What to charge for catering?
Does anyone know what the standard charges for catering are these days? I think it was the food cost times 3 but that seems like a lot because the food cost has risen so much in the last couple years. In my opinon it still takes the same amount of time to prepare the food.
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11 Comments:
It's complicated. But first, figure your food cost. Then figure labor. Don't underestimate labor. Do you have to hire anyone to help? Be sure to tack that on. How much time is spent shopping, researching recipes, planning logistics, prep time, cooking time and actually working the event, plus cleaning up after. Also figure in time you spend w/ your client talking over details. And transporation!
sailordave at 10:14PM on 05/02/09
i would probably do some shopping in my yellow pages and on the internet to see what comparable local caterers are charging and then adjust from there.
tell them you're beginning to plan a party or something, and just want a 'general idea' of what your catering budget should be.
andshewas at 10:15PM on 05/02/09
Two things to think about. First, what's the going rate in your area and/or what will your particular clients be willing to pay for the entire event, or per-person? If it's an upscale client, they're going to be willing to pay extra for the time and effort (and supplies) involved in higher-end presentation, for example. Other people might be more interested in the bottom line, and won't care about garnishes and pretty serving utensils.
Next, how much do you need to make from this amount of work so that you feel it was worth doing? There's no sense taking the job if you walk away from it feeling like you worked too hard for too little money and/or no other benefits. For example, you might be willing to work cheap if it's for a charity you adore, but require more cash if it's a job for your ex-employer who you still dislike.
Three times the food cost might give you a place to start calculating, but cheap food can be as much (or more) work than expensive food.
dbcurrie at 12:16AM on 05/03/09
I agree with you. My standard rate was double food cost. It always covered everything with a good profit. After asking around, I learned that I undercharged. Cost tripled is reasonable.
supersu75 at 12:23AM on 05/03/09
Wow--you're thinking of charging less than 3X? That sounds very low to me.
There is a place near where I live that advertises its catering services, it isn't service, just big trays and even a plain ol' pasta vat that feets 10-15 starts ad $40, which is expensive IMHO given how much pasta costs:
http://ruffinospizza.com/catering-full.html
I have never heard of catering priced in terms of food cost, though, from the point of view of the purveyor. For example, catering a pancake and make-your-own omelet gala would have high labor costs because of the serving while catering a roast beef anniversary dinner might not if it just involved pre-sliced meats and the guests serving themselves sides.
HeartofGlass at 7:02AM on 05/03/09
when i was doing catering i usually used this formula: 1/4 food, 1/4 labor, 1/4 overhead, 1/4profit.
but take into consideration, you can't charge 4x what a steak costs and if you only charge 4x what couscous costs you'll be missing the boat.... so you must take that into consideration. on high items like steak, fish, i think i used to only double it because these items are also less labor intensive.
obviously times are different. check out what the market can bear in your area. and what level are you offering? what are restaurants charging?
if a fine dining restaurant is getting $60-75 bucks for a full meal (apps, salad, entree, dessert, etc.) then you should probably be getting that as well. if you're going more moderate - then follow that path as a guideline.
also the number of guests really bumps up your bottom line, so the larger the parties, usually the more money you make on them.
just be fair. you need enough to stay in business and the guest needs to feel that they got their money's worth.
pooch at 8:59AM on 05/03/09
Thanks for all the advice, my job I did yesterday ended up to be $20.00 per person I shopped, cooked and deliverd, they cleaned up. I made bbq chix satay, sliced roast beef for mini sandwiches, spinach salad, green salad, lentil salad an antipasto tray and chocolate covered strawberries. I had about 12 hrs. from start to finish. It was for 30 people. I guess it was a fair price. I would like to cater for them again..
WSLunch at 2:11PM on 05/03/09
and if they use you again that would be great for you..... good luck and anytime we can help, don't hesitate....
pooch at 11:13AM on 05/04/09
you made $600 total? Less the grocery?
You should charge more.
For 12 hours of work, you should have netted $600 (at least) just for yourself.
jdmcdonald at 1:22PM on 05/04/09
This is absolutely the WORST part of catering - figuring prices. I'm doing a cater that will last the next 3 days for BF's company - training luncheon. To be honest I totally "winged" the price because his employer is so good to us otherwise, I figured it wouldn't really matter if I didn't make a whole lot on the deal. ("Good to us" = BF's boss decided I should go along on a recent business trip to Las Vegas and treated us all to a dinner at Paris restaurant that had to set him back at least $800 for the table.)
therealchiffonade at 5:01AM on 05/05/09
That sounds like you undercharged!
My standard calculation is to double all food costs, then a variable hourly rate for labor, which includes shopping time, cooking time, time at the job, transportation time, and cleanup time. Then for transportation, I charge 52ยข per mile, which again includes transportation during shopping, and to and from the job.
The hourly rate depends on the specifics of the job, so for rich clients who want a fancy dinner party (plated dishes, waitstaff, etc), it's around $100/hour (plus more if I need to bring extra staff), but for a family-style casual dinner for a college graduation or something, it's more like $50/hour.
Of course, many jobs have other benefits besides just the money (exposure to future clients, family and friends, etc), so just judge everything on a case-by-case basis. I think the double food/hourly rate is a good formula to go by. And don't underestimate the number of hours it'll take you!
GoodEaterKenji at 8:24AM on 05/09/09