how to calculate prices for catering
Hiring a caterer to provide cuisine for your guests, you will likely spend between $7 to $45 per person. You also want to factor in the cost of rent, marketing, equipment, utilities like electricity and gas, vehicle fuel and maintenance, internet and phone bills, insurance and taxes. Calculate the average cost of food per party size. Caterers typically make from $8.72 to $25 per hour, with the average being $15.25 per hour, according to Sokanu. Based on the 2012 results the ratio of total catering industry payroll to catering industry revenue is just short of 31%. How to Calculate Food Cost. I normally hate asterisks or weasel clauses. Of course, not all caterers charge $75 a person for food and drinks. Use caution, are you over estimating the number of attendees, are you underestimating your catering or marketing costs, or did you leave a major expense off the spreadsheet altogether? That said, the cost can go as low as $400 and as high as $13,000 and up. Now that the client has approved the menu, make a detailed ingredient list with quantities and add up how much it’s going to cost you. The price of items is a factor – e.g. How Do You Calculate Food Cost per Person? How to calculate catering quantities per person November 10, 2017 (Last Updated: November 13, 2018) If you are planning a big party or event and you are not sure how much food to cater for each person attending, use our guide on catering quantities per person below. The two ways foodservice establishments use to determine food costs are: Theoretical Menu Plate Cost – Individual portion cost for each menu item. You want to make at least 10 percent more food than expected for each catering event. Otherwise, you will need to price out the cost of alcohol and nonalcoholic beverages, the set up, cups, ice, a bartender and more. 100 guests x Full Meal (10-12) = 1200 ÷ 15 = 80 platters. Here is how much catering a party costs when broken down by event type. In short, your overhead. Cheese and Crackers Platter: Serve assorted cheeses with crackers, digestive biscuits, chutneys, and fruit. Whether you are just starting out or have been in the business for years, this calculator makes pricing your catering events a breeze. Here are some estimates of food prices per person from Draper’s Catering: Consider if you need the following items and how much each will cost you: Draper’s Catering estimates that rentals should cost $2 to $6 per person for any type of food service, whether it’s plated or buffet. So, if your company is paying out more than 30% of revenue in labor costs then this is above the … Of course, some people inevitably won’t show up or others who didn’t RSVP will. Copy link. The price is typically quoted per person, so the first step in working with a caterer is to determine the number of guests at your event. No single formula can explain how to calculate food portions for catering but there are general rules of thumb to guide you. As anyone who has ever owned or managed a food establishment can confirm, the calculations are far more complex. Or 60 percent beer and 40 percent wine. You may feel the need to order 1-2 more than your calculation, but keep in mind that different guests have different levels of appetite. How do you calculate catering cost? how much you pay for a consignment of bananas – but so is perceived value by consumers, e.g. You can also determine menu prices with your desired gross profit margin for that item. Calculate cost percentages for different food for different items or services. There are some who charge more and some who charge less. You may disable these by changing your browser settings, but this may affect how the website functions. Smart Ways to Track Expenses As a Freelancer, How to Start a Business: From Registering to Launching a Startup, Essential Skills Every Entrepreneur Should Have. Pricing is the tactical procedure you undergo to determine what price to give to every unit of drink or foodstuff. Don’t drive down your prices to compete otherwise you’ll hurt your cash flow as well as your chances of surviving over the long term. From appetiser portions to soups and stews to desserts and side dishes, we cover almost every type of food you'd need to include on your catering menu - with European metric and US imperial measurements included too - so everyone can understand the quantities with ease. Nothing will affect the final price more than how many guests are attending the event (other than the food choices, of course), advises Draper’s Catering. You’re currently on our US site. Improve your profitability and quality of service. It’s best not to have too many leftovers since any extra time making extra bites costs your staff time and costs you money in wasted ingredients. The average wedding catering cost per person for a wedding in the U.S. is $85 per person, according to the Bridal Association of America. Typically, your restaurant has certain fixed expenses, and the 28-to-35-percent food costs automatically make allowances for restaurant operating costs. Besides saving time and making it easier to price events and parties, this free calculator lets you quote a price for large and small events with confidence, knowing it's based on the long-term experience of BBQ experts. Watch later. How to Calculate Cost & Quantities of Catering Food. Pricing for catering and special events is more flexible, but it can be more challenging. For instance, if you make a rough estimate of $75 a person for food and drinks and you invite 200 people, whittling the list down by only 20 people would net you a savings of $1500 on a $15,000 catering package bill. Most of the time you will probably want to calculate this by weight. Fruit and Cheese Platter: seasonal fruits with a selection of cheeses; serve with bread and crackers. Select your regional site here: Stuck between trying to land new clients and make a profit? $30 (pricing per person) x 70 (amount of guests) = $2,100 Keep in mind that catering in large cities, the Northeast and the West Coast cost about 30 percent more. How to Calculate Cost & Quantities of Catering Food - YouTube. Counting the Costs: A Guide to Menu and Food Costing. FreshBooks’ online estimating software makes generating and sending estimates easy. Price dishes too high, and customers won’t order them. Ultimately, your catering pricing sheet will … "Café Pera: Where Catering Delivery & Setup Are Always Free*" (*$150 Minimum Order – Must Be Within 5 Miles Of Restaurant – Please Call For Pricing Outside Our Free Delivery Radius). You'll get suggested catering estimates for your event in a matter of seconds (saving yourself hours of manual calculation)! Mediterranean Platter: falafel, quinoa, tabbouleh, hummus, pita bread, pesto drizzled feta, tzatziki. What Is the Average Catering Cost per Person for a Wedding? You can also include a gratuity in the service charge, or leave it up to the client to tip staff themselves. When you are catering an event, catering too much or too little can always be a concern. Calculating Theoretical Plate Cost. This is an ugly number though, you could probably round that up to $9.59 or even $9.99. The price of catering can vary greatly by region (and even by zip code). We have a chart that provides suggested portions for a single guest, 25 guests, and 50 guests - and can be scaled up or down accordingly. It’s always a good idea to include a filling item along with appetisers so no one goes away hungry. Vary your colour choice too as it will not only look beautiful, but it will also provide a nutritionally varied meal for your guests. Catering costs for a party can be as low as $10 per person or as high as $180. Caterers commonly use a standardized method that multiplies food costs by three to come at the final menu price; some use … If you buy in smaller quantities, the unit costs go up. Often when eating small bites, customers do not know how much they’re eating so it’s a game of filling their mental hunger as well as physical hunger. Your costs are going to depend greatly on the client’s choice of menu and service. Look at your menu prices to determine if they cover the food and overhead costs and return profits. Overall Food Cost Percentage – Based on the monthly cost of food as compared to sales. Keep in mind that your food bill should be about 30 percent of your total price, advises the Houston Chronicle. Find your average monthly overhead. Plus, you can quickly convert them into invoices when the job’s done. Worry not - download our free eBook now. : ___ Total Bites ÷ Bites per platter (example: 15) = Number of Platters, 100 guests x Full Meal (10-12) = 1200 ÷ 15 = 80 platters100 guests x Bridge the Gap (6) = 600 ÷ 15 = 40 platters, 100 guests x Light Snack (3) = 300 ÷ 15 = 20 platters. Catering jobs and special menus, however, often take more planning because they generate additional expenses. To learn more about how we use your data, please read our Privacy Statement. It’s easier to price this out if you’re doing a plated dinner, as you’ll typically be serving four to six ounces of meat, two side dishes, an appetizer and dessert per person. You can also download this catering pricing template to calculate food costs and gross profit. hbspt.cta._relativeUrls=true;hbspt.cta.load(487275, 'e3cf47bd-0b8c-4fa5-9717-49c461421553', {}); Discounts, special offers, and new arrivals straight to your inbox. Top end caterers make $25 per hour while those just starting out typically make about $8.72 per hour. A 1.75 bottle of liquor should serve 40 1.5 oz drinks. Now consider how many jobs you do per month. 10 Business Ideas with No Employees: How to Run a Business on Your Own, Napkins, tablecloths and other linens (disposable or not). Fixed Pricing Calculations Let’s say the food ingredients for a buffet-style engagement party will cost you a total of $800. Veggie Platter: carrots, grape tomatoes, cucumbers, squash, broccoli, cauliflower, bell peppers, celery, snow peas (sugar snaps), radishes, asparagus; serve with different dipping sauces. Plans & Pricing. The price you will use for your menu will be $14.29. Figure out how many servers and assistants you’re going to need. Lucky for you, we’ve got restaurant pricing down to a science. The service charge should also cover administration and coordination costs. Finally, you need to factor in your profit margin. Bars at events can get really expensive. Make sure you do provide dairy free and nut free options for those with allergies and aversions as well as vegan and vegetarian options. It’s easier to figure out how much to feed everyone if each guest is served a set meal as opposed to a buffet. Also consult with the client about special requests and additional items. Stepping back and taking the broadest view of the cost of labor for the industry as whole is possible, using the resource of the US Economic Census. Simple to use Gross Profit Calculator for Foodservice and Catering Calculate profit from cost to menu price or menu to cost price. Calculate the cost of each menu item and include all components of the plate. Draper’s Catering recommends pricing for one drink per hour, per person and buying 35 percent beer, 30 percent wine and 35 percent liquor. Make sure you’re delighting customers by keeping up to date with the latest food trends. Caterers typically make from $8.72 to $25 per hour, with the average being $15.25 per hour, according to Sokanu. Copyright © 2019 Shoes For Crews (Europe) Ltd. | Cookie Policy | Terms & Conditions | Privacy Policy | Website Terms of Use, How to Calculate Food Portions for Catering, ___ light snack (3 bites); ___ bridge the gap (6 bites); ___ full meal (10-12 bites), Bites per platter (example: 15) = Number of Platters, appetisers or hors d’oeuvres are served as a meal, 1. Here are some platter suggestions and what to include: Fruit Platters: melon, pineapple, grapes, berries, seasonal fruit. You don’t want people to go home hungry, but you also don’t want to have too many leftovers. Want to see our cost guide? Please enter your figures below to work out your menu prices and / … Consider a typical catering company that generates $500,000 in annual gross sales, owns $100,000 in fixed assets, carries $10,000 in inventory and throws off $120,000 in discretionary cash flow. 100 guests x Bridge the Gap (6) = 600 ÷ 15 = 40 platters. You can unsubscribe at any time by contacting us at help@freshbooks.com. You can use your target food-percentage cost to carry out this equation. Shopping. The most difficult task in catering is learning how to calculate food portions for the number of guests and the type of event you have. Draper’s Catering estimates that the total service charge should be $5.50 to $9 per person. Whether you're just looking to optimize the management of your catering operations, or you're ready to pour gas on the fire with our full suite of catering sales and marketing systems, we've got the perfect plan to grow your business. So, for an event of 100 guests, you’ll need 80 platters to feed the guests at “full meal” capacity. You can decline analytics cookies and navigate our website, however cookies must be consented to and enabled prior to using the FreshBooks platform. A dinner won’t cost much more than appetizers only in terms of food prices but glassware, servers and china plates will definitely add to the total fee. Calculating restaurant menu prices in this way allows you to better predict and understand your bottom line. Draper’s Catering estimates the following per person rates: Pocket Planner is an app that has a free catering pricing calculator in case you want a quick way to provide a preliminary estimate for a client. If you own a restaurant or bar then you know how important it is to determine the cost of food and drinks to form a realistic price for menu items that guarantees profits for your catering facility. To learn about how we use your data, please Read our Privacy Policy. FreshBooks, from invoicing to payments and everything in between. This is imperative to get you maximising your output and keeping your clients and their guests happy. You want to make everything look attractive and appealing. Make sure everyone on your staff knows what’s in the foods and what you have on offer. For someone new to the food service industry, pricing food for sale in a cafe or restaurant may appear as simple an equation as: ‘Cost of ingredients’ + ‘An adequate profit margin’. We’ve created a budget guide, covering the most common catering situations. For example, if your monthly overhead is $5,000 and you do 10 jobs a month, you need to charge $500 extra per job to cover your overhead. Add together your food costs, labor, rentals, bar services, service fee and taxes to find the total price to quote your client. There are 70 guests in attendance and you plan to charge $30 per guest. The average hourly rate is highest in New York and California, at $17.46 and $17.41 respectively. Try It Free. In the food wholesale industry, pricing food products begins with analysing food costs. hbspt.cta._relativeUrls=true;hbspt.cta.load(487275, 'f33f2acd-8acf-4d5a-b597-4485e122b657', {}); No matter how delicious your food is, there’s always room for innovation on your menu. Try It Free, Save Time Billing and Get Paid 2x Faster With FreshBooks. You can add a flat fee or factor in a percentage, like 25 percent. Price differences occur based on the style of service. Divide the total ingredient costs by the number of guests. On average, bar services should cost about $2 to $4 per person. • Multiply the number of attendees by three to get the amount of appetisers required. Double-check your math! This census survey is done twice per decade. Appetizers: Six to eight pieces per person per hour. When you work on your feet all day at events you’re catering for, moving from surface to surface can be dangerous so it’s vital that you wear the right shoes. The question of how to price a catering menu is tied not just to the dishes you serve, but the quantity of those dishes. Keep presentation in mind when designing platters. By subscribing, you agree to receive communications from FreshBooks and acknowledge and agree to FreshBook’s Privacy Policy. How to Calculate Cost & Quantities of Catering Food Catering Cost Breakdown. Not sure what they are? Catering Costs Calculator. Food Pricing Strategies in the Catering Industry. There are a range of different platters you can prepare as long as you calculate the portions correctly. Need a catering estimate template? 20 Online Business Ideas: Which Internet Business Is in Most Demand? This site uses cookies. 100 guests x Light Snack (3) = 300 ÷ 15 = 20 platters. Take invoicing and accounting off your to-do list with FreshBooks. Write a list of the foods and dishes you are planning on serving on your catering menu. The price goes down for less involved events. You can calculate portions two ways for sides, by weight or by volume. Consider the owner and all other administrative staff’s salaries. Remember, children will only eat half as much as adults. If you typically buy food in large quantities, unit costs will be lower. Try and provide variety for your guests so something will appeal to everyone. Contact us for more help with Gross Profit GP Calculations and Menu Planning and Costing. Do they want sustainable seafood? Dips Platter: bruschetta topping, cheese dip, spinach-artichoke dip; serve with crostini and crackers for dipping. An hors d’oeuvres buffet usually comes with the lowest price tag, though adding stations to this buffet can up the price quickly. The average hourly rate is highest in New York and California, at $17.46 and $17.41 respectively. You need to split your monthly overhead between these jobs. Our catering cost breakdown and pricing guide will help you make accurate estimates of food, rental, alcohol, labor and overhead costs so you can charge what you’re worth, keep your cash flow happy and stay in business for the long haul. This is the industry standard. Add a cocktail hour, a sit-down dinner and open bar and you’re looking at $125 to $300 per person. Write down how much it will cost for you to gather the food together and purchase all of the ingredients. A service charge will first of all include labor costs. Price dishes too low, and you won’t generate enough revenue to cover your expenses. However sometimes you will be selling side dished by the gallon (for us it items like BBQ beans, mac and cheese, potato salad, etc.) Tap to unmute. First, cost out how much your ingredients are going to be and find out how many guests are attending. Maybe you do your calculation and your breakeven ticket price is super low allowing a big increase and making you a huge profit! Here are some ballpark numbers for a buffet or other type of service: The average cost of a wedding catering buffet in the U.S. is $4,000, with a range from $1,800 to $7,700, according to Wedding Wire. Sandwich Platter: a series of pre-made sandwiches in a wide variety of options. For a set meal, ach person will probably eat about four to six ounces of meat, two side dishes, an appetizer and dessert. What Is the Average Cost of a Wedding Catering Buffet? If your appetisers or hors d’oeuvres are served as a meal, but you have a filling food station available such as pasta or mashed potatoes, you can reduce your numbers of hot and cold hors d'oeuvres/appetisers. One keg of beer should provide 140 to 165 12 oz servings and a 0.75 liter bottle of wine should serve five 5 oz glasses. We use analytics cookies to ensure you get the best experience on our website. Top end caterers make $25 per hour while those just starting out typically make about $8.72 per hour. Sometimes you may need to be flexible to accommodate the client’s budget, but you should certainly always be making profit from each job. Back to Top How to Calculate Restaurant Menu Prices According to Ideal Gross Profit Margin. Event and Catering Estimation Calculator Just enter your number of guests and the duration of your event to get started with this free tool. Share. Catering a large family gathering for example could cost you anywhere between 30-40k INR. A Quick Guide on How to Calculate Food Portions for Catering. For clients looking to save money, advise them to feed guests outside of regular mealtimes so they won’t have to provide as much food. You’ll need to include a policy in your estimate around changes and guarantees to protect yourself. Info. Review potential menus with the client and get them to approve all the ingredients, advises the Houston Chronicle. When it comes to delivery, you must set up parameters. To calculate the business value, we pick a set of reasonable valuation multiples as … Find a supplier and price out any special ingredients that have been requested. The simplest and fast way would be to multiply your costs by 3 which will give you a 33% food cost.