Editor’s Note: This article was originally published in Franchise Times, a sister publication to Food On Demand.
When Paul Macaluso was named CEO of Another Broken Egg Café, less than 1 percent of the brand’s business came from off-premises channels.
Five years later, off-premises sales make up more than 10 percent of the company’s business, with catering playing a major role. To that end, Macaluso said the breakfast concept is putting more effort behind its catering operations, which delivers a boost during weekdays. (After this issue went to press, Torchy’s Tacos announced it hired Macaluso as its new CEO.)
“The brand had always kind of dabbled with catering but we’ve been making a more concentrated effort in the last four years,” Macaluso said. “It was a combination of customers asking for it, and us noticing that people were ordering large amounts in their to-go orders online and kind of assembling their own catering.”
Macaluso said some franchisees with experience in catering had some sophisticated systems in place at their stores. But now, the brand has made an effort to ensure catering operations are strong across its 103 locations in 17 states.
“About 50 percent of our ‘normal’ sales are done on the weekends since we’re a breakfast and brunch place,” Macaluso said. “A lot of our catering sales, though, are done during the week. So, it has been a very nice complement to our business. But we did have to change some of our options in the back of the house, creating a dedicated catering area in the back for packaging, assembling and organizing it all.”
Along with its own operations, the brand uses online marketplace ezCater. More than 100,000 restaurants nationwide use ezCater, including franchises such as Bojangles and Crumbl. Kaushik Subramanian, ezCater chief revenue officer, said the company works directly with franchisors to onboard their brands onto its platform, and assist with tailoring and scaling their overall catering programs.
“We collaborate with the franchisor to develop optimized catering menus built for large group orders,” Subramanian said. “Once stores are added to the ezCater marketplace, franchisees immediately gain access to large catering orders and unlock an additional revenue stream. Plus, the catering orders tend to be received in advance and can be made during off-peak hours, bringing in additional revenue without diverting staff from the restaurant’s busiest times.”
Paul Macaluso
The company conducted research to assess where catering is headed, and the results are promising. One report going into 2024 found that 82 percent of businesses planned to spend more or the same amount on catering services as they did in 2023, with 53 percent outright stating they’d spend more. Additionally, the number of businesses ordering at least once per week rose from 32 percent in 2023 to 39 percent in 2024.
More research on the subject was conducted by Checkmate, an ordering platform developer, which found the catering market reached $72 billion in 2023, and that it accounted for 11 percent of the total foodservice industry revenue, with orders outpacing 2019 levels.
Checkmate’s research also showed the business-to-business catering sector is expected to grow nearly 9 percent between 2023 and 2030. Point-of-sale and technology provider Toast, meanwhile, found in a study that 71 percent of same-store catering transactions increased in the fourth quarter of 2023 over 2022.
Unlocking another revenue stream
Research from ezCater found 97 percent of restaurant operators expect their revenue from catering to grow in 2024, with 74 percent anticipating more than 20 percent growth.
Jason’s Deli, a brand with 240 locations, is one of the concepts expecting increases in catering orders. Vice President of Sales Gracie Prasanson said it’s based on workplace trends.
Gracie Prasanson
“I think in 2025 you’re going to see a lot more people back in the offices, which is definitely going to bring more opportunities for food at work through catering,” Prasanson said. “I see it continuing to have a lot of potential to increasing average unit volume and driving sales, but it has to be done with the processes and systems to support it so you can execute on what you’re selling.”
Because catering has always been part of operations at Jason’s Deli, Prasanson said the brand has been able to fine tune its systems for a well-run operation. So much so, Prasanson said, that Jason’s Deli has the ability to accomplish same-day catering with last-minute orders, though the majority of the work is still done in advance.
“The good thing about catering is we’re really producing it in the morning hours,” Prasanson said. “We also really work to make sure our people are cross-trained and developed so they’re able to fill multiple spots in the deli. They can do catering production in the morning and fill a position on the line during lunch hours.”
Like Jason’s Deli, catering has long been part of operations at Paris Baguette. Chief Operating Officer Nick Scaccio said it’s become a tremendous focus for the concept over the last two years. Recently, Scaccio said the brand brought on a director of catering while also partnering with online ordering company Lunchbox.
“We’re in the midst of a launch now with them, leveraging their platform to enhance our own capabilities,” Scaccio said. “Automation of outreach and communication will be a prime part of the future for catering, so that’s going to be important for us as we scale this component of the business.”
For 2024, Scaccio said the goal is to grow catering to 4 percent of sales, and over the next few years, it’s on a trajectory to reach 10 percent.
“We definitely see continued growth in the segment,” Scaccio said. “It’s been pretty exciting and has fueled us further developing in the category. It’s already an opportunity on the B2B side, but we’re seeing opportunities on the B2C side with our specialty cakes and wedding cakes, too.”
Technology as a tool
With the high volume of online orders, a solid technology infrastructure will only become more important for restaurants. Subramanian said ezCater partners see 68 percent of customers ordering their catering online, both from desktop and mobile devices. To meet the demand, ezCater developed specialized catering management software and can connect restaurants with local delivery partners if they don’t have the capacity.
Nick Scaccio
Checkmate’s research revealed an even higher number, with 75 percent of orders placed via mobile or desktop device. It’s why Another Broken Egg has worked on integrating its ordering systems to accommodate catering.
“Making sure that everything is as seamless as possible, with other third-party delivery partners to deliver the catering, is something we’ve focused on,” Macaluso said. “All catering orders can be integrated into our point of sale and into our kitchen display system, making it easier to track, prepare and monitor.”
While technology has become a major part of ordering, though, building sales is still often done the old-fashioned way.
“From the franchisor perspective, we’re excited about helping curate regional and national relationships to support the development of catering,” Scaccio said. “And our franchisees do a great job in building relationships with the local businesses, schools and hospitals that make up a lot of catering orders.”
