Most caterers think all-inclusive pricing is straightforward – but that's where the money gets lost. A 'fixed daily rate' of €50 per person sounds profitable until you realize you're barely breaking even. The reality? You need to track every cost component to know if you're actually making money.
What's included in 'all-inclusive'?
All-inclusive catering means one price covers everything. But that 'everything' breaks down into distinct cost buckets you must calculate:
- Food costs: ingredients for all courses
- Beverage costs: if drinks are included
- Staff: chefs, servers, dishwashing on-site
- Transport: delivery of food and materials
- Materials: plates, glasses, cutlery (if not provided)
- Overhead: preparation, administration, contingency
💡 Example all-inclusive wedding:
80 guests, €65 per person = €5,200 total
- Food (3 courses): €28 per person = €2,240
- Beverages (5 hours): €12 per person = €960
- Staff (8 hours, 4 people): €1,200
- Transport and materials: €300
- Overhead and profit: €500
Total costs: €5,200 - €500 = €4,700
Margin: €500 / €5,200 = 9.6%
The hidden costs you often forget
Catering has expenses you'll never face in regular restaurant service:
- Extra prep time: everything needs to be ready in advance
- Transport risk: what if the van breaks down?
- Location uncertainties: no kitchen, limited facilities
- Timing stress: everything needs to be ready at the same moment
- No-show risk: you prep for 100, only 85 show up
⚠️ Heads up:
Always add 5-10% extra costs for unforeseen issues. Catering events go sideways more often than in-house dining.
Formula for catering margin
The margin formula for all-inclusive catering differs from individual dish calculations:
Margin % = ((Total contract - Total costs) / Total contract) × 100
Total costs include:
- Food costs (ingredients only)
- Beverage costs (if included)
- Staff costs on-site
- Transport and material costs
- Overhead percentage (usually 8-12%)
💡 Example calculation:
Contract: 50 guests × €45 = €2,250
- Food: €18 per person = €900
- Staff: 2 people × 6 hours × €20 = €240
- Transport: €80
- Overhead (10%): €225
Total costs: €1,445
Margin: (€2,250 - €1,445) / €2,250 × 100 = 35.8%
Minimum margins for healthy catering
Catering requires higher margins than restaurant service because of increased risks. Here's a pattern we see repeatedly in restaurant financials:
- Minimum 25%: to cover risks
- Healthy: 30-40%: for growth and buffer
- Below 20%: too risky, unless high volumes
If your margin drops below 25%, you've got three choices: raise the price, cut costs, or walk away from the job.
Digitally tracking catering costs
With multiple cost categories per event, manual tracking becomes messy fast. Systems help you:
- Set standard catering menus with fixed costs
- Calculate staff costs per event
- See total margin per job
- Compare profitable vs. loss-making events
After each event you'll know exactly what you earned, and you can adjust pricing for future bookings.
How do you calculate the margin of an all-inclusive catering contract?
Calculate all food costs per person
Add up all ingredients for the complete menu (appetizer, main course, dessert, bread, butter, etc.). Work out what this costs per person, including 5% extra for waste.
Add up all extra costs
Calculate: staff costs on-site, transport, any materials (plates/glasses), and overhead percentage (usually 8-12% of the total contract).
Calculate the margin using the formula
Margin % = ((Contract amount - Total costs) / Contract amount) × 100. If you come in below 25%, the risk is too high for catering.
✨ Pro tip
Set your minimum guest guarantee at 72 hours before the event. This gives you enough time to adjust portions without wasting prep costs on no-shows.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What margin is normal for all-inclusive catering?
A healthy margin for catering runs 30-40%. Below 25% gets risky because of unexpected costs and advance preparation requirements.
How do I calculate staff costs for catering?
Calculate hours × people × hourly rate, plus travel time. For a 6-hour event, budget 8 hours per person to cover prep and cleanup.
What if fewer guests show up than expected?
Always set a minimum guest count in your contract. You can't prepare for 100 people and get paid for 80. Build this buffer into your pricing upfront.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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