Beyond the four walls

According to a recent study from the University of Houston, catering isn't just for weddings anymore.

 

Today, consumers purchase catering services for business lunches, PTA meetings and sporting events. And it's not just a few select catering companies offering these services. Fast-casual concepts also are making a mark.

 

Restaurants like Au Bon Pain, Firehouse Subs, Mr. Goodcents and Mama Fu's Asian Grill say catering accounts for roughly 5 percent to 15 percent of net sales.

 

For Au Bon Pain, breakfast and lunch catering is a "great growth vehicle for the organization," said Randy Garden, vice president of catering. "Retail customers are starting to use us for their other occasions. We cater a lot of corporate meetings with an enhanced lunch menu that's a little more upscale and includes couscous, three-bean salad, pork tenderloin and gourmet wraps."

 

Though catering accounts for approximately 5 percent of Au Bon Pain's sales, the company saw numbers upwards of $11 million in sales last year, with catering contributing around $1 million pulled from centralized markets such as Washington D.C., New York, Chicago and Philadelphia.

 

Firehouse Subs attributes its catering success to "moving outside the four walls and into the local market," said Mike Pietrzyk, an area representative for the company who manages two franchise training stores in Virginia.

 

"Our individual stores take upon the responsibilities of calling local businesses and delivering the catering message," Pietrzyk said. "First, they have to get out there and really know the market: Who are the major employees in a two-mile radius. Where are the campuses and shopping centers?"

 

During the holidays, Firehouse Subs receives a plethora of boxed-lunch orders from retail stores because "most (retail) employees don't get much of a break," Pietrzyk said.

 

"Large companies don't want to buy steaks for all their employees, so catering is a nice alternative," he said. "And once you get those businesses as regular customers, they'll call back."

 

Similarly, Mama Fu's Asian House gears its catering offerings toward corporate meetings and sees a tremendous return from community marketing.

 

"One of the intangibles of catering is that you're introducing it (food) to people who may not have been to the restaurant. We try to expose our products to a wide range of people," said Alan Woods, vice president of Mama Fu's.

 

Woods said one Mama Fu's store recently worked a "Taste of Atlanta" festival, which resulted in more than a 10-percent sales increase in the area.

 

To earn a profit, consultant Kevin Moll said, "companies must promote catering services heavily  to remain competitive in today's market."

 

Moll recommended gearing marketing toward the enduser, such as buying ad space in local wedding magazines or posting flyers in office buildings. But he said it's not just about bringing food to the location.

 

"One of the easiest and most underutilized opportunities is renting out restaurant floor space for meetings," Moll said.

 

Catering success has prompted Mr. Goodcents to test delivery. Since the chain already has portable heating equipment, vehicles and employees needed for delivery, vice president Bob Moreno said Mr. Goodcents will launch a new delivery module in November. But the sub shop still considers catering one of its core offerings.

 

"We'd like to have the average (catering) unit volume exceed 25 percent, and currently, it's about 15 percent of our sales," Moreno said