How COVID-19 Changed Corporate Delivery CateringHow COVID-19 Changed Corporate Delivery Catering

The COVID-19 pandemic struck the catering industry in 2020, forcing caterers to adapt to a nearly unrecognizable business landscape. The impact was felt across the board, with both short and longterm effects reshaping corporate catering. Here’s a summary of how several caterers with a presence in the corporate delivery market adjusted to these challenges.

During COVID-19

During the height of the pandemic, catering shifted to individually portioned, safely wrapped meals, leading to a rise in packaging and labor costs, which were often passed on to clients. Many caterers focused on maintaining employment for key staff, utilizing this time to refine best practices and enhance operational systems in preparation for a postCOVID recovery.

Inflation

Post-COVID, the most significant impact has been the rising costs of food, energy, and labor. Costs have risen faster than caterers could increase their prices. Although clients accepted that catering would be more expensive, many cut back on the amount and frequency of orders. To combat these challenges, caterers adopted operational software to better manage portion sizes and reduce waste, while others used technology to lower energy costs. Yet price increases for clients have lagged rising operational costs, squeezing profit margins.

Weekly business rhythm

Corporate catering used to follow a predictable Monday-to-Friday pattern, with peak revenues on Wednesdays and Thursdays. Now, the business rhythm has shifted to a Tuesday-to-Thursday model, resulting in staffing and delivery challenges due to concentrated activity. Caterers are adapting by giving hourly employees more hours during peak days and fewer on Mondays and Fridays. This concentration necessitates greater efficiency, leaving less room for error.

While the office population in many industries may never return to the Monday-to-Friday standard, there has been some trend towards office repopulation. For example, completely remote office work has been on a downward trajectory for the last several years. According to a survey of large companies, the number of companies allowing fully remote work decreased drastically between 2022 and 2023. Eventually this will drive improved delivery catering opportunities.

Employees

The hospitality industry no longer attracts young talent as it once did, leading to a smaller pool of candidates to fill key positions. Millennials and Generation Z are often perceived as entitled by older generations, yet many employers recognize that these younger workers are talented but may have different work expectations and values.

With the exception of sales, remote work is generally not feasible in the catering industry, but retaining young talent requires listening to their needs. Skilled workers remain essential, and catering’s hands-on nature makes it difficult to accommodate remote arrangements.

Clients

Client profiles haven’t dramatically changed, but new opportunities have emerged in amenity services, such as subsidized coffee and lunches for large employers to encourage employees to return to the office. During the pandemic, clients were generally understanding of the challenges faced by caterers, but there’s been a shift to a younger cohort of catering buyers who are more transactional and less collaborative than their predecessors. These younger clients prefer efficiency over relationship-building, which contrasts with traditional catering practices.

Caterers now find themselves confirming orders more frequently due to a lack of communication from these clients. Last-minute orders have become commonplace, presenting both challenges and opportunities, as clients who plan better may be more demanding.

Clients are increasingly interested in diversity, equity, and inclusion (DEI) policies, sustainability, and womenowned business status. However, price remains a primary deciding factor for caterers, often requiring them to have these policies merely to “check the box.”

The competitive landscape

Prior to COVID-19, corporate caterers faced competition from thirdparty delivery services like DoorDash and Uber Eats. The pandemic intensified this competition, as these services provided affordable options for clients. Now, caterers compete for clients who value quality over the lowest price, seeking to reclaim their market share.

Food

While COVID-19 didn’t fundamentally change caterers’ menus, it did lead to significant scaling back during the peak of the pandemic. Some caterers suspended their standard menus and are just beginning to resume their pre-pandemic offerings. Ongoing trends toward local, sustainable ingredients and allergen awareness continue to drive culinary changes in the industry.

COVID-19 fundamentally changed corporate drop-off catering. While many caterers are thriving again, capitalizing on new opportunities and improved operational efficiencies, they are doing so in an entirely new environment. As companies encourage or demand that employees return to work, they will be using food to attract and retain talent. This battle will be fought in part with food and beverage services. The industry may never return to its former state, but these adaptations may help caterers thrive in a transformed market.