Re: Catering Quandry?

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Posted by Sam Sears, CEC on August 28, 19100 at 18:58:51 :

In Reply to: Re: Catering Quandry? posted by Ron on August 28, 19100 at 10:29:51 :

: 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.

: Ron Edwards
: Catering Chef
: Classic Kitchen Associates Caterers
: Sonoma Wine Country Weddings and Events
: http://

Ron, if that is the case that you are running a 50% FC on upscale menus $45-$60, then if you ask me, they are underpriced...if you run a 20 - 25% labor cost and 10 - 20% overhead that only leaves about 10% at best net before taxes.....and I have always heard & strived to make at least a 20% margin......just my thoughts.......sam

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