Catering pricing has gotten smarter in the past five years as more operators realize that dropping per-person rates for bigger groups actually makes them more money. You're spreading those fixed costs across way more plates. The math works because your setup and transport costs stay the same for 30 people or 130 people.
Why tiered pricing works for catering
Catering hits you with fixed expenses that stay put no matter if you're feeding 20 or 200 people. Your van costs the same to drive. Setup time doesn't magically double. You still need your core team there.
💡 Example fixed costs:
- Transport and setup: €150
- Chef + 1 server: €400
- Equipment (warming pans, etc.): €100
Total fixed costs: €650
Now the numbers get fun. Feed 25 guests? You're eating €26 per person in fixed costs alone. But bump that to 100 guests and those same costs shrink to €6.50 per person. That €19.50 difference? That's your wiggle room for competitive pricing.
Breaking down cost price by tier
Your total cost splits into three buckets:
- Food costs per person (stays the same across all tiers)
- Fixed costs per guest (drops as numbers go up)
- Extra staffing (jumps in at certain guest counts)
💡 Example calculation buffet €35 per person:
25 guests:
- Food: €18 per person
- Fixed costs: €650 / 25 = €26 per person
- Extra staff: €0
Total cost price: €44 per person
100 guests:
- Food: €18 per person
- Fixed costs: €650 / 100 = €6.50 per person
- Extra staff: €200 / 100 = €2 per person
Total cost price: €26.50 per person
From years of working in professional kitchens, I've watched caterers blow this by slashing prices without running the actual numbers first. You'll lose money on orders that should be printing cash.
Setting profit margins per tier
Catering margins need to land between 40-50% of your total cost price. Smaller gigs carry more headaches - weather disasters, last-minute chaos, people bailing. So higher margins make sense there.
⚠️ Note:
Do all your math excluding VAT first. Catering gets hit with 9% VAT, so your final customer price = base price × 1.09
Building your tier structure
Most caterers who nail this use these breakpoints:
- 10-24 people: Full price (biggest margin for biggest pain)
- 25-49 people: 10-15% reduction
- 50-99 people: 20-25% reduction
- 100+ people: 25-30% reduction
💡 Example price list:
- 10-24 people: €42.50 excl. VAT
- 25-49 people: €37.50 excl. VAT
- 50-99 people: €33.50 excl. VAT
- 100+ people: €29.50 excl. VAT
All prices are × 1.09 for the customer (incl. 9% VAT)
Variables that mess with your pricing
Guest count matters, but it's not everything. These factors can wreck your margins:
- Travel distance: Fuel and drive time stack up fast
- Venue setup: Cooking on-site vs. hauling everything from your kitchen
- Service style: Buffet vs. plated service vs. cocktail setup
- Event timing: Weekend and evening events cost more
Treat these as separate charges instead of building new tiers. Keeps your pricing structure from getting messy.
How do you calculate tiered pricing? (step by step)
Calculate your fixed costs per event
Add up all costs that stay the same regardless of guest count: transport, setup, base team, equipment. This becomes your fixed cost block of, for example, €650 per event.
Determine your food costs per person
Calculate what the food costs per person, including all ingredients, packaging, and a 10-15% buffer for waste. This usually stays the same per person, regardless of group size.
Factor in staff in steps
Up to 50 guests: base team. 50-100 guests: +1 person. 100+ guests: +2 people. Divide these extra costs by the number of guests in that tier for the cost price per person.
Add everything up and include your profit margin
Food + (fixed costs / number of guests) + (extra staff / number of guests) = cost price. Add 40-50% profit margin for your selling price excl. VAT.
Create your tier table
Calculate your price for each tier (25-49, 50-99, 100+) and round to neat amounts. Test that you're still profitable at each level.
✨ Pro tip
Focus on the 75-90 guest sweet spot during your first 6 months of tiered pricing - offer an extra 3% discount for bookings in this range. This size hits the perfect balance of solid margins and manageable logistics while matching most corporate event sizes.
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
How much discount can I give for large groups?
Don't go past 30% maximum. Push beyond that and you're probably killing your profit margins even with scale working for you. Always double-check that your cost price plus target margin still adds up.
Should I include VAT in my tiered pricing calculation?
Never include VAT in your initial math. Work with prices excluding VAT through your entire planning process. For catering (9% VAT), multiply your final price by 1.09 for the customer quote.
What if fewer guests show up than ordered?
Write minimum guest requirements into each tier contract. A 10% drop you can handle, but bigger shortfalls need either price recalculation or cancellation fees to save your margins.
How often should I adjust my tiered prices?
Check your cost structure every three months minimum. Staff wages, fuel costs, and ingredient prices move around constantly. Update your tiers to keep consistent profit margins across all event sizes.
Can I use different tiers for different catering types?
Absolutely - buffet service runs completely different numbers than plated dinners. Build separate tier structures for buffet, cocktail receptions, and formal plated menus but use the same scaling math.
What's the minimum group size for tiered pricing?
Start tiers at 10 people minimum. Go below that and your fixed costs per person get too brutal to offer competitive pricing while keeping decent margins. Small groups pay premium rates.
📚 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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