Should you accept that last-minute catering request for 25 people? Many restaurant owners say yes to every event opportunity, but forget transport, extra staff, and prep time costs. You need a clear calculation method to separate profitable events from money-losing ventures.
Calculate all costs before you say yes
Most operators focus only on ingredient costs. But events carry hidden expenses that can turn a seemingly profitable job into a loss.
The hidden costs of events
- Extra staff: You'll need additional hands for prep and service
- Transport: Fuel, vehicle wear, and travel time costs
- Materials: Extra pans, warming equipment, serving dishes
- Time: Preparation typically requires 2-3x longer than regular service
- Risk: Last-minute cancellations leave you with prepped inventory
💡 Example: Corporate lunch for 40 people
Price: €25 per person = €1,000 revenue
- Ingredients: €400 (40% food cost)
- Extra staff: €180 (6 hours at €30)
- Transport: €40 (round trip + fuel)
- Materials/packaging: €60
- Risk buffer: €50 (5%)
Total costs: €730 → Profit: €270 (27%)
Check if your regular service isn't more profitable
Every event steals time and energy from your core business. Compare what you'd earn during normal operations instead.
⚠️ Note:
Don't just count event day hours. Preparation often demands 1-2 extra prep days, reducing attention to your regular customers.
The break-even calculation
Each event must cover these minimum expenses:
- Food cost: Typically 35-45% for events (higher due to packaging requirements)
- Labor: 25-35% of total revenue
- Transport + materials: 5-10% of revenue
- Risk buffer: 5% (covers no-shows and waste)
Total: 70-90% of revenue goes toward direct costs. If you're left with under 10-15%? Say no.
Based on real restaurant P&L data, operators who consistently accept low-margin events see their overall profitability drop by 8-12% compared to those who maintain strict event standards.
💡 Example: Event worth €800
Minimum costs:
- Food cost (40%): €320
- Labor (30%): €240
- Transport/materials (8%): €64
- Risk (5%): €40
Total: €664 → Profit: €136 (17%)
This works. Below €100 profit (12.5%) gets risky.
Signs that you should say no
Some events are money-losers from the start. Watch for these warning signals:
- Price per person under €20: Insufficient margin for extra costs
- Fewer than 20 people: Fixed costs (transport, prep) won't be covered
- More than 1 hour drive: Transport expenses kill profit
- Complex menu requests: Extra prep time without compensation
- Unreliable customer: High risk of no-shows or payment issues
⚠️ Note:
Events at €15 per person are nearly always unprofitable. Your food cost alone hits €6-8, leaving almost nothing for labor and overhead.
Alternative: raise your price or adjust the concept
Instead of refusing, you can modify your offer:
- Minimum guest count: Set a floor of 30 people minimum
- Fixed menus: No custom requests, standard offerings only
- Pickup option: Customer collects, eliminating transport costs
- Higher pricing: Charge appropriately for all additional expenses
💡 Example: Adjusted offer
Original: €18 per person, delivery included
Adjusted: €24 per person or €20 for pickup
Now you cover costs and maintain healthy margins.
How do you calculate if an event is profitable?
Calculate your total costs
Add up: ingredients (food cost), extra staff, transport, materials and a 5% risk buffer. These are your actual costs for the event.
Subtract costs from revenue
Revenue minus total costs = your profit. Is your profit margin below 15%? Then it gets tight and you should say no.
Compare with regular service
How much would you earn if you spent that time on your regular service? If that's more, the event isn't interesting enough.
✨ Pro tip
Track your actual event costs for the next 8 events you accept. Most operators underestimate real expenses by 25-30%, which explains why events feel less profitable than expected.
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 is a realistic profit margin for events?
Aim for 15-25% profit margins on events. Anything below 10% becomes risky since you have no cushion for unexpected costs or complications.
Should I always pass on transport costs?
Absolutely, especially for trips over 30 minutes. Calculate at least €0.30 per kilometer to cover fuel, vehicle wear, and driver time.
How do I prevent customers from canceling after my prep?
Require a 50% deposit upon confirmation. This covers your prep costs if they cancel last-minute.
Is catering always less profitable than regular service?
Not necessarily. Large events (100+ people) can be very profitable due to economies of scale, but small events under 30 people often lose money.
Which fixed costs should I include in my calculation?
Include transport, extra equipment (warming trays, serving dishes), packaging, additional staff, and a 5% risk buffer for cancellations and waste.
How do I price events for venues with difficult kitchen access?
Add a 15-20% surcharge for venues requiring stairs, long walks, or limited prep space. Factor in extra time and potential equipment damage.
Should I accept events during my busiest service periods?
Generally no, unless the event pays at least 40% more than your regular per-seat revenue during that time period. Your regular customers come first.
📚 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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