Banquets on the Rise: A New Strategy for a Slumping F&B Scene
The dining landscape is shifting as restaurants grapple with a downturn in walk-in customers. Across cities facing economic headwinds, many operators are recalibrating their models to lean into catering, event catering, and off-site services. The trend is particularly visible in Singapore, where established brands like Yum Cha—once a primarily dine-in dim sum specialist—have announced formal expansions into catering. This strategic pivot aims to stabilize revenue, optimize kitchen capacity, and diversify streams beyond the traditional restaurant floor.
Why Catering Is Becoming a Must-Have Offer
Several forces are driving the catering shift. First, fluctuating consumer spending means more people seek value through bulk orders for home celebrations, corporate events, and community gatherings. Second, the cost of running a dine-in operation—labor, utilities, and rent—remains high even when footfall wanes. By moving some operations off-site, restaurants can improve gross margins and reach new customers who might not visit the venue otherwise. Lastly, catering introduces predictable demand, helping operators weather seasonal dips and market uncertainty.
From Walk-Ins to Walk-Throughs: Yum Cha’s Timely Pivot
Yum Cha, a 25-year-old brand with two Singapore outlets, publicly signaled its catering ambitions only recently. The chain reported a noticeable decline in walk-in traffic but noted that its catering arm is already showing early signs of success. By packaging dim sum favorites into catering boxes, sharing platters, and corporate lunch bundles, Yum Cha is extending its footprint beyond the storefront while leveraging familiar flavors to attract repeat business.
Operational Adaptations That Make Catering Feasible
Restaurants diving into catering typically adjust in several key areas:
– Menu and packaging: Portions sized for gatherings, recyclable or sustainable packaging, and clear reheating instructions.
– Scheduling: Dedicated catering teams or partners to manage orders, logistics, and on-site staff for events.
– Pricing models: Bundled menus, tiered pricing for large orders, and incentives for recurring corporate clients.
– Marketing and sales: Targeted outreach to businesses, wedding planners, and event venues, supported by social media showcases of previous catering successes.
Financial and Customer Impact
Successful catering programs can improve revenue visibility and cash flow. They help spread fixed costs over a larger order base and can introduce new customers who later visit the restaurant for dine-in experiences or to celebrate milestones with the brand. When done well, catering also protects the brand’s equity by delivering consistent quality, even off-site, which can convert one-time clients into loyal patrons.
What Consumers Gain
For diners, the catering shift often means better access to high-quality cuisine for gatherings, faster take-home options, and new menu configurations tailored for sharing. It also enables more inclusive experiences, from corporate socials to festive family meals, without the pressure of a full-service dining room. In fast-changing markets, consumers benefit from restaurants using data-driven insights to forecast demand and allocate resources effectively.
Looking Ahead: The Long-Term Role of Catering in F&B
While dine-in experiences remain essential to many brands, catering is reshaping competitive dynamics in the hospitality industry. Operators that blend on-site dining with robust off-site services can hedge against volatility and expand brand reach. The Singapore experience with Yum Cha underscores a broader trend: catering is no longer a supplemental revenue channel but a central strategy for resilience and growth in a challenging market.
