Catering has薄 margins if you don't design for profitability. I've seen caterers go bankrupt because they priced beautiful menus that cost more to produce than they charged. The fix is designing menus that are both impressive and profitable.
Menu Engineering for Catering
Cost Per Person
Calculate total food cost per person, not just per dish. Target 22-28% food cost for catering. This means if you're charging $50 per person, food cost should be $11-$14.
High-Margin Menu Items
- Carbohydrates (rice, pasta, bread)—cheap and filling
- Seasonal vegetables—when in season, they're cheaper
- Protein as accent, not centerpiece
- Batch-prepared items that scale well
Low-Margin Traps
- Premium proteins (lobster, premium beef)
- Individual portions
- Complex presentations
- Special dietary accommodations without pricing adjustment
The Buffet vs. Plated Math
Buffets typically have higher food costs (30-35%) because you must prepare for 100% attendance and can't control portions. Plated service (25-30%) allows tighter portion control. Stationed events fall in between.
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