How to Price the Food for a Catered Event

Determining the costs for a catered event is directly tied to how much it cost you to make each item.

Starting a catering business is a great way for a home cook or culinary student fresh from graduation to get started in the food service business. A small catering business can be started from home or small commercial kitchen spaces can be rented in some areas. The best path to success for a catering company is making a profit, which comes from properly pricing your items.

Instructions

1. Compare prices between competing catering companies before setting your prices. Price your items accordingly.

2. Discuss with the client exactly what they want on the menu and what their expectations are. Discuss what type of event they are having (for example, a wedding, bar mitzvah or cocktail party). Compromise with the client where necessary. For example, if they want to have fresh shucked oysters available and oysters are out of season, discuss alternatives with the client or let them know that the cost will be higher due to the difficulty in acquiring the item.

3. Determine how many guests will be served, how many different courses need to be made and how much variety in the courses there needs to be (such as a kid's menu or vegetarian dishes).

4. Figure out all of the associated costs for supplying food to the event; this includes food costs, labor costs (how much it cost you and your workers, if any, to make the food), overhead costs (such as utilities, rent and packaging) and how many workers will be needed at the event. Include all incidental costs such as gas, set-up and breakdown.

5. Decide how much of a profit you need to be successful. For example, in a restaurant, menu food is usually priced about 10 to15 percent higher than what the ingredients (food costs), running the restaurant (overhead costs) and labor costs are. Determine whether you will price the event on a per-product or per-person basis.

6. Keep in mind your client's budget; If they are willing to work with you on pricing and they can be a good source of future business, consider lowering your profit margin slightly, especially if this is your first event for this customer.

References

• Restaurant News Source; Food & Beverage - Pricing A Catering Menu; Joe Dunbar
• Food Service Warehouse: Pricing a Catering Menu
• "The Complete Caterer: A Practical Guide to the Craft and Business of Catering"; Elizabeth Lawrence; 1992
• "The Food Service Professional Guide to Successful Catering"; Sony Bode; 2005
• "Catering Like a Pro"; Francine Halvorsen; 2004