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Transformations in Restaurant Catering Amid Evolving Work Dynamics

In recent years, diners have observed substantial shifts within the restaurant landscape, characterized by changed menus, increased prices, and modified operating hours. Yet, one aspect that might escape the notice of the average patron is the ongoing evolution of catering services provided by restaurants.

Across the spectrum—from small bagel shops to large coffee chains—catering has emerged as a crucial tool for restaurants to enhance their in-person dining offerings. However, the shift towards remote work and a decrease in traditional office hours has compelled businesses to rethink their strategies concerning larger catering orders.

The importance of adapting catering strategies became increasingly relevant as companies began to celebrate year-end events, which have taken on significant importance for team cohesion in today’s hybrid work culture. “You don’t necessarily see your colleagues every day,” remarks Samantha Henry, a partner in The Oakville Grill & Cellar and 167 Green Street Events, both part of Chicago’s Lettuce Entertain You group, which encompasses 85 restaurants and numerous event-focused venues.

Nationwide, the catering industry represents a formidable business segment. In 2023, U.S. caterers generated an impressive $14.8 billion in revenue, as reported by IBISWorld, an organization that monitors diverse global industries. Following the lifting of Covid-related restrictions, catering revenue grew by 1.5% compared to the previous year. Nonetheless, the overall catering market has faced challenges, contracting approximately 1% since 2018 due to high volatility and intense competition. Rising labor and ingredient costs have further pressured businesses to adapt.

Henry notes that the preference for lavish multi-course seated dinners has largely diminished. Instead, companies tend to favor “movement” events that include food stations, cocktail receptions with artisanal beverages, and live music. Additionally, these events are occurring earlier in the day, reflecting broader adjustments in commuting and dining habits.

Understanding the New Commuting Dynamics

Recent findings from the INRIX 2023 Global Traffic Scorecard highlight a shift in the traditional work schedule from 9-to-5 to a more flexible 10-to-4 pattern. This change results from an increasing number of companies emphasizing employee presence in the office over time spent. Anecdotes circulate about some employees attending meetings, quickly logging in, and then leaving after their obligations are fulfilled. As a consequence, traditional rush hours have dwindled. Interestingly, the report identifies a new “midday rush hour,” where office commutes at noon have nearly matched those at 9 a.m. and 5 p.m., prompting food-centric businesses to adjust their strategies accordingly.

Adapting Catering to New Realities

Before the pandemic, Sweetwaters Coffee & Tea in Ann Arbor, Michigan, primarily offered large coffee and tea containers alongside pastries for catering. “We didn’t have a big catering program,” reflects co-founder Lisa Bee. Over the years, Sweetwaters expanded to 39 locations across the U.S., yet the onset of Covid-19 saw significant downturns due to state restrictions and a mass exodus of office-goers.

To adapt to the new normal, Bee explored options appealing to remote workers, recognizing that traditional offerings like bulk coffee containers wouldn’t resonate with individuals working from home. She innovated by introducing six-packs of popular cold beverages like their signature ginger lemon tea and other refreshing drinks catering to different tastes.

During this downtime, Sweetwaters invested in developing a mobile app and a revamped catering menu that now offers items ranging from breakfast sandwiches to yogurt parfaits. With employees gradually returning to workplaces, Bee notes that catering has transformed into a means of reconnecting teams.

Catering Celebrations in New Orleans

In a city like New Orleans, which may lack the structured office culture found elsewhere, the demand for catering flourishes, especially during celebratory periods. Known for its dynamic festivities, the city gears up for various events, from Halloween to Mardi Gras, fueling the need for catering services.

Founder Breanne Kostyk of Flour Moon Bagels initially saw increased demand for bagels and cream cheese during the holiday season even before establishing a brick-and-mortar location. Recognizing the potential in catering, she expanded her offerings following the shop’s establishment, which has helped stabilize sales during slower periods.

Kostyk’s catering service now includes diverse packages such as the Party Pack, featuring lox and an array of toppings suitable for large gatherings. Seasonal specialties tailored for events further emphasize the significance of catering, especially in a city renowned for its celebrations.

Emphasis on Personalization and Planning

In the bustling city of Chicago, Henry observes that clients are becoming increasingly engaged in curating their catering experiences. Many seek to create events that reflect their brand identity, from sustainable practices to unique food offerings that resonate with their corporate ethos.

This heightened focus on customization demands meticulous planning, particularly for popular holiday dates, where venues can be booked well in advance. Companies are adapting by scheduling holiday gatherings earlier, even before Thanksgiving, to maximize attendance amid busy personal calendars during the latter part of the year.

The Growing Role of Gifting

As the landscape of catering continues to evolve, the provision of memorable experiences extends beyond food and beverages. The inclusion of gift bags for attendees has risen in importance, signaling a new trend where thoughtful touches enhance the event experience.

Henry has introduced unique gifting options, such as brunch sets with gourmet items and customizable candy jars that patrons can take home. “The intention is to have fun and provide that surprise,” she notes, emphasizing the shareable nature of these experiences on social media platforms.

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