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Hospitality Business Review | Monday, July 17, 2023
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The catering industry faces a changing landscape driven by agile working and shifting consumer preferences.
FREMONT, CA: Catering suppliers must navigate challenges related to demand spikes, staffing shortages, supply chain issues, and compliance. Suppliers can overcome these challenges by embracing sustainability, flexibility, innovation, and creativity and delivering outstanding services to customers and clients.
Adapting to the new era of work requires proactive strategies, a keen understanding of market trends, and a commitment to excellence.
Challenges for catering suppliers: Agile working has presented challenges for catering and service teams. The new work pattern, with Tuesday to Thursday being the preferred days for office attendance, has created a spike in demand for desks, team spaces, collaboration areas, and client entertainment. This concentrated demand places significant pressure on hospitality and facilities teams, pushing them to their limits and testing labor pools.
Catering suppliers face additional challenges. Adapting to the reality of a three-day office-based workweek and condensing service delivery into a shorter time frame becomes crucial. Furthermore, suppliers must address inflation-related concerns, staffing shortages, and difficulties with the supply chain. Suppliers must prioritize sustainability, flexibility, and proactivity to overcome these challenges and continue delivering exceptional services to customers and clients.
Importance of sustainability: In the quest to overcome challenges, catering suppliers should embrace sustainable practices and flexibility. Working with local suppliers not only supports communities but also reduces carbon footprints. A defined sustainable strategy is important for the environment and resonates with consumers who prioritize sustainability in their choices. Suppliers should remain agile in identifying opportunities and trends, such as promoting plant-based ranges, introducing seasonal offerings, and supporting initiatives like "meat-free Mondays." By being proactive and adaptable, suppliers can provide value for money and attract customers who seek quality, offers, and deals.
Driving innovation and creativity: The last few years have allowed the catering industry to drive innovation, creativity, and originality. In this new era, businesses must remain sustainable, profitable, and relevant by continuously evolving. Restaurants that offer high-quality food, proper service, and interesting concepts thrive in the competitive landscape. The market trends have become more volatile, emphasizing the need for flexibility in catering offers. Given the shortage of skilled catering staff, suppliers must explore alternative ways of processing food, such as utilizing dark or cloud kitchens or central production units (CPUs) instead of traditional on-site production kitchens. CPU models, where one chef manages kitchens for multiple businesses, are becoming increasingly attractive. Menu engineering becomes crucial in utilizing available resources effectively amid supply chain challenges caused by post-Brexit issues, conflicts, and pandemic-related impacts.
Maximizing space utilization and compliance: Businesses should consider utilizing dead or under-utilized spaces for events or collaboration areas, generating additional revenue and creating better working environments to maximize returns. However, catering services must also navigate legislative safety burdens, which have emerged from sensitive issues like food safety incidents. Balancing profitability with statutory compliance is a challenge, particularly for smaller operators. Reducing red tape and offering better training and awareness can help address the skills shortage and support the growth of smaller operators.
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