How to Calculate Service Charges for Catering

Catering companies and hotels that provide catering services typically add a service charge to the bill. This service charge is similar to a gratuity, but the funds from the service charge may or may not go to the catering employees. Catering companies base the service charge on a fixed percentage. If you know your total catering bill and the service charge percentage used by the catering company, you can calculate the total service charges for a specific catering event.

Instructions

1. Determine the price per person charged for a specific catering event. For example, let's assume the per-person charge is $90.

2. Determine the number of people for whom you contracted catering services. This number may differ from the actual number of people that show up for the catered event. For example, assume you contracted a catering event for 100 people.

3. Multiply the per person-charge by the number of people you contracted catering services for. Continuing the same example, $90 x 100 = $900.

4. Determine the service charge percentage used by the catering company. You can find this information on your catering contract or by asking the catering company. Typical catering service charges range from 15 percent to 22 percent. Let's assume that the catering company's service charge is 18 percent.

5. Multiply the per-person total from Step 3 by the service charge percentage expressed as a decimal. Continuing the same example, $900 x .18 = $162. This figure represents the service charge for the catered event.

References

• Off-Premise Catering Management; Bill Hansen; 1995