Small catering jobs seem simple, but they'll kill your margins faster than you think. Large events promise efficiency, yet they carry hidden risks that can wipe out profits overnight. The math changes completely between feeding 15 people versus 300.
The difference in cost structure
Scale changes everything in catering. More guests mean you can spread fixed costs wider, but your exposure to risk grows too.
💡 Example cost structure:
15 people - corporate lunch:
- Food: €12 per person = €180
- Staff (4 hours): €120
- Transport/materials: €80
- Total costs: €380
Cost per person: €380 ÷ 15 = €25.33
💡 Example cost structure:
300 people - wedding:
- Food: €18 per person = €5,400
- Staff (8 hours, 6 people): €1,440
- Transport/materials: €300
- Total costs: €7,140
Cost per person: €7,140 ÷ 300 = €23.80
Calculate fixed costs per person
Fixed costs don't care about guest count - they hit you regardless. You've got to split these across however many plates you're serving.
- Transport: fuel, time, vehicle wear and tear
- Materials: warming boxes, tableware, decoration
- Setup time: setup, breakdown, cleaning
- Minimum staff: you need 1-2 people even for 15 people
For 15 people, these fixed costs can be €5-8 per person. For 300 people, only €1-2 per person.
Purchasing efficiency
Big orders unlock better prices and reduce waste per head. But the math isn't always obvious.
💡 Example purchasing:
Salmon for 15 people:
- You buy 2 kg salmon for €36/kg
- Cutting waste: 0.3 kg → waste €10.80
- Net: €61.20 for 1.7 kg = €36/kg actual
Salmon for 300 people:
- You buy 40 kg salmon for €32/kg (bulk discount)
- Cutting waste: 6 kg → waste €192
- Net: €1,088 for 34 kg = €32/kg actual
Risk factors for large events
Bigger events bring bigger headaches that can crush your margins:
- No-shows: 5-10% sometimes don't show up
- Last-minute changes: more impact on purchasing
- Complex logistics: more chance of errors
- Longer setup time: more staff needed
⚠️ Note:
Always factor in 5-10% no-show risk in your cost price for large events. You've already purchased and prepared.
Margin calculation per scale
Your target margins need to shift with event size. Here's what works:
- Small groups (10-30 people): 40-50% margin needed
- Medium groups (50-100 people): 35-45% margin
- Large groups (200+ people): 30-40% margin
The formula: Selling price = Cost price ÷ (1 - Desired margin)
💡 Example pricing:
15 people:
- Cost price: €25.33 per person
- Desired margin: 45%
- Selling price: €25.33 ÷ 0.55 = €46 per person
300 people:
- Cost price: €23.80 per person
- Desired margin: 35%
- Selling price: €23.80 ÷ 0.65 = €36.60 per person
Practical tips for both scales
Small events demand tight efficiency - choose dishes you can portion perfectly without waste. One of the most common blind spots in kitchen management is underestimating how fixed costs destroy small event profitability.
Large events need solid planning plus a financial buffer for surprises. Tools like food cost calculators help you track every expense without manual calculations per event.
How do you calculate the margin per scale? (step by step)
Calculate your total costs
Add up: food costs + staff + transport + materials + overhead. Don't forget fixed costs like setup time and minimum required staff.
Divide by number of people
Cost per person = Total costs ÷ Number of people. With small groups, fixed costs per person are much higher.
Determine your desired margin
Small events: 40-50% margin. Large events: 30-40% margin. Calculate selling price: Cost price ÷ (1 - Margin percentage).
✨ Pro tip
Run separate margin calculations for events under 25 people versus over 100 people every quarter. The 15% cost difference between these scales means your pricing strategy needs two completely different approaches.
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 is my margin lower for large events?
You can work with lower margins because your fixed costs per person are much lower. The absolute profit is higher due to volume.
Should I charge different prices per group size?
Yes, that makes sense. Small groups cost more per person due to higher fixed costs. Large groups can be cheaper due to economies of scale.
How do I prevent losses from no-shows?
Factor in 5-10% no-show risk in your cost price for large events. Or ask for a deposit and work with final numbers 48 hours in advance.
What are typical fixed costs in catering?
Transport, materials (warming boxes, tableware), setup time, minimum staff, and overhead. You have these costs regardless of the number of guests.
📚 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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