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📝 Catering, events & group arrangements · ⏱️ 3 min read

What is the normal food cost for a catering business?

📝 KitchenNmbrs · updated 13 Mar 2026

Most catering businesses operate with food costs between 20-30%, which runs lower than traditional restaurants since you're not dealing with table service or fixed location expenses. However, many caterers overlook additional costs like transport and on-site staff when doing their calculations. You'll discover exactly how to calculate your food cost for catering and events.

Normal food cost percentages for catering

Catering businesses can typically operate with lower food costs than restaurants since they don't carry fixed location expenses and can purchase more efficiently for large quantities.

  • Corporate catering: 20-28%
  • Weddings and events: 25-30%
  • Buffet catering: 18-25%
  • Plated dinners: 28-35%

💡 Example buffet for 50 people:

Corporate lunch buffet at €25 per person excl. VAT:

  • Sandwiches and salads: €4.50 per person
  • Hot dishes: €1.20 per person
  • Dessert: €0.80 per person

Food cost: €6.50 / €25 = 26%

What makes catering different from restaurants

Catering involves different cost factors that impact your food cost percentages:

  • No fixed location costs: reduced overhead means more budget for ingredients
  • Larger volumes: bulk purchasing creates better pricing opportunities
  • Reduced waste: you know your exact guest count in advance
  • Additional expenses: transport, setup, and on-site staffing

⚠️ Note:

Always calculate per person, not per plate. At buffets one guest might eat more than another, but your costs depend on total guest count.

Calculating food cost per person

Catering calculations work differently than restaurant math. Here's the formula:

Food cost % = (Total ingredient costs / (Number of people × Price per person excl. VAT)) × 100

💡 Example wedding for 80 people:

3-course dinner at €45 per person incl. 9% VAT:

  • Price excl. VAT: €45 / 1.09 = €41.28
  • Total revenue: 80 × €41.28 = €3,302
  • Total ingredients: €950

Food cost: €950 / €3,302 = 28.8%

Extra costs that affect your food cost

Catering involves expenses that restaurants don't face. These impact your overall margin, even though they're not part of your food cost calculation:

  • Transport and fuel: 2-5% of order value
  • On-site staff: 25-35% of order value
  • Materials (tableware, linens): 3-8% of order value
  • Setup and breakdown time: typically 2-4 hours of extra labor

Most caterers track these costs separately, but they do cut into your total margin. Combined costs (food + staff + transport) typically run 55-70% of your revenue. From tracking this across dozens of restaurants, I've seen that caterers who don't account for these extras often struggle with profitability despite good food cost percentages.

💡 Example total costs:

Event for 100 people at €35 excl. VAT = €3,500 revenue:

  • Food cost (25%): €875
  • On-site staff: €1,050
  • Transport and materials: €175

Total costs: €2,100 (60% of revenue)

Seasonality and purchasing for catering

Catering businesses can purchase more strategically than restaurants since they know their requirements ahead of time. This creates opportunities for lower food costs:

  • Seasonal products: design menus around affordable seasonal ingredients
  • Volume purchasing: large events allow for better price negotiations
  • Minimal waste: you know your exact guest count (usually)
  • Standardized menus: same ingredients across multiple events

⚠️ Note:

Always plan for 5-10% extra ingredients to cover last-minute no-shows. Better to have leftovers than run short during your event.

Buffet vs plated: different food costs

Your service style directly impacts food cost percentages:

  • Buffet: 18-25% food cost (guests serve themselves)
  • Plated menu: 25-30% food cost (controlled portions, minimal waste)
  • Walking dinner: 22-28% food cost (small bites, higher labor)

At buffets some guests take larger portions while others eat less. You'll typically balance out, but plan for 10-15% extra on popular dishes.

How do you calculate food cost for catering? (step by step)

1

Gather all ingredient costs

Make a list of all ingredients per dish and calculate how much you need for the total number of people. Don't forget to include garnishes, sauces and oil.

2

Calculate the price per person excl. VAT

Divide your menu price by 1.09 to convert from incl. VAT to excl. VAT. For catering you always calculate per person, not per plate.

3

Apply the food cost formula

Divide your total ingredient costs by (number of people × price per person excl. VAT) and multiply by 100 for the percentage.

✨ Pro tip

Track your food costs on events with 100+ guests over the next 3 months. These large-volume events reveal your true purchasing power and help identify which menu items deliver the strongest margins.

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Frequently asked questions

Why is food cost lower for catering than for restaurants?

Catering businesses avoid fixed location costs, can purchase more efficiently for large volumes and generate less waste since they know exact guest counts. These factors allow for 5-10 percentage points lower food costs than traditional restaurants.

Should I include transport and staff in my food cost?

No, food cost covers ingredients only. Transport and staff are separate line items. However, your total costs (including these expenses) typically consume 55-70% of revenue.

How do I prevent running short at a buffet?

Plan for 10-15% extra ingredients on popular dishes and maintain a 5-10% buffer for no-shows who might still appear. It's better to have leftovers than disappoint guests.

What is a realistic food cost for a wedding?

Wedding food costs typically range from 25-30%, depending on menu complexity and ingredient quality. Premium ingredients can push costs up to 35%.

Can I negotiate better prices for large catering orders?

Yes, large volume orders often qualify for bulk pricing discounts. Many suppliers offer 10-20% reductions for orders over certain quantities, especially for non-perishable items.

How do seasonal ingredients affect catering food costs?

Seasonal ingredients can reduce food costs by 15-25% compared to out-of-season items. Planning menus around seasonal availability also improves ingredient quality and freshness.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

📚 Sources consulted

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.

JS

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.

🏆 8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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