The most common way caterers lose money on big orders is pricing from food cost alone and underestimating labor and overhead. Price from full cost - food, labor, transport, rentals, prep time - then add margin on top. This calculator works backward from those costs to the per-plate number you should actually quote.
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Frequently asked questions
How do I price catering orders to ensure profitability?
Start from cost, not from a guess. Add food cost, labor, rentals/overhead, and a target net margin, then divide by guest count. A common target is a 28-35% food cost with 15-25% net margin after labor and overhead.
What food cost percentage should caterers aim for?
Most profitable caterers keep food cost between 28% and 35% of the menu price. Drop-off and buffet service can run leaner; plated and full-service events carry more labor, so the food cost target is often lower to protect margin.
Why do catering businesses lose money on big orders?
Underpricing labor and overhead is the usual culprit. The food cost looks fine, but staffing, transport, rentals, and prep time get underestimated, so a large order quietly runs at a loss. Pricing from full cost prevents it.