Posted by Carl Jones, Premier Catering on December 10, 1997 at 23:26:56 :
In Reply to: catering and making a profit posted by Marva Hauser on May 28, 1997 at 11:21:20 :
: My sister and I have been catering for approx 2 years out of my home. We have recently been providing our services in the homes of our clients. We are catering a birthday party for 25-30 people and the client wants to spend approx. 8.00-10.00 per plate how do we plan a menu around this $ amount and make a profit. Thanks in advance for your help. You may also e-mail me if you have ideas on menus ect.
Hi, well you can make too much profit on that small amount of people.... most ppl who can afford to do a home party, can spend 12.oo to 20.00.... how much profit do you want to make is the missing link... 100.00? well, divide 100.00 by number of guests...25 and that means you must have 4.00 per person profit, subtract that from the amount the client is willing to pay, 10.00 and that leaves 6.00 per person.... looks like they should have a nice chicken pasta casserole with french green beans and a simple garden salad..... after your labor cost for YOUR time (which is NOT profit) you will make the 100.00.... if they want a dessert...charge them 2.50 more.... ppl have to be willing to pay a reasonable amount for your services.....
most of the time, i am charging 22.00 per person for small dinner parties plus a FIXED labor charge of say 195.00, regardless of the final guarantee number... this protects you....i will make about 200-250.00 but i am giving them a nice appetizer tray, beef tenderloin, asparagus spears, new potatoes, and a banana liqueur cake...with tea and coffee....... they're happy and i am happy!..... if they want a lesser price, i do the chicken thing and add 200.00 to my costs ... if i cant make 200.00 per night on the smallest one, i dont do it...
not bragging, but i do larger parties more often and make 2000.00 per party....
carl...