III. Industry Analysis
[Company Name]directly or indirectly competes with all caterers and food delivery services in a 15 mile radius. Competition will come from caterers, both independent and those associated with a specific hotel or venue, as well as restaurants, delis, and grocery stores offering delivery services. Direct competition will come from companies upscale caterers offering full event support services similar to [Company Name].
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
According to Reference USA, there are over 45,000 catering companies listed in the United States. However, Research and Markets reports:
The catering industry includes 10,000 companies with combined annual revenue of $5 billion. Large companies include Centerplate, Restaurant Associates, and Wolfgang Puck Catering, but no major companies dominate. The catering industry is very highly fragmented: the top 50 companies account for less than 15 percent of industry revenue.
However, this report does not include hotels, restaurants and food service contractors that also cater events.
Research and Markets goes on to report the following:
- “Demand is driven by corporate profits and consumer income. The profitability of individual companies depends on cost controls and effective marketing.”
- “The industry is very labor-intensive: average annual revenue per worker for a typical company is just over $40,000.”
- “Major services include off-premises catering (food prepared away from the premises where its served) and on-premises catering (meals prepared and served at the same location). Off-premises catering represents 45 percent of the market; on-premises, 40 percent. Other services include alcohol sales and facility rentals.”