary prowess, Catersource reports. With growing diversity in the US leading to more marriages between individuals of different cultural, racial, and ethnic backgrounds, wedding menus are becoming more diverse and complex. “Growing demand for multicultural fusion wedding menus presents an exciting opportunity for chefs to showcase their creativity and expertise in blending and complementing the many different food traditions,” says Chef Kieron Hales. Working with couples and their families, caterers can incorporate traditional recipes into menus and expand their culinary repertoire by researching traditional dishes, ingredients, cooking techniques, and dining customs from each culture represented. Per Catersource, food can help bring wedding guests together by creating a bridge between cultures and allowing guests to learn about and appreciate other ways of life. Popular wedding planning trends reflect cultural fusion as more vendors cater to multicultural couples.
- An increase in order frequency and new use cases are providing more opportunities for restaurant catering, according to ezCater’s 2024 Feeding the Workplace Report. The latest ezCater data shows that 53% of corporate food buyers plan to increase their spending on catered meals this year. As food-at-work stages a strong comeback, the report finds that companies are exploring new use cases, like grab-and-go bites, food trucks, and recurring meals, beyond providing food for meetings and holiday parties. Organizations are ordering meals more frequently and making food an integral part of office life, according to ezCater data. The report also found a 32% year-over-year increase in daily and weekly employee meal programs, and nearly two-thirds of surveyed eaters prefer individually packaged meals, while a third want meals that address their dietary preferences. All this is great news for restaurants and catering firms, as more orders mean more opportunities to boost sales.
- Caterers that serve liquor at events face increasing risk and the cost of protecting against it, according to Catering, Foodservice & Events (CF&E). Violations of state Dram Shop Laws – which hold establishments liable for any damages that result from their serving of alcohol to a patron who is obviously intoxicated or underage – have led to huge judgments, so having adequate liquor liability insurance is a necessity. However, such insurance can be expensive and hard to get, CF&E warned in an article cataloging risks facing the catering industry in 2024, noting that a bar owner in South Carolina reported that his liquor liability costs skyrocketed from $5,000 to $60,000 in only three years. Mitigating the risk of Dram Shop Law violations requires an updated and documented training program to ensure employees understand the risks of over-serving, with training that underscores best practices in bar management, CF&E recommends.
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