Calculating catering cost price is complex because you need to account for more than just ingredients. Many caterers forget costs like transport, on-site staff and no-show risk, causing them to lose money on jobs. In this article you'll learn step by step how to create a profitable catering quote for business events.
What's included in catering costs?
With catering there are many more cost items than in a restaurant. You don't just have ingredients, but also transport, extra staff, materials and prep time.
💡 Example: Business reception for 50 people
Appetizers and drinks for 50 people, 2 hours:
- Ingredients: €8.50 per person
- Staff (2 people, 5 hours): €150
- Transport and materials: €75
- No-show buffer (10%): €42.50
Total cost price: €692.50 = €13.85 per person
The formula for catering cost price
For catering you use an adjusted cost price formula that accounts for all extra costs:
Cost price per person = (Ingredients + Staff + Transport + Materials + Buffer) / Number of people
Then you add your profit margin. For catering a margin of 35-45% is standard due to the extra risks and effort involved.
Calculating ingredient costs
Start by calculating your food cost per person. You do this by adding up all the appetizers, drinks and garnishes.
💡 Example: Appetizer assortment per person
- 6 savory appetizers: €4.80
- 2 sweet appetizers: €1.20
- Garnish and presentation: €0.50
- Napkins, toothpicks: €0.20
Food cost: €6.70 per person
Always add 10-15% extra for waste and no-shows. If fewer guests show up than expected, you've already purchased and prepared everything.
Staff and labor costs
Catering requires more staff than you might think. You need time for prep, transport, setup, service and breakdown.
- Preparation: 2-3 hours per 50 people
- Transport and setup: 1-2 hours
- On-site service: Duration of the event
- Breakdown and cleanup: 1 hour
Budget €15-20 per hour for kitchen staff and €18-25 per hour for on-site service.
Transport and material costs
Don't forget the logistics costs. These can add up quickly, especially for locations outside your normal service area.
⚠️ Note:
Budget at least €1.50 per kilometer for transport. For a location 20 km away you're already spending €60 on fuel and wear and tear, just for the round trip.
- Fuel and vehicle: €1.50 per kilometer
- Warming boxes and materials: €25-50 per event
- Extra dishes and glassware: €1-2 per person
- Tablecloths and decoration: €15-30 per event
Calculating profit margin and selling price
Once you have your total cost price, you add your profit margin. For catering 35-45% margin is normal due to the extra effort and risks involved.
Selling price per person = Cost price per person / (1 - Desired margin %)
💡 Example: From cost price to selling price
Cost price: €13.85 per person
Desired margin: 40%
Calculation: €13.85 / (1 - 0.40) = €13.85 / 0.60 = €23.08
Selling price: €23.10 per person (rounded)
Building risks into your price
With catering you face more risks than in your restaurant. Build a buffer into your cost price for these.
- No-shows: 5-15% fewer guests than indicated
- Weather conditions: Extra costs in bad weather
- Location challenges: No kitchen, limited facilities
- Last-minute changes: Different customer requests
A buffer of 10-15% on your total cost price usually covers these risks.
How do you calculate catering cost price? (step by step)
Calculate ingredient costs per person
Add up all costs for food, drinks and garnish per person. Add 10-15% extra for waste and no-shows. This is your base food cost.
Calculate labor costs
Estimate the total time for prep, transport, service and breakdown. Multiply by your hourly rate and divide by number of people.
Add transport and material costs
Add up fuel (€1.50/km), materials, dishes and decoration. Divide this by the number of people for cost per person.
Add profit margin
Add up all costs per person. Divide by (1 - desired margin %). For catering 35-45% margin is normal due to extra risks and effort.
✨ Pro tip
Always make a detailed checklist of all cost items before you create a quote. Forgotten costs like extra dishes or parking can completely wipe out your margin.
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 profit margin is normal for catering?
For catering 35-45% margin is standard, higher than restaurants due to extra risks, transport and labor intensity. For complex events this can go up to 50%.
Should I include VAT in my catering cost price?
Always calculate your cost price excluding VAT. Catering has 9% VAT just like restaurant food. Add VAT to your final selling price.
How do I calculate transport costs for catering?
Budget at least €1.50 per kilometer for fuel, wear and tear and time. For a 30 km round trip you're spending €90 for transport, plus driver time.
What if fewer guests show up than expected?
Always build a 10-15% buffer into your cost price for no-shows. You've already purchased and prepared everything, so fewer guests doesn't automatically mean lower costs.
How do I calculate labor costs for catering staff?
Add up all hours: prep (2-3h), transport and setup (1-2h), service (event duration) and breakdown (1h). Multiply by €15-25 per hour depending on role.
📚 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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