To price a catering order, add up the full cost of the job (food plus an overproduction allowance, disposables, staff hours, transport, energy and hire), divide it by (1 − the margin you want) and share the result across the guests. That is your price per person. Then check what happens if fewer people come, and take a deposit that covers everything you need to buy before the day.
What goes into the cost of a catering order
A catering job is not your usual product multiplied by the number of guests. It has costs that only show up for events:
- Food per person. The cost of each portion, from your recipe costings, times the headcount.
- Overproduction. You always make a little extra so you do not run short. Pick a percentage and add it to the food cost.
- Disposables. Boxes, plates, cutlery, cups, napkins, platters.
- Staff hours. Shopping, prep, service at the venue and cleanup. Yours at the hourly rate you give your own time, plus whatever you pay a helper.
- Transport. The shopping run and getting the food to the venue and back. The guide to the real cost of delivery shows how to count it.
- Energy, hire and extras. Oven and hob time, chafing dishes or insulated boxes you rent, ice.
If the client wants servers, tables or crockery, quote them as separate lines. The client sees what they are paying for, and you do not swallow a cost you never priced.
From cost to price
Once you have the total cost of the job, the price comes from the same formula you use for any product:
total price = total cost ÷ (1 − margin)
Then divide by the number of guests for a price per person, and round up to a clean figure. Rounding down eats your margin. The guide on price endings, bundles and sizes covers choosing numbers that read well without giving money away.
If you charge sales tax, do all of this before tax and add it at the end. State on the quote whether the total includes tax.
Worked example: office lunch for 30
An office asks for a working lunch for 30 people: a sandwich, a side salad and a brownie each, boxed individually. You want a 30% margin.
1. Food per person (from your recipe costings)
| Item | Cost per person |
|---|---|
| Sandwich | $2.60 |
| Side salad | $1.40 |
| Brownie | $0.70 |
| Total | $4.70 |
With 10% overproduction: 4.70 × 1.10 = $5.17 per person. For 30 people: 5.17 × 30 = $155.10.
2. Everything else
| Item | Working | Amount |
|---|---|---|
| Food with overproduction | 5.17 × 30 | $155.10 |
| Disposables | 0.90 × 30 | $27.00 |
| Your time | 9 h × $20 | $180.00 |
| Helper for packing | 3 h × $15 | $45.00 |
| Transport | shopping run and delivery | $25.00 |
| Energy, ice, cool boxes | $15.00 | |
| Total cost | $447.10 |
3. Price
- Total price: 447.10 ÷ (1 − 0.30) = 447.10 ÷ 0.70 = $638.71
- Per person: 638.71 ÷ 30 = $21.29
- Rounded up: $22 per person, so 22 × 30 = $660
- Real margin: (660 − 447.10) ÷ 660 = 212.90 ÷ 660 = 32.3%
Your own time is already inside the cost. The $212.90 profit is on top of the $180 you pay yourself for nine hours.
Why a smaller group costs more per head
Now the same office asks what it would cost for 15. Halving the total does not work. Transport and hire cost the same, and your time falls by less than the number of boxes. Say you can drop the helper and do it in 7 hours.
| Item | 15 people |
|---|---|
| Food: 5.17 × 15 | $77.55 |
| Disposables: 0.90 × 15 | $13.50 |
| Your time: 7 h × $20 | $140.00 |
| Helper | $0.00 |
| Transport | $25.00 |
| Energy, ice, cool boxes | $15.00 |
| Total cost | $271.05 |
- Total price: 271.05 ÷ 0.70 = $387.21
- Per person: 387.21 ÷ 15 = $25.81
To keep the same margin for 15 people you need about $26 a head, not $22. Because cost per person falls as the headcount rises, a simple price list works: $26 per person for 15 to 29 guests, $22 from 30, and a minimum of 15. Below the minimum, quote each job on its own.
The deposit and the terms
A deposit is there so your money is never tied up in an event that might be cancelled. At the very least it should cover everything you buy before the day. In the 30-person example, the purchases are food, disposables, transport and energy: 155.10 + 27 + 25 + 15 = $222.10. A 50% deposit is $330, so it covers them.
Put these in writing with the quote:
- What the price includes and what it does not (servers, crockery, tax).
- The deposit, and when the balance is due.
- The deadline for confirming final numbers.
- What you charge for each extra guest after that deadline.
- What happens to the deposit if the client cancels.
For catering as a sales channel, including how much of your week it takes and how it fits with everything else you sell, see the guide to catering and events as a channel.
When the client asks for a discount
Clients with bigger groups often ask for a better price. Before you answer, remember that a discount comes straight out of your profit. In the example, going from $22 to $20 a head is $60 less on a profit of $212.90: you would keep $152.90, more than a quarter less. The guide on what a discount really costs you has the full calculation. If you want to give something, give it on the menu (a simpler side) and keep the price per head.
All of this is the same logic as how to price a food product, applied to an order you quote once.
Do it with the calculator
Put each dish on the menu into the food cost calculator to get its cost per portion; with those numbers you can build the job table and see the lowest price per person worth accepting.
Frequently asked questions
How much deposit should I take for a catering order?
Enough to cover everything you have to buy before the event, so your own money is never at risk. In the example, a 50% deposit covers the purchases with room to spare; the exact share is your call, and it goes in writing.
Why charge more per person for a smaller group?
Transport, hire, a helper and much of your own time cost almost the same for 15 people as for 30. With fewer guests, those costs are spread over fewer plates.
How much extra food should I make for an event?
It depends on the event and on what you have seen before with that client. Pick an overproduction percentage, build it into the cost, and note what was left each time so the next quote is sharper.
Should a catering quote include sales tax?
Work out your price before tax first, then add tax if your local rules require it. Say clearly on the quote whether the total includes tax; check your local tax rules or ask an accountant if you are unsure.