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Restaurants aim to grow catering business after holiday season ends

Restaurants aim to grow catering business after holiday season ends

Nonplussed by what many have called a modest holiday party season, restaurant operators are working to turn up the volume on their catering sales in the new year.

As budget-conscious consumers continue to dine and socialize at home, a growing number of chains and independents, such as Boston Market, California Pizza Kitchen, Noodles & Co., Atlanta Bread, and José Andrés’ ThinkFoodGroup, are beefing up their catering menus and service options.

Earlier this year, Technomic released a report showing that catering was an underserved sales opportunity for restaurants, estimating it to be a $33.3 billion opportunity for brands willing to follow diners where they are: at home.

“This is where your customers are,” Melissa Wilson, a principal of the Chicago-based consulting firm, told Nation’s Restaurant News in August. “They used to use restaurants as social venues, but now they’re entertaining at home. They’ve told us they plan to continue doing so because they’re enjoying socializing with friends at each other’s homes. In fact, 40 percent of consumers say they expect to entertain at home more often over the coming year.”

To capitalize on the market, California Pizza Kitchen in November announced new customized catering services that include a new menu as well as dedicated catering managers to help customers plan party or event menus.

The casual-dining chain has long catered large orders, said Sarah Grover, CPK’s chief communications officer, but the new options enhance the program’s flexibility, offering options such as individual boxed lunches or various pizza/pasta/sandwich combination meals.

In the Los Angeles area, CPK is now delivering pizzas for catered events, with a minimum $100 purchase. And the new catering managers, who work out of the Los Angeles headquarters, offer guests assistance with menu planning, making party bookings that much easier.

Grover declined to say what percentage of sales catering accounts for, but noted that the new efforts were a natural extension of the chain’s already brisk takeout business.

The fast-casual Atlanta Bread chain also in late November rebranded its catering service, renaming it Pronti and marketing its all-day catering options, from breakfast through lunch, as well as desserts and snacks on a revamped catering menu.

Officials said they hoped the options—from continental breakfast to sandwich platters—would appeal to companies who might forgo meetings at expensive restaurants, instead hosting working lunches at the office.

That was also the motivation for Broomfield, Colo.-based Noodles & Co., which in November introduced its new Square Bowls family-style serving options.

The 220-unit fast-casual chain offers its eclectic range of pastas—from pad Thai to spaghetti and meatballs—as well as various salads, in large to-go bowls that feed four to five people.

In most locations, the bowls are available for $16 with no additional protein, such as chicken, tofu or meatballs, or $22 with protein.

Jill Preston, Noodles director of corporate communications, said the company is hoping to build on its takeout business, which accounts for 30 percent to 40 percent of sales.

Introduced to take advantage of the holiday season, the Square Bowls option, which is available to feed up to 50 people, also would appeal for family dining, as well as business meetings, sports teams and parties, Preston said.

Boston Market began catering in 2001, at the time building business around pharmaceutical representatives who would bring lunch or dinner into doctors’ offices to pitch their wares.

More recently, said Edward Keller, Boston Market’s vice president of catering, the company has been working to build a wider range of business-to-business catering as well as “pleasure catering” for events such as birthday or anniversary parties at home.

As more companies pitch catering services, competition has become fierce, Keller said: “It seems like everyone is doing catering these days. The catering dollar is getting so competitive.”

Through the holiday season, Boston Market, based in Golden, Colo., offered several value-positioned catering options at its 519 units, including “Deluxe,” “Premium” or “Create Your Own Buffet” party plans, starting at $8.99 per person.

Centerpiece options include boneless roasted turkey breast, boneless ham and beef brisket with side dishes. Guests can choose whether they want to have the meal delivered warm within three hours of ordering or cold to be reheated before service.

The option was popular this year in particular because many employers were deciding at the last minute to host holiday parties, if at all, Keller said.

“People would be watching their budget and watching their budget right to the end of the year, then saying, ‘OK, now we have to do something for our employees,’” he said.

Last year, the month between Thanksgiving and Christmas was the strongest for Boston Market all year, in part because of the healthy catering sales, Keller said.

“We’re on par with that again this year,” he said, though he declined to offer specific sales details.

The value-positioned price of $8.99 per person for the Create Your Own Buffet option likely gave Boston Market a “trade-down benefit,” as employers looked for less expensive ways to feed employees during the season, he noted.

Though the package was a holiday promotion, Keller said similar offers are likely to be available into the New Year.

Catering is also increasingly appealing to chefs at the high end, such as the celebrated José Andrés, chef and owner of Washington, D.C.-based concepts such as Jaleo, Café Atlantico, minibar by josé andrés, Zaytinya and Oyamel.

In November, Andres and his company ThinkFoodGroup announced a partnership with long-established Mid-Atlantic area catering firm Ridgewells to create a new venture offering dishes from the Spanish chef’s restaurants.

Called José Andrés Catering with Ridgewells, the catering company is offering four menus: Mediterranean, Mexican, Classic Spanish and José’s Way—the latter reflecting the über-modern menu of minibar, known for dishes such as foie gras cotton candy.

“I love to have parties—in my home, out with friends, in my restaurants—and I can think of nothing better than helping people successfully entertain in their own homes or staging amazing parties in unbelievable venues,” Andrés said in announcing the partnership.

Katsuya Fukushima, a protégé who has worked with Andrés for 13 years, was named executive chef of the catering partnership.— [email protected]

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