Catering is one of the fastest-growing sales channels in the restaurant industry, with Olo data showing year-over-year growth of 100% between 2024 and 2025.
Catering is expected to grow at a rate of 6.2% in the next 9 years, reaching over $140 billion by 2035.
The catering boom presents a lucrative opportunity for restaurants to capitalize on evolving consumer behaviors and preferences. It’s no wonder leading brands are investing heavily in the channel.
Keep scrolling to find out what factors are contributing to its rise in popularity—and how your brand can seize the opportunity.
7 Reasons Your Restaurant Can't Afford to Miss Out on Catering
1. Increased revenue with minimal investment
Catering's contribution to restaurant sales is significant: The average catering ticket today is $350—10x the average mealtime ticket of $35. Black Bear Diner created a simple catering menu of crowd favorites and saw a 5% sales boost in its first season catering holiday parties. With catering, restaurants can diversify their revenue streams and benefit from recurring revenue courtesy of regulars who order weekly or monthly.
2. Office catering has become a standard perk
Office catering is increasing as employers seek strategies to incentivize remote workers to return to the office and increase employee engagement. This is good news for restaurants, as workplace catering often generates higher frequency (often weekly) and higher average checks than other catering jobs.
In some cases, the hybrid workforce has made it easier for restaurants to anticipate catering orders since Tuesday through Thursday are popular days to work in-office.
3. Rising demand for corporate and social event catering
Although 35% of employees are now remote, employers are investing in events that bring teams and/or clients together—and someone has to feed them. Meetings are trending towards unconventional experiences and the rise of “micro-events” under 200 attendees, which leaves ample room for restaurants to step in.
Beyond the workplace, social gatherings continue to flourish—from weddings and milestone celebrations to holiday parties and community events. These occasions represent substantial revenue opportunities with high average ticket sizes and the potential for referrals.
In addition to being lucrative, event catering creates valuable networking opportunities for restaurants with event planners, venues, and other vendors.
4. Tax-exempt organizations are no longer an accounting headache
There are approximately 2 million tax-exempt organizations—including schools, religious groups, and nonprofits—in America. But because tax exemption often requires manual work from the accounting team, restaurants often don’t pursue these organizations for catering needs. However, built-in tax-exemption capabilities remove taxes from qualified orders, eliminating this massive accounting headache and opening up a new market for catering.
Furthermore, tax-exempt organizations often represent an opportunity for repeatable business. Catering a monthly PTA meeting or a weekly religious study makes it easier to schedule orders, build relationships, and forecast catering revenue.
5. Catering is a force multiplier for guest acquisition
Catering is a great way for restaurants to increase brand awareness and acquire new guests. When people experience your food and service at off-site events, they are more likely to visit your restaurant and tell their friends about it.
You can replicate your restaurant experience for catering guests (and drive repeat orders) with branded packaging and marketing collateral, regular communication, integrated loyalty, and a commitment to guest satisfaction. And don’t forget to follow up after an order—Olo data found that 70% of catering guests reorder within 30 days with follow-up. (Pro tip: You can automatically send personalized outreach with marketing software.)
6. Build brand reputation in your community
Dependable catering can help your brand build trust within your community. When schools, businesses, and other local groups know they can consistently count on your restaurant to deliver high-quality food in large quantities exactly when they need it, your reputation—word on the street, online reviews, etc.—and bottom line will be positively impacted.
7. Getting started is seamless
Lastly, modern restaurant technology has made launching catering a fast and easy process. Olo’s Catering+ is a fully integrated solution designed to help restaurants maximize efficiency and profitability.
Catering+ streamlines operations via direct POS integrations and a single dashboard for managing all digital orders, so you can spend less time keying in orders and more time focusing on guests. With built-in capacity management tools, you can stay on top of high order volumes and provide accurate lead times based on a holistic view of the kitchen.
Furthermore, with Catering+, you can provide a positive and consistent guest experience by enabling them to order catering directly through your restaurant. More direct orders mean more revenue, guest data, and opportunities for your brand to grow.
Ready to grow your business with catering? Learn more about Catering+ and request a demo to see how Olo can help you maximize restaurant efficiency and profitability.
