Taco and nacho bars have long been a popular office catering option for Fuzzy’s Taco Shop, but during the pandemic, the 138-unit chain quickly transitioned to family dinner packs and prepackaged burrito meals.
“Over the past year, home catering was the bulk of our business but now we see business catering coming back. We’re especially seeing a lot of growth in breakfast,” said Scott Shotter, COO of the Irving, Texas-based fast casual.
He expects catering to add up to 4% of revenue in 2022. And Fuzzy’s is “right-sizing” the menu now, bringing back its taco and nacho bars and expanding its breakfast taco 10-packs with more choices.
Data from Kastle Systems, the Falls Church, Va.-based company that offers security services to office buildings, shows that workplaces had 38% occupancy in March and the trend continues upward.
That gradual return of employees to offices is fueling the growth of business catering.
In fact, more and more companies are using catered breakfasts and lunches—often 100% subsidized—as an incentive to tempt employees to return, said Mike O’Hanlon, Chief Customer Care & Operations Officer at ezCater.
A recent catering report from ezCater found that 81% of leaders agree that offering free meals and snacks is the best way to incentivize workplace attendance.And it works—93% of leaders say that more employees show up to the office on days when free food is provided.
“Since January, we’ve had 61% growth in business catering orders,” O’Hanlon said. The ezCater network of restaurants now numbers more than 94,000, up from 60,000 a year ago.
“We expect to reach $1 billion in sales this year,” he said.
Combining convenience and craveability
Fuzzy’s partnered with ezCater in 2021, and it’s brought in a lot of new guests and grown incremental sales, said Shotter.
But to further entice returning office workers, Fuzzy’s teamed up with Olo to integrate catering into its online ordering platform and POS in May. The chain also updated its catering menu design, enhancing the visuals with more food photos. On the packaging side, they brought in larger bags and cups, both branded with the Fuzzy’s logo.
Photo courtesy of Fuzzy's
“ezCater has increased orders, but we want to offer a more personal experience to guests who come to our website,” said Shotter. “We prefer to create our own environment.”
With the upgrades, Shotter hopes catering will rise from 3% to 4% of sales this year and eventually grow to double digits, he said.
Technomic continues to track the growth in business catering and pinpoints the types of office occasions that are likely to see the most significant bump.
B2B Catering Usage
Source: Technomic
Fuzzy’s is joined by several other limited-service concepts that have recently launched or reinvigorated their business catering programs.
Last month, Subway refreshed its platform with “Easy Order” options, environmentally friendly graphic packaging and enhanced sanitation, also partnering with ezCater to expedite the program.
Smashburger created a first-time catering menu, offering build-your-own burger bars and chicken tender bars, as well as individual boxed meals for breakfast and lunch.
Party time
While Technomic sees business catering continue to recover because of operators’ renewed focus, the company believes it will recover slower than social catering. The shift toward more at-home parties and the return of larger events, like weddings, is driving social catering sales.
Full-service restaurants are benefiting from this uptick. At Soulman’s Bar-B-Que, an 18-unit concept based in Dallas-Fort Worth, the wedding business has taken off since the beginning of 2022, said Director of Catering Amber Polk. Catering sales have gone up 19% over 2021, and April was one of the best months yet, with sales rising 35%.
COVID-delayed celebrations are responsible for some of the increase, but Polk also attributes it to a change in style. Brides, grooms and families are choosing rustic or more casual themes for weddings, rehearsal dinners and showers, and Soulman’s delivers that vibe.
Polk has also innovated the catering menu, rolling out Soulman’s new Bar-B-Cuterie Board—a “hip” way to present appetizers and sweet treats in a grazing format.
Photo courtesy of Soulman's Bar-B-Que
“We displayed the grazing table at a bridal show event and it was a big hit,” she said. The spread includes items such as the signature smoky Soulman’s dip with Texas Toast sticks, spinach-stuffed mushrooms, pulled pork-donut hole sliders, BLT bites, bacon-wrapped stuffed peppers, candied sausage bites, brisket meatballs and bite-size chicken & waffles.
Guests can also opt for a dinner showcasing Soulman’s barbecue, which can include traditional brisket and pulled pork as well premium smoked meats like prime rib, beef tenderloin and pork shanks. Everything is prepared in the restaurants and served on a buffet attended by servers. Sides such as baked beans, cole slaw and potato skins complete the meal.
“Prior to COVID, catering customers wanted something outside the box for weddings and special events, but now they seem to be going back to basics,” said Polk. “It’s the kind of food that makes you happy.”