In the full-service, off-premise catering world, the relationship between a caterer and its rental company is often the most crucial vendor connection. Without a credible and competent equipment rental provider, any given event can be put at risk, as well as the reputation of the caterer in charge of that event. Event attendees usually do not know who the rental provider is, so if problems arise such as chipped plates, lipstick-stained glassware or wobbly chairs, the caterer is likely to take the blame.

The structure of the caterer/rental company relationship has evolved greatly over the past three decades, as both industries have participated in the great catering boom. To understand how we got to where we are now, it is helpful to understand the history of both.

Before the beginning of the epic growth of the events market that began in the early 1980s, there were only a limited number of party rental specialists. Most of what were then referred to as "soft goods rental companies" were affiliated with local hardware rental dealers with maybe one corner of a showroom dedicated to a few types of tables and chairs, a limited selection of china, silver and glass, plus some buffet-top items such as chafing dishes, bowls and platters. Some vendors also rented heavy equipment such as grills and ovens, since they were more in-line with the hardware and contractor equipment they already stocked.

As the catering and special event industry began to grow, it quickly became apparent that, with a few exceptions, no catering company could possibly own the variety of event rental products that its customers were demanding. A strong relationship with a well-stocked rental provider became a competitive advantage for many caterers, albeit one that was hard to build a moat around.

There were and are specialist rental companies, particularly linen suppliers, that benefitted from the availability of inexpensive overnight parcel delivery services. More recently, many caterers have also started working with furniture rental companies that supply not only special events but also movie/TV/commercial productions.

The corporate profile of the rental industry has evolved substantially in the past three decades as well. Of the limited number of independent party rental specialists predating the boom in the early 1980s, only a few remain, the largest likely being Hall's Rental in the Chicago area. The two largest U.S. rental companies overall are Classic Party Rentals, a consolidator of independent rental companies, which serves a great deal of the country through its various outlets, and Party Rental Ltd. in New Jersey, which serves the massive northeast U.S. market from several locations.

Other evolutionary changes have occurred in the caterer/rental company relationship over the past couple of decades. Among these, several of the large rental houses only deal with caterers and venues, not with the end user. This "to-the-trade-only" relationship benefits designers and other professionals, and most caterers that have this type of relationship available appreciate it, since without a retail price point comparison, the caterer may be able to extract more of a markup on rentals.

Another change has been the rental companies offering setup and breakdown services for a fee, allowing caterers to keep their staff away from the heavy lifting required for setup, which, in turn, keeps the front-of-house staff neat and presentable.

Most off-premise caterers in the higher reaches of the market tend to use rental companies for some, but not all, of their equipment needs. Some caterers made the decision to own signature items such as buffet-top pieces that they had custom made or sourced from nonstandard purveyors. Others decided to own a standard selection of china/flatware/glass and use the rental companies for upgrades. There are even a few huge caterers that operate their own rental businesses, either on a captive basis to serve their own events or offering their rental services to competitive caterers or retail clients.

In the large markets around the country, the total equipment rental cost to the caterer for an off-premise event can often exceed the cost of food and beverage combined. Other than labor, rentals are frequently the largest expense for caterers, so all the more reason to have a solid relationship with a reliable rental company.

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