The catering industry is responsible for many of the food items we eat at parties and events. Whether it is a buffet-style service or you get tableside service, the catering industry is often the go-to industry when someone needs a job and has a few cooking skills.
Catering Industry Facts
The revenues within the catering industry have doubled over the last decade.
The catering industry has grown faster than any other foodservice industry for the last 3 years. From the military to sports stadiums to your casual hotel lunch during a seminar, there are many ways that the catering industry provides a needed service. Best of all, as long as you can make tasty food and deliver it consistently, most communities will allow home-based food prep to occur.
Interesting Catering Trends
1. In 2013, the catering industry contributed over $45 billion to the economy.
2. The largest segment of the catering industry is provided by in-house services in grocery stores.
3. Independent catering companies were able to make over $8 billion in revenues in the last year alone.
Takeaway: With the modern lifestyle demanding more than it ever has before of people, there is less time to cook meals, prepare foods, and spend time in the kitchen. The average family, however, still wants to spend time together at the table eating dinner together. To make that possible, the catering industry is utilized on a regular basis. As lifestyles continue to stay busy, profits will only continue to grow. Estimates are that the catering industry will see over 5% growth in the next year.
Additional Catering Industry Statistics
1. Not a single company has a dominant market share within this industry, making it possible for anyone to carve out a profitable niche.
2. Only 5 cents of capital is spent for every $1.00 of labor, making this industry incredibly lucrative.
3. The average business owner within this industry works 59 hours per week.
4. 80% of caterers focus their business on off-site catering opportunities.
5. The average party size that a caterer has is between 100-250 people.
6. 50% of caterers in business today own their own kitchen facilities.
7. 43.24% of caterers said their biggest area of growth in 2015 was in corporate sales.
8. 2.92% of caterers expect business to increase in 2016.
Takeaway: The catering industry is highly competitive, but that only serves to bring out the best in those who work within this industry. Because there are low costs in capital, the profit margins can be extremely good in many areas, providing instant profitability in some cases. This is what makes this industry attractive to so many people who are looking for work! Kitchen space can also be leased, for those who don’t have capital funds for their own purchase, and a growing trend in this industry is to use co-op space. It’s affordable, it’s needed, and people love good food, so it will always be around.