While restaurant dining offers predictable margins, catering promises big payouts but often delivers disappointment. You'll spend countless hours planning, shopping, and executing events only to discover your hourly rate barely covers minimum wage. You've got three paths forward: streamline operations, cherry-pick only premium gigs, or cut catering entirely.
First analyze where things go wrong
Before making any major moves, figure out why your catering profits are so thin. Hidden expenses you're not tracking properly usually kill profitability.
💡 Example of hidden costs:
Catering for 50 people at €25 per person:
- Revenue: €1,250
- Food cost (35%): €437.50
- Extra staff: €200
- Transport and fuel: €40
- Packaging and materials: €75
- Owner's extra time (4 hours at €25): €100
Actual profit: €397.50 (32% of revenue)
Option 1: Optimize your catering process
Want to keep catering alive? Make it work harder for you through smarter systems and pricing.
- Bump minimum orders: Nothing under €500 or 20 guests
- Lock down menus: Offer 3-5 set packages, no custom requests
- Price everything in: Delivery, containers, overtime wages
- Demand deposits: 50% upfront eliminates last-minute cancellations
⚠️ Note:
Don't forget to pay yourself. Spending 6 hours for €300 profit means you're earning €50 hourly. Does that match your skill level?
Option 2: Be more selective with jobs
Not every catering gig deserves your attention. Focus on events that actually move the needle and pass on the rest.
- Size matters: 30-50 person minimum
- Reward loyalty: Repeat corporate clients get priority
- Go upmarket: Premium menus with healthier margins
- No rush jobs: One week minimum booking window
💡 Example selection criteria:
Only accept if:
- Minimum €1,000 order value
- Maximum 30 minutes travel
- Standard menu (no special requests)
- Payment upfront
This cuts 70% of your headaches while dropping revenue just 20%.
Option 3: Stop catering completely
Sometimes quitting is winning. That time and energy might generate better returns in your main dining room.
- Restaurant focus: Pour energy into daily operations
- Speed up turnover: Faster, smoother service
- Build takeout: Less hassle, better margins than catering
- Cultivate regulars: Weekly diners beat one-off events
Something most kitchen managers discover too late: the hours you spend chasing marginal catering revenue could double your regular customer base instead.
Calculate the impact of each option
Run the numbers honestly on what each path means for yearly income and your sanity.
💡 Impact calculation example:
Current situation: 2 catering jobs per week
- Catering revenue: €2,000/month
- Catering profit: €600/month (30%)
- Extra time: 20 hours/month
Alternative: Restaurant focus, 20 extra hours on daily business generates €1,000+ additional revenue at 40% margin = €400 profit with way less stress.
Implement your decision step by step
Whatever direction you pick, roll it out gradually. Sudden changes create chaos.
- Test pricing: Try new rates on fresh customers first
- Clear communication: Give existing clients proper notice about changes
- Track results: Review after 3 months
- Stay adaptable: Tweak what isn't working
How do you determine if catering is profitable? (step by step)
Calculate all actual costs
Add up: food cost, extra staff, transport, packaging, materials and your own time. Calculate your own hours at minimum €25 per hour. Many entrepreneurs forget to include their own time.
Compare with your restaurant margin
Check how much profit you make per hour in your restaurant versus per hour catering. If catering yields less than your normal operations, it's a loss-making item that seems to generate revenue.
Set your minimum acceptance criteria
Set hard limits: minimum order, maximum travel time, standard menus only. Reject anything that doesn't meet these criteria. This saves time and increases your average margin per job.
✨ Pro tip
Track your 5 biggest catering events over the next 8 weeks: log every hour spent and final profit per job. If you're earning under €35 hourly after all costs, either raise prices by 25% or start declining smaller gigs.
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's a realistic minimum order value for catering?
Start at €500-750 minimum for smaller operations. Anything below that and your fixed costs (prep time, transport, setup) usually eat your profit. Test different thresholds to find your sweet spot.
How do I handle pushback from customers about higher catering prices?
Be upfront about rising costs and your commitment to quality. Give 4-6 weeks notice and offer scaled-back options at previous prices. You'll lose some clients, but keep the profitable ones.
Should I factor in catering's marketing value when calculating profitability?
Absolutely, if catering actually brings restaurant customers through your doors. Track how many catering clients become regular diners over 6 months. If it's significant, lower direct margins might still make sense.
📚 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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