How Does ezCater Make Money? Business Model of ezCater

How Does ezCater Make Money

Founded in 2011, ezCater is an online marketplace that connects business professionals with the best restaurants and caterers in their region, allowing companies flexible access to the best food on a day-to-day basis.

The company’s website and mobile app streamline the process between restaurants/caterers and businesses looking to book meals on short notice while also making it easy for caterers to find new clients.

But how does ezCater make money? ezCater operates on a commission-based platform business model, allowing ezCater to earn a 15% commission for each order fulfilled by a caterer on the platform.

Do you want to learn more about the company’s revenue sources? If so, this post is for you. Whether you’re looking to apply for a job there or simply want to know about their business model, you’ll find everything you need right here.

Let’s delve into the details now.

About ezCater

ezCater is the leading online marketplace for business catering. It allows companies to order meals online with ease, while also helping catering companies attract new business.

ezCater’s marketplace model makes it easy for customers to order business meals from its 60,000+ partners. Catering companies can list their offerings on ezCater’s website and reach new customers in-person or online.

For caterers and corporate catering services, meeting today’s demand is not always straightforward, especially with the transition of ordering food and goods online.

With ezCater, it has never been easier for caterers and corporate catering services alike to deliver their foods to wanting customers while simultaneously increasing the revenue they can generate.

Registering as a caterer or as a customer is easy, only requiring a few minutes to get started. ezCater helps caterers find new customers by creating a listing and uploading their menu on ezCater. These are high-value corporate customers or clients who use catering service providers frequently.

Thus, through ezCater, local restaurant owners are able to compete in the growing online ordering business.


Business Model of ezCater

ezCater is a leading marketplace platform of online ordering and catering services for businesses in the US. It redefines the way customers order food for business meetings, events, or company lunches by offering an extensive range of cuisines from the best local restaurants.

The company’s online marketplace connects corporate customers with restaurants for business catering. It charges a 15% commission on each order placed through its platform by corporate customers.

The platform was designed with corporate professionals and caterers/catering services in mind. From corporate board meetings to networking and social events, hiring a catering service requires plenty of research and often travel time to place and pick up orders.

ezCater helps to streamline the process of placing a catering order and having it delivered with their platform’s all-in-one solution. The company’s proprietary technology platform enables it to fulfill orders with speed and accuracy.

It does not sell products but instead provides a virtual platform to advertise and promote catering companies and individual caterers in a specific location, based on a user’s preferences or current need for delivery.

Users of the platform can quickly place their orders from local delis and fast-food restaurants to private catering companies from just about any location.

ezCater generates revenue by receiving a commission for each catering sale they facilitate. Whenever a customer places and completes a catering order via ezCater, the caterer or catering service that has been selected will then pay ezCater a commission fee based on the size and total cost of the order.


Features of ezCater

There are many features of ezCater that make it appealing, especially if you need an ongoing catering service or are interested in expanding the options you have available near you for your next catering order.

If you host plenty of business meetings, conferences, or networking events that require a catering service, ezCater is likely one of the best solutions on the market to date.

Some of the features that ezCater provides to business professionals include:

  • Ability to search for catering services based on your specific location and/or zip code
  • Search options based on budget
  • Search options based on delivery fee
  • Find caterers based on specific cuisines
  • Search for catering providers that provide individual packaging

As a customer of ezCater, it is also possible to earn rewards with each order you place, depending on the caterer or catering service you choose.

ezCater has partnered with various catering services and individual caterers to create a generous rewards program that incentivizes customers to keep coming back for more in the future.

ezCater not only provides plenty of features and advantages for customers who are in the market for a local catering service online but also for caterers themselves.

Benefits of joining ezCater as an individual caterer or even as a catering company are to:

  • Create an online presence for your catering company and/or service through a verified and professional platform such as ezCater, helping to attract new potential customers
  • Develop your professional reputation as a catering business or service provider by expanding your availability through various online apps and platforms such as ezCater
  • Establish yourself as a professional catering service, especially if there is a need for more caterers or catering providers in your local area or region
  • Generate more catering orders by maximizing your online reach and visibility
  • Manage orders as well as sales via a simple management panel upon logging in to your ezCater account
  • Take advantage of 5-star customer support for all ezCater caterers and customers.

Using ezCater is a great way to take advantage of additional operational support in exchange for a commission fee for each sale the caterers generate. Spending less time answering phone calls and working directly with customers individually provides caterers with more time to focus on scaling and growing their business.

In addition to using ezCater to manage orders and maximize your online visibility, you will also receive valuable insights into the overall performance of your catering business with the ezCater platform.

Valuable intelligence provided from ezCater includes what customers are saying about your business, what channels (and competitors) are driving the most orders, as well as various reviews received officially and off the record, based on data collected.

With these insights, caterers can avoid guesswork and hone in on their target audience and the demographics they intend to reach.


Target Audience

Currently, ezCater targets mostly those working in the corporate world and those who order catering services in bulk.

Unlike other similar services such as UberEats and DoorDash, ezCater specifically caters to those interested in placing larger orders, typically starting at anywhere from $50 to more than $100 per order, which is optimal for businesses and corporate gatherings.


Marketing Strategy

ezCater’s marketing strategy is mostly managed strictly online, rather than targeting locals with traditional marketing and direct mail campaigns.

Promoting ezCater via social media marketing and search engine marketing is one of ezCater’s key focuses.



For ezCater, expenses and overhead are minimal in producing goods, storing goods, and managing inventory.

However, funding ezCater’s employees and its platform are still necessary, which is why ezCater charges a commission fee for each order that is placed via the platform itself.

ezCater’s expenses currently come directly from server management, administration fees, as well as web updates, development, and ongoing security and protection services to keep data safe and protected at all times.

Additionally, ezCater also provides customer service to those who place orders via the website, requiring ongoing resources.


How Does ezCater Make Money?

ezCater is an online food-ordering platform designed with caterers and corporate catering in mind.

With ezCater, it has never been easier to order boxed meals for any event. Whether hosting a smaller board meeting or organizing an event with thousands of potential attendees, ezCater delivers. 

Currently, ezCater is not entirely profitable, like most online delivery and ordering service providers. However, once the investments in ezCater are recouped, the company projects plenty of revenue and profits from the commission it receives alone.


Marketing Fees

ezCater generates revenue using a commission-based model for all caterers and corporate catering services who choose to participate on the platform.

For each order placed and received via ezCater, the restaurant and/or caterer themselves pay ezCaterer a 15% commission, helping keep the service active and in use.

Users interested in placing an order with ezCater are not required to pay any fees or additional costs to take advantage of the platform’s features.

Instead, the fee paid directly to ezCater is automatically calculated when placing an order. It is done behind the scenes, providing a completely seamless experience for the customer placing their order.


Credit Card Fees

Payments made to ezCater via credit card incur an additional 2.5% fee.

This covers the cost of processing these payments as well as other costs associated with offering this service. It is an additional source of revenue for the ezCater.


ezCater Funding, Valuation & Revenue

Founded in 2007 out of Boston, Massachusetts, ezCater is one of the largest digital marketplaces geared towards caterers and corporate catering today.

According to Crunchbase, ezCater has raised more than $320 million in funding over 11 rounds in total. The most recent funding for ezCater was in July 2019.

Currently, ezCater has 22 major investors, including both Light Street Capital and GoldenArc Capital. Altogether, ezCater has also acquired two organizations, including Monkey Group, in March of 2019.

According to GrowJo, ezCater has an estimated revenue of approximately $75 million annually.

Additionally, ezCater had an approximate valuation of $1.25B in 2019 when it originally began raising upwards of $150M in funding.


Is ezCater Profitable?

Despite rapid growth, ezCater is still not profitable. ezCater is primarily focused on expanding its market share and growing its brand while striving to provide our wonderful customer service.

Unfortunately, unlike most other “unicorn” startups that have taken over the digital landscape, ezCater is not yet profitable.

However, this does not mean that the service is not profitable, but that it simply needs more time to catch on and recoup any losses it has undertaken so far.

For ezCater to scale and continue growing, they need to make sure that new restaurants are making additional money on every order they fulfill and that existing restaurants continue their profitable relationship with ezCater.

Ultimately, the goal of ezCater is to provide a seamless catering experience by merging traditional services with the digital revolution, which helps to keep caterers and customers happy at all times.


Conclusion: How Does ezCater Make Money?

To sum up, ezCater’s revenue is derived from the marketing fee charged to restaurants/caterers on completed orders. The company doesn’t charge caterers any extra fee for listing their brands and creating menus on the marketplace.

Thanks to the filters, all ezCater customers need to place their order on the platform and find a suitable catering partner. They get multiple quotes from different caterers online without having to call each one individually. This means less time wasted for both customers and businesses.

The catering industry has changed a lot over the years. It’s become very competitive, and there are new challenges to get the job done at every turn.

ezCater recognizes these changes and is clearly executing a strategy to stay relevant in the modern world. We may not know what that strategy is, but we can see their growth and profitability, and it’s clear they’re not throwing money away.

All in all, ezCater has a solid business model and is expanding and continuously getting better.

Thanks for taking the time to read this article. If you think this article was helpful, please share it with your friends on Facebook, Twitter, etc. You can visit their official website ( to know more about them.

And, if you have some experience with this company, it would be great to share that with us via email.

Thanks for visiting, and have a great day ahead!

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