State of the Industry – The Work Environment

2023 has been a year of stability for many caterers across the country. After the backlog of postponed events and pent-up longing for in-person celebrations last year, demand for catering has returned to resemble pre-pandemic levels.

Many caterers are cautiously optimistic about the prospects for 2024, anticipating modest growth. Hiring is still difficult with unemployment in the U.S. under 4%; however, finding talent and filling open positions in our industry is easier now than it was in 2022. Catering companies are now shifting toward more emphasis on retaining team members as opposed to attracting new employees, and employee retention starts with the work environment.  

The work environment consists of the physical spaces in which people work and the people they work with. It encompasses the terms in which people agree to do their job with elements like compensation, benefits, and work schedules. Finally, it also includes the culture of the organization and how people are treated. It has a direct impact on “employee wellbeing,” a term that continues to come up across all industries and is at the forefront when making decisions about the work environment. Together this forms a holistic approach to serving team members to ensure they can show up as their best selves and find fulfilment in their lives both personally and professionally. To be intentional about creating a great work environment and mindful about employee wellbeing, caterers should start by focusing on three things:

1. Compensation, perks, & benefits

It’s important to remember that simply paying people more is not an effective long term retention strategy. Companies who go down this path get caught in a constant battle of having to increase wages to keep team members because they have attracted employees who put this as the highest priority and are likely to leave if they can find another company who will pay them a little bit more. Typical benefits have not always been standard in the catering industry, and it can make up a significant portion of an overall compensation package. More caterers than ever are offering health insurance to their team members, many offer a match on their retirement plans, and paid time off is being mandated in many states. In some cases, these benefits are even available for part-time team members.  

In addition to these standard benefits, companies are finding more creative ways to build compensation packages with a variety of perks that support the culture they are creating, such as leadership development classes, gym memberships, wellness credits, access to therapists, free lunches, dining out expenses, charitable match contributions, childcare, and homebuying assistance. As you evaluate your offerings, think about your core values as a company and how you can ensure they are aligned with the perks you offer. If sustainability is a value in your organization, then passes for public transportation or an EV charging station may make sense. If balance is a value you want to highlight, you may look at your maternity/paternity leave policy, or you may think about closing the company on certain days or even offering an employee vacation so everyone can get a break. Every team is unique, so the point is to put energy into areas that will have the biggest impact on your team. When done well, it enables companies to retain and attract people that appreciate the values of the organization and what it has to offer.

2. Physical space

It can be efficient to produce a large volume out of a relatively small space; however, at some point it can limit the potential for a company to grow. When team members are working on top of each other and can’t find what they need because it’s buried under stacks of supplies, it creates frustration and can lead to disengagement. Many caterers are looking at expansion plans to build capacity and at the same time spark morale among team members. Getting team members who work in these spaces involved in this process is key to getting it right and creating an environment that feels like their own. They have opinions and expertise on how things should be set up, organized, decorated, and laid out, so it only makes sense to ask them for their feedback and incorporate that into the planning. When we moved into our new location at Footers, our team helped design the workflow of the kitchen, physically painted their own offices so they could personalize them, and took ownership of planting an herb garden that they maintain and utilize.   

3. Flexible & remote work

Caterers are getting more requests than ever for remote work and flexible work schedules. A challenge in our industry, though, is that not everyone has a job that they can do remotely.  While salespeople and administrative personnel can do much of their job away from the office, operations team members must be physically present to do their job. This dynamic needs to be handled carefully to avoid resentment and a possible divide among departments. Policies must be communicated with all team members, and in these situations it’s critical that everyone has a clear understanding of what other jobs entail.  

Although they can’t work remotely, there are caterers experimenting with flexible schedules for their operations personnel. Companies create two to three different shifts each day that employees can request or sign up for in the kitchen or warehouse, with some team members coming in first thing in the morning and others choosing to work later into the day. While it creates a little more complexity for managers, it appeals to those who prefer different schedules.  

For those employees that can do their jobs remotely, managing them is something that leaders are having to get accustomed to. The adage “if I can’t see you, then you’re not working” is a roadblock that continues to come up. Leaders must manage performance, not hours. When constructing remote work schedules, it’s important to set performance metrics that need to be met. People want to know what success looks like, so it’s up to leaders to be crystal clear on what those expectations are, then let their people figure out how to get there.   

With remote work a level of trust must also be established. Some companies prefer for this to be earned over time and others are willing to grant flexibility right away with the understanding that it may be taken away if trust is broken.  

Work environment and employee wellbeing are currently a high priority for caterers across the country because when done well, it leads to more desirable workplaces, higher job satisfaction, reduced turnover, and increased productivity. By evaluating perks and benefits, the physical space in which a team works, and policies on flexible schedules, companies can begin to create an intentional strategy around the employee experience and the overall work environment.