Small catering gigs seem like easy money – until you crunch the numbers. Most operators discover they've barely broken even after factoring in hidden costs. A straightforward breakeven analysis prevents you from chasing unprofitable work.
What makes catering different from restaurant?
Catering brings hidden costs that aren't immediately obvious:
- Transport and fuel
- Extra packaging (warming trays, cutlery, napkins)
- Time for setup and breakdown on location
- Risk of no-shows (you've already purchased and prepared)
These expenses must be built into your pricing, or you'll earn far less than expected.
⚠️ Watch out:
Many operators calculate only food costs and ignore transport plus extra labor. The job appears profitable, but you end up earning less than €10 hourly.
Calculate your minimum breakeven point
Every catering request needs evaluation: what's the minimum revenue required to justify the effort?
💡 Example calculation:
Lunch for 15 people, 30 minutes drive:
- Food cost: €8 per person = €120
- Transport: 1 hour × €25 = €25
- Extra time (loading, setup): 2 hours × €25 = €50
- Packaging: €15
Total costs: €210
At 30% profit margin: minimum selling price €300 (€20 per person)
Extra costs you can't forget
Transport costs: Don't just calculate fuel – include vehicle wear and your driving time. Standard rates: €0.50-€0.70 per kilometer plus €20-30 hourly for driving.
Packaging costs: Warming trays, aluminum containers, disposable cutlery, napkins add up quickly. Budget €1-2 per person for these supplies.
Setup and service: Loading, transport, setup, customer briefing, cleanup extends beyond prep time. From tracking this across dozens of restaurants, budget at least 1-2 additional hours.
💡 Transport calculation example:
Distance: 25 km one way (50 km round trip)
- Fuel + wear and tear: 50 km × €0.60 = €30
- Driving time: 1 hour × €25 = €25
Total transport costs: €55
The 30% rule for catering
Catering operates with different cost structures than restaurant service:
- Food cost: 25-35% (similar to restaurant)
- Extra costs: 15-25% (transport, packaging, additional labor)
- Profit: minimum 20-30%
Your selling price needs to be at least 2.5× food cost to achieve profitability.
💡 Quick rule of thumb check:
Rapid profitability assessment:
- Food cost per person × 2.5 = minimum selling price per person
- Plus fixed costs (transport, packaging) divided by guest count
If the requested price falls below this threshold, decline the job.
Deciding which jobs to decline
Not every catering opportunity deserves your time. Decline requests if:
- You're earning less than €15-20 hourly on the job
- Drive time exceeds 45 minutes for small groups (<20 people)
- Customer's budget sits below your breakeven point
- You must close regular operations for the catering
⚠️ Watch out:
Closing your restaurant for catering means lost regular revenue. That 15-person lunch might cost you 40 restaurant covers in opportunity.
Digital help with cost calculation
Manual catering calculations consume time and invite errors. Tools like KitchenNmbrs enable you to:
- Scale recipes for larger guest counts
- Automatically calculate per-person food costs
- Add fixed expenses (transport, packaging) to quotes
- Verify jobs meet minimum profit thresholds
This approach generates accurate quotes within 5 minutes while ensuring you never price below cost.
How do you calculate minimum profitability? (step by step)
Calculate your food cost per person
Add up all ingredient costs and divide by the number of people. Don't forget garnish, sauces or bread. Calculate with current supplier prices.
Add up all extra costs
Calculate: transport (km × €0.60 + driving time × €25), packaging (€1-2 per person), extra labor (loading/setup × €25 per hour). Divide these costs by number of people.
Determine your minimum selling price
Food cost + extra costs = total cost per person. Divide this by 0.70 (= 30% profit margin) for your minimum selling price. Is the requested price below this? Then it's not profitable.
✨ Pro tip
Build a standard catering cost template including transport rates of €0.65 per km and €25 hourly setup time. This prevents underpricing and generates quotes within 3 minutes.
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
How much should I minimum earn per hour on catering?
Target at least €15-20 hourly net profit. Below this rate, focus energy on restaurant operations instead. Count all hours: prep, driving, setup and breakdown.
Should I include VAT in my catering prices?
Yes, catering carries 9% VAT like restaurant service. Calculate cost price and profit margin excluding VAT, then add 9% for final pricing.
From what distance does catering become unprofitable?
Generally, drives exceeding 45 minutes for fewer than 20 guests prove unprofitable. Transport costs per person become excessive.
How do I calculate packaging costs?
Total all supplies: warming trays, aluminum containers, disposable cutlery, napkins, bags. This typically runs €1-2 per person. Include cleaning costs for reusable items.
What if customers consider my price too expensive?
Explain what's included: premium ingredients, transport, setup, full service. Customers unwilling to pay for quality aren't your target market anyway.
Should I offer discounts for repeat catering clients?
Offer volume discounts rather than percentage cuts – maybe reduced setup fees for familiar venues or free delivery within 20km. Maintain your profit margins while building loyalty.
📚 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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