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Ever tried hosting a holiday party without catering? It’s like trying to build Ikea furniture without instructions—stressful, chaotic, and someone always ends up hungry.

As the holiday season jingles into full swing, the U.S. catering industry is serving up more cheer than Santa's elves on double shifts. From corporate blowouts to family feasts, caterers are the unsung heroes making sure no one goes without their share of eggnog and perfectly bite-sized hors d'oeuvres.

But catering is more than just food—it's about creating seamless, memorable experiences. Whether it’s a Tuesday office lunch or a Saturday wedding extravaganza, the demand for personalized, hassle-free dining has turned catering into a multi-billion dollar business. So, if you’re considering a slice of this profitable pie, now might be the perfect time to grab a plate.

INDUSTRY BREAKDOWN

Feasting on Opportunity: The U.S. Catering Industry's Holiday High 🧑‍🍳

So what’s the difference between a catering company and a restaurant, anyways? Well, as much as you may be good at ordering takeout with the click of a button, catering companies are more than just the food—they’re about the ✨experience✨. They typically provide dinnerware, glasses, serving dishes, servers, setup, and tear down, all so that you don’t have to lift a finger!

The U.S. catering services market is experiencing a robust expansion. Valued at approximately $60.4 billion in 2022, it's projected to reach $109.41 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.7% from 2023 to 2030. This growth is driven by a resurgence in corporate events and an increasing demand for personalized dining experiences.

The holiday season amplifies this demand, with companies and individuals seeking to host memorable gatherings without the hassle of meal preparation. Caterers are stepping up to the plate, offering diverse menus and services that cater to a wide range of tastes and dietary preferences.

Industry Trends

The catering industry isn’t just about trays of food anymore—it’s evolving to meet the changing tastes and expectations of modern clients. As businesses bounce back, events get bigger, and consumers demand more personalization, caterers are finding new ways to stand out. From tech upgrades to menu innovation, here’s what’s cooking in the world of catering.

• Corporate Events Making a Comeback: After a hiatus, corporate gatherings are returning, with 48% of caterers reporting corporate events as their largest area of growth. 

• Technological Integration: Catering companies are embracing technology to streamline operations, from online ordering systems to advanced kitchen equipment, enhancing efficiency and customer experience.

• Diverse and Inclusive Menus: There's a growing emphasis on accommodating various dietary needs, including vegan, gluten-free, and culturally specific cuisines, reflecting the diverse palates of today's consumers.

The Finances

Catering isn’t just about workplace lunches or seasonal holiday parties—it’s a year-round business fueled by a variety of events. Weddings, birthday celebrations, baby showers, and corporate functions all need one thing: food that keeps the guests happy and the host stress-free.

While corporate catering remains a significant driver of growth (almost 80% of companies order catering at least once a month), event catering has taken center stage as companies and individuals seek memorable experiences with great food at their core. Corporate events, including office parties and team gatherings, were reported as the largest growth area by 48% of caterers.

Event-based catering is consistently growing alongside workplace orders, proving this industry is more versatile than many realize. And with 70% of catering orders occurring during off-peak business hours, caterers are maximizing their capacity to serve multiple client bases—from Tuesday office lunches to Saturday wedding banquets.

For buyers, the key takeaway is this: catering businesses aren’t bound to one revenue stream. Diversified demand means opportunity, with year-round events driving consistent, scalable growth.

Buy or Bust?

If you’re looking for a business that thrives beyond the holiday rush, catering might just be your golden ticket. With corporate events roaring back, weddings bigger than ever, and demand for personalized, stress-free experiences at an all-time high, this industry isn’t just a seasonal fling—it’s a year-round revenue machine.

Catering businesses have proven their versatility, serving everything from Tuesday office lunches to Saturday night wedding feasts. With 48% of caterers reporting corporate events as their largest growth area and nearly 70% of orders occurring during off-peak hours, smart operators are squeezing every ounce of value out of their calendars. Combine that with the rise of tech-driven operations and inclusive, on-trend menus, and you’ve got a recipe for sustainable growth.

The bottom line? Buy. With its steady expansion, diversified income sources, and growing demand for unique dining experiences, catering is more than just a side dish—it’s a main course for any savvy business buyer.

Check out these Catering Companies for sale:

1. Award Winning 25 Year Old Catering Company with Established Clients in Carrollton, GA - $800,000

2. Multi-Division Catering Business w/Recurring Revenue in Orange County, CA - $2,795,000

3. Event & Production Catering Company in Southern California - $8,250,000

Interested in a particular industry? Reply to this email with the industry you are curious about and keep your eyes peeled in upcoming issues. 👀 

DEAL REVIEW

Well Established Catering Company 🧑‍🍳

This business is a premium caterer and event creator for some of the largest and most prestigious events in South Florida.

Deal Facts 🔥

Green Flags 🟢

• Established Reputation (40+ Years): With over four decades of operation, the business has a trusted brand and a strong track record, making it a reliable investment with proven success.

• Diverse Revenue Streams: The business offers multiple income channels, including on-site and off-site catering, private events, cooking lessons, and summer camps, reducing risk and creating consistent revenue opportunities.

• State-of-the-Art Facilities: The 19,000 sq ft banquet facility, featuring two unique event spaces (Cypress Room and Safari Room), allows the business to host a variety of events, providing a competitive edge.

• Growth Opportunities: There is significant room for expansion by leveraging the business’s reputation, increasing marketing efforts, and better utilizing the unique venue spaces during peak and off-peak times.

• Owner Financing Available: The seller's willingness to consider owner financing makes the deal more accessible and attractive for buyers who may need flexible terms.

Red Flags 🔴

• Dependence on Owner Expertise: The owner's long-term experience and industry knowledge may be difficult to replace, and the business could rely heavily on their relationships and expertise.

• Seasonal Revenue Fluctuations: While the busy season offers strong revenue opportunities, catering businesses can face slower periods, particularly in off-seasons or during economic downturns.

• Competition in the Market: The South Florida catering industry is highly competitive, and standing out requires constant marketing, innovation, and exceptional service.

• Operational Complexity: Managing both on-site and off-site catering, private events, and additional offerings like cooking classes requires well-coordinated operations, which could pose a challenge for an inexperienced buyer.

Possible deal structure: For any event company you will want to hedge against the risk of seasonal fluctuations. Consider 50% cash at closing (using a combination of down payment and SBA financing) and 50% in seller financing paid out over 5-6 years. To mitigate risk, tie part of the seller financing to performance metrics or an earnout, ensuring the business delivers consistent cash flow post-acquisition.

Watch Our Video Breakdown

For a more in-depth analysis, check out this video deep dive of the deal by our Founder, Morgan Tate:

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

SPONSORED

Hey Mainstreet Memo-ers (yikes) 👋 

This is Morgan Tate, one of the writers of Mainstreet Memo.

Do you hate the concept of work-life balance? 

If you’re an entrepreneur, you probably do. Heck, I launched 4 companies in the past 2 years—I’m about as balanced as a peg-legged pirate 🏴‍☠️.

And yet, I’ve built 4 companies and set a personal record in my 10K run this year. Curious how I pull it off?

Subscribe to my FREE newsletter here or read on morgantate.com

TWEET HIGHLIGHT

It’s the season of giving, and nothing says “holiday spirit” like socks that make a statement and a difference. Hats off (or should we say socks off?) to Outway for proving that small businesses can make a big impact—on customers, communities, and causes that matter.

For business buyers and entrepreneurs, this is a reminder: the businesses you build or buy can be more than just profitable. They can be purposeful. Whether it’s through donating proceeds, creating local jobs, or simply offering a product that people love, small businesses are the heart of their communities.

So, as you plan your next acquisition or venture in 2025, ask yourself: what impact do you want to make? 💡🧦

GOOD READS

Recommended Resources 📚

Below is a list of articles, books, and other resource we recommend for buyers or operators of small businesses!

1. This BDC study provides an outlook on the Canadian M&A market, highlighting how business acquisitions can serve as a strategic growth avenue for companies.

2. DealRoom provides an 8-step guide detailing the business acquisition process, from developing an acquisition strategy to closing the deal, tailored for the U.S. market.

3. While us Canadians are happy about the GST tax break, what does that mean for small businesses?

THANK YOU

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