Most caterers think pricing should be the same per person regardless of group size – that's completely backwards. Fixed costs like transport and setup hit you the same amount feeding 20 or 200 people. Small groups end up paying way more per head because those costs get spread across fewer plates.
Why small groups are more expensive per person
Fixed costs don't care about your headcount. Transport, setup, minimum staffing, prep time – they stay identical feeding 20 or 200 people.
💡 Example fixed costs:
- Transportation to and from: €80
- Setup and breakdown: €120
- Minimum 1 chef on-site (4 hours): €120
- Service staff (4 hours): €100
Total fixed costs: €420
Twenty people? That's €21 per head in fixed costs alone. But spread across 200 people, you're looking at just €2.10 each. The math hurts for small events.
Calculate your cost price per person
Your total cost breaks down into three parts:
- Ingredients per person (scales with group size)
- Fixed costs divided by number of people (doesn't scale)
- Extra staff (scales partially)
💡 Example cost price calculation:
Group of 20 people:
- Ingredients: €12 per person
- Fixed costs: €420 ÷ 20 = €21 per person
- Extra staff: €0 (1 chef is enough)
Total cost price: €33 per person
Group of 200 people:
- Ingredients: €12 per person
- Fixed costs: €420 ÷ 200 = €2.10 per person
- Extra staff: €600 ÷ 200 = €3 per person
Total cost price: €17.10 per person
Determine your selling price and margin
Catering demands 40-50% margins on total costs. Higher than restaurant work because you're taking on weather risks, no-shows, and need more flexibility.
⚠️ Note:
Always calculate with your selling price excluding 9% VAT. The price you communicate to customers is including VAT.
Formula for minimum selling price:
Selling price excl. VAT = Cost price ÷ (1 - Desired margin%)
💡 Example price calculation:
Group of 20 people (45% margin):
- Cost price: €33 per person
- Selling price excl. VAT: €33 ÷ 0.55 = €60 per person
- Selling price incl. VAT: €60 × 1.09 = €65.40 per person
Total for customer: €1,308 (20 × €65.40)
Group of 200 people (45% margin):
- Cost price: €17.10 per person
- Selling price excl. VAT: €17.10 ÷ 0.55 = €31.09 per person
- Selling price incl. VAT: €31.09 × 1.09 = €33.89 per person
Total for customer: €6,778 (200 × €33.89)
Where's the difference in profitability?
Large groups deliver better profit per hour worked, even with identical margin percentages. It's a pattern we see repeatedly in restaurant financials – economies of scale matter more than most operators realize.
- More revenue per event: €6,778 vs €1,308
- Same prep time: Menu planning takes identical effort
- More efficient purchasing: Bulk quantities mean better supplier prices
- Better staff utilization: Your team's already on-site
But large groups carry bigger risks too. Twenty no-shows from 200 guests? You'll feel that. One no-show from 20 people already cuts 5% of your revenue.
Practical tips for different group sizes
For small groups (10-30 people):
- Calculate at least €50-70 per person to stay profitable
- Set a minimum invoice amount (e.g., €800)
- Choose menus requiring minimal on-site prep
For large groups (100+ people):
- You can offer competitive prices (€25-45 per person)
- Plan extra staff (1 chef per 80-100 people)
- Account for 5-10% no-show and plan purchases accordingly
How do you calculate the margin per group size? (step by step)
Calculate your fixed costs per event
Add up transportation, setup, minimum staffing, and other costs that don't depend on the number of guests. Divide this amount by the number of people to get the fixed costs per person.
Calculate ingredient costs and variable staff
Calculate what the ingredients cost per person and how much extra staff you need beyond your minimum. For large groups, you'll need more chefs and service staff.
Determine selling price with desired margin
Add up all costs per person and divide by (1 - desired margin%). For catering, a 40-50% margin is typical. Don't forget to add 9% VAT for the final price.
✨ Pro tip
Calculate margins for your next 12 catering events across different group sizes over the next 6 weeks. Small groups under 25 people need at least €55-65 per head to stay profitable once you factor in all fixed costs.
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
Why can't I use a fixed price per person?
Fixed costs like transport and setup don't scale with headcount. You're paying €21 in fixed costs per person for 20 guests, but only €2.10 per person for 200 guests.
What margin should I apply for catering?
Catering typically needs 40-50% margins – higher than restaurant work because of weather risks and no-shows. Small groups can justify 45-50% margins due to higher fixed costs per person.
How do I handle no-shows with large groups?
Factor 5-10% no-show into your planning for groups over 100 people. Buy slightly less than final headcount and set clear cancellation terms upfront.
What's a realistic minimum invoice for small events?
Set minimums around €800-1,000 for small catering jobs. Below that, fixed costs eat up too much per person and you won't turn a profit.
📚 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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