Traditionally, the catering business has been viewed very differently from the restaurant business. Despite being two sides of the same coin, their business dynamics and operational blueprints are distinct. However, generating additional revenue has become the new norm across various industries and professions. Just as hotels have recognized the importance of ancillary revenue and identified different areas that can generate income beyond room bookings, restaurant and cloud kitchen owners are also keen to capitalize on every opportunity. Catering has emerged as a valuable solution. Many restaurants and cloud kitchen brands have launched sub-brands specifically dedicated to the catering business.

Taking cues from the Ambani wedding party, The Blue Poppy and Sienna were a part of the extraordinary pre-wedding culinary delights. At the after-party, The Blue Poppy served momos and Tibetan cuisine delights, while Sienna represented the state’s flavors beautifully and curated special dishes. Many cloud kitchens and traditional restaurants in India have identified catering as a significant ancillary revenue stream. Catering allows these businesses to utilize their kitchen infrastructure more efficiently, especially during off-peak hours, and reach a broader customer base. Restaurants and cafes have been seen venturing into stalls and catering in high end and luxurious weddings, but brands like Biryani By Kilo have opened gates for all. 

Jasbaa by Biryani By Kilo has entered into a full fledged catering services offering traditional Indian cuisine in a catering setup, ideal for small as well as large scale events and celebrations. Leveraging its extensive kitchen network, Rebel Foods has also ventured into catering services for corporate events, weddings, and private parties. This move enables them to offer customized and large-scale food delivery solutions while maintaining their high standards of quality and service.

Market Potential and Revenue Impact

The catering market in India is growing, driven by the increasing demand for event-specific, corporate, and private catering services. According to industry reports, the domestic cloud kitchen market is projected to grow significantly, with annual revenues expected to rise as more people choose online food delivery options.

Catering has become a vital part of the revenue strategy for many cloud kitchens and traditional restaurants. By diversifying into catering, these businesses can mitigate risks associated with fluctuating dine-in customer volumes and capitalize on the growing market for off-premise dining experiences. This diversification not only enhances revenue but also strengthens the brand's market presence and resilience against economic downturns.

Catering Collective, a key division of K Hospitality established in 2004 with its first venue, Blue Sea in Worli, Mumbai, now manages six venues—five in Mumbai and one in Delhi. The company has also excelled in catering, handling numerous high-profile events and weddings both in India and abroad over the past 20 years, including the recent pre-wedding gala of the Ambanis in Jamnagar, Gujarat. Additionally, Catering Collective is the preferred empaneled caterer for various venues, stadiums, and clubs, enjoying the first right of refusal.

“Catering Collective takes a venue-led approach to open more premium and luxury venues across the country. We are in talks with partners across different cities. Hyderabad is on the anvil. We have also identified some venues in Delhi NCR. Thereafter, we're looking at Ahmedabad, Kolkata and Chandigarh,” informs Arindam Chakraborty, COO of Catering Collective, a division of K Hospitality in an interview. 

The Role of Technology in Catering Services

The future of catering lies in the effective use of technology. Digital platforms and social media play a crucial role in marketing catering services, showcasing high-quality images of food and events, and engaging with potential clients. Cloud kitchens utilize these platforms to build their brand’s reputation and attract new customers.

Technological innovations such as AI and machine learning are also being used to offer personalized catering services. For example, AI-powered tools can help customize menus to meet specific dietary needs and preferences, while advanced delivery systems ensure timely and efficient service

CaterNinja, India’s pioneering digital catering brand, is transforming the food service industry with AI-driven customization, seamless technology integration, and bespoke culinary experiences. “From a kid’s birthday party to a soiree party or a small pooja ceremony to pre-wedding functions, CaterNinja has offerings for all occasions for all gathering sizes. CaterNinja has provided its patrons the true power of choice, where they can customize the quantity of each item on the menu and eliminate food wastage through extensive assistance of technology and AI to predict food consumption,” Anup Agarwal, CEO, CaterNinja commented. 

Zomato Gives Importance to Catering

Zomato plans to enter the catering business to handle larger orders by leveraging its existing restaurant network. This move is part of a broader strategy to expand its market share. Zomato introduced a multi-cart option, enabling users to order from multiple restaurants simultaneously. The company aims to create more occasions for customers to order food, associating celebrations with Zomato's services. The company is aiming to build “occasions” for customers to order more. Zomato will aim to address a large base of occasional orderers and low-frequency orderers, by making them associate celebrations and joyous occasions with Zomato and food delivery. That is the vector that the company will be working on.

Cloud Kitchens: A New Frontier for Catering and Bulk Orders

Cloud kitchens eliminate the need for expensive real estate and front-of-house staff. According to RedSeer Consulting, the cloud kitchen market in India is expected to grow from $400 million in 2019 to $2 billion by 2024. This growth is driven by rising demand for online food delivery, increased smartphone usage, and changing consumer preferences towards convenience and variety.

Cloud kitchens offer significant cost advantages over traditional brick-and-mortar restaurants. They require lower capital expenditure and operational costs since they do not need prime locations, elaborate interiors, or extensive staff. This model allows for higher profit margins and greater flexibility in testing new markets and menu concepts.

In addition, cloud kitchens can be a great place for catering businesses or handling bulk orders. Using their base kitchens for catering, businesses can efficiently manage large-scale cooking and delivery operations. This dual-purpose approach maximizes the utility of the kitchen space and resources, providing a robust solution for various food service needs.

Scotchie Kandhari, owner of Boraan Thai Kitchen realizes the importance of  catering into adding up revenue. The cloud kitchen now actively takes up bulk orders for parties, get-togethers and small celebrations and events. “We do get good amount of bulk orders, it's more feasible as well because you have time in advance and operationally you perform better,” she adds. 

Multi Level Marketing Strategy

Implementing a multi-level marketing strategy can significantly enhance the reach and impact of catering businesses by leveraging multiple channels and platforms. Digital marketing and social media platforms like Instagram, Facebook, and LinkedIn are essential for showcasing events, customer testimonials, and high-quality images of dishes, attracting a broader audience and generating leads. Partnerships with event planners, wedding coordinators, and corporate event organizers can offer bundled services, while collaborations with popular influencers and food bloggers amplify reach and build credibility. 

Customer referral programs that incentivize existing clients to refer new customers, along with email marketing campaigns to inform clients about new menu offerings, special deals, and upcoming events, improve engagement and retention. Optimizing the business website for search engines and maintaining a blog with catering tips, recipes, and event highlights drive traffic and visibility. Local advertising through community events, local newspapers, radio, and participation in local food festivals and fairs provide direct access to potential customers and enhance brand awareness. By integrating these marketing channels, catering businesses can effectively reach a wider audience, enhance customer engagement, and drive significant revenue growth.