Turning Catering into a Reliable Growth Engine

Earlier this year, Dave’s Hot Chicken launched its first-ever catering program, projecting it could drive nearly 10% of the business within twelve months. Meanwhile, Einstein Noah Restaurant Group, parent of Einstein Bros. Bagels and Noah’s New York Bagels, has been reporting double-digit year-over-year catering growth. Together, these moves highlight just how powerful catering can be when restaurants treat it as a core business, not a side hustle.

Whether it’s a rising brand like Dave’s Hot Chicken or an established group like Einstein Noah, catering is emerging as one of the most dependable paths to growth.

The Economics of Catering

In an industry defined by razor-thin margins, catering has emerged as a rare bright spot. According to Restaurant Dive, almost half of catering operators (48%) named corporate clients as their top growth driver in 2023, with average check sizes often exceeding $400, a signal that catering taps into a high-value, less price-sensitive segment.

The value proposition is straightforward. Catering delivers larger ticket sizes, repeatable corporate orders, and opportunities to reach new audiences that might never walk through your doors otherwise through weddings, office lunches, and community events. For operators, catering represents not only additional revenue today but also a foundation for long-term resilience.

The Hidden Challenges

Catering isn’t just “more orders.” It’s a different workflow entirely, one that requires precision and consistency at every step. Small missteps can quickly snowball into lost revenue and disappointed guests. These challenges usually show up in three ways.

• Intake errors: Misheard requests or incomplete details can derail an event before it even begins.
• Coverage gaps: When catering managers are off-shift or on vacation, valuable inquiries may slip through the cracks.
• Operational overload: Confirmations, reminders, and follow-ups often get pushed aside during peak service hours.

Each gap puts revenue at risk and weakens the confidence of customers who might have ordered again.

Consistency = Confidence

What ultimately separates thriving catering programs from struggling ones is consistency. In practice, consistency shows up differently depending on the role.

• For the General Manager, consistency means fewer last-minute escalations and a smoother service flow.
• For the Catering Manager, it means confidence that no inquiry is missed, even when they are away from the desk.
• For the Customer, it means assurance that every detail will be handled, giving them the confidence to rebook without hesitation.

When each stakeholder experiences that sense of reliability, catering shifts from a one-time transaction into a predictable, repeatable source of growth.

The Future: AI as a System, Not a Substitute

Technology is finally making true consistency possible. An AI catering agent can capture inquiries across phone, SMS, email, and web, ensuring that no opportunity is lost. It can handle quoting, confirmations, reminders, and post-event follow-ups, creating a seamless experience from first call to final thank-you.

Crucially, this isn’t about replacing catering managers. t’s about equipping them with a system that takes repetitive tasks off their plate, so they can focus on the work that really drives value: designing creative menus, nurturing customer relationships, and growing the brand.

Looking Ahead

The next wave of restaurant growth won’t come from squeezing more out of dining rooms. It will come from building systems that capture every catering opportunity with accuracy, reliability, and care.

Still wondering what AI can really do inside a restaurant? In this short video, our CTO and co-founder Tim Howes walks through the five biggest reasons operators are embracing voice AI today, from answering every call during the dinner rush to capturing upsells and speaking in your brand’s voice. Most importantly, it shows how AI gives your team back the time and focus to do what matters most: cooking, hosting, and delivering great hospitality.

video: https://www.youtube.com/watch?v=ucwaTD2plT4

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Maria Zhang

CEO, Palona.ai