All-inclusive catering quotes often turn profitable events into financial disasters. Too many caterers focus only on food costs and forget about staff time, transport, and those inevitable surprise expenses. You'll end up working for free while thinking you're making 40% margin.
What's included in an all-inclusive arrangement?
An all-inclusive arrangement consists of much more than just food and drinks. You need to include all cost items to calculate a fair margin:
- Food & Beverage costs: ingredients, drinks, packaging
- Staff costs: chef, service staff, dishwashing on-site
- Material costs: crockery, glassware, tables, chairs
- Logistics costs: transport, setup, breakdown
- Overhead: insurance, administration, unforeseen costs
⚠️ Watch out:
Many caterers only calculate food & beverage costs and forget the rest. Then your margin looks like 40%, but you end up earning nothing.
The formula for all-inclusive margin
For a healthy margin on catering use this formula:
Total margin % = ((Selling price - Total costs) / Selling price) × 100
Where total costs consist of:
- F&B costs (ingredients + drinks)
- Staff costs (including travel time)
- Materials & logistics
- Overhead (minimum 5-8% of turnover)
💡 Example calculation:
Wedding for 80 people, €75 per person = €6,000 turnover
- F&B costs: €1,800 (30% of turnover)
- Staff: €1,200 (20% of turnover)
- Materials & transport: €600 (10% of turnover)
- Overhead: €360 (6% of turnover)
Total costs: €3,960
Margin: ((€6,000 - €3,960) / €6,000) × 100 = 34%
Calculate F&B costs correctly
Food & beverage costs are often the largest component. Calculate per person and add everything up:
- Starter: all ingredients per portion
- Main course: meat/fish, vegetables, potatoes, sauce
- Dessert: including decoration and garnish
- Drinks: aperitif, wine with dinner, coffee/tea
- Bread, butter, olive oil: the small things count too
Typical F&B costs for catering are between 25-35% of the selling price per person.
💡 Example F&B calculation per person:
- Starter (carpaccio): €3.20
- Main course (salmon + vegetables): €12.50
- Dessert (tiramisu): €2.80
- Drinks (wine, water, coffee): €4.00
- Bread, butter, extras: €1.00
Total F&B per person: €23.50
At €75 selling price = 31.3% F&B costs
Staff costs on-site
Don't forget that your team needs to be paid for:
- Preparation: mise-en-place, loading materials
- Travel time: to and from the location
- Setup: arranging kitchen, setting tables
- Service: actual service during the event
- Breakdown: cleaning up, loading materials back
Budget at least 15-25% of your turnover for staff costs, depending on the service level. From years of working in professional kitchens, I've learned that breakdown always takes longer than expected - factor in an extra hour minimum.
Materials and logistics
These costs are often underestimated:
- Material rental: crockery, glassware, tables, chairs
- Transport: fuel, vehicle wear and tear
- Insurance: extra coverage for external locations
- Cleaning costs: returning materials in perfect condition
⚠️ Watch out:
Always budget 10-15% buffer for unforeseen costs. Forgotten materials, extra staff, delays - it happens more often than you think.
Healthy margins for catering
For a sustainable catering business follow these guidelines:
- Minimum margin: 25% (to cover all risks)
- Healthy margin: 30-40% (room for growth and investments)
- Premium events: 40-50% (exclusive locations, top service)
Note: these are margins on the total selling price, not just on F&B costs.
💡 Example margin calculation:
You want 35% margin on an arrangement of €6,000
- Desired profit: €6,000 × 0.35 = €2,100
- Maximum costs: €6,000 - €2,100 = €3,900
- Check budget per cost item
If your costs exceed €3,900, you need to raise your price
Digital tools for cost calculation
For complex arrangements, manual calculation is error-prone. A food cost calculator like KitchenNmbrs helps to:
- Automatically add up all ingredient costs per person
- Include staff costs and travel time
- Calculate different scenarios
- See your margin in real-time when adjusting prices
This way you avoid bidding too low and making a loss on a busy event.
How do you calculate the margin on an all-inclusive arrangement?
Calculate all F&B costs per person
Add up all ingredient costs: starter, main course, dessert, drinks and extras like bread and butter. Multiply by the number of people for total F&B costs.
Calculate staff and logistics costs
Calculate costs for staff (including travel time), material rental, transport and setup/breakdown. Add 10-15% buffer for unforeseen costs.
Calculate your total margin
Subtract all costs from your selling price and divide by the selling price. Multiply by 100 for the percentage. Aim for at least 25% margin for healthy business operations.
✨ Pro tip
Track your actual costs on the next 3 events and compare them to your estimates. Most caterers underestimate breakdown time by 45 minutes and material transport costs by €150 per event.
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 is a realistic margin for catering events?
A healthy margin is between 30-40% of the total selling price. A minimum of 25% is needed to cover all risks and costs. Premium events can justify 40-50% margin.
Should I charge for staff travel time?
Yes, absolutely. Travel time, setup and breakdown cost time and money. Budget at least 2-3 extra hours per staff member for an average event.
How do I avoid bidding too low on events?
Always make a complete cost calculation including all hidden costs. Budget 10-15% buffer for unforeseen expenses and maintain a minimum margin of 25%.
What percentage of my turnover goes to F&B costs?
For catering this is usually between 25-35% of the selling price. This is higher than in a restaurant because you also need to account for materials, transport and extra staff.
📚 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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