Setting your hourly rate as a caterer can make or break your business. Too many self-employed caterers focus only on ingredient costs and completely miss overhead, transport, and actual profit. I'll walk you through building a rate that actually pays you what you're worth.
What should be included in your hourly rate?
Running a catering business isn't just about buying ingredients. Your hourly rate needs to cover everything that keeps your doors open:
- Ingredients and packaging (food cost)
- Overhead (rent, insurance, equipment)
- Transport and fuel
- Your time (not just cooking, also purchasing and administration)
- Profit (otherwise you're working for nothing)
⚠️ Watch out:
Most caterers only calculate ingredients and their own hourly wage. Then you forget overhead, transport and profit. That's how you end up working for €5 per hour.
Calculate your total monthly costs
Start by listing every fixed expense you pay each month:
- Kitchen space rental
- Insurance (liability, business, vehicle)
- Equipment depreciation (oven, cooling, transport)
- Phone, internet, administration
- Accountant, chamber of commerce
- Fuel and vehicle maintenance
💡 Example monthly costs:
- Kitchen rent: €800
- Insurance: €180
- Equipment depreciation: €200
- Vehicle and fuel: €400
- Phone, administration: €120
Total overhead: €1,700 per month
Estimate your billable hours realistically
Don't fool yourself into thinking you'll work 40 hours every week. Self-employed caterers deal with:
- Vacation (4 weeks per year minimum)
- Sick leave (average 1 week per year)
- Administration (20% of your time)
- Business development (finding new clients)
Realistic target: 30 productive hours per week, 45 weeks per year = 1,350 hours
💡 Example calculation:
Overhead per year: €1,700 × 12 = €20,400
Billable hours: 1,350 per year
Overhead per hour: €20,400 ÷ 1,350 = €15.11
Determine your desired hourly wage
What should you actually earn per hour? Look at these benchmarks:
- Chef in employment: €15-22 per hour
- Self-employed has more risk: €25-35 per hour is realistic
- Experienced caterers: €30-45 per hour
Add food cost and profit
Your hourly rate must also account for:
- Food cost: 25-35% of your rate
- Profit: 10-15% for growth and buffer
💡 Total calculation:
- Overhead per hour: €15.11
- Desired hourly wage: €30.00
- Food cost (30%): €13.53
- Profit (10%): €4.51
Minimum hourly rate: €63.15
Check your rate against the market
Based on real restaurant P&L data, standard catering hourly rates in the Netherlands are:
- Basic catering: €50-70 per hour
- Specialized cuisine: €70-95 per hour
- High-end catering: €90-130 per hour
If your calculated rate sits way above market rates, revisit your overhead costs. Maybe there's room to trim expenses.
⚠️ Watch out:
Don't go below your cost price to get clients. Then you're working at a loss. Better to have fewer clients at a healthy rate.
Keep track of your numbers with tools
Many caterers still calculate with Excel spreadsheets, but that eats up precious time. Modern apps automatically calculate:
- Cost price per person or per event
- Food cost percentage of your total rate
- Profit margin per assignment
That way you can see immediately if an event is profitable before you send the quote.
How do you calculate your hourly rate? (step by step)
Add up all your monthly costs
Write down all fixed costs: rent, insurance, depreciation, vehicle, phone. Divide by 12 for monthly costs. Multiply by 12 for annual costs.
Calculate your billable hours per year
Calculate realistically: 30 hours per week productive work, 45 weeks per year (deduct vacation and sick leave). That's 1,350 hours per year.
Divide annual costs by billable hours
Annual costs ÷ 1,350 hours = overhead per hour. Add your desired hourly wage, food cost and profit to get your total hourly rate.
✨ Pro tip
Track your actual overhead costs from your last 6 months of bank statements and divide by billable hours worked. If you're spending more than 25% of revenue on overhead, look for ways to reduce fixed costs or increase your hourly rate by 10-15%.
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 if clients think my rate is too high?
Break down exactly what they're paying for: ingredients, transport, prep time, cleanup, and your expertise. Most clients only see the cooking time and miss all the behind-the-scenes work that makes their event successful.
Can I use different rates for different events?
Absolutely. Small intimate dinners often require a higher hourly rate because your overhead gets spread across fewer people. Large events can be more efficient and allow for slightly lower per-hour pricing.
Should I include travel time in my hourly calculations?
Yes, always factor in travel time to and from events, plus any time spent scouting venues or meeting clients. This is billable time that many caterers forget to account for in their rates.
📚 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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