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Corporate Catering Franchise

A South Carolina franchise of a national corporate catering brand, making scratch-baked boxed lunches and catering for a repeat business client base.

Business Highlights

  • Franchise of a national corporate catering brand with an established local customer base
  • Built-in repeat B2B client base rather than one-off consumer orders
  • Five employees working from a dedicated food preparation facility
  • Daily scratch baking including breads and cookies
  • Online ordering with pickup and delivery

Considerations / Questions to Ask

  • Margins are thin relative to revenue. Where is the cost concentrated, and what would a hands-on operator change?
  • What are the franchise terms, royalty and remaining agreement length?
  • How concentrated is revenue among the largest corporate accounts?
  • Corporate catering follows the working week and office attendance. How has demand tracked hybrid working?
  • What are the lease terms on the preparation facility?

Opportunities

  • The listing itself identifies margin improvement as available to a hands-on operator, which suggests it is being run at arm's length today
  • B2B catering repeats on a weekly or monthly cycle once an account is won
  • Scratch baking is a differentiator against boxed-lunch competitors buying in
  • The franchise platform supplies playbooks that an independent operator would have to build