How to price a catering event

Most caterers price by feel, or by copying last year's number and adding a bit. That works until food or labor moves and the margin disappears. A better approach is to build the price up from cost, so every quote protects the profit you need.

1. Start with food cost per guest

Cost the menu at the ingredient level, then divide by the guest count. If a plated dinner's ingredients total $1,360 for 80 guests, that's $17 per guest in food. Costing every recipe from a current price book — rather than estimating — is what makes this number trustworthy.

2. Apply your target food-cost percentage

Food should be a share of the menu price, not the whole story. Most caterers target a food cost of 28–35%. At 30%, a $17 food cost implies a menu price around $57 per head ($17 ÷ 0.30) — before you've added anything event-specific.

3. Add labor, rentals and delivery

Layer in the costs that scale with the event: kitchen and service staff hours, rentals (tables, linens, glassware), delivery and setup. Divide these by the guest count and add them to the per-head figure, or list them as separate line items on the proposal.

4. Cover overhead and profit

Your target food-cost percentage already leaves room for overhead and profit — that's the point of pricing up from cost rather than just marking food up. If your overhead is heavy, use a lower target percentage (which raises the price).

5. Add the bar and extras

Bar service is often priced separately: estimate drinks per guest per hour, multiply by your per-drink cost, add bartender labor, and decide whether it's an open bar you cover or a line the client pays.

6. Sanity-check the margin before you send

Before the proposal goes out, look at the whole event's profit and loss: revenue minus food, labor, rentals, supplies and bar. If the margin is below your target, adjust the menu or the price now — not after you've committed.