Whether you are a chef, a restaurant or run a catering business owner, knowing the food cost is a critical aspect that helps you make profitable decisions. Our Food Cost Calculator for Catering is designed to explain everything you need to know about catering food costs. It helps you calculate how much everything is costing you and what you should charge to reach your desired profit. Keep reading, we will guide you through everything you need to know.
A Catering Food Cost Calculator is an online tool that is specifically designed to help catering professionals and food business owners estimate the total cost for a catering event. It also helps calculate the recommended selling price with profit margin, as well as cost per guest — both with and without profit. It uses the following values to calculate total cost, cost per guest, recommended total price, and price per guest:
Pre-estimating and planning help you account for everything, avoid unexpected costs, and keep a balance between pricing and profit margin. Pricing too low can kill your profit margin. Pricing too high may hurt your clients. This calculator helps you:
Further, we will look at a real-world example to understand how the calculator works and how you can use it for your propuse.
Suppose you are catering a wedding for 100 guests
. You expect the following costs:
Calculator Output:
So, we have got the output of calculation. To earn a 30%
profit margin, you have to quote 26 dollars per guest
or 2600 dollars
total for the 100 guests
.
You should include the total of all ingredient costs used for the event. This includes beverages, sauces, meat, snacks, vegetables, and everything else used to prepare food.
To accurately calculate the food cost and pricing in catering, two basic formulas are used:
1. Food Costing Formula (Total Cost)
This formula tells you how much it costs to deliver the catering event:
Total Cost = Ingredient Cost + Labor Cost + Overhead Cost
2. Food Pricing Formula (Recommended Selling Price)
This formula helps you decide how much to charge your clients to make a desired profit:
Selling Price = Total Cost × (1 + Profit Margin / 100)
ⓘ Note: The profit margin is your desired percentage of profit. A 30% margin is common in real-world catering events.