Catering Success: First Steps

BY ED AVIS

➤ Catering is an essential component of business for many Mexican restaurants. Those that cater earn an average of 29 percent of their income from that service, according to a January 2023 el Restaurante survey. And about half of the survey respondents reported growth in catering income over the past year; for 10 percent of them, it grew by more than 50 percent.

“Catering is a must to keep hitting the big numbers,” says John Mayes, vice president of operations and pastor at El Toro Mexican Restaurant, which has six locations in Texas. “To me it is the easiest way to grow your business and be more profitable.”

Carlos Rodriguez, owner of La Cazuela in Atlanta, explains the value of catering specifically: “The key for me and other caterers in Mexican food is that you run an operation that is

How can you make sure your restaurant is maximizing its catering revenue?

We reached out to Mexican restaurant owners and managers who have extensive catering experience to discuss the steps they’ve taken, lessons they’ve learned, and advice they now have for anyone interested in building a successful operation.

Getting Started

Catering is a natural extension of business for most Mexican restaurants that offer the service. They have customers who love their food, and eventually someone asks for a large order to be delivered for a birthday party or similar event. The catering business is born.

But a little planning can make catering a more significant part of the business. That planning involves deciding which menu items are ideal for catering; how much to charge; how to accommodate related inventory and staff needs; and how to promote the business.

What’s on the Menu?

Fajitas and taco and nacho bars are the most popular catered items Mexican restaurants offer, according to the el Restaurante catering survey. That makes sense because when the ingredients for fajitas, tacos and nachos are kept separate and hot, they stay fresh. And many customers love assembling their own meals from those ingredients.

“Ninety-nine percent of the time our catering customers want mixed fajitas,” says Tom Darmstadter II, managing partner of Pablo’s Mexican Kitchen in Richmond, Texas.

That doesn’t mean other items aren’t feasible. What matters is that the items can be delivered hot and fresh and are able to remain that way for the duration of the service.

Rene Miranda, manager of Los Chamacos Mexican Cuisine in Arlington, Virginia, says finger foods such as miniburritos, fried taquitos, mini-chimichangas, and gorditas are among Los Chamacos’ most popular catering items. The smaller size of these items makes them ideal for customers who want food for a casual party or other event in which attendees are walking around and socializing. And the size and texture of such items help them stay hot and flavorful during service.

Some other bits of menu advice:

• Make sure your catering menu reflects the quality of your regular menu. Every catering event exposes your restaurant to potential new customers, so don’t skimp on the quality of ingredients just because it’s a large, off-premise order.

• Include some items that are less expensive but still filling Enchiladas are one example. Clients on a budget who have to satisfy big eaters will appreciate the options. Recommend these items if the customer balks at your initial price quote.

• Be prepared to customize. If you are catering for a group not accustomed to your spicy salsa, for example, offer a mild alternative.

How Much to Charge?

Once you determine what menu items will successfully transfer to a catering menu, pricing comes into play. Your food costs likely will be the same as they are for your in-house dishes, but your labor costs probably will be less because individual items won’t have to be plated in the kitchen.

el Restaurante’s analysis of menus from 45 Mexican restaurants revealed how those businesses charge for catering:

• Per person (33 percent of the menus)

• Per tray, per pan, or per pound of food (20 percent)

• Package deal a full meal for a set number of people (16 percent)

• By individual item (4 percent)

• A combination of the above (27 percent)

As a practical matter, many restaurant owners base their catering prices on their regular menu prices. Often, but not always, the costs of catering are lower than the cost of in-restaurant service, so the catering menu costs are adjusted down.

What about service costs? Naturally, what you charge for service depends on what your customer wants. The majority of catering from a Mexican restaurant is buffet style, and that means the only service required is to deliver the food, set up the chafing dishes and the rest of the buffet line, and clean up.

Prices for delivery and service vary widely, according to our catering menu analysis:

• The most common delivery charge is $35, but many offer free delivery and some charge as much as $250. In some cases that includes set-up; in other cases, it’s just delivery.

• Five of the 45 menus analyzed specified a percentage service charge that ranged from 10 percent to 25 percent of the food cost. It was not clear from the menus what exactly that charge covered, but typically a service charge would mean some staff remain and help during the event.

• Three of the menus specified an hourly service charge if the customer asked for someone to be on-site. The lowest was $20 per hour and the highest was $45 per hour, per staffer.

Tipping is very common, so even if you don’t charge a service fee, your staff likely will be compensated, even if they don’t stay to help serve food.