A healthy margin on catering contracts is between 30-45% after deducting all costs. Many caterers underprice because they forget that catering has different cost items than restaurant service. You need to account for transport, setup, extra staff and the risk of no-shows.
What is a realistic margin for catering?
With catering you have different costs than in your restaurant. A healthy margin is therefore higher than your regular food cost.
💡 Example margin breakdown:
- Food cost: 25-30%
- On-site staff: 15-20%
- Transport + materials: 5-8%
- Overhead + profit: 15-20%
Total costs: 60-78% = Margin 22-40%
Calculate cost per person
For catering you charge per person, not per plate. Add up all costs and divide by the number of guests.
💡 Example 100 people buffet:
Contract: €3,500 (€35 per person)
- Ingredients: €1,050 (€10.50 pp)
- Staff (5h × 3 people × €25): €375
- Transport + materials: €275
- Overhead: €350
Total costs: €2,050 = Margin €1,450 (41%)
Extra cost items in catering
Many caterers forget to include these costs:
- Transport: fuel, vehicle wear and tear, driving time
- Setup time: arrival, setup, cleanup
- Extra staff: on-site service costs more than in a restaurant
- Material costs: chafing dishes, warming plates, tableware
- Insurance: liability outside your own premises
⚠️ Note:
Always budget 5-10% extra ingredients for catering. People eat more at buffets and you can't reorder if you run out.
Account for no-show risk
With catering you prep for the registered number, but sometimes fewer guests show up. You need to factor this risk into your price.
- Business events: usually reliable (2-5% no-show)
- Private parties: more uncertainty (5-15% no-show)
- Large events: budget at least 10% buffer
Set a minimum order value
Small catering jobs are often not profitable due to the fixed costs of transport and setup.
💡 Example fixed costs:
- Transport: €150 (round trip)
- Setup + breakdown: 3 hours × €25 = €75
- Materials: €50
Fixed costs: €275 - Therefore minimum 30-40 people
Seasonal and price adjustments
Catering prices can fluctuate with the season and availability of your team.
- Busy period: 10-20% surcharge (May, June, September, December)
- Weekend surcharge: 15-25% extra for Saturday
- Last-minute: booking within 1 week = 20% surcharge
KitchenNmbrs for catering costs
With KitchenNmbrs you quickly calculate the cost per person by scaling your recipes to the number of guests. You immediately see if your quote is profitable before you send it.
How do you calculate a healthy catering margin?
Calculate your food cost per person
Add up all ingredients and divide by number of guests. Budget 5-10% extra for buffet behavior and no reordering option.
Add up fixed costs
Transport, setup time, materials and extra staff. These costs are always there, regardless of the number of guests.
Calculate your minimum selling price
Food cost + fixed costs + overhead + desired profit. Divide by number of people for price per person.
Check your total margin
A healthy margin is between 30-45%. Lower than 30% and you're not earning enough for all the extra work.
✨ Pro tip
Create a standard checklist of all catering costs and use it for every quote. That way you never forget anything and keep your margin healthy.
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 is a normal price per person for catering?
That depends on the type of event. Simple lunch buffets from €15-20 per person, elaborate dinners €35-50 per person. Always calculate what your costs are.
Do I need to calculate VAT on catering prices?
Yes, catering falls under 9% VAT. Always calculate your margin on the price excluding VAT, just like with restaurant sales.
How do I prevent losing money on small events?
Set a minimum order value or minimum number of people. Below 30-40 people the fixed costs are often too high for a healthy margin.
What if fewer guests show up than stated?
Make agreements about minimum number of people in your contract. You've already purchased ingredients and scheduled staff, so the costs are already there.
Can I charge the same prices as in my restaurant?
No, catering has extra costs for transport, setup and risk. Charge at least 20-30% higher than your regular menu price.
📚 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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