Cost calculation for large quantities works differently than for individual portions. You need to account for economies of scale, but also for extra costs for preparation and logistics. In this article you'll learn step by step how to calculate the real cost price of dishes you produce in large volumes.
Why large volumes are different
With catering and events you're not cooking 10 portions, but 100, 200 or more. That fundamentally changes your cost structure:
- Economies of scale: Ingredients become cheaper per kilo
- Extra labor costs: Preparation, transport, setup
- Waste risk: With no-shows you've prepared too much
- Packaging and logistics: Warming boxes, dishes, transport
💡 Example:
Lasagna for 150 people at a corporate event:
- Ingredients: €4.20 per person
- Packaging (warming trays): €0.80 per person
- Extra labor (prep + transport): €1.50 per person
- No-show buffer (5%): €0.32 per person
Real cost price: €6.82 per person
Ingredient costs for large volumes
With large quantities you often get a discount, but not on everything. Calculate your ingredient costs realistically:
- Main ingredients: Often 10-20% cheaper with orders of 10+ kilos
- Spices and herbs: Price stays the same (you use little anyway)
- Fresh products: Sometimes more expensive due to shorter shelf life
⚠️ Watch out:
Don't automatically count on discount prices. First check if your supplier actually gives a discount for the quantity you need.
Including labor costs
With large volumes there's a lot of extra work you need to charge for:
- Extra preparation: Often a day beforehand
- Transport and setup: Travel and setup time
- On-site service: If that's included in the price
- Breakdown and cleaning: That takes time too
Calculate an average of €1.00 to €2.50 per person in extra labor costs for catering, depending on complexity.
💡 Example labor costs:
Event for 100 people, 8 hours of work (prep + event + breakdown):
- Chef wages: €25/hour × 8 hours = €200
- Assistant: €18/hour × 6 hours = €108
- Travel time and fuel: €50
Total: €358 ÷ 100 people = €3.58 per person
Building in a no-show buffer
At events there are always fewer people than announced. Build in a buffer of 5-10% extra costs:
- You prepare for 100 people, 92 show up
- The extra costs you factor into your cost price
- This way you prevent no-shows from eating into your margin
Packaging and transport
These costs are easy to forget, but they can add up:
- Warming trays: €0.50 to €1.50 per person
- Disposable dishes: €0.30 to €0.80 per person
- Transport costs: Fuel, wear and tear, time
- Coolers/warming equipment: Depreciation per event
💡 Complete example:
Full cost price buffet for 120 people:
- Ingredients (with economies of scale): €5.80 per person
- Extra labor: €2.20 per person
- Packaging and dishes: €1.10 per person
- No-show buffer (7%): €0.64 per person
- Transport and logistics: €0.45 per person
Total cost price: €10.19 per person
Profit margin for catering
With catering events you can often charge a higher margin than in your restaurant:
- Standard food cost catering: 35-45% (higher than restaurant due to extra costs)
- Total cost price: 55-65% of selling price
- Net margin: 35-45%
⚠️ Watch out:
Always include all costs before you set your price. A catering price that's too low can ruin your entire month, because the volumes are so large.
Track digitally
With large volumes manual calculation is error-prone. A system like KitchenNmbrs helps you to:
- Automatically calculate ingredient costs for X people
- Run different scenarios (90, 100, 110 people)
- Track all your extra costs per event
- See which events are most profitable
Calculate cost price for large volumes (step by step)
Calculate basic ingredient costs per person
Make a list of all ingredients for your dish. Check with your supplier if you get a discount for large orders. Divide the total ingredient costs by the number of people.
Add up all extra costs
Calculate: extra labor hours × hourly wage, packaging costs, transport costs, and any equipment rental. Divide this by the number of people for the extra costs per person.
Build in no-show buffer
Multiply your total cost price per person by 1.05 to 1.10 (5-10% buffer). This compensates for people who don't show up but you've prepared for anyway.
Determine your selling price
Divide your total cost price by your desired cost price percentage. At 40% cost price: cost price ÷ 0.40. Don't forget to add 9% VAT for the final price.
✨ Pro tip
Keep an Excel spreadsheet of all your catering events with actual costs vs. estimated costs. After 5-10 events you'll see exactly where you're being too optimistic or too cautious, and you can refine your cost price.
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
Should I include VAT in my catering cost price?
No, always calculate excluding VAT. On catering you pay 9% VAT, just like in your restaurant. Add the VAT at the end for your final price to the customer.
How much no-show buffer should I build in?
On average 5-10%, depending on the type of event. Corporate events have fewer no-shows (5%) than private parties (10%). Keep track of what your average is.
Do I always get a discount for large purchases?
Not automatically. Many suppliers give discounts from 10-15 kilos, but always check this beforehand. Fresh products are sometimes more expensive because you run more risk of spoilage.
How do I pass on transport costs?
Calculate €0.30 per kilometer there and back, plus time for loading/unloading (€20-25 per hour). Divide this by the number of people. For large events this becomes a small amount per person.
Can I use the same food cost as in my restaurant?
No, with catering the total costs are higher due to labor, transport and packaging. Calculate with 35-45% total cost price instead of the 28-35% that's standard in restaurants.
What if more people show up than expected?
Make agreements about extra people in your quote. For example: 'fixed rate up to 100 people, above that €X per extra person'. This way you won't be caught short.
📚 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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