Managing venue rental plus catering is like juggling two spinning plates simultaneously – each has its own rhythm, but success depends on keeping both balanced. You're earning from two streams (venue and food) while managing additional expenses like on-site staff, setup, and cleaning. Mastering the combined margin calculation ensures your packages stay profitable.
What is a combined margin?
You're earning from two fronts: room rental and food service. The combined margin shows your total profit percentage across both revenue streams together.
💡 Example:
Wedding for 80 people:
- Venue rental: €800
- Catering: €3,200 (€40 pp)
- Total revenue: €4,000
Total costs: €2,600
Combined margin: (€4,000 - €2,600) / €4,000 = 35%
Which costs do you include?
You need every cost that's tied directly to this event:
- Ingredient costs: all food and beverages for the event
- On-site staff: cooks, servers, dishwashers (including travel time)
- Transport: fuel, vehicle wear and tear
- Materials: dishes, linens, decorations (if you provide these)
- Setup/breakdown time: staff for loading and unloading
- Venue costs: heating, cleaning, wear and tear
⚠️ Watch out:
Don't forget 'hidden' costs like extra cleaning, damage to materials, or time spent packing up leftovers.
Formula for combined margin
The formula's straightforward, but accurate cost calculation makes the difference:
Combined margin % = ((Total revenue - Total costs) / Total revenue) × 100
Where:
- Total revenue = Venue rental + Catering revenue
- Total costs = All direct costs for this event
💡 Example calculation:
Corporate event 50 people:
- Venue rental: €500
- Catering: €1,750 (€35 pp)
- Total revenue: €2,250
Costs breakdown:
- Ingredients: €525 (30% of catering)
- Staff: €420 (3 people, 4 hours, €35/hour)
- Transport: €80
- Venue costs: €150
- Total costs: €1,175
Margin: (€2,250 - €1,175) / €2,250 = 47.8%
Benchmarks for combined margins
Typical margins for catering with venue rental:
- Strong margin: 40-50%
- Acceptable margin: 30-40%
- Risky margin: below 30%
Venue rental usually delivers higher margins (60-80%) than catering alone (25-35%), so combining them boosts your overall profitability. This is a pattern we see repeatedly in restaurant financials – venues provide the cushion that makes catering events more sustainable.
💡 Example comparison:
Catering only vs. catering + venue:
- Catering only €2,000, costs €1,400 = 30% margin
- With venue €2,500, costs €1,550 = 38% margin
The venue improves your overall profitability.
Optimize your pricing
If your combined margin's too low, you've got several moves:
- Increase venue price: often easier than raising catering costs
- Minimum guest count: ensure your fixed costs get covered
- Package pricing: bundle venue + basic catering for one price
- Add-on services: decoration, music, photography for separate fees
⚠️ Watch out:
Always calculate with realistic staff costs. Don't underestimate the time for setup, service, and breakdown.
Track margins digitally
Calculating margins manually for each event eats up time. With systems like KitchenNmbrs you can:
- Set standard cost prices per person
- Automatically include staff costs
- Compare different packages with margins
- Analyze historical events for smarter pricing
How do you calculate combined margin? (step by step)
Calculate total revenue
Add venue rental and catering revenue together. Calculate excluding VAT for a clear picture of your margin.
Inventory all costs
Make a list of ingredients, staff, transport, materials, and venue costs. Don't forget 'hidden' costs like extra cleaning.
Calculate the margin
Subtract total costs from total revenue, divide by revenue and multiply by 100 for the percentage.
Compare with benchmark
Check if your margin is above 30%. Below 30% is usually too low for catering with venue rental.
Optimize if needed
With low margins: increase venue price, set a minimum number of people, or offer package deals.
✨ Pro tip
Calculate combined margins for your last 12 venue+catering events to spot pricing patterns. Events under 40 people often show weaker margins due to fixed setup costs – consider a minimum guest requirement.
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 margin calculation?
No, always calculate excluding VAT. Otherwise your margin will look inflated compared to reality. Both venue rental and catering fall under 9% VAT, so keep them consistent.
How do I calculate staff that both cooks and serves?
Calculate total time × hourly rate. Doesn't matter what tasks they're doing – you're paying for their complete time commitment during the event.
What about seasonal fluctuations in venue heating costs?
Track heating costs separately for winter vs. summer events. Winter events might add €50-100 to your venue costs, which affects your margin calculations. Build this into your seasonal pricing structure.
📚 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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