Most restaurant owners think catering margins work the same as in-house dining - they don't. You're calculating per person, not per dish, and transport plus setup costs can kill your profits fast. For 80 people, you need a completely different pricing approach.
What's different about catering margin?
Catering operates with a completely different cost structure than your restaurant. You've got additional expenses that must be factored in:
- Transport and setup: time and fuel
- Staff on-site: service outside your kitchen
- Extra materials: warming plates, chafing dishes
- No-show risk: you prep for 80, but only 75 show up
⚠️ Note:
With catering your total cost price (food + staff + extras) often falls between 55-70% of your selling price. That's higher than in your restaurant.
Calculate your food cost per person
Start with the foundation: what do the ingredients cost per person?
💡 Example business lunch:
Menu per person:
- Carpaccio sandwich: €3.20
- Soup + sandwich: €1.80
- Salad: €2.10
- Dessert: €1.40
- Coffee/tea: €0.50
Food cost per person: €9.00
Always add 5-10% extra for waste and no-shows. For 80 people you prep for 85.
Add up all extra costs
Now come the expenses you don't have in your restaurant:
- Transport: fuel, travel time there and back
- Staff on-site: hourly wage + travel time
- Extra materials: warming plates rental/depreciation
- Setup/breakdown time: this is also labor
💡 Example extra costs:
For 80 people, 3 hour event:
- Transport: €45 (there and back + fuel)
- 2 people on-site: €180 (3h × €30/h × 2p)
- Setup/breakdown: €60 (1h × €30/h × 2p)
- Materials: €40 (warming containers, tableware)
Total extra costs: €325
Per person: €325 ÷ 80 = €4.06
Calculate your selling price
Now you can determine your minimum selling price. The formula:
Minimum price per person = (Food cost + Extra costs) ÷ Desired margin
💡 Example calculation:
Total costs per person:
- Food cost: €9.00
- Extra costs: €4.06
- Total: €13.06
At desired margin of 65% (35% profit):
€13.06 ÷ 0.65 = €20.09 per person excl. VAT
Incl. 9% VAT: €21.90 per person
Check your total quote
Verify that your quote makes financial sense:
- Total excl. VAT: 80 × €20.09 = €1,607
- Total incl. VAT: 80 × €21.90 = €1,752
- Expected profit: €1,607 - €1,045 = €562
⚠️ Note:
Don't forget to request at least 50% upfront payment. With catering you have high upfront costs and cancellation risk.
Using tools for catering calculations
From analyzing actual purchasing data across different restaurant types, catering calculations get complex fast. A food cost calculator like KitchenNmbrs can help you:
- Save standard catering menus with cost price per person
- Automatically calculate extra costs (transport, staff)
- Generate quotes with correct VAT and margins
- Track which catering events were profitable
This prevents you from quoting too low and losing money afterwards.
How do you calculate catering margin? (step by step)
Calculate food cost per person
Add up all ingredients for the complete menu per person. Add 5-10% extra for waste and no-shows. This is your base food cost.
Add up extra costs
Calculate transport, staff on-site, setup/breakdown time and extra materials. Divide this by the number of people for the extra costs per person.
Calculate selling price
Divide your total costs per person by your desired margin (e.g. 0.65 for 35% profit). Multiply by 1.09 for the price incl. VAT.
✨ Pro tip
Test your catering margins on smaller events first - start with 15-20 person lunches for 2 weeks to nail down your real transport and setup costs before quoting large 80-person events.
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 margin is normal for catering?
A healthy margin for catering is between 30-40% profit. Your total costs (food + extras) are then 60-70% of your selling price. This is higher than in your restaurant due to extra risks.
Do I need to calculate VAT on catering?
Yes, catering falls under 9% VAT, just like food in your restaurant. Always calculate your price excl. VAT first, then multiply by 1.09 for the final price.
How do I charge for travel time?
Travel time is work time. Calculate your staff's hourly wage × travel time there and back. Add this to your extra costs and divide by the number of people.
What if fewer guests show up than expected?
That's why you add 5-10% extra people to your shopping. Also make clear agreements about cancellation and minimum number of people in your quote.
📚 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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