How do you price catering when you're charging per head instead of per dish? Meeting room catering operates differently from regular restaurant service. You're quoting €18.50 per person for 40 guests, not selling individual €32.50 plates.
What makes catering different in terms of margin?
Catering margins work differently because you're pricing per person, not per dish. Instead of a €32.50 receipt, you're working with quotes like €18.50 per person for 40 guests. This creates a unique cost structure:
- No waitstaff - reduces personnel expenses
- But transport and setup - adds time and expense
- Buy in advance - you can't predict exact consumption
- All-in price - no additional drinks or extras
💡 Example:
Lunch for 40 people in conference hotel:
- Selling price: €18.50 per person excl. VAT
- Total revenue: €740.00
- Food cost per person: €5.20
- Transport and setup: €80.00
Total margin: €740 - (€208 + €80) = €452 (61%)
Calculate your food cost per person
Start with ingredients, just like restaurant dishes. But now you total everything and divide by guest count:
Food cost per person = Total ingredient costs / Number of people
💡 Example lunch buffet 40 people:
- Sandwiches and fillings: €120.00
- Salad and garnish: €45.00
- Soup: €25.00
- Fruit and dessert: €18.00
Total: €208.00 / 40 people = €5.20 per person
Add transport and setup costs
These expenses don't exist in restaurant operations. They directly impact your margin, so include them in your cost calculations:
- Transport: fuel, driver wages
- Setup: time to arrange everything
- Materials: chafing dishes, tableware (if provided)
- Breakdown: time to pack and clean up
⚠️ Watch out:
Most caterers overlook setup and breakdown time. Two additional hours at €15/hour equals €30 less profit.
Calculate your actual margin
From analyzing actual purchasing data across different restaurant types, catering margins require this calculation:
Margin = Selling price - Food cost - Transport/setup costs
💡 Complete calculation:
40 people at €18.50 excl. VAT:
- Revenue: €740.00
- Food cost: €208.00 (28%)
- Transport: €30.00
- Setup: €50.00
Margin: €452.00 (61% of revenue)
Standard margins for catering
Catering typically achieves higher margins than restaurants since there's no waitstaff. Typical margins include:
- Lunch catering: 55-70%
- Dinner catering: 50-65%
- Drinks catering: 60-75%
Food costs usually range from 25-35%, similar to restaurants. But you save on staff while carrying less overhead.
Risks to keep in mind
Catering presents unique risks compared to restaurant service:
- No-shows: You prep for 40, only 35 attend
- Extra guests: You run out of food
- Timing: Traffic delays = cold food = unhappy clients
⚠️ Watch out:
Always prepare 5-10% extra food. Better to have leftovers than run short. You can build these extra costs into your pricing.
How do you calculate the margin on meeting room catering? (step by step)
Calculate food cost per person
Add up all ingredient costs (main courses, side dishes, drinks, desserts). Divide this by the number of people to get your food cost per person.
Calculate transport and setup costs
Add up: fuel costs, time for transport, setup and breakdown (at your hourly rate), material costs. These are fixed costs that come off your margin.
Calculate your actual margin
Subtract food cost and transport/setup costs from your selling price. The remainder is your margin. Check that this falls between 55-70% for lunch catering.
✨ Pro tip
Track your actual guest attendance versus quoted numbers for the past 6 months - most conference hotels see 8-12% no-shows on weekday events. Build this buffer into your per-person pricing automatically.
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
Do I need to include VAT in my catering margin calculation?
No, always calculate excluding VAT. Your selling price of €18.50 including 9% VAT becomes €16.97 excluding VAT for calculations. Otherwise your margin appears higher than reality.
What if fewer people show up than expected?
That's catering's inherent risk. Always build a 5-10% buffer into purchasing and factor this into pricing. Better to have leftovers than disappoint clients.
How do I calculate my time for setup and transport?
Use your hourly rate (typically €15-20/hour) multiplied by time spent. Two hours setup plus one hour transport equals 3 × €15 = €45 additional costs.
Isn't 60% margin too high for catering?
No, that's standard. You eliminate waitstaff costs but add transport expenses and upfront risks. Plus you invest without guaranteeing full attendance.
📚 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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