Catering in the low season brings fewer bookings and competitive pricing pressures while fixed costs remain constant. Calculating your margin accurately helps determine which jobs to accept. Smart margin analysis keeps you profitable during slower periods.
Why margin calculation in the low season differs
High season allows premium pricing with volume to absorb fixed costs. Low season demands scrutiny of every euro earned, but not at the expense of profitability.
⚠️ Heads up:
A job covering variable costs beats no job, but only if fixed costs are covered elsewhere.
The fundamentals: actual cost per person
Catering calculations work per person, not per dish. Your complete cost structure includes:
- Food cost: all ingredients per person
- Packaging & materials: dishes, warming pans, decoration
- Labor: preparation, transport, on-site service
- Transport: fuel, vehicle wear and tear
- Overhead: portion of your fixed costs (kitchen rent, insurance)
💡 Example calculation 50 person buffet:
Winter corporate lunch, 50 people:
- Food cost: €12.50 per person = €625
- Packaging & materials: €2.00 per person = €100
- Labor (8 hours at €25): €200
- Transport: €75
- Overhead (10% of revenue): €150
Total costs: €1,150 (€23.00 per person)
Margin calculations: gross versus net
Two calculation methods serve different purposes:
Gross margin: (Selling price - Food cost) / Selling price × 100
Net margin: (Selling price - All costs) / Selling price × 100
💡 Example with the same job:
You charge €30.00 per person (€1,500 total):
- Gross margin: (€1,500 - €625) / €1,500 × 100 = 58.3%
- Net margin: (€1,500 - €1,150) / €1,500 × 100 = 23.3%
You retain €350 for profit and unexpected costs.
Low season strategy: establishing minimum prices
Three minimum pricing tiers work for slower periods:
- Break-even price: covers all costs, no profit
- Variable costs price: covers food, labor, transport (excludes overhead)
- Food cost+ price: covers only food and direct materials
💡 Example minimum prices:
For the same 50-person job:
- Break-even: €23.00 per person
- Variable costs: €20.00 per person
- Food cost+: €14.50 per person
Everything above €23.00 generates profit. Between €20-23 helps cover fixed costs.
Deciding on low season jobs
Use this decision framework:
- Above break-even: always accept
- Between variable costs and break-even: accept if calendar's empty
- Between food cost+ and variable costs: only if staff requires payment anyway
- Below food cost+: almost never accept
⚠️ Heads up:
Excessive below-break-even jobs create financial damage. A mistake that costs the average restaurant EUR 200-400 per month happens when operators consistently undervalue their overhead allocation in catering bids. Only price strategically below break-even to secure new clients.
Volume's effect on margins
Larger events typically yield superior margins because:
- Transport and setup costs remain constant
- More efficient purchasing (bulk quantities)
- Reduced labor per person (economies of scale)
Always calculate margin per person and total profit. Sometimes 15% margin on 200 people exceeds 25% margin on 50 people.
How do you calculate your catering margin? (step by step)
Gather all costs per person
Calculate: food cost per person, packaging per person, labor divided by number of people, transport divided by number of people, and a percentage overhead (usually 8-12% of revenue).
Calculate your minimum prices
Break-even price = all costs per person. Variable costs price = costs minus overhead. Food cost+ price = food and materials only. These are your negotiation limits.
Determine your desired margin and selling price
For catering, 20-30% net margin is standard in the high season, 10-20% in the low season. Calculate: minimum selling price = total costs / (1 - desired margin).
✨ Pro tip
Track your actual food waste percentage across 15-20 winter events - it's typically 8-12% higher than summer due to smaller portions and dietary restrictions. Factor this into your December-February pricing.
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 margin for catering in the low season?
Net margins of 10-20% are achievable, compared to 20-30% during peak periods. Sometimes break-even pricing becomes necessary to cover fixed costs.
Should I include VAT in my margin calculation?
No, always calculate excluding VAT. Your €30 selling price including VAT equals €27.52 excluding VAT (at 9% rate). Base margin calculations on the net amount.
How do I calculate labor for catering events?
Count all hours: preparation, transport, setup, service, breakdown, and cleaning. Multiply by your hourly rate, including employer taxes if you employ staff.
When should I refuse a job in the low season?
Refuse jobs priced below your food cost+ level, or if you're accepting too many below-break-even jobs. One loss-making job monthly is manageable, but not as a pattern.
How do I prevent clients from focusing solely on price?
Emphasize value: service quality, reliability, consistency. But calculate your absolute minimum requirements and maintain those boundaries.
What's the difference between contribution margin and net margin in catering?
Contribution margin covers variable costs plus some fixed costs. Net margin includes all costs including full overhead allocation. Use contribution margin for low-season decision making.
How often should I recalculate my cost structure for accurate margins?
Review monthly during low season, quarterly during busy periods. Food costs fluctuate, and labor rates change. Outdated calculations lead to unprofitable pricing decisions.
📚 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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