Catering jobs look profitable on paper because the per-person price is high. Margin usually disappears in the lines that are not on the menu: setup crew, rental handling, and travel.
This guide gives a practical US workflow you can run quickly each week: quote from full event cost, convert to per-guest pricing, and check margin by event type.
Quick Summary
eventCost = food + directLabor + rentals + transport + miscFeesperGuestCost = eventCost / guaranteedGuestsquotedPricePerGuest = perGuestCost / (1 - targetMarginRate)eventContribution = (quotedPricePerGuest x actualGuests) - actualEventCost
Track weddings, corporate drop-off, and private parties separately. One blended target hides which event type is leaking cash.
Why Weekly Repricing Matters for US Caterers
USDA and BLS releases show food and operating inputs moving through the year. At the same time, IRS mileage guidance affects how you should structure travel charges.
For caterers, monthly-only updates are often too slow because each booked job locks price before service day. If you quote from stale assumptions, the loss is already committed.
Core Formula (US Catering Operations)
eventCost = food + directLabor + rentals + transport + miscFees
perGuestCost = eventCost / guaranteedGuests
quotedPricePerGuest = perGuestCost / (1 - targetMarginRate)If guaranteedGuests is 0, return 0 and do not issue a quote.
Worked Example: Corporate Lunch Drop-Off (Dallas, TX)
Assumptions:
- Guaranteed guests:
120 - Food and disposables:
$1,176 - Kitchen labor + packing labor:
$540 - Vehicle, mileage, and parking:
$168 - Chafers, linen, and pickup handling:
$216 - Misc contingency:
$60 - Target margin rate:
32%
Step 1) Build full event cost:
eventCost = 1,176 + 540 + 168 + 216 + 60 = $2,160Step 2) Convert to per-guest cost:
perGuestCost = 2,160 / 120 = $18.00Step 3) Build quoted price:
quotedPricePerGuest = 18.00 / (1 - 0.32) = $26.47Operationally, that supports a quote lane around $26.50-$27.00 per guest.
If you quote $23.00 from food-only logic, the event looks busy but underperforms.
Local Execution: Midtown Corporate vs Suburban Wedding
| Context | Typical pressure point | First move |
|---|---|---|
| Midtown corporate accounts | Tight service windows and parking cost spikes | Build a fixed logistics add-on by distance and access time |
| Suburban wedding venues | Labor-heavy setup and long service windows | Separate ceremony-hour labor from meal package pricing |
20-Minute Weekly Catering Margin Loop
- Refresh key purchase prices for proteins, produce, and disposables.
- Recost top 5 event packages with current labor and travel assumptions.
- Compare quoted vs actual contribution for last week events.
- Adjust one lever per package: portion, staffing pattern, or quote lane.
- Save assumptions by event type so sales and operations use the same numbers.
Related Guides
KitchenCost helps catering teams run package-level costing, event P&L checks, and quote updates in one workflow.