Catersource | Winter 2024

Catersource State of the Industry 2024

though there may have been an element of that during the pandemic; now what’s really driving the shift is the change in our consumer base and the focus on convenience. Our clients can order anything on their phone, and have it delivered within a matter of hours or within a matter of days, so why not catering? We must decide what is most important to us and what is operationally possible.” “This shift required caterers to be flexible and fast in order to accommodate shorter lead times,” adds Michael Stavros (M Culinary Concepts). “For many in the industry, the rapid response to these bookings became a crucial part of the business model.” Meanwhile, costs have risen— everything from staffing to food (28% of survey respondents expect expenditures to increase by an average of 10% in 2025). Caterers are now juggling the need for efficiency while delivering high-end service in an environment where every decision costs more than it used to. Striking the balance between customer experiences and managing costs is more critical than ever. Caterers are navigating these challenges by optimizing their supply chains, exploring cost-effective ingredient alternatives, and offering flexible pricing options. In response to economic pressures, many caterers are also diversifying their services. “The best part of the year is that brief moment when I can look back at what we have accomplished, and plan for the future. Numbers don’t lie, but if you don’t listen closely, they can definitely bamboozle you,” said Craig Cooper (Pinx Catering) in an article for Catersource . “At the end of the year or quarter when you have a moment, take a deep dive into your numbers to understand where your bread is buttered. You will be shocked to find how much money was left on the table. Once you look and you identify the opportunities, make a plan and work that plan.”

The team from Marcia Selden Catering & Events can frequently be found exploring together during off-site conferences, such as Catersource + The Special Event. Photo courtesy Marcia Selden Catering & Events

The crucial case for company culture Despite improvements in the overall economy, labor remains a critical issue in the food and beverage industry with nearly a quarter (23%) of the industry expressing concern over shortages today, according to Expert Market’s food and beverage report survey. Additionally, 82% of businesses are actively seeking new hires, highlighting the long-term difficulty of staff recruitment, retention, and training, according to the survey. This is particularly acute in hiring skilled culinary roles like chefs and cooks who represent 30% of open roles across the industry. To put this in perspective, 19% of respondents to the Catersource survey indicated that the number of employees has decreased since this time last year, whereas 44% of respondents didn’t see any change. In fact, 57% of survey respondents said labor shortage/lack of skilled labor was their biggest challenge in 2024.

Many caterers have implemented training programs (41% of survey respondents said increasing staff training will be a focus in 2025) aimed at attracting and retaining talent, as well as an increased focus on employee well-being and work-life balance. Companies are seeking to create supportive work environments through strategies such as flexible scheduling, competitive wages, and opportunities for career advancement. “The challenge now is how we evolve our training and culture to meet these expectations while maintaining high standards for clients,” says Chris Sanchez (LUX Catering & Events*). “Retention is crucial, and it hinges on continuous training, mentorship, and a shared sense of core values. It’s about fostering accountability, ownership, and teamwork to navigate the shifting dynamics together. Success comes when teams are fully aligned and moving forward as one.” This is where things like the “family meal” have become such an asset within the hospitality industry.

CATERSOURCE ■ WINTER 2024

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