Tap into the Revenue of Off-Premises Dining and the Catering Business
The restaurant industry looks different these days. In the last decade, you may have noticed some strange behaviors coming from your diners. Crowds snapping up photos of your appetizers with pocket phones. Shadowy Yelpers deriding drinks and meals for being less than 5-star perfect. Even the demands on restaurant operators are changing, too. Like the expectation to build a website. To integrate expensive technology, like POS software, into your business. And to hang out on social media and “tweet” with customers.
Something else you may have noticed is a buzzword floating around in the restaurant industry—something called “off-premises dining.” As Jim Rand, ezCater’s catering practice leader, recently explained in his article, “off-premises dining” is the it-word at the moment. What is it? It’s a revenue channel that includes the takeout business, as well as delivery, drive-thru, catering, and more. The phenomenon of off-premises dining has been fueled in part by the growth of marketplaces and third-party delivery companies.
Restaurant operators are using off-premises dining as a business strategy for sales growth. It’s a way to reach new consumers and to persuade existing customers to spend more or dine more frequently.
Why Care about Off-Premises Dining and the Catering Business?
So why should you care about off-premises dining? Here’s some food for thought.
According to Technomic, in 2017, off-premises channels accounted for:
- $228 billion in restaurant revenue
- 44 percent of total restaurant revenue
Restaurant Business and Technomic reported early this year that off-premises sales is expected to grow 5.6 percent annually through 2019, compared to a 3 to 3.5 percent annual growth rate for the restaurant industry overall.
As you can see, off-premises dining is a huge market. How much of the pie are you getting? Check out our infographic below on the restaurant industry and catering business. Find out whether catering can help your business.
Want to learn more about off-premises dining?