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Build, don't upgrade.  I found 3 catering facilities produced enough to keep up with my flying needs.  Depending on your fleet and flying, you may need more.  Build what it takes to keep your planes flying, no more.  After you 3 star these destinations, the catering is no longer needed (except for events) and you'll stock pile plenty.

As Davescharf said, once you get your catering in order, build the blanket factory to get ready for the next phase.