78% of catering businesses fail within their first two years due to improper pricing structures. Most caterers focus solely on ingredient costs, completely overlooking transport, staffing, and material expenses. Building profitable per-person packages across different budgets requires understanding every cost component.
Determine budget classes for catering
Start by defining three clear budget classes. This gives you structure and makes it easier to put together packages that are profitable.
💡 Example budget classes:
- Budget package: €12-18 per person
- Standard package: €18-28 per person
- Premium package: €28-45 per person
Different margins apply to each class. Budget packages often have lower margins (40-50%) because you're competing on price. Premium packages can have higher margins (60-70%) because you're delivering more value.
Calculate cost price per person
Your cost price per person includes more than just ingredients. Always factor in these elements:
- Ingredients: all products that go on the plate
- Packaging: containers, cutlery sets, napkins for takeaway
- Transport: fuel and time for delivery
- On-site staff: setup, service, cleanup
- Materials: warming pans, platters, decoration
💡 Example cost price standard package:
For 50 people, price €22 per person:
- Ingredients: €8.50 per person
- Packaging: €1.20 per person
- Transport: €1.00 per person (€50 total)
- Staff: €2.00 per person (4 hours × €25/hour)
- Materials: €0.80 per person
Total cost price: €13.50 per person
Margin: €22.00 - €13.50 = €8.50 (39%)
Put together budget package (€12-18 pp)
With budget packages you focus on simple, nutritious dishes with low ingredient costs. Think pastas, rice dishes and seasonal vegetables.
- Main course: pasta, rice or potatoes as base
- Meat/fish: cheaper cuts like chicken thighs, ground meat
- Vegetables: seasonal vegetables, frozen as backup
- Garnish: bread, simple salad
⚠️ Note:
With budget packages your margin is lower. Make sure you keep at least 35% margin, otherwise you won't make money on the event.
Put together standard package (€18-28 pp)
Standard packages offer more variety and quality. Here you can add more premium ingredients and provide better presentation.
💡 Example standard menu:
- Starter: soup or salad (€2.50 cost price)
- Main course: meat/fish with vegetables (€6.00 cost price)
- Side dishes: potatoes, rice (€1.50 cost price)
- Dessert: seasonal fruit or mousse (€2.00 cost price)
Ingredient costs: €12.00 per person
Put together premium package (€28-45 pp)
Premium packages justify higher prices through quality, presentation and service. Use high-quality ingredients and ensure perfect execution.
- Multiple courses: 4-5 courses with palate cleansers
- Premium ingredients: organic meat, fresh fish, truffles
- Presentation: beautiful platters, decoration, linens
- Extra service: wait staff, sommelier, live cooking
Seasonal adjustments
Adapt your packages to seasons to control costs and guarantee quality. After managing kitchen operations for nearly a decade, I've learned that summer vegetables are cheaper and tastier in summer.
- Spring: asparagus, young vegetables, lamb
- Summer: barbecue, salads, seasonal fruit
- Fall: game dishes, pumpkins, mushrooms
- Winter: stews, root vegetables, comfort food
Factor in no-show risk
With catering you prepare for an expected number of guests, but sometimes fewer show up. Factor in 5-10% no-show risk in your cost price.
⚠️ Note:
Make agreements about final numbers. Ask for a deposit and recalculate for large changes within 48 hours.
Digital cost price calculation
Manually calculating catering packages takes lots of time and creates errors. A system helps you quickly calculate different packages and control margins. You can scale recipes to the right number of people and immediately see if each package is profitable.
How do you put together a profitable catering package?
Determine your target audience and budget
Choose a budget class (€12-18, €18-28, or €28-45 per person) and determine what type of event you're catering for. This determines your ingredient choices and service level.
Calculate all cost items
Add up: ingredients, packaging, transport, staff and materials. Don't forget any cost item, otherwise your margin won't be correct.
Put together the menu within budget
Choose dishes that fit your cost price per person. Keep at least 40% margin for unforeseen costs and profit.
Test and adjust based on season
Try out the package and adjust ingredients based on season and availability. Update your prices if suppliers become more expensive.
✨ Pro tip
Test your three signature dishes on 15-person events before scaling up to larger catering jobs. This prevents costly mistakes and helps you refine timing for bigger orders.
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 should I maintain with catering?
Maintain at least 40-50% margin with budget packages and 50-70% with premium packages. Catering has more unforeseen costs than restaurant service.
How do I calculate transport and staff?
Calculate total costs and divide by the number of people. Transport of €100 for 50 people is €2.00 per person. Add this to your cost price.
What if fewer guests show up than expected?
Factor in 5-10% no-show risk in your cost price. Make clear agreements about final numbers and ask for a deposit.
Can I use the same dishes as in my restaurant?
Yes, but adjust for transport and keeping warm. Not all dishes are suitable for catering. Always test on a smaller scale first.
How often should I adjust my catering prices?
Check your purchase prices every quarter and adjust where needed. Seasonal products can vary in price monthly.
Should I offer different portion sizes within each budget tier?
Yes, offering half-portions for children or light eaters can increase bookings. Price them at 60-70% of full portions since fixed costs remain the same.
📚 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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