How to Price a Catering Job

Remember to include the cost of your wait staff when calculating catering costs.

If you intend to run a successful catering business, it is important to know how to price catering jobs correctly. To price a catering job, you must take into account all catering costs while still making sure to price competitively. While each catering business has its own specialty and therefore its own pricing considerations, there are certain basics in pricing a catering job that apply to most catering businesses.

Instructions

1. Calculate overhead catering expenses. Before you start to price a particular catering job, it is important to calculate your total overhead costs. These include costs of equipment, transportation, rental space, utilities and advertising. Divide this total by the number of catering jobs you anticipate per month. Be sure to include this amount whenever pricing a catering job.

2. Price based on specific catering job costs. Next, you will want to price your catering based on costs associated with that specific catering event. Make a list of all costs, including food costs, disposable goods, staff wages and utilities. You should be able to approximate how much an event will cost in advance as you get more experienced.

3. Price based on head count. One of the most common methods of pricing a catering job is pricing based on the number of people that you will be serving. You can set a minimum and maximum number of people for whom you are willing to cater. You can also set prices on a sliding scale. For example, offer a regular price per person for 50 to 100 people, offer a slightly discounted price per person for 100 to 200 people and offer a larger discount per person for 200 to 400 people.

4. Price based on menu type. You should also take into account the type of food you will be serving. Calculate how much the ingredients cost plus how much it will cost for the chef to prepare the dishes. Some foods may have inexpensive ingredients, but require a lot of preparation, so be sure to keep this in mind when pricing.

5. Price based on the number of courses. Another consideration in pricing a catering job is how many courses will be served. Elaborate meals with seven courses will obviously cost more than a simple two-course meal.

6. Price based on type of setup. You will also want to price catering jobs based on the type of event and the setup required. Consider whether you are planning a formal dinner or a simple picnic. Do not take into account just the food that is served, but also how the food will need to appear and what kind of decor you need to provide, such as dishes, glassware, table linens and flowers.

7. Price based on service. Remember to price based on the number of waiters required. You might charge less for catering if you will just serve buffet style instead of offering full waiter service. Calculate how many waiters are needed and how many hours you will need them for, as well as any additional kitchen help you might need.

8. Include additional services in your catering pricing. You can get more business and possibly make more of a profit if you add additional services to your catering business. For example, you can cater for a specific hall and charge clients one price that includes both the price of the hall and the catering service. Similarly, you can offer hall decorating or flowers together with catering service. Just make sure potential clients understand exactly what is included in your basic price and your additional service packages.

9. Price competitively. Make sure to investigate how much your competitors charge for their catering jobs. Try to remain competitive while still covering your costs and leaving yourself a profit. Give your catering service a speciality in order to charge more than the competition and still get clients.

10. Simplify your catering prices. If you plan on catering as a business, you can take all pricing considerations and create a standard pricing guide. Categorize services into service types so that you don't have to figure out prices from the start for each customer who approaches you. For example, have a standard menu with a basic price and then additional costs for extras. Put together a list of which items will be considered standard and which will require additional costs.

Tips & Warnings

• Read articles on starting a catering business. Pricing is just one part of running a successful catering service.

References

• Food Service Warehouse: Pricing a Catering Menu
• Restaurant Owner: Catering & Banquet Price Sheet Template
• Start a Catering Company: Pricing a Catering Job