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Catering Trends in U.S. Foodservice
January 1, 2011
Emerging from a dismal 2009, the catering industry is on the rebound. Packaged Facts
estimates that 2010 catering revenue among caterers, restaurants, foodservice
contractors, and hotels reached $14.2 billion, a 9.0% increase from 2009, according to
Packaged Facts’ Catering Trends in U.S. Foodservice.
Going forward, we believe that sales will rise 9.1% in 2011 and 6.5% in 2012, driven
primarily by aggressive expansion into the catering space by limited-service
establishments, the return of business event-driven spending, higher wedding spending,
and a moderately healthier consumer.
With its high-growth days likely behind it, the restaurant industry continues to adapt to
the in-home entertaining trend while taking in-home meal share from food retailers. This
convergence signifies an increasingly competitive battleground for the catering dollar
not only among restaurants and food retailers, but also for caterers and hotels.
Sustained growth will require growing catering opportunity, primarily in the form of
significant consumer life events.
This Packaged Facts report provides the insight and analysis market participants need
to plan their catering and foodservice strategies. Key coverage includes the following:
• A market size and forecast for the catering industry, including caterers; full-
service restaurants; limited-service restaurants; snack and non-alcoholic
beverage establishments; foodservice contractors; and hotels.
• Key factors to catering growth: travel, hotels and accommodations, and holiday
party spending
• Trended consumer catering expenditures by demographic.
• Catering trends within the institutional foodservice category, with a focus on
hospitals and colleges and universities.
• Restaurant catering operation tracking
• Catering macro-trend analysis, including the economy; sustainability and
environmental concerns; technology; food & celebrity chef familiarity; and health
trends.

2. • Insight on the “catered meals” consumer, including stand-alone analysis as well
as restaurant, institutional foodservice and food retail context.
• Catering operations analysis of a mixture of restaurant, food retail, foodservice
contractor, and caterer companies, such as Panera Bread, Whole Foods Market,
Compass Group, and Blue Plate Catering.
• Catering “opportunity analysis” of significant life events (such as births,
weddings, and funerals) as well as significant social events (such as the Super
Bowl).
Market Insights: A Selection From The Report
Share of Stomach: Catering Market Size and Forecast
In this section, Packaged Facts provides a market size and forecast for the catering
industry. Its scope includes caterers; full-service restaurants; limited-service
restaurants; snack and nonalcoholic beverage establishments; foodservice contractors;
and hotels.
Insight capsule
• Packaged Facts estimates that 2010 catering revenue reached $14.2 billion, a 9.0%
increase from 2009. Going forward, we believe that sales will rise 9.1% in 2011 and
6.5% in 2012, driven primarily by aggressive expansion into the catering space by
limited-service establishments, the return of business event-driven spending, higher
wedding spending, and a moderately healthier consumer.
• With its high-growth days likely behind it, the restaurant industry must find ways to
take in-home share from food retailers while adapting to the trend toward in-home
entertaining. This convergence signifies an increasingly competitive battleground for the
catering dollar.
Trends afoot
Many of the trends coming to the fore of institutional programs are cost based, a result
of tightening budgets and a more pronounced need to
demonstrate catering program value. They include the
following:
• Transitioning toward buffets and away from sit-down
dinners
• Transitioning toward pick-up and way from delivery
• Proving that catering an event serves a purpose to
the institution
• No-frills menus
• Reductions in selections and/or servings

3. • Less costly meats and lower pricing structures
University of Washington Medical Center nears $1 million in catering sales
UWMC serves an average of 1,000 patient meals and 5,000 cafeteria meals per day.
The UWMC foodservice department has annual retail sales of $5 million, which includes
catering sales of $950,000. UWMC also offers catering. A four person catering staff
manages up to 20 events per day, most of which are small staff meetings.
• Percentage of catering that makes up overall business (2008) - 10 percent
• Annual catering sales (2007) - $950,000
Summa Health System goes no-frills
Nearly 85% of Akron, Ohio-based Summa Health System's catered events are handled
in-house,
the organization does outside catering at a 50% markup.
Table of Contents
Foodservice Catering, On-Premises v. Off-Premises
On- and off-premises sales relied on by caterers
Graph 2-9: Caterers, On-Premises v. Off-Premises
Full-service restaurants make room for customer pick-up
Graph 2-10: Full-Service Restaurant Catering, On-Premises v. Off-Premises
For limited-service restaurants, "pick up” plays to strengths
Graph 2-11: Limited-Service Eating Place Catering, On-Premises v. Off-
Premises
Caterer analysis
Table 2-1: Caterer Sales, by Category
Fragmented and regional marketplace
Mom and pop still have a place in the catering business
But competition looms
Serving consumers and businesses alike
Table 2-2: Caterer Industry Profile

4. Solid historical growth rate
Table 2-3: Caterer Profile: 2002-2007
Consumer catering expenditures
Catering sales trends by consumer demographic
Overview
Table 2-4: Consumer Catering Expenditures, 2005-09
HH income plays significant role
Table 2-5: Consumer Catering Expenditures, HH Income, 2005-09
Cultural differences at play
Table 2-6: Consumer Catering Expenditures, Race/Ethnicity, 2005-09
Just the two of us
Table 2-7: Consumer Catering Expenditures, People in Household, 2005-09
Chapter 3: Travel, Hotels & Holiday Party Catering Trends
Overview
Travel industry shows signs of life
2009 travel volume paints a grim picture
Fewer visits = less catering revenue
Table 3-1: U.S. Travel Spending, by Industry Sector, 2008 v. 2009
Breaking it down, domestic leisure, domestic business and international
Domestic travel expenditures
International drops even further
Leisure travel down, but business travel really falls off
Corporate events travel falls into tailspin
Convention center traffic drops precipitously, but signs of life emerge
Table 3-2: Convention Center Traffic Trends
2010 brings relief
Business travel rebound underway

5. But business travel index remains off 2007 peak
Growth levers: transient business travel and international travel
Table 3-3: U.S. Travel Forecast, 2007-2013
Hotels and accommodations dig out of recession
Almost $4 billion in catering revenue on the line
Whew. Fewer empty rooms!
Occupancy and room rates on the upswing
Table 3-4: Monthly Hotel Room Occupancy Rates and Revenue, December 2009
to November 2010
Checking in with the hotel players
Starwood Hotels Worldwide, Inc.
Host Hotels & Resorts, Inc
Marriott International, Inc.
Red Lion Hotels Corporation
Las Vegas Sands Corporation
DiamondRock Hospitality Company
Corporate holiday spending not a bad word
A look back to 2009
2010 holiday catering season better than 2009? Yes!
Gauging the spectrum: some bad, but mostly pretty good
The bad
Pretty good: National Association of Catering Executives remains upbeat
Pretty good: 6 in 10 organizations plan an end-of-year/holiday employee party
Table 3-5: 2010 Challenger Holiday Party Survey
Where is it going to be? On-site v. off-site?
Graph 3-1: Corporate Holiday Party Location, 2009 v 2010
Checking in locally
Chicago catering makes a comeback

6. Cleveland: more with less
Detroit tallies big gains
Chapter 4: Institutional Foodservice Catering Trends
Overview
Institutional foodservice is big business
Catering plays a role in most institutional foodservice programs
Not immune to recession
Trends afoot
Day part analysis
Table 4-1: 2010 Institutional Foodservice Catering Revenue, by Daypart
On-premise dominates
Table 4-2: 2010 Catering Revenue, On-premises v. Off-premises
Hospital catering
Hospital users
Bottom line: dealing with illness correlates with foodservice use
Relationship with food changes; foodservice plays important role
Table 4-3: Hospital Users, Foodservice Use by Type, 2010
Catering
Checking in with the hospitals
UCLA Medical Center: Catering at 10 years of age
University of Washington Medical Center nears $1 million in catering sales
Summa Health System goes no-frills
Texas Health Presbyterian Hospital Dallas succeeds with reduced costs
Reid Hospital & Healthcare Services reaches out
College catering
Checking in with the colleges
University of Oklahoma: A different approach

7. Notre Dame Food Services: Marketing affordability
Price repackaging with boxed lunches
Miami University sends Direct to You!
Chapter 5: Restaurant Catering Trends
An avalanche of limitedservice restaurant movement
Atlanta Bread
Backyard Burgers
Boston Market
Bruegger’s
Dickey’s Barbecue Pit
Panera Bread Co
Einstein Noah Restaurant Group
Jamba Juice
Jersey Mike Subs
Noodles & Co
Panchero’s Mexican Grill
Qdoba
Souplantation/Sweet Tomatoes
Subway
Wingstop
Not for everyone
Papa Murphy’s
Casual and upscale
California Pizza Kitchen
Famous Dave's of America
Ruth’s Chris Steakhouse
ThinkFoodGroup

8. Chapter 6: Catering to Life Events
The cycle of life offers a wealth of catering opportunities
Birth!
4 million catering opportunities annually
A declining birth rate dampens catering opportunity
Graph 6-1: Births and Birth Rates, 2000-2009
Getting to know a first child’s parents
Navigating the income issue
Table 6-1: First Child Born in Past 12 Months, Key Demographics, 2010
Birth expectation differential shifts over time
Table 6-2: Birth of First & Second Child,
Last 12 Months & Expected in 12 Months, 2006-2010
Graduations
More than 6 million catering opportunities annually
Postsecondary opportunity
Table 6-3: Graduation and Degree Opportunity, 2007-08 to 2011-12
Catering to a wide swath of graduates
Widening age parameters
Graduates have income to pay for catering, or at least their parents do
Table 6-4: Graduations in Past 12 Months, Key Demographics, 2010
Marriage!
A one-two punch
Wedding rate significantly declines
Graph 6-2: Marriages and Marriage Rate, 2000-2009
Fewer expected marriages
Table 6-5: Marriages, Last 12 Months & Expected in 12 Months, 2006-2010
Getting to know newlyweds

9. Table 6-6: Marriages in Past 12 Months, Key Demographics, 2010
Wedding cost trends
Weddings downsized
2010 wedding volume ticks upward
A rebound in the works
Table 6-7: Cost per Wedding, 2005-2010
Expenditures per event on the upswing
Table 6-8: Wedding Reception Food Service & Bar Service Spending, 2005-2008
Death
2.4 million events requiring a caterer’s helpful hand
Graph 6-3: Deaths and Death Rates, 2000-2009
Age is a primary consideration
Table 6-9: 2008 U.S. Deaths, Age of Death
The yin and yang of funeral cost
Everything in between!
Want watch the Super Bowl?
Table 6-10: Super Bowl Ratings and Viewership, 2001-2010
Home viewing the winner in a landslide
Home food spend stagnates
Table 6-11: 2010 Super Bowl Watching versus Food & Beverage Event
Purchasing
HH income plays a role
Table 6-12: 2010 Super Bowl Ratings by HH income
Chapter 7: Catering Trend Watch
Economy
Current impact
Outlook
Future impact

10. Sustainability and environmental concern
Current impact
Outlook
Future impact
Technology helps spur efficiency and build clients
Current impact
Outlook
Future impact
Food & celebrity chef familiarity builds client expectations
Current impact
Outlook
Future impact
Health trends
Current impact
Outlook
Chapter 8: The Catered Meal Consumer
Overview
Note on reading tables and charts
Introducing the catered meal customer
Packaged Facts’ Consumer Restaurant Tracker places catered meal use at 16%
A seasonal caveat
A distinct profile emerges
Table 8-1: Catering User Demographic Profile, 2010
Catering: a small part of a huge foodservice pie
Table 8-2: Foodservice Establishment Meal Share, 2010
In context: catered meal users and foodservice attitudes and behaviors
More comfortable with technology

11. Strong relationship to institutional foodservice
Table 8-3: Catered Meal Users, Foodservice Attitudes and Behaviors, 2010
In context: catered meal users and institutional foodservice
Institutional foodservice generates highest cross-use
Table 8-4: Catering User Foodservice Engagement, by Category, 2010
Chapter 9: Catering Company Analyses
Retail Foodservice Catering Operations
Einstein Noah Restaurant Group
Strategic direction
Catering operations
Catering strategy
Einstein Noah by the numbers
Table 9-1: Einstein Noah, Selected Metrics, 2008-2010
Panera Bread Co
Strategic direction
Catering operations
Catering strategy
Panera Bread by the numbers
Table 9-2: Panera Bread, Selected Metrics, 2008-2010
Subway (Doctor’s Associates Inc)
Strategic direction
Catering operations
Catering strategy
Grocery Retail
Publix
Strategic direction
Catering operations

12. Catering strategy
Publix by the numbers
Table 9-3: Publix, Selected Metrics, 2008-2010
Safeway
Strategic direction
Catering operations
Catering strategy
Safeway by the numbers
Table 9-4: Safeway, Selected Metrics, 2008-2010
Whole Foods Market
Strategic direction
Catering operations
Catering strategy
Whole Foods by the numbers
Table 9-5: Whole Foods, Selected Metrics, 2008-2010
Foodservice Contractors
Aramark
Strategic direction
Catering operations
Catering strategy
Aramark by the numbers
Table 9-6: Aramark, Selected Metrics, 2007-2010
Compass Group
Strategic direction
Catering operations
Catering strategy
Compass Group by the numbers

13. Table 9-7: Compass Group, Selected Quarterly Metrics, 2009-2010
Catering Establishments
Blue Plate Catering
Catering operations
Catering strategy
Centerplate
Catering operations
Catering strategy
Delaware North Companies
Catering operations
Catering strategy
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