Posted by Ron on August 28, 19100 at 10:29:51 :
In Reply to: Re: Catering Quandry? posted by Sam Sears, CEC on August 27, 19100 at 13:57:09 :
Sam is right on the goal of a 20 to 25% food is ideal. Although it harder to do on some upscale menus. When I tend to do jobs in the $25 to $45 I can get close the 28% food cost. But when working in the 50 to 65$ per person its more like 40 to 50% food cost. The one thing I can recommend is a do a simple spread sheet or budget. Calculate your hours for PREP ( usually at a lower labor rate) and ON SITE time. Figure your fixed costs such as rentals or disposables. Then you can do your food budget. For me, I had a hard time in billing food and feeling good about the amount I made on each job. It seamed the only time I made money was when I got a good gratuity. So I now just multiply my final estimate times 15%. This keeps me in the price range of my competition and I know at the minimum I will recoup my hours and make 15%. A fair deal for me and my clients.
The main thing you have to do in determining pricing is to shop your competition. This will let you know what your local price range is.
Classic Kitchen Associates Caterers
Sonoma Wine Country Weddings and Events