Why per person works
When a customer asks for a quote, they usually know the date and roughly how many people are coming. A per-person price lets them do the math themselves and compare you with other caterers.
On a UK Business Forums thread, a caterer new to sit-down events asked how to quote a three-course meal for 20 to 50 people. One reply put it simply: "the standard is you quote a per person cost for a one, two or three course meal." Another suggested a different price per head at each guest count. As the example below shows, the second point matters too.
Step 1: Work out the food cost per guest
Start with the menu. Cost each dish per portion, the same way you would in a restaurant. Our guide to pricing a menu item walks through it.
Here's an example buffet. The numbers are made up, so use your own.
| Dish | Cost per guest |
|---|---|
| Herb roast chicken | $3.20 |
| Vegetable lasagna | $1.60 |
| Roast potatoes | $0.70 |
| Green salad | $0.60 |
| Bread and butter | $0.50 |
| Lemon tart | $1.30 |
| Extra food for seconds and spills (about 15%) | $1.20 |
| Food per guest | $9.10 |
Caterers usually make a little more than the headcount needs, because running out is worse than leftovers. Build that extra into the cost instead of hoping it won't be needed.
Step 2: Add staff for the whole job
Count every hour, not just the event. Shopping, prep, loading the van, travel, setup, service, packing up and cleaning all take staff time.
As a rough guide, one catering pricing guide suggests one server for every 20 to 25 guests at a plated meal, and one for every 30 to 40 at a buffet. For our 60-guest buffet:
| Staff | Hours | Rate | Cost |
|---|---|---|---|
| Chef | 8 | $30 | $240 |
| Two servers | 6 each | $20 | $240 |
| Total | $480 |
That's $480 ÷ 60 = $8.00 per guest. Add payroll taxes and any other employment costs where you are, because they make a real difference.
Step 3: Add supplies, rentals and travel
- Disposables: plates, cutlery, napkins, cups, foil trays. Say $1.50 per guest.
- Rentals: chafing dishes, linens, glassware. If you hire them, pass on the cost. If you own them, include something for wear and cleaning.
- Travel: fuel, parking, tolls and van costs. Say $45 for this event, or $0.75 per guest.
So far, the direct cost of our buffet is $9.10 + $8.00 + $1.50 + $0.75 = $19.35 per guest, or $1,161 for 60 guests.
Step 4: Add overhead and profit
The direct costs don't cover your kitchen rent, insurance, licenses, phone, website, or the time you spend answering inquiries and writing quotes. They don't include profit either.
One simple way is to decide what share of the price the direct costs should take, then divide. If you want direct costs to be 60% of the price:
$19.35 ÷ 0.60 = $32.25, which you could round to $32 or $33 per person.
At $33 a head, 60 guests pay $1,980. After $1,161 in direct costs, $819 is left for overhead and profit. Whether that's enough depends on your business, so run the numbers on your own fixed costs.
Why small events cost more per head
Here's the same buffet for 25 guests. Food, disposables and travel per guest barely change. Staff costs don't shrink much, because you still need a chef and at least one server for most of the day.
| 60 guests | 25 guests | |
|---|---|---|
| Food per guest | $9.10 | $9.10 |
| Staff | $480 total, $8.00 each | $360 total, $14.40 each |
| Disposables | $1.50 | $1.50 |
| Travel ($45) | $0.75 | $1.80 |
| Direct cost per guest | $19.35 | $26.80 |
| Price at 60% direct cost | $32.25 | $44.67 |
For 25 guests we assumed the chef for 8 hours and one server for 6. If you quoted those 25 guests at $33, you'd make very little. There are two common fixes:
- Price by guest count: for example, $44 per person for 20 to 39 guests and $33 for 40 or more.
- Set a minimum: a minimum number of guests, or a minimum spend, such as $1,200.
Put the terms in writing
A clear quote prevents arguments later. Include:
- the per-person price and exactly what it includes
- the guest count, and the date the final number is due. The guide above suggests 7 to 10 business days before the event.
- the minimum guests or minimum spend
- the deposit and when the rest is due. The same guide suggests 25% to 50% at signing.
- any service charge. Tripleseat says "typically 18-25%" is standard.
- travel distance included, and the charge beyond it
- what happens if the guest count drops or the event is canceled