Posted by sam sears, cec on February 23, 19101 at 21:37:17 :
In Reply to: Re: New Catering Business How to Charge? posted by aanchal on February 23, 19101 at 03:41:53 :
: : I am in the beginning stages of establishing my own catering business and have the same question... Is there a formula for figuring the cost of services that is generally used by those in the industry? This is a new venture or should I say ADventure and have thousands of questions. Thanks for your help
: : Rick Stewart
While few industries have hard & fast formulas for profit...here is what we try to maintain on a monthly/quarterly/yearly p/l....18-26% food cost; 33% labor cost (including mgt, payroll taxes, benefits), 20% total overhead (occupancy costs, insurance, utilities, acctg/legal, rental equip, supplies ect), leaving 20-23% net........hope this helps....we run a mid sized (mid 6 figure) catering company......good luck......sam sears, cec