Grow your Catering Revenue

When Dan Stewart opened Isabella’s Brick Oven in Baltimore’s Little Italy neighborhood in March 2006, he was admittedly oblivious to catering. As employees from nearby Constellation Energy regularly asked about catering, however, Stewart knew he had to get catering operations up and running.

Twenty years later, it’s a good thing for him and Isabella’s he did.

Catering now represents about one-third of Isabella’s revenue, as orders pour in from schools, corporate clients and celebrating families. On one Wednesday in March, Stewart and his crew had prepped nine catering orders by lunchtime.

“Sometimes, we’re feeding 300 people out of here by 11:00 a.m.,” Stewart says. “Catering is frenetic, but it’s the easiest way to make money.”

For pizzerias across the U.S., catering is an important revenue lever and marketing tool. It brings in high-volume, high-value orders with inherent labor efficiencies. It also drives brand exposure, sparking trials and notoriety that propel additional business.

But success in the catering category is earned, especially as few get a second chance if food quality, selection or service falls flat. Pizzerias looking to grow their catering book of business need to be on point and consistently hit three key markers.

First, make it simple.

Just in time for the 2023 holidays, Russo’s New York Pizzeria & Italian Kitchen debuted a new catering website for its 56-unit enterprise. Complete with photos, the online menu features 28-inch party pizzas serving 10-15 people and neatly arranged party packages for parties of 10 or 20 as well as kids’ parties.

Anthony Russo says his Houston-based chain’s online menu makes it easy for catering customers to peruse their options and seamlessly place an order. He calls that convenience and accessibility “critical.”

Giliah Librach, director of merchandising operations at ezCater, a popular corporate catering matchmaker, says catering customers “adore bundles because they make it much easier to order for large groups.” 

Stewart has discovered as much as Isabella’s, where standardized catering packages provide clarity and streamline ordering. In addition, Isabella’s delivers and sets up every catering order, which further simplifies the process.

“Catering customers love easy,” Stewart says.

Second, think beyond pizza.

As Stewart built Isabella’s catering program, he surveyed the market, reviewed competitors and considered the capabilities of his own operation, from manpower to sourcing ingredients to the limits of his wood-fired oven. If he wanted to thrive with catering, Stewart determined he had to diversify his offerings beyond pizza to attract business. Today, Isabella’s catering menu includes sandwiches, salads, pastas and desserts.

“With pizzas alone, you’re really limiting yourself,” Stewart says.

For as much as pizza remains a beloved staple of the American diet, many successful pizzeria-based catering operations tout varied menus as essential to overcoming veto votes and ensuring satisfaction. This includes offering vegetarian, vegan and gluten-free options given the dietary restrictions (or preferences) often found in large groups.

According to ezCater’s Librach, providing a wide range of options helps customers build complete meals for their groups. It also helps pizzerias increase their check sizes and profitability.

To wit, Mellow Mushroom’s catering menu pairs traditional, gluten-free and vegan pizzas with various salads, sandwich trays and munchies like pretzel bites and wings. Russo’s, meanwhile, presents a compelling menu mix including sandwiches, salads and classic Italian dishes like lasagna and chicken Parmesan.

“We wanted to evolve and build sales with catering and revamping our menu was one path to this,” Russo says.

Finally, deliver on promises.

As Mellow Mushroom, a 50-year-old brand with more than 160 stores across 18 states, looks to build its catering business in 2024, senior vice president of brand development Anne Mejia knows hitting customer expectations is vital to driving that book of business.

“All people love good food, but catering orders love good food on time,” Mejia says. “Orderers will go to the same place time and again if that trust is there.”

To Mejia’s point, the on-time delivery of a business catering order was the single highest customer priority according to ezCater’s 2023 Feeding the Workplace report.

“It’s annoying if your pizza is late on a Friday night, but if lunch is late for 400 employees or for an important sales meeting, it can be catastrophic,” Librach says.

To avoid mistakes, Stewart prioritizes communication at Isabella’s, especially with new customers and larger, complicated orders. He will text the day of to confirm details and troubleshoot any potential issues. Later, he follows up to ensure guest satisfaction and invite a future order.

Russo’s, meanwhile, employs its own drivers who are trained to handle food and execute brand standards for timing and set up, which he considers crucial to hitting customer expectations, cultivating trust and earning repeat business.

“Service is how you build your business in catering,” Russo says. “There’s no way around that.”

How to promote your catering business

• Use packaging as a promotional tool. Branded boxes generate awareness, but restaurants can do even more with packaging. A stamp on Isabella’s catering boxes, for instance, features a QR code leading to the restaurant’s catering menu. Each week, Isabella’s owner Dan Stewart says “5-6 orders catering orders come directly from that code.”
• Hit the pavement. In addition to leveraging digital marketing tools like Google Ads, Russo’s team members also visit office administrators located within 3-5 miles of their stores to cultivate personal relationships. “It helps when they have a face and a name and know who you are,” Russo’s CEO Anthony Russo says of corporate customers.
• Team up with high-impact partners. Corporate food catering platforms like ezCater, Feedr and Fooda connect restaurants with catering clients. In March, Isabella’s catering revenue was up 6 percent year over year, a jump fueled by a nearly 20 percent jump in ezCater orders.
• Discover opportunities in the data. While Mellow Mushroom promotes catering offerings during obvious times, such as the holiday season and spring’s moms, dads and grads crowd, internal data showed a surprising uptick in catering orders during October. Leadership responded by devoting marketing dollars to fall catering promotions to better seize that unexpected opportunity.

DANIEL P. SMITH  Chicago-based writer has covered business issues and best practices for a variety of trade publications, newspapers, and magazines.