Catering Services Industry Profile

Companies in this industry provide single-event food services at customer-owned and company-owned facilities. Catering companies typically operate as local businesses; major US-based companies include Abigail Kirsch (New York), Behind the Scenes Catering (San Diego), Blue Plate Chicago (Chicago), and Legendary Events (Atlanta).

Worldwide, as consumers in emerging markets increasingly enter the middle class, they are more likely to organize catered special events such as wedding receptions, holiday parties, and graduation dinners. The middle class is thriving in China, India, Brazil, Indonesia, and Vietnam, according to Sustainable Energy for All.

The US catering industry includes about 12,000 establishments with combined annual revenue of about $11 billion. Many food service contractors, hotels, and restaurants cater events, but those businesses are covered in separate industry profiles and are not included in the catering industry. Companies that prepare and serve food for immediate consumption from trucks, carts, or other vehicles also are not included in this industry.

COMPETITIVE LANDSCAPE

Corporate profits and consumer income are the main drivers of demand for catering services. The profitability of individual companies depends on cost controls and effective marketing. Large companies have advantages in offering expanded services such as facilities management, room rental, and entertainment. Small companies can compete effectively by serving small groups and offering personalized service. The industry is highly fragmented: the top 50 US companies account for less than 15% of industry revenue.