Caterers NAICS 722320

Jul 6, 2026 - Elevating Sustainability

• Sustainability is quickly becoming a must-have rather than a nice-to-have for catering firms as clients increasingly expect environmentally responsible events, Cater+Event reports. Caterers that reduce food waste, replace single-use plastics with reusable or compostable alternatives, and source local, seasonal ingredients can reduce costs while creating a better guest experience. Better inventory management, food donation programs, reusable serviceware, and creative ways to repurpose leftovers can also improve efficiency and boost profits. As more corporate clients prioritize sustainability to support their own environmental goals and reporting, strong green practices are becoming an important advantage when competing for business. While adopting sustainable practices requires upfront planning and staff training, firms that make sustainability part of their everyday operations will be better positioned to meet customer expectations, adapt to future regulations, and strengthen their long-term competitiveness.
• After years of navigating unprecedented challenges, catering professionals are entering 2026 with renewed optimism, with a large majority (85%) expressing confidence in the sector’s health, according to the 2026 Global Meetings & Events Forecast from American Express. Still, the catering industry will face challenges this year as client expectations evolve toward a sharper focus on impactful experiences versus extravagance, per the AmEx forecast. Food is becoming an experience rather than a checkbox, while service is no longer merely a feature, but rather a defining factor in creating lasting memories. For catering companies, the challenge lies in crafting personalized, engaging, and transformative experiences for budget-conscious clients amid rising labor and materials costs. Seasoned caterers will be squeezed by rising costs amid an influx of lower-cost new competitors as clients do more planning online, comparing multiple options on Instagram and Google, and DIY’ing big portions of their event.

• Caterers are facing new competition from restaurants, especially fast-casual chains that launched drop-off or pickup catering during the pandemic to boost business, The Wall Street Journal reports. “Caterers do have a challenge to compete with restaurants who have brick-and-mortars and storefronts and brand-name recognition,” Alex M. Susskind, professor of food and beverage management at Cornell University told WSJ in June, adding “That may negatively affect traditional caterers, so they need to pound the pavement and really sell how they are different and more personalized than a fast-casual restaurant that can drop off a self-serve taco bar.” As more companies host catered meals to lure employees back to the office, competition for corporate catering jobs is heating up. And as post-pandemic pent-up demand for weddings and bar mitzvahs has waned, the big growth area for caterers is corporate spending, Susskind says.
• Employment by caterers grew 3.1% in April compared to a year ago, while the average industry wage at catering and mobile food services rose 8.7% over the same period to $25.10 per hour, down $0.10 from its peak in January, according to the US Bureau of Labor Statistics. Catering companies are facing rising labor and ingredient costs. Wholesale food prices rose 6.6% in May compared to a year ago, according to the BLS. The increase indicates that upstream food cost inflation remained elevated in May 2026, increasing pressure on margins and making additional menu price increases more likely. Food typically accounts for a quarter to a third of sales at catering companies.