Pricing catering jobs is like choosing the right cooking method - you need the approach that fits your ingredients. You've got three main options: per person, per hour, or per project. Pick wrong, and you'll watch your profits evaporate faster than water in a hot pan.
The three billing methods
Before you choose, you need to understand what each method involves and when they make sense.
💡 Example: Corporate lunch for 50 people
Same job, different methods:
- Per person: €15.00 × 50 = €750
- Per hour: €75/hour × 8 hours = €600
- Per project: fixed price €850
Which is best? That depends on your costs.
Calculate your costs per method
For each method, you need to account for different costs. First, create a cost overview:
- Ingredients: food cost per person
- Labor: hours for prep + execution
- Transport: fuel, time, wear and tear
- Materials: dishes, warming equipment, tables
- Overhead: portion of your fixed costs
💡 Example: Cost overview corporate lunch
- Ingredients: €6.50 per person × 50 = €325
- Labor: 8 hours × €25/hour = €200
- Transport: €40 round trip
- Materials: €50 (dishes, warming equipment)
- Overhead: 15% of total = €92
Total costs: €707
Per person pricing works best for food-heavy events
Per person works best when food cost makes up the largest part of your expenses. Think buffets, barbecues, or lunch arrangements.
- Advantage: costs scale automatically with number of guests
- Advantage: easy to communicate to the client
- Disadvantage: transport and setup costs stay the same for 20 or 200 people
⚠️ Note:
Always calculate a minimum price. Otherwise you'll lose money on small groups due to fixed costs like transport.
Hourly rates shine for service-heavy jobs
Per hour makes sense if you spend lots of time on prep or if the client expects extensive service. After managing kitchen operations for nearly a decade, I've learned this works perfectly for walking dinners or events where you stay for extended periods.
- Advantage: extra time gets automatically compensated
- Advantage: prevents discussion about "just a little extra"
- Disadvantage: client doesn't know exactly what it'll cost upfront
- Disadvantage: hard to compare with competitors
💡 Example: When hourly rate makes sense
Reception with unknown number of guests:
- Setup: 2 hours × €75 = €150
- Service: 4 hours × €75 = €300
- Breakdown: 1 hour × €75 = €75
- Plus ingredients: €8 per person
With varying guest numbers, you have certainty about your time compensation.
Project pricing for premium and complex events
You use a project price for complex jobs or when you want to charge a premium for your expertise. Think themed events or exclusive dinners.
- Advantage: client knows exactly what it'll cost
- Advantage: you can reward efficiency (finish faster = more profit)
- Disadvantage: if you underestimate, you lose money
- Disadvantage: extra requests are hard to add
The break-even calculation
For each method, you calculate: minimum price = total costs + desired profit
💡 Example: Break-even comparison
Costs: €707, desired profit: 25% (€177)
- Per person: (€707 + €177) ÷ 50 = €17.68 per person
- Per hour: (€707 + €177) ÷ 8 = €110.50 per hour
- Per project: €707 + €177 = €884 total
Now you can compare with your standard rates.
Combination of methods
Often a combination is smartest. For example: base price per person + hourly rate for extra service.
- "€12 per person + €60/hour for service"
- "€500 project price up to 40 people, above that €8 per extra person"
- "€15 per person, minimum 30 people"
⚠️ Note:
Make agreements about changes clear upfront. "More than 10% extra guests = new calculation" prevents disputes.
How do you choose the best billing method? (step by step)
Calculate all costs
Make a list of ingredients, labor, transport, materials, and overhead. Add everything up for the total costs of the job.
Determine your desired profit margin
For catering, 20-30% profit is standard. Add this to your costs for the minimum selling price you need.
Calculate all three methods
Divide your minimum selling price by number of people, hours, and compare with a project price. Choose the method that best fits the type of job.
✨ Pro tip
Track which pricing method you used for each of your last 15 catering jobs and compare your actual profit margins. You'll quickly spot patterns showing which approach consistently delivers the highest returns for different event types.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What's a reasonable profit margin for catering?
For catering, 20-30% profit margin is standard. For complex jobs or premium service, you can ask for 35-40%. High-end events with specialized skills can command even higher margins.
How do I factor transport and setup into my price?
Calculate your time (round trip + loading/unloading) × your hourly rate, plus fuel costs. Divide this by the number of people or charge it separately as a delivery fee.
Should I charge differently for weekends vs weekdays?
Yes, weekend rates are typically 15-25% higher due to increased demand and staff overtime costs. Holiday rates can be 30-50% higher than standard weekday pricing.
What do I do if the client wants to negotiate the price?
Show what's in your price: ingredients, time, service. You can remove services, but never go below your cost price. Offer alternatives like simplified menus instead of discounts.
How do I handle last-minute guest count changes?
Set a deadline for final numbers (usually 48-72 hours before the event). Charge full price for increases after this deadline, and only refund decreases above 10% of original count.
Do I need to list VAT separately for catering?
Yes, catering falls under 9% VAT. Always specify whether your price is inclusive or exclusive of VAT to prevent confusion and ensure accurate invoicing.
When should I ask for a deposit?
For jobs over €500, ask for 50% deposit. This covers your purchasing costs and prevents you from being left empty-handed in case of cancellation.
📚 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.
Selling food? Then you need KitchenNmbrs
Whether you run a restaurant, food truck, catering company, or meal kit business — you need to know what each dish costs. KitchenNmbrs gives you that insight. Start your free trial.
Start free trial →