Franchises Push Catering as Additional Revenue Channel | Franchise News








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Qdoba is emphasizing its catering program, where customers can order full burritos bars.


Business catering took a hit when everyone was working at home during the COVID-19 pandemic. To entice workers to return to the office, it’s back in full force, research says.

From 2021 to 2022, catering company ezCater saw an 87 percent increase in same-store bookings via the ezCater marketplace, according to its 2024 “Feeding the workplace” report.

Even with employees working remote or hybrid gigs, ezCater found businesses’ food for work budgets have stayed the same or even increased since before the pandemic. Food entices folks to come into the office or attend work gatherings, like holiday parties.

Related: Call It a Comeback for Catering as Sales Start to Rise

Companies in ezCater’s research overwhelmingly report that providing food for employees improves morale and productivity.

About 78 percent of businesses order catering once a month, and 32 percent order at least once a week. For a 25-person order on ezCater, the average spend is $350.

Sandwiches are the most commonly ordered catering item, at 31 percent, according to ezCater’s research. Breakfast is climbing the ranks in popularity among catering customers, at 7 percent.

Sunny Street Café—a 22-unit breakfast and lunch chain based in Columbus, Ohio—started developing its catering program about eight years ago. “This is not a new development for us,” Vice President of Brand Strategy Mike Stasko said. “Luckily, we’ve been really fortunate to be in a good position to take advantage of the real boom in catering.”

Catering at Sunny Street makes up to 10 to 15 percent of overall sales in each store. Much of that is through business catering, Stasko said.







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Sunny Street Cafe is known for its pancakes, plus other breakfast and lunch menu items.


“Employers seem to want to come in or enjoy coming in and getting back into that routine,” he said. “We’ve felt that windfall, because what better way than to bring in breakfast or lunch or do catering when folks are in the office?”

Sunny Street customers have breakfast options such as fresh fruit, pastries, burritos and sandwiches. There are also boxed breakfasts and buffet options. For lunch, customers can pick from boxed meals or party platters of sandwiches, wraps or salads.

The franchise is filling a gap in the breakfast space, Stasko said.

“When you think about catering in the mornings, maybe it’s donuts or bagels or maybe a continental breakfast,” he said. “But there really aren’t a lot of options in terms of full boxed breakfast or getting hot breakfast food delivered.”

The investment range to own a Sunny Street Café ranges from $464,545 to $1.3 million, according to the brand’s website.

The factors customers find most important are on-time delivery and ease of ordering for a large group. Nearly three-quarters of catering customers order online, according to ezCater.

“To oversimplify, it’s still about people. It absolutely is service-driven. Folks want to order from people that they can depend on being on time and making sure the order is accurate,” Stasko said.

Mexican food makes up the second largest percentage of ezCater sales, at 11 percent.

At Mexican fast casual franchise Qdoba, catering is “a big growth engine,” CEO John Cywinski said.

The 750-unit brand has a buffet-style hot bar option—its most popular selection—in which customers can choose proteins and toppings, as if they were in the store. Buffets make up a third of ezCater’s orders, according to its research, and boxed lunches make up 15 percent. Qdoba also the choice for boxed burritos, chips, salsa and a dessert.







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Butterfly Equity Principal Francesco D’Arcangelo, left, and Qdoba CEO John Cywinski at Butterfly’s headquarters in Beverly Hills, California.




Butterfly Equity purchased the company at the end of 2022 from Apollo Global Management. The investment required to open a Qdoba location ranges from $489,200 to $1.3 million.

Related: Butterfly Equity’s Qdoba Acquisition Wins Deal of the Year

While under Apollo’s ownership, the company took a step back from catering during the onset of the COVID-19 pandemic. Prior to that, though, the mix of catering to in-store revenue was attractive for Butterfly.

“It’s interesting for a brand that’s emerging,” Cywinski said. “Many of our guests in newest geographies get their first introduction to the brand through a catering experience.”

Qdoba’s catering menu can spice things up at the office, compared to the typical sandwich or pizza employees may be used to, Cywinski said.

“That’s kind of unique,” he said. “People take pride in what they cater. They want their guests to be happy.”



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