Catering

7 trends transforming restaurant catering sales in 2025

Photo: Networld Media AI

December 19, 2024 by Nabeel Alamgir — CEO and Co-founder, Lunchbox.io

Catering remains a high-growth segment for enterprise restaurant brands, with 2024 showcasing significant sales, technology and customer engagement advancements, according to The 2024 Catering Trends and Tech Recap, highlighting the latest insights and strategies helping brands grow their catering operations to maximize revenue.

From B2B sales growth to tech innovations, the report, created by Lunchbox, provides a guide for multi-unit brands looking to optimize their catering programs in the year ahead. Here's a snapshot of the findings:

1. First-party catering is where it's at

Catering sales saw a steady average growth rate of 5.8% year-to-date across multi-location brands, with 20+ location operations reaching an average year-to-date total of $1.76 million in catering revenue. Brands leveraging first-party platforms experienced consistent gains, driven by efficient ordering systems and data-backed customer engagement strategies.

2. Big Brands making catering moves

Major restaurant brands ramped up their catering efforts in 2024, showcasing the potential of streamlined technology and innovative strategies. For example:

BRIX Holdings and Paris Baguette are set to launch first-party catering platforms across hundreds of locations.
Tacombi achieved $1M in catering sales in less than a year.
Fajita Pete's reported a 30% year-over-year increase in catering sales, with AI-powered marketing driving both growth and retention.
Angry Chickz and Just Poké saw significant revenue contributions from catering,with Just Poké attributing 10% of its annual revenue to this segment.

3. Midweek-lunch is ripe for catering

The report revealed that peak catering demand is during midweek lunch hours, with most orders placed 4.5 days in advance. Halloween emerged as the busiest day for catering in 2024. Other noteworthy trends include:

75% of orders are placed online (mobile and desktop).
81.9% of guests tip, with an average tip of 8% of the order total.
Recurring orders, as 20% of catering customers place more than one order annually.

4. Catering costs are rising

Catering costs, including food, transportation and operational expenses, represent 50-60% of total costs. Rising food prices, projected to increase by 2% in 2025, further emphasize the need for strategic cost control. Sustainable practices can help reduce operational expenses by up to 30%, while seasonal menus and smart ingredient sourcing can offset price fluctuations.

5. Menus must be organized

Menu engineering is a critical driver of catering profitability with well-optimized menus boosting profits by up to 15%. Two other noteworthy stats included that:

40% of catering orders include add-ons like chips or guacamole.
Vegetarian options account for 22% of orders, while chicken remains the most popular protein at 25%.

6. Corporate catering is growing

Corporate catering emerged as the fastest-growing segment in 2024, with nearly half of caterers reporting increased demand for office events and staffed gatherings. Other key segments include B2C catering for celebrations and contract-based partnerships for consistent business.

7. Technology is imperative

Catering technology continues to evolve, enabling enterprise brands to streamline operations, enhance the guest experience and drive revenue. The right tech offers:

Comprehensive order management tools.
Automated marketing through CRM integration.
Custom menus across first-party and third-party platforms.
Robust reporting to track growth and guest satisfaction.
Brands the ability to meet the demands of modern catering while boosting efficiency via house accounts, tax-exempt status and automated email/SMS marketing.

Download the full report here.