How to price catering: price per person and minimum orders
Every event has costs that don't depend on the number of guests. Here is how to spread them, set a price per person and choose a minimum order.
Many caterers quote one price per person, whatever the size of the event. But shopping, travel, setting up and cleaning take about the same time for 15 guests as for 30, so the price per person has to depend on the group.
Two kinds of cost
Per guest: food, disposables and prep time, in our example 6 minutes per guest. Per event: agreeing the menu with the client, shopping, travel, setting up, service and cleaning, 5.5 hours in all plus fuel.
Example
Food £6.00 per guest, disposables £0.60, prep 6 minutes at £12 an hour, so £1.20. That is £7.80 per guest. Per event: 5.5 hours at £12 is £66, plus £15 travel, so £81.
| Guests | Cost | Cost per guest | Price per guest at 35% | |---|---|---|---| | 15 | £198.00 | £13.20 | £20.50 | | 30 | £315.00 | £10.50 | £16.50 | | 60 | £549.00 | £9.15 | £14.50 |
Why one price per person doesn't work
Quote 15 guests the 30 guest price, £16.50, and your margin falls from 35% to 20%. Two simple fixes: a price list by group size, or a minimum order, for example 20 guests or the price of 20.
Meal prep works the same way
Weekly meal prep boxes split the same way: food and a container per box, and shopping, planning and delivery per week. Set a minimum number of boxes per delivery, or a delivery fee, so a small order still pays.
Take a deposit
Food for an event is bought days before. A deposit covers it if the client cancels. Our guide deposit or the full amount gives a simple rule. And if margin and markup get mixed up, read the difference explained.
How Lagom does it
In Lagom each dish is a recipe with its servings, so you see the food cost per guest. An order keeps the date, the client, the price with live profit and margin, and the deposit. Profit shows what each event really earned.