Determining catering prices is a balance between cost price, margins and market prices. Many caterers charge too little because they forget hidden costs or underestimate their foo...
A local caterer recently discovered they'd been losing €3.20 on every business lunch they served for six months. The culprit? Hidden costs they hadn't factored into their per-person pricing. Setting profitable catering rates requires balancing your true costs, desired margins, and what the market will bear.
Calculate your total cost price per person
Profitable catering prices must include every expense, not just ingredients. Staff wages, transport, dishwashing, and utilities add up quickly—and forgetting them kills your margins.
💡 Example cost price calculation:
Business lunch for 50 people:
- Ingredients: €8.50 per person
- Staff (4 hours at €18): €1.44 per person
- Transport and fuel: €0.80 per person
- Tableware and dishwashing: €1.20 per person
- Other costs (gas, electricity): €0.60 per person
Total cost price: €12.54 per person
Determine your desired profit margin
Catering demands margins between 40% and 60%—higher than typical restaurant sales. You're buying ingredients upfront, managing transport logistics, and there's no second chance if something goes wrong.
The formula for your selling price is:
Selling price = Cost price / (1 - Desired margin%)
💡 Example margin calculation:
Cost price: €12.54 per person
Desired margin: 45%
Calculation: €12.54 / (1 - 0.45) = €12.54 / 0.55
Selling price: €22.80 per person excl. VAT
⚠️ Note:
Always calculate first excl. VAT. Catering is subject to 9% VAT. Your final price is therefore €22.80 × 1.09 = €24.85 per person incl. VAT.
Check market prices in your region
Your calculated price needs to align with local market rates. Research what comparable caterers charge for similar events—if you're way off, you'll need to adjust your concept or find ways to cut costs.
- Simple lunch: €15-25 per person
- Extended lunch: €25-35 per person
- Drinks arrangement: €12-20 per person
- Dinner (3-course): €35-55 per person
- Luxury events: €55+ per person
These ranges vary significantly by location. Amsterdam prices typically run 20-30% higher than smaller cities.
Calculate different scenarios
Group size dramatically impacts your per-person costs. Based on real restaurant P&L data, catering operations see their most profitable margins at 75-150 guests, where fixed costs spread efficiently without overwhelming kitchen capacity.
💡 Example economies of scale:
Same lunch arrangement:
- 25 people: €26.50 per person (more work per person)
- 50 people: €24.85 per person (more efficient)
- 100 people: €23.20 per person (maximum economies of scale)
Fixed costs like transport are spread across more people.
Don't forget VAT and extras
Your final quote must include 9% VAT for catering services. But don't stop there—extras can make or break your profitability:
- Tableware and glassware rental
- Extra staff for service
- Special dietary requirements (gluten-free, vegan)
- Weekend or evening surcharge
- Cancellation fees for last-minute changes
⚠️ Note:
Always communicate extra costs upfront. Nothing is more annoying than discussions afterwards about unexpected costs.
Food cost calculators like KitchenNmbrs automatically update your catering prices based on current ingredient costs and recipe changes. This ensures you maintain profitability even as supplier prices fluctuate.
How do you calculate catering prices per person?
Calculate all costs per person
Add up: ingredients, staff, transport, tableware, other costs. Don't forget any cost item, not even small amounts like fuel or dishwashing.
Determine your desired profit margin
Choose a margin between 40-60%. Calculate your selling price: cost price divided by (1 minus margin%). For example: €12 / (1-0.45) = €21.82 excl. VAT.
Add VAT and check the market
Multiply by 1.09 for the price incl. 9% VAT. Compare with competitors in your region and adjust if necessary.
✨ Pro tip
Review your top 5 catering packages every 6 weeks against current ingredient costs. Supplier price increases of 8-12% often go unnoticed, silently eroding your margins until it's too late.
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 profit margin is normal for catering?
Healthy catering margins run 40-60%, higher than restaurant service. You're taking on more risk—buying ingredients upfront, managing transport, and there's no second chance if something goes wrong.
Should I include VAT in my cost price calculation?
Never include VAT in your initial calculations. Calculate your selling price excluding VAT, then add the 9% catering VAT rate for your final quote. This protects your intended margin.
How do I calculate staff costs per person?
Divide total labor costs by guest count. Example: 4 hours at €18/hour = €72 total. For 50 guests, that's €1.44 per person. Include prep time, service, and cleanup hours.
Can I charge the same price for groups of 20 or 200 people?
Absolutely not—larger groups are more efficient and should cost less per person. Fixed expenses like transport and setup time spread across more guests, improving your margins.
What if my calculated price exceeds local competition?
First, double-check your cost calculations for accuracy. If you're genuinely above market rates, consider adjusting your menu concept, reducing costs, or targeting premium market segments willing to pay more.
How should I price special dietary accommodations?
Charge a premium for gluten-free, vegan, or allergen-free options. These ingredients cost more and require extra kitchen protocols. A €2-5 surcharge per special meal is standard practice.
📚 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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