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How to price catering: food cost, labor and margin

Catering quotes go wrong in two places: buffet portions and staff hours. Here is how to build a catering price from the ground up.

1. Scale the food for the service style

Guests take more at a buffet than on a plate. Plan roughly 15% more for a buffet and 10% more for family-style, plus a small waste buffer. Mixed diets in one event (for example 40 regular and 10 vegan) are cheaper when one dish suits everyone for some courses.

2. Count every labor hour

Chef hours for prep, cooking and service, plus each staff member’s hours, including setup and breakdown.

3. Add direct costs and overhead

Van and parking, disposables, chafing dishes and rentals, and your share of insurance and kitchen costs.

Worked example: lunch buffet for 50

Food (buffet portions)$700
Chef: 8.5 hours × $50$425
Staff: 3 people × 6 hours × $25$450
Van & parking$75
Disposables: 50 × $0.75$37.50
Overhead share$60
Total cost$1,747.50

Food cost % method (30%): $700 ÷ 0.30 = $2,333, a 25% margin. Margin method (30%): $1,747.50 ÷ 0.70 = $2,496, rounded to $2,500, or $50 per guest.

The food-cost rule only looks at groceries. On a small or staff-heavy job it can quote below your real cost, so always check the price against the total.

Run your own numbers

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Questions chefs ask

What is a good food cost percentage for catering?
Many caterers aim for 25–35%, but food cost % alone ignores labor. Check every quote against your total cost and margin.
How many staff do I need for a catering event?
A common starting point is one server per 20–25 guests for a buffet and more for plated service, adjusted for the venue and menu.
How do I price catering per person?
Add every cost, divide by 1 minus your target margin, then divide by the number of guests and round.

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