With special-events business down at restaurants, many chains are adding or stepping up existing catering efforts.
While catering can become a substantial profit center, establishing a catering business within a restaurant organization also can present problems, says Stephen Denison, president of McCall Catering in San Francisco. Denison’s company operates four museum-based cafes, but the bulk of the company’s sales are in catering.
Although both business types involve food, Denison says the execution is quite different.
“In catering, you want 700 steaks medium-rare at 7:45 p.m.,” he says. “It’s a completely different way of cooking than you do for [an à la carte] restaurant.”
Without proper planning, a burgeoning catering business can be difficult to execute or simply a distraction.
Savvy restaurant operators have adopted a variety of approaches to help build their catering businesses. Some use central call centers or rent commercial kitchens to relieve workloads at their restaurants, while others hire catering managers at each location. Some operators brand their catering efforts separately while others see catering as an opportunity to expand their core brand’s reach.
The Cheesecake Factory. After years of scatter-shot efforts, the 145-unit Calabasas Hills, Calif.-based chain is launching its first chainwide catering effort early this year, says chief marketing officer and senior vice president Mark Mears. Mears says the company views catering as a lower-cost way to grow than by adding additional locations. The catering effort also is a logical next step for The Cheesecake Factory following its addition of curbside to-go service 18 months ago, Mears says. Pat & Oscar’s. This 19-unit San Diego chain is adding items such as baked pastas, sandwiches and pizzas to its catering menu. The company uses a central calling center at its headquarters to coordinate catering, backed up with a dedicated catering coordinator and execution team in each restaurant, says chief operating officer George Hunter. Pat & Oscar’s has targeted several niche customers to build its catering sales, including pharmaceutical representatives and funeral homes. Atlanta Bread Co. International. The 108-unit Smyrna, Ga.-based bakery-cafe chain is stepping up marketing of its separate catering brand, Pronti, on packaging and other marketing materials this month. Pronti was introduced over the past two years as the chain revamped its cafes, says chief operating officer and senior vice president Basil Couvaras. New menu items include a chicken Waldorf salad and a grilled-salmon sandwich. Marketing is aggressive, with salespeople going door to door, Couvaras says. Au Bon Pain .A recent expansion into hot soups and rice bowls will expand the Boston-based bakery-cafe chain’s catering offerings, says marketing senior vice president Ed Frechette. Au Bon Pain likely will add four or five new items quarterly in 2009. A central call center coordinates orders. One of the chain’s strengths is its willingness to take late orders, Frechette says. “We’re one of the few places where you can order until 11 a.m. the same day,” he says, “and we can get you lunch.” Bruegger’s. With the addition of fresh breads and hot sandwiches to the bagel bakery chain, Bruegger’s is expanding its catering offerings this spring with a phased rollout to its 280-plus bakeries. Pharmaceutical representatives are a key target, says marketing vice president Paula Doyle. The company is considering a switch to a call center system and also exploring online ordering, and aims to decide on its direction for handling calls by the end of the first quarter.