How to Bid for a Catering Job

Submit the correct bid for catering jobs.

Catering is a competitive business, with most cities boasting plenty of caterers to choose from. To successfully bid on a job, you must create a proposal that is specific and accounts for all proposed expenses. Overbidding might cause the client to go with another company. Underbidding might cause you to either break even or lose money on the job. To prevent underbidding, it's important to calculate exactly how much the job will cost and create a proposal that leaves you with a decent profit margin.

Instructions

1. Get a head count. The most important part of preparing a bid is to get an exact number of people you'll serve. Each member of the group will consume a certain dollar amount of food, so it is important that all participants are counted. You might even want to increase the head count by 10% to account for any unexpected guests. Weddings, for example, will often have guests show up that did not RSVP to invitations.

2. Consult the customer on a menu concept. A caterer must know exactly what food to prepare. A menu might include baked chicken, macaroni salad, baked beans and a dinner roll. But you might need to provide an alternative menu for several guests who are vegetarians, or prefer beef to chicken. All of these options should be considered and included in the overall menu plan.

3. Calculate the exact amount of food needed based on the number of guests expected. You'll want to know how many ounces of macaroni to prepare, for example, and how many chicken breasts to serve.

4. Price the groceries. Find out how much a box of macaroni costs, and how many ounces are included in each box. If a box of macaroni costs $1.54 and includes 6 ounces, each ounce will cost the caterer about 26 cents. You'll need to do this with every food item, from the meat on down to the salad dressing. It will help your bottom line if you shop around for the best prices.

5. Include incidentals. The caterer might be expected to bring tables and chairs, table settings and alcoholic beverages. You might also need to include the price of rental equipment such as a chocolate fountain or a van to deliver the products. Discuss all of these details with the client and include your incidentals in the bid proposal.

6. Calculate employee pay. Any employee that is preparing or serving food must be paid, and this should be included in the bid proposal. You'll need to calculate the number of hours it will take to prepare the food, then the number of hours employees will have to work. You'll also need to calculate the number of employees. Make sure you get an exact time frame from the client.

7. Submit the final bid proposal. It should include a cover letter, the menu, a cost breakdown per meal, incidentals and labor, and a catering agreement. The catering agreement is a contract that is signed by the client for services rendered. It should include the name of the catering service, the date services will be provided, the price of the services, and other useful information such as how many meals will be prepared.

   Once the bid is submitted, the client might want to negotiate the price. You should be flexible, but also make sure not to underbid your services.

References

• MadeMen: How to Write a Bid For Catering
• Westmont: Westmont Food Bid - Sample Catering Menus
• RRGConsulting: Catering Bid Worksheet and Proposal/Agreement