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Catering Services Industry Profile Excerpt
| SIC Codes: 5812 NAICS Codes: 722320 Page Length: 10-12 Last Quarterly Update: 10/27/2008 View Sample Industry Profile |
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The catering industry includes 10,000 companies with combined annual revenue of $5 billion. Large companies include Centerplate, Compass Group USA, and Wolfgang Puck Catering, but no major companies dominate. The catering industry is very highly fragmented: the top 50 companies account for less than 15 percent of industry revenue.
While many hotels, facilities management companies, restaurants, and food service contractors also cater events, these businesses aren't included in this industry.
COMPETITIVE LANDSCAPE
Demand is driven by corporate profits and consumer income. The profitability of individual companies depends on cost controls and effective marketing. Large companies have advantages in offering expanded services such as facilities management, room rental, and entertainment. Small companies can compete effectively by serving small groups and offering personalized service. The industry is labor-intensive: average annual revenue per worker for a typical company is just over $40,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include off-premises catering (food prepared away from the premises where it's served) and on-premises catering (meals prepared and served at the same location). Off-premises catering represents 45 percent of the market; on-premises, 40 percent. Other services include alcohol sales and facility rentals.
A typical catering event starts with a consultation with a potential client to assess the type of event, guest count, venue, and special food requests. The client may want the caterer to also coordinate facility rental, flowers, entertainment, and photography. The caterer produces a detailed proposal that includes the menu, beverages, a list ...
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