FROM THE CONSULTANTS by Paul Neuman
How COVID-19 Changed Corporate Delivery Catering
Inflation Post-COVID, the most significant impact has been the rising costs of food, energy, and labor. Costs have risen faster than caterers could increase their prices. Although clients accepted that catering would be more expensive, many cut back on the amount and frequency of orders. To combat these challenges, caterers adopted operational software to better manage portion sizes and reduce waste, while others used technology to lower energy costs. Yet price increases for clients have lagged rising operational costs, squeezing profit margins. Weekly business rhythm Corporate catering used to follow a predictable Monday-to-Friday pattern, with peak revenues on Wednesdays and Thursdays. Now, the business rhythm has shifted to a Tuesday-to-Thursday model, resulting in staffing and delivery challenges due to concentrated activity. Caterers are adapting by giving hourly employees more hours during peak days and fewer on Mondays and Fridays. This concentration necessitates greater efficiency, leaving less room for error.
The COVID-19 pandemic struck the catering industry in 2020, forcing caterers to adapt to a nearly unrecognizable business landscape. The impact was felt across the board, with both short and long- term effects reshaping corporate catering. Here’s a summary of how several caterers with a presence in the corporate delivery market adjusted to these challenges. During COVID-19 During the height of the pandemic, catering shifted to individually portioned, safely wrapped meals, leading to a rise in packaging and labor costs, which were often passed on to clients. Many caterers focused on maintaining employment for key staff, utilizing this time to refine best practices and enhance operational systems in preparation for a post- COVID recovery.
While the office population in many industries may never return to the Monday-to-Friday standard, there has been some trend towards office repopulation. For example, completely remote office work has been on a downward trajectory for the last several years. According to a survey of large companies, the number of companies allowing fully remote work decreased drastically
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