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Why Catering is On the Menu This Thanksgiving and Why Franchise Brands Should Take Note
According to recently released data, it's more economical for the first time in decades to dine out on Thanksgiving than to shop for, cook and clean up after a traditional meal.
After nearly three years, the $12 billion catering industry is surpassing its pre-COVID revenue levels with a larger portion of total food sales than ever before — just in time for Thanksgiving.
Catering was already on an upswing this year due to the return to office headwinds following the pandemic. “In the first half of 2022, we’ve seen nearly a 20% increase in customers searching for ‘catering’ on Instacart compared to the same period last year,” Instacart Vice President of Product Jeanette Barlow said in a statement.
Now, inflation and record high grocery prices have officially made it more affordable to order out than to cook at home for the first time in decades, a recent Wells Fargo analysis finds. Price hikes in the retail sphere are up 10.8%, while restaurants are only seeing a 7.2% increase in menu pricing, Nation’s Restaurant News reports.
And with the added bonus of turkey and cranberry shortages, more Americans are choosing to opt out of home-cooked Thanksgiving meals altogether this year. Instead, a survey this month by Popmenu found that 45% of U.S. consumers plan to order all or part of their Thanksgiving meal from restaurants.
For many restaurant franchisors, catering can greatly improve revenue due to its high margins and high order values. Similar to ghost kitchens, adding a catering strategy allows restaurants to leverage their existing kitchen and established following to carve out a new revenue stream. When done right, catering can improve a restaurant’s exposure, bring in higher profits and enhance a restaurant’s customer service image, especially around the holidays.
Over the past year, several major franchisors, including QSR giants like Jimmy John's, Subway and Chick-Fil-A, have successfully added catering components to their operations. Popeyes was even selling a Cajun-style Thanksgiving turkey this year, which cost $94.99 with delivery, but it appears they are already sold out.
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