A caterer recently lost €300 on what seemed like a profitable 50-person corporate lunch because they forgot to include transport time and packaging costs. Most caterers calculate ingredients but overlook staff hours, materials, and logistics. Here's how to calculate your true cost per person for corporate catering.
What's included in catering costs?
Catering involves more expenses than just ingredients. You'll need to account for:
- Ingredients - all products for the menu
- Staff - prep, transport, service on-site
- Transport - fuel, vehicle wear and tear
- Materials - dishes, warming pans, tablecloths
- Packaging - containers, foil, napkins
⚠️ Note:
Always account for 5-10% no-shows. You prep for 50 people but only 45 show up. Those costs are still real.
Calculate ingredient costs
Start with your menu and calculate the ingredient cost per person. Add everything up:
- Main course (meat, fish, vegetarian)
- Side dishes (potatoes, vegetables, sauces)
- Bread, butter, garnish
- Beverages (coffee, tea, water, juice)
💡 Example corporate lunch:
Menu for 40 people:
- Sandwiches (€1.20 per person)
- Fillings and salad (€2.80 per person)
- Soup (€0.90 per person)
- Fruit and cookie (€1.10 per person)
- Beverages (€0.80 per person)
Ingredients total: €6.80 per person
Staff and labor costs
Calculate how many hours you'll spend on this catering job:
- Preparation - shopping, prep work, packing
- Transport - driving to and from
- On-site - setup, service, cleanup
- Finishing - cleaning materials, admin
Use your hourly rate including employer costs. For self-employed caterers: minimum €25-35 per hour.
💡 Example labor costs:
For 40 people corporate lunch:
- Preparation: 3 hours × €30 = €90
- Transport: 1.5 hours × €30 = €45
- On-site: 2 hours × €30 = €60
- Finishing: 1 hour × €30 = €30
Labor total: €225 (= €5.63 per person)
Transport and material costs
Don't overlook these expenses:
- Fuel - calculate €0.35 per kilometer
- Material rental/wear - warming pans, dishes
- Packaging materials - foil, containers, napkins
- Insurance and risk - damage on-site
💡 Example other costs:
For 40 people:
- Transport: 30 km × €0.35 = €10.50
- Packaging: €25
- Material wear: €15
Other costs: €50.50 (= €1.26 per person)
Total cost calculation
Add up all costs and divide by number of people:
Cost per person = (Ingredients + Labor + Transport + Materials) / Number of people
💡 Complete calculation:
Corporate lunch 40 people:
- Ingredients: €6.80 per person
- Labor: €5.63 per person
- Transport/materials: €1.26 per person
Total cost: €13.69 per person
From cost to selling price
Your cost is €13.69 per person. Now you need to make a profit. Standard margin for catering is 40-60%.
Selling price = Cost / (1 - Desired margin%)
At 45% margin: €13.69 / 0.55 = €24.89 per person excl. VAT
With 9% VAT: €24.89 × 1.09 = €27.13 per person incl. VAT
⚠️ Note:
Always build in a buffer for no-shows and unexpected costs. Better to overestimate by 10% than to run at a loss.
Track catering costs digitally
From analyzing actual purchasing data across different restaurant types, digital tracking prevents the most common costing mistakes. Tools like KitchenNmbrs can help you:
- Create recipes for standard catering menus
- Automatically calculate cost per person
- Compare different menus for profitability
- Track ingredient prices by supplier
This saves time on quotes and prevents you from forgetting costs.
How to calculate catering cost? (step by step)
Calculate ingredients per person
Make a list of all ingredients for your menu. Add up the costs and divide by number of people. Don't forget beverages, bread and garnish.
Calculate labor hours
Add up all hours: preparation, transport, service and finishing. Multiply by your hourly rate (minimum €25-35). Divide by number of people.
Add transport and material costs
Calculate fuel (€0.35/km), packaging and material wear. Divide by number of people for cost per person.
Calculate total cost
Add ingredients + labor + other costs. This is your cost per person. You need to add profit on top.
Determine selling price with margin
Divide cost by (1 - desired margin). At 45% margin: cost / 0.55. Add VAT for final price.
✨ Pro tip
Set a minimum order of 25 people for corporate catering to cover your fixed costs. Below this threshold, your transport and setup time make smaller events unprofitable.
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 normal margin for catering?
How do I account for no-shows in catering?
Can I charge the same prices as a restaurant?
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
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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