Larger than expected: opportunities in consumer catering

Chicago / IL. (tni) The recession may be taking its toll on the restaurant industry in the United States, but recent research by foodservice consultants Technomic revealed an important and largely untapped growth opportunity – catering to consumers´ at-home social occasions. At 33,3 billion USD, the size of the consumer catering opportunity is almost double the size of the business-to-business off-premise catering market previously studied by Technomic.

«We were surprised to learn that the consumer catering opportunity is much larger than we originally expected», said Melissa Wilson, Technomic Principal. Restaurants have been watching the recession chip away at traffic, but Wilson tells them, «This is where your customers are. They used to use restaurants as social venues, but now they’re entertaining at home. And they have told us they plan to continue doing so because they are enjoying socializing with friends at each other´s homes. In fact, 40 percent of consumers say they expect to entertain at home more often over the coming year».

The study, named «POP: Parties Off Premise», identifies numerous ways that limited- and full-service restaurants and food retailers can respond to this fundamental shift in consumer behavior and see meaningful improvements in unit-level performance. Other key findings from the study:

• Consumers say they are just as likely to source food for these occasions from restaurants as food retailers.
• In terms of sales, restaurants hold the largest share of the social catering opportunity, with slightly more than 23 billion USD or 69 percent, market share, followed by caterers, supermarkets, warehouse clubs and other retailers. Among restaurants, full-service operators hold a larger share of the social catering market than limited-service restaurants.
• While holidays and other special events prompt seasonal spikes in consumer catering purchases, broader shifts in consumer behavior point to a consistent year-round opportunity.

To learn more about «POP: Parties Off Premise», please visit foodpubs.com.