You calculate the margin on catering by subtracting all costs from your price per person. Many caterers forget hidden costs like transport, setup and no-show risk, which causes them to unknowingly make losses. In this article you'll learn step by step how to calculate a realistic margin for an art gallery opening.
What are the total costs for catering?
With catering you have more cost items than in your restaurant. Besides ingredients, there are extra costs:
- Food cost: ingredients for the menu
- On-site staff: service, chef, dishwashing
- Transport: fuel, vehicle wear and tear
- Materials: crockery, linens, warming equipment
- Setup/breakdown time: extra staff hours
- No-show buffer: you prep for 100, 85 show up
💡 Example art gallery opening:
100 guests, walking dinner, 3 hour event
- Selling price: €45 per person = €4,500 total
- Food cost: €12 per person = €1,200
- Staff (4 people, 6 hours): €720
- Transport and materials: €200
- No-show buffer (10%): €120
Total costs: €2,240
Calculate food cost for catering
For catering you calculate food cost per person, not per plate. Add up all ingredients that one guest consumes:
- All appetizers and bites
- Drinks (if included)
- Garnishes and decoration
- Bread, sauces, olive oil
- 10-15% extra for no-shows and second servings
⚠️ Note:
At walking dinners guests often eat more than at a seated dinner. Calculate 20% extra food cost to be safe.
Staff costs for events
Staff at catering costs more than in your restaurant due to travel time and setup:
- Setup: 1-2 hours before the event
- Event itself: actual duration
- Breakdown: 1-2 hours after the event
- Travel time: round trip (paid)
💡 Example staff costs:
4 people for art gallery (chef, 2 service, dishwashing)
- Setup: 1.5 hours × 4 people × €18 = €108
- Event: 3 hours × 4 people × €18 = €216
- Breakdown: 1.5 hours × 4 people × €18 = €108
- Travel time: 1 hour × 4 people × €18 = €72
Total staff: €504
The margin calculation
You calculate your margin like this:
Margin % = ((Selling price - Total costs) / Selling price) × 100
For catering a healthy margin is 25-35%. Lower becomes risky due to unforeseen costs.
💡 Margin calculation art gallery:
- Revenue: €4,500
- Total costs: €2,240
- Profit: €4,500 - €2,240 = €2,260
Margin: (€2,260 / €4,500) × 100 = 50.2%
Factor in risk factors
With catering things can go wrong that eat into your margin:
- Fewer guests: you've already purchased and scheduled staff
- More guests: last-minute ordering is expensive
- Longer duration: guests stay longer, more staff needed
- Extra requests: vegetarian options, allergens
That's why experienced caterers always calculate a buffer of 10-15% on their costs.
How do you calculate the margin on catering? (step by step)
Calculate food cost per person
Add up all ingredients that one guest consumes: appetizers, drinks, garnishes. Calculate 15% extra for no-shows and second servings.
Calculate all staff costs
Add up setup, event, breakdown and travel time. Multiply by number of people and hourly rate. Don't forget the chef and dishwashing.
Add up material and transport costs
Calculate fuel, vehicle wear and tear, material rental and any location costs. Add 10% buffer for unforeseen costs.
Calculate your margin percentage
Subtract total costs from selling price. Divide by selling price and multiply by 100. Aim for a minimum 25% margin.
✨ Pro tip
Always check the location beforehand. No elevator, small kitchen or limited power can significantly increase your costs through extra time and materials.
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 margin is normal for catering?
A healthy margin for catering is between 25-35%. Lower becomes risky due to unforeseen costs and no-shows.
Should I include VAT in my margin calculation?
Always calculate excluding VAT. Your selling price of €45 incl. VAT becomes €41.28 excl. VAT at 9% VAT.
How do I account for no-shows?
Calculate 10-15% extra food cost and plan staff for the full number. No-shows are the client's risk, not yours.
What if the event runs longer than planned?
Make agreements about extra hours in your contract. Calculate €25-30 per person per extra hour for staff and materials.
How do I calculate travel time for my team?
Travel time is actual time to and from. At 30 minutes one way you pay 1 hour travel time per person.
📚 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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