Will Catering Menu Prices Increase due to Covid-19?

The ongoing Covid-19 pandemic has caused global disruptions. To prevent the spread of the infection, people are advised to limit their social interactions and stay at home as much as possible. This shift in behavior, uncertain job market, and precautions are taken as a result of the pandemic have altered the consumption patterns of customers. In this post, Captain Joe looks at how Covid-19 has impacted menu pricing and affected catering in Gurgaon.

How has Covid-19 impacted the Catering Industry?

Covid-19 brought the entire catering industry to an abrupt halt. Generally, customers search for "caterers near me" and book their preferred caterer for summer events. This year, caterers across the country witnessed one of the slowest summer seasons in recent history. The catering industry is one of the top sectors impacted by the financial blow of the Covid-19 pandemic.

Businesses were shut down for months, and social gatherings were halted for months on end. Despite these unprecedented challenges, caterers in Gurgaon have transitioned their business models to weather the difficulties of Covid-19.

We saw several innovative ideas by caterers in the last few months – drop-off catering services to reduce the chances of infection, individually packed meal boxes for events, etc. Even though caterers came up with creative solutions to power their business during these challenging times, they have been significantly impacted by the loss of income over the last couple of months.

As caterers continue to reopen safely and with due precautions, the biggest question on our customers' minds is: will this affect menu pricing in the future? Let's tackle this pressing question in this post.

Two Major Challenges Faced by Caterers amidst the Coronavirus Pandemic

Shortages of Fresh Produce

The catering industry has been primarily affected by the food and product shortages since mid-March. Prices on meat supplies have almost doubled, and it isn't easy to procure fresh produce in large amounts.

As a result, groceries, fresh produce, and other essential ingredients have spiked significantly. Even though the lockdown has been lifted, there are additional restrictions still in place. As a result, experts in the industry predict that prices of commodities will continue to go up for the rest of the year.

Health and Safety Precautions

Besides the high pricing of goods, caters have to deal with another significant challenge – increased health and safety practices. Social distancing guidelines have to adhere to the workplace. As a result, the majority of caterers are working with a lean team, reducing productivity levels. Additionally, caterers have to invest heavily in procuring quality PPE and safety gear for all staff – kitchen workers, delivery personnel, and serving staff.

As a result, the majority of caterers will add a Covid-19 surcharge to their pricing. This will include the costs of masks, sanitizers, gloves, hairnets, etc. for staff. In the long term, these additional costs will have to be borne by clients and not just catering companies.

Will Catering Menu Pricing Increase in the Coming Months?

Catering has always been a seasonal business, and experienced caterers are accustomed to its ups and downs. However, these small ups and downs come nowhere close to the losses caterers have incurred since the onset of Covid-19. With no events, caterers have been forced to adapt and diversify our business offerings to include – delivery only meal catering, boxed lunches, and more as a short-term solution. These services are like a band-aid on the more significant challenge faced by us – rapidly decreasing funds.

So, answering the bigger question – will the catering menu pricing increase going forward? No one answer fits all caterers. It depends on individual catering companies. While some caterers are charging a rebooking fee for clients who postpone their events, others offer free rebooking to win customer confidence. Similarly, some caterers are increasing their menu prices by a fixed percentage to offset the increased costs of fresh produce. It all depends on the situations prevailing in individual markets.

To remain sustainable in the long run, caterers will be forced to strike a delicate balance between increasing their menu pricing while avoiding overcharging customers.

At Captain Joe, the best catering in Gurgaon, we have decided not to increase our menu pricing. We believe that we must honor the commitment made to our clients. Hence, we are currently working on the budget and price we have previously quoted to our clients. To know more about our pricing for events, you can enquire online or get in touch with our team.