Catering Service Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location and nature of the business play a vital factor in analyzing the rate benchmarking of the catering service category. For example, catering services in the U.S. are typically more expensive than services in India. Living expenses are higher in the US than those in India because of the increased cost of food, labor, and other factors, catering services may become more expensive. In general, ingredients in the US are of a higher quality than those from India. This is due to strict food safety laws and the developed agricultural sector in the United States. As a result, American catering businesses employ higher-quality ingredients, which may result in more expensive costs. The level of service is generally higher in theUS than in India. This is because catering companies in the US have more experience and expertise, and they are able to provide a higher level of personalized service. The cost of catering is higher in the UK than it is in China. The greater cost of living in the UK, the higher wages for catering personnel, and the higher price of food ingredients are a few reasons for this. In China, catering cost is often calculated per person or per table. Depending on the kind of event, the number of visitors, the menu, and the degree of service, the cost will change.

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Labor Cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, chefs at Ann Sather, and Aria Catering receive a 20% - 25% higher base salary compared to the salary received by chefs working in companies such as Aramark Corporation and AVI Food Systems. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face, and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings. Our research on the catering services market has identified the following developments:

In February 2021, DoorDash, a U.S.-based online food ordering, and food delivery platform, acquired an automated food preparation company called Chowbotics. This acquisition will help DoorDash expand its current menu offerings as well as reach new customers in new markets without investing in an entirely new store.

In October 2020, Westbury Street Holdings (WSH), the company behind a number of foodservice brands operating in the U.K. and Europe, completed the acquisition of bartlett mitchell. With this acquisition, WSH strengthened its presence across Europe.