Catering isn't just an add-on; for many restaurants, it's becoming a crucial engine for growth. As demand surges and restaurants seek out new revenue streams, brands that once saw large group orders as a disruptive hassle are now viewing them as a massive opportunity.
The good news? You don't need a huge team or a big menu to succeed. As one of Olo’s catering experts, I advise brands new to catering to keep it simple with a few well-packaged offerings that highlight your brand and food quality—and they’re seeing check sizes 10x higher than a typical individual order.
So, how do you go from fielding a few random phone-in orders to building a repeatable, profitable catering program? The answer lies in the catering maturity curve.
This framework outlines a clear path to growth with catering for restaurants at any stage—from a few large, one-off orders to a fully optimized, strategic business pillar. By understanding which phase your business is in, you can take the right steps to level up without overhauling your entire operation.
(Want more insights? Check out my recent webinar with fellow catering expert Jenna Lichtig.)
Phase 1.0: Beginner (No adoption)
In Phase 1.0, large orders are occasional one-offs handled by operators without a standardized system. This often leads to inconsistent ordering experiences for guests. This is a common starting point, but it's not a sustainable one.
The key is to start simple. Leverage your existing restaurant concept and strengths when launching a catering program. For example, a breakfast-focused brand should develop a menu targeting corporate morning meetings.
Olo worked with one restaurant brand hesitant to start a catering program. It thought the menu was too small, without the needed diversity for catering. But the brand offered its core six menu items executed well, and created a profitable, in-demand catering program for loyal guests.
Your action plan for Phase 1.0:
- Create a simple menu: Start with 3–10 of your most popular, travel-friendly items.
- Package for groups: Develop bundles for common group sizes (most catering orders are for 15–50 guests)
- Price strategically: Factor in all costs—food, labor, delivery, and overhead—to ensure profitability.
- Plan your packaging: Identify the serveware and packaging, plus complementary drinks and desserts, needed for a professional presentation.
Phase 2.0: Building (Sporadic use)
In Phase 2.0, some operators offer catering, technically—but it’s far from a well-oiled machine. There's usually no set menu, the setup lacks branding, and there’s no proactive sales activity. At this stage, operators are improvising, and guests get unpredictable quality and service.
Your action plan for Phase 2.0:
- Fold catering into your tech stack: Integrate catering with your POS to integrate with accounting and financial systems.
- Start to operationalize: Create pack slips and production sheets (ideally using your tech stack) to help batch production for efficient orders.
Phase 3.0: Developing (Marketplace)
In Phase 3.0, brands offer catering via a marketplace. They have a set menu and branding, but instead of direct ordering there is likely an inquiry form online. Operators have visibility into orders but sacrifice the direct relationships essential to building a catering program and have minimal control over the guest experience.
The key to progressing from Stage 3.0 is relationship-building and smart marketing. The brand should focus on owning the guest experience, building catering marketing, and driving leads.
Your action plan for Phase 3.0:
- Showcase your catering: Create a catering landing page showcasing brand experiences for different target audiences and events.
- Target your audience: Build unique catering packages for holidays and events and highlight them with targeted email campaigns.
- Personalize the order: Use marketplace orders for acquisition, but then deliver the order personally, or follow up via phone, and provide an offer if their next order is direct with your store.
- Follow up: Use marketing automation for personalized post-order thank yous with offers. 70% of catering guests reorder within 30 days when they receive post-order follow-up or a personalized offer.
- Build your community: Incentivize employee referrals, distribute menus to local businesses (car dealerships, offices, schools, PTAs), join the chamber of commerce, etc.
Phases 4.0 & 5.0: Established (First party) & Advanced (Excellence)
At this point, brands have hit their stride and have control over the catering experience. Phase 4.0 and 5.0 are defined by adopting first-party ordering and catering tools, building marketing to support catering, and capturing important guest data. Guests can build direct relationships with the brands they know and love.
Moving to first-party ordering means you now own the guest journey. Use this power to build loyalty and drive repeat business.
For brands like Cracker Barrel and Mendocino Farms, catering isn't just a side gig—it's a core part of their business. They invest in it with smart branding, dedicated catering sales managers, and clear goals to grow. And it pays off! These brands often see catering bring in a hefty 20–35% of their total revenue.
In stages 4.0 and 5.0, catering is no longer just about fulfilling orders. It’s about a proactive strategy.
Your action plan for Phases 4.0 & 5.0: Build, build, build
- Hire a catering sales manager: Having a point person can take your program to the next level by yielding more informed marketing strategies, ensuring operators are aware of the catering calendar, and setting up appropriate staffing.
- Leverage tech: Catering might have its own tech stack to keep track of catering guests, manage quotes, identify ordering patterns, and build a sales plan.
- Track reporting: Use robust reporting to track catering managers and spot lapsed catering clients for win-back campaigns.
Whether you're just starting out or already have a program, understanding where you are on the catering maturity curve is the first step toward unlocking a powerful new revenue stream. By following this roadmap, you can transform sporadic large orders into a consistent, scalable, and profitable business pillar.
For more insights, watch the full webinar, 4 Ways to Grow your Catering Business or read our guide to accelerate growth with catering.
