Inflation quietly eats away at your margins in long-term catering contracts. You sign a contract for €50 per person, but after a year ingredients cost 15% more. In this article you'll learn how to build in inflation adjustments without losing your client.
Why inflation is your biggest enemy in catering
At restaurants you adjust prices every year. In catering you're often locked into contracts for 1-3 years. Meanwhile your purchasing prices keep rising.
💡 Example:
Contract 2023: €45 per person for corporate lunches
- Meat: +18% more expensive
- Vegetables: +12% more expensive
- Energy: +25% more expensive
Result: you lose €8-12 per person without realizing it
Three ways to build in inflation
1. Fixed annual increase
Build in a fixed increase of 3-5% per year. Simple and predictable for both parties.
Contract text example:
"Prices will be adjusted annually by a minimum of 3% or the CBS inflation figure, whichever is higher."
2. Semi-annual review clause
Check every 6 months whether adjustment is needed. More flexible but also more administration.
💡 Example review:
January 2024: check purchasing prices vs. January 2023
- Increase >8%: raise price by 5%
- Increase 4-8%: raise price by 3%
- Increase <4%: no adjustment
3. Ingredient indexing
Link your price to specific ingredients. Especially useful for meat-intensive catering.
Formula:
New price = Base price × (Current meat index / Start meat index)
⚠️ Note:
Make agreements about which index you use (CBS, your own supplier price) and how often you check. Unclear terms lead to conflicts.
Calculation: what does inflation really cost?
Many caterers underestimate the impact. Here are the realistic numbers:
💡 Example calculation:
Contract: 200 people per month × €40 per person = €8,000/month
- Food cost start: 35% = €2,800
- After 1 year inflation 12%: €3,136
- Extra costs: €336 per month
Loss per year: €4,032 on this single contract
How to sell this to your client
Nobody likes price increases. Here's how to make it discussable:
- Transparency: Show CBS figures on food price increases
- Predictability: "We adjust once per year, not in between"
- Choice: "Fixed 4% or inflation indexing, your preference"
- Value: "This way we can continue delivering the same quality"
Digital support for inflation calculations
Manually tracking price increases per ingredient takes a lot of time. A system like KitchenNmbrs automatically tracks how your cost prices change due to new purchasing prices.
You immediately see the impact on your margin per dish and can have substantiated conversations with clients about price adjustments.
How do you build in inflation clauses? (step by step)
Calculate your current margins per contract
Note the food cost percentage and absolute margin in euros per person. This is your starting point for future adjustments.
Choose your inflation model
Fixed annual increase (3-5%) is easiest. Ingredient indexing is more accurate but more complex to explain.
Write the clause into your contract
Be explicit about when and how you adjust. Mention which index you use and provide calculation examples.
Schedule review moments
Put in your calendar when you review contracts. Do this structurally, not only when you're already losing money.
Communicate proactively with clients
Send a letter 2 months before adjustment with substantiation. Clients appreciate transparency and predictability.
✨ Pro tip
Always build in a 'force majeure' clause for extreme price increases above 15% per year. Then you can have the conversation without breaching the contract.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
How much inflation should I build in per year?
For food expect 4-6% per year as a long-term average. In periods of high inflation this can rise to 10-15%. Check CBS figures for current food inflation data.
What if my client refuses to accept price increases?
Show concrete figures of your increased purchasing costs. Offer alternatives: less luxurious ingredients, smaller portions, or simpler dishes to stay within budget.
Can I adjust existing contracts without an inflation clause?
Legally difficult, but negotiable if you can demonstrate that circumstances have changed drastically. Look for win-win solutions like contract renewal under new terms.
How often should I recalculate my cost prices?
For long-term contracts at least every 6 months. During high inflation even quarterly. Use a system that automatically shows how your margins change.
What are realistic margins for catering with inflation risk?
Plan for 15-25% net margin after all costs. For long-term contracts without inflation compensation this can drop to 5-10%, which doesn't provide enough buffer for unexpected costs.
📚 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.
Calculate events and catering down to the cent
Group arrangements, buffets and events are complex. KitchenNmbrs calculates total food cost per person, per course, per event. Start free.
Start free trial →