Knowledge
How to price a catering job
How to work out a catering quote from guest count, food cost, staff and other costs – with the formula, a worked example and the most common mistakes.
- Published on
- Updated on
- By
- Marcel Philipp Goraus
In short: A catering quote is every cost of the job – food cost, staff and other costs – divided by (1 − target margin). The margin is a share of the price, not a markup on the cost.
1. Food cost per guest
Start with the food cost per person: everything served per guest, valued at net purchase prices. It is most accurate when it comes from the costed recipes of the menu. Multiplied by the guest count, it is the job’s food cost.
2. Staff cost
Staff cost covers every hour the job takes – not only service on site, but preparation in the kitchen, transport, set-up and tear-down. Each hour is valued at the hourly rate including employer contributions.
3. Other costs
Everything that arises for this job only: transport, hired crockery, furniture, disposables, decoration. Your business’s overheads, such as rent or administration, are not included unless you add a share of them.
4. Margin and quote price
The total cost is the sum of the three. The net quote price that reaches your target margin is:
Quote price (net) = total cost ÷ (1 − target margin ÷ 100)
The gross price is the net price plus VAT. Which rate applies depends on the service; if in doubt, check with your tax adviser.
Worked example: a company party for 80 guests
All values are illustrations, not benchmarks.
| Item | Calculation | Amount |
|---|---|---|
| Food cost | 80 guests × €18.50 | €1,480.00 |
| Staff cost | 4 people × 8 hours × €30 | €960.00 |
| Other costs | Transport and hired crockery | €350.00 |
| Total cost | Sum | €2,790.00 |
| Quote price, net | €2,790.00 ÷ (1 − 0.25) | €3,720.00 |
| Margin in euros | €3,720.00 − €2,790.00 | €930.00 |
That is €46.50 net per guest. With 7 % VAT as an example rate, the gross quote is €3,980.40.
Common mistakes
- Markup instead of margin: adding 25 % to the cost gives only a 20 % margin. A 25 % margin needs a 33.3 % markup.
- Forgotten hours: preparation, travel, set-up and tear-down tie up staff just like service does.
- Pricing small jobs like large ones: with few guests, staff and fixed costs are spread over fewer people – the price per guest goes up.
- Mixing drinks and food: different VAT rates can apply to them. Cost separate lines separately.
Do the numbers yourself
The free catering calculator works through your own quote – in your browser, no sign-up. The difference between margin and markup is explained in Margin vs markup.
In CulinaryCube, every event has its customer, its guest count and its menu, and the quote comes straight from the menu and its costing. See events in CulinaryCube