A catering company recently discovered they were losing €3 per guest on their €45 all-inclusive packages. They'd calculated food costs perfectly but forgot to include setup time and drink spillage. All-inclusive packages require tracking every cost component - from transport fuel to extra napkins - or you'll watch revenue climb while profits vanish.
What's included in an all-inclusive catering package?
All-inclusive catering involves way more than just plating food. You've got to track every single cost element to see your real margin:
- Food: every dish per person
- Drinks: typically a set number of servings per guest
- Service: on-site staff wages
- Transport: fuel and vehicle wear for deliveries
- Materials: plates, glasses, utensils (if venue doesn't provide)
- Setup/breakdown: labor for arrangement and cleanup
⚠️ Note:
VAT calculations matter here. Food and soft drinks get 9% VAT, while alcohol gets hit with 21% VAT.
Calculate your total costs per person
Add every expense, then divide by guest count. This gives you the true cost per head.
💡 Example:
50-person all-inclusive event:
- Food: €12.50 per person = €625
- Drinks (2 per person): €4.00 per person = €200
- Service (2 staff, 4 hours): €240
- Transport and materials: €135
Total costs: €1,200 ÷ 50 people = €24.00 per person
Calculate your selling price excluding VAT
You're probably quoting one inclusive price with VAT built in. But margin calculations need the pre-tax figure.
Mixed packages (food plus alcohol) complicate VAT calculations. The rate depends on what dominates your package:
- Food-focused: apply 9% VAT to everything
- Heavy on alcohol: might need 21% VAT on drink portions
- Easiest method: use 9% if drinks are supplementary
💡 Example:
Package price: €42.50 per person (including VAT):
- Price with VAT: €42.50
- Price minus 9% VAT: €42.50 ÷ 1.09 = €39.00
You actually receive €39.00 excluding VAT per person
Calculate your margin percentage
Now you can crunch your real margin with this formula:
Margin % = ((Price excl. VAT - Total costs) ÷ Price excl. VAT) × 100
💡 Example:
Using our numbers:
- Price excl. VAT: €39.00
- Total costs: €24.00
- Profit per person: €39.00 - €24.00 = €15.00
Margin: (€15.00 ÷ €39.00) × 100 = 38.5%
What's a healthy margin for catering?
Catering typically delivers better margins than restaurant service because you can streamline operations and reduce overhead. Most kitchen managers discover too late that their margins vary dramatically by event size - they price small events like large ones and kill their profitability. Typical catering margins:
- Standard catering: 30-40%
- Premium catering: 40-55%
- Large events (100+ guests): 25-35%
- Small gatherings (under 20 people): 45-60%
⚠️ Note:
Factor in potential no-shows. Budget for 10% extra guests but build those costs into your pricing. Running short is worse than having leftovers.
Check your calculation
Run through this checklist to catch missing costs:
- Every ingredient accounted for (garnishes, bread, condiments)?
- Drink estimates realistic (not wishful thinking)?
- Travel time and fuel costs included?
- All materials (if venue doesn't supply) costed?
- Setup and breakdown time in labor calculations?
- Buffer for no-shows or last-minute additions?
Food cost management tools help you track catering packages with all cost components, so you can instantly evaluate whether new inquiries will be profitable.
How do you calculate the margin on an all-inclusive catering package?
Add up all costs
Make a list of food, drinks, staff, transport and materials. Divide the total by the number of guests to get the cost price per person.
Calculate your selling price excl. VAT
Divide your selling price by 1.09 (at 9% VAT) to know what you actually receive. With lots of alcohol, 21% VAT may apply to the drink portion.
Calculate your margin percentage
Subtract your costs from your selling price excl. VAT. Divide the profit by the selling price and multiply by 100 to get your margin percentage.
✨ Pro tip
Track your drink consumption over the next 10 catering events to build accurate estimates. Most caterers guess 2 drinks per person but actual consumption varies from 1.5 to 4 drinks depending on event type and duration.
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
Should I charge 9% or 21% VAT on an all-inclusive package?
If food dominates with drinks as extras, charge 9% VAT on everything. But if alcohol makes up a significant portion, you might need to split the VAT rates. Most caterers simplify by using 9% unless it's heavily drink-focused.
How do I calculate drink costs for unlimited packages?
Don't actually offer unlimited - estimate 2-3 drinks per person over 3-4 hours based on your experience. Use your purchase price and add 20% for spillage and over-pours. Track actual consumption at events to refine your estimates.
What margin should I target for different event sizes?
Small events (under 20 people) can support 45-60% margins due to premium pricing. Large events (100+ guests) typically run 25-35% because of competitive pricing. Aim for 35-45% on mid-sized events where you hit the sweet spot of efficiency and pricing power.
📚 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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