Ever wonder why catering prices seem so different from restaurant menu pricing? A restaurant carries fixed monthly expenses like rent and daily staff, while catering businesses operate project-based with costs that shift per event. This fundamental difference shapes how you price jobs and determine profit margins.
Fixed costs: restaurant vs catering
Restaurants face identical monthly expenses whether they serve 10 customers or 500. Catering operations only trigger many expenses during active bookings.
💡 Example fixed costs restaurant:
- Rent: €4,500/month
- Staff (fixed): €8,000/month
- Insurance: €300/month
- Energy (base): €800/month
Total: €13,600/month (even with 0 guests)
💡 Example catering costs:
- Kitchen/studio rent: €1,200/month
- Staff: only for assignments
- Transport: per job
- Tableware/materials: per event
Fixed costs: €1,500/month
Variable costs per assignment
Catering expenses fluctuate dramatically per job. This complicates cost calculations but offers greater flexibility in operations.
- Staff: Chef, service, dishwashing - only on event days
- Transport: Fuel, time, possibly van rental
- Materials: Tableware, linens, warming equipment
- Setup time: Travel time and setup at location
⚠️ Watch out:
Many catering companies forget to include travel time and setup. A 4-hour event often costs 8 hours of labor (prep, transport, setup, breakdown).
Food cost differences
Catering food costs run higher than restaurants, but this makes sense given their distinct operational models.
- Restaurant food cost: 28-35% (average 30%)
- Catering food cost: 35-45% (average 40%)
- Reason: Less overhead per dish, higher service component
💡 Example catering calculation:
Buffet for 50 people at €25 per person:
- Revenue: €1,250 excl. VAT
- Food cost (40%): €500
- Staff (3 people, 8 hours): €480
- Transport + materials: €120
- Profit: €150 (12%)
Break-even differences
Restaurants need daily break-even targets due to fixed overhead. Catering businesses calculate break-even per individual assignment.
- Restaurant: Must hit X covers every day to cover costs
- Catering: Each assignment must at least break even
- Flexibility: Catering can selectively accept assignments
From analyzing actual purchasing data across different restaurant types, restaurants show more consistent daily spending patterns while caterers experience dramatic cost spikes during event periods.
Seasonal fluctuations
Both experience seasonal patterns, but catering companies face more extreme peaks and valleys.
⚠️ Watch out:
Catering companies must set aside money in good months for slow periods. A restaurant has more predictable income.
Cost tracking for catering
For catering businesses, precise cost calculation per event is essential. You can't estimate - every assignment must add up.
- Recipes per person: Calculate exactly how much you need
- Total cost price: Including labor, transport, materials
- Profit margin control: Check if every assignment is profitable
How do you calculate the cost price for a catering assignment?
Calculate your food cost per person
Create a recipe for the number of people. Add up all ingredients and divide by the number of guests. Use 35-45% food cost as a guideline.
Calculate all labor costs
Add up prep time, transport, setup, service and breakdown. Multiply by your hourly rate including social charges (often €25-35/hour).
Add variable costs
Transport (fuel, time), materials (tableware, linens), any equipment rental. Add everything up and divide by number of people for cost price per person.
✨ Pro tip
Track your actual labor hours for 10 recent events and compare to your estimates. Most caterers underestimate total time by 25-30%, which kills profitability.
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
Why is a catering company's food cost higher than a restaurant?
Catering has less overhead per dish (no daily rent, less fixed staff) but higher service costs. A food cost of 35-45% is normal, compared to 28-35% for restaurants.
How do I factor transport and travel time into my prices?
Calculate the total time (there and back, setup, breakdown) and multiply by your hourly rate. Add fuel costs separately. A 4-hour event often costs 8 hours total in labor.
Do I need to calculate every assignment separately?
Yes, every catering assignment has different costs due to location, number of people and menu. Standard per-person prices don't work - you need to calculate every job to stay profitable.
What profit margin can I charge as a caterer?
A healthy profit margin for caterers is between 10-20% after all costs. For complex events with lots of service this can be higher, for simple deliveries often lower.
📚 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.
Related questions
Calculate your meal box down to the penny
Caterers and meal prep companies work with tight margins. KitchenNmbrs calculates costs per box, per portion, per recipe — so every product is profitable. Start free.
Start free trial →