Starting a Restaurant Catering Program: From Setup to Scale

Catering is one of the highest-margin revenue streams available to restaurants, yet many operators ignore it because they think it requires a separate kitchen, dedicated staff, and significant investment. The reality? You can launch a profitable catering program using your existing kitchen, menu, and team.

Why Catering Makes Financial Sense

Catering orders are typically:

Larger average tickets: $500-$5,000+ per order vs. $30-80 for dine-in
Planned in advance: Better labor and ingredient planning, less waste
Higher margin: Per-person food costs are often lower at scale
Off-peak utilization: Prep happens during slow morning/afternoon hours

A restaurant doing $1M in annual revenue can typically add $150,000-$300,000 in catering revenue within 12-18 months — and most of that drops to the bottom line at a higher rate than dine-in sales.

Designing Your Catering Menu

Your catering menu should NOT be your full dine-in menu. Design specifically for volume, transport, and hold times:

Menu principles:

Travel well: Nothing that degrades in transport or holding
Scale efficiently: Dishes that multiply easily without proportional labor increase
Showcase your strengths: Feature your most popular and profitable items
Tiered pricing: Offer 2-3 package levels (basic, premium, deluxe) plus à la carte add-ons
Dietary options: Include vegetarian, vegan, and allergen-friendly options in every package

Apply menu engineering principles to your catering menu — promote high-margin items and design packages that guide customers toward profitable combinations.

Pricing for Profit

Catering pricing is different from restaurant pricing. Consider:

Per-person pricing: Simplest for customers to understand. Include setup and basic service.
Minimum order: Set a minimum that covers your fixed costs (delivery, setup, staff time). $250-$500 is typical.
Delivery/setup fee: Charge separately or build into per-person pricing. $50-$150 depending on distance and complexity.
Service staff: If providing servers/bartenders, charge $35-$50/hour per staff member.
Equipment rental: Chafing dishes, linens, and serving equipment — charge or include in premium packages.

Target 60-65% gross margin on catering orders (vs. 65-70% for dine-in). The efficiency of batch preparation makes up for the slightly lower target.

Operations and Logistics

Timeline management:

Require 48-72 hours minimum notice for standard orders
1-2 weeks for large events (50+ people)
Charge a rush fee for shorter timelines (25-50% premium)

Kitchen integration:

Prep catering orders during slow hours (morning, early afternoon)
Use separate ticket/order flow from dine-in to prevent confusion
Assign a catering lead who's responsible for order accuracy
Track catering orders in your POS system separately for clean reporting

Delivery:

Define a delivery radius (typically 10-15 miles)
Invest in proper hot/cold transport equipment
Send setup instructions with the delivery driver
Follow up after every order for feedback

Marketing Your Catering Program

Most catering business comes from:

Corporate accounts: The holy grail. Recurring weekly/monthly orders from offices. Target office managers and executive assistants.
Word of mouth: Exceptional catering orders generate referrals. Include business cards and catering menus with every delivery.
Your existing customers: They already love your food — tell them you cater. Table tents, receipt messages, social media, and email campaigns.
Your website: Create a dedicated catering page with menu, pricing, and online ordering. Optimize for "local catering" search terms.
Corporate catering platforms: ezCater, CaterCow, and similar platforms bring orders to you for a commission.

Scaling Without Breaking

The biggest risk in catering is letting it overwhelm your core dine-in operations. Scale carefully:

Set maximum daily catering orders based on kitchen capacity
Hire dedicated catering prep staff when volume justifies it
Consider a commissary kitchen if catering exceeds 30% of revenue
Track profitability separately from dine-in

Catering is one of the smartest growth strategies for established restaurants. Start small, deliver exceptional quality, and let the program grow organically through repeat orders and referrals.