3 small fast casual brands proving catering technology is affordable

The global catering services market size is estimated to grow by $103.28 billion by 2027, which is inspiring small- and middle-sized fast casual brands to invest in catering technology to help manage operations. Historically, it was a strategy reserved for larger brands with deep pockets, but a few technology providers are offering less expensive ways for smaller brands to get in the game.

Phoenix-based Thai Chili2go, a 15-unit chain, for example, rolled out catering technology from restaurant technology solution provider Lunchbox after ditching its previous provider because of a 20% revenue share model.

"Catering is a huge opportunity for us to explore and partnering with LB makes perfect sense as one monthly fee per store and no revenue share is ideal for a restaurant to maximize its ROI," Thai Chili2go CEO and founder Akshat Sethi told FastCasual. "Also, it is all integrated with our online ordering (web) which makes it easier for our patrons to order it on our website and schedule it for future events."

Sethi is already seeing results.

"For what limited history we have with Lunchbox, the average ticket is around $350-400, which is double from other platforms," he said.

His past provider also restricted offerings by only allowing the restaurant to publish pickup/ delivery menus, not the catering trays.

"With LB, that changes and now we are giving our guests more cost-effective options to order from which increases our average ticket," Sethi said. "Also, Our cost is lower as we are doing trays and not individual orders."

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Yes, Virginia, catering technology is affordable

Lunchbox CEO Nabeel Alamgir said he wasn't surprised to hear that more brands were investing in catering technology solutions. He saw the demand firsthand last year when several multi-unit restaurant brands requested a direct catering solution that wouldn't take a percentage of their orders or market to the customers. To meet the need, Lunchbox developed Lunchbox Catering, a suite of catering order management solutions and integrations.

"It's a solution that's built with the back-end tools that catering managers need to operate at scale and a front-end UI that delivers a top-notch guest ordering experience," Alamgir said in an interview with FastCasual. "They're looking for a solution that is fully integrated with their POS."

Alamgir said he often encounters brands seeking catering technology to improve demand, sales tracking, scalability and ease of use for both their patrons and their catering fulfillment team.

"The industry is struggling with a lack of guest insights, proactive reporting/dashboards, and solutions fractured from the rest of their tech stack," he said. "Operators lack control over their orders' fulfillment (delivery) and cannot easily track the leads their catering sales team generates, limiting the expansion of their business."

Lunchbox Catering, which can be purchased as a standalone product or an add-on to Lunchbox web+app products at a monthly fee, takes no commission charge on catering orders, said Alamgir, who pointed out that third-party companies typically charge 15-30% commission, plus delivery fees per catering order.

"After 12 months restaurants typically see 84% lower costs compared to third-party catering marketplaces, $30 higher check averages, and a 9 to 1 ROI," he said.

Using catering technology as a marketing vehicle

Although catering makes up only 2% of Texas-based Eatzi's Market & Bakery's business, CEO Adam Romo said it was important enough to its reputational branding and digital marketing to mandate an investment.

"We use Catertrax for general CSM functionality such as customer database, order management, invoicing and payment remittance," he told FastCasual in an email interview. "The software licensing fees are very reasonable and utilizing technology like this is not discretionary if you want to maximize your catering business profitability."

Hoping to grow the catering business, the chain recently became the leading company for the Dallas area's local and visiting NBA, NHL and NFL teams.

"We have developed long-term relationships with Dallas-area professional sports teams, providing their athletes' meals for charter flights and practices," Romo said. "Our deep understanding of the teams' dietary and "athletic portioning" requirements combined with our high-quality, chef-crafted meals has enabled us to earn the trust and confidence of the teams and their athletes. In fact, many of the athletes also shop at our stores for their everyday meals. This trust has led to referrals and additional catering business with many of the visiting professional sports teams as well."

The catering technology platform allows the six-unit chain to easily and frequently customize offerings to suit almost any occasion.

"We have a lot of flexibility when it comes to how we can serve our customers seeking catering solutions," he said.

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Dillas Quesadillas brings tech to Texas catering

Like Eatzi's, Dillas Quesadillas, a seven-unit chain based in Texas, has also invested in technology to manage the business as well as to help market it. Two platforms — Toast a cloud-based restaurant management software company, and online marketplace EZCater — fulfill all catering orders, which make up 5 to 10% of Dillas business, with variations depending on the specific restaurant and the dynamics of the surrounding market.

"By expanding our catering services, we aim to increase awareness about Dillas and showcase our unique offerings to a wider audience," Kyle Gordon, owner and co-founder of Dillas, told FastCasual via email. "We have noticed that when people sample our food at office events or group gatherings, they often become patrons of our restaurants."

Although Dillas doesn't have a dedicated catering team, its delivery process ensures that every order is meticulously checked before a shift leader or general manager arrives with the brand's signature "pizza" boxes filled generously with Primo Quesadillas — its most popular menu offering.

"While our goal is to grow catering to represent 10-15% of our overall sales, we recognize that our core focus remains on our individual Primo quesadilla meals," Gordon said. "We continue to focus on optimizing various channels, including drive-thru, dine-in, take-out, online ordering and third-party delivery, to further enhance our brand presence and overall growth."

Managing all those channels is done via the Toast system, which Gordon said facilitates the creation of simple and effective house accounts, allowing his team to track upcoming orders accurately and ensure precise billing.

"While the exact cost may vary depending on specific requirements, the investment in these technologies is justified by enhanced efficiency and improved customer service, allowing us to deliver an excellent experience to our customers," Gordon said.

For smaller catering orders, the standard practice is to drop off the delivery, but for larger events, or upon customer request, the team offers to stay and assist on-site.

"In such cases, we coordinate with our team to guarantee a seamless event execution, including setup and assistance during the event," Gordon said.

Catering is still growing at Dillas, so the company uses a combination of internal and external messaging, leveraging in-store, point-of-purchase displays and active engagement on social media channels to get the word out.

"Recently, we have partnered with marketing agencies to drive direct catering sales and have participated in (tech) platforms to expand our reach," Gordon said. "However, the most effective strategy remains the power of word-of-mouth referrals. We have found that positive word of mouth is our most impactful sales tool."