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By Anthony Franco

Catering event costing 101 what every startup caterer should know

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If you are a start-up caterer, or you’ve just opened your catering firm, chances are, you have a very limited knowledge as to how much to charge your clients. Surely, it shouldn’t be too cheap that any profit is already negligible, nor should it be too expensive that clients will balk at hiring your service. Indeed, pricing is really crucial since it will determine your business’ profitability and over-all financial stability. That is why, any freshman caterer should spend some time to learning the trade of catering event costing so that the next time a client asks how much will it cost him to feed 60 or so people, you won’t play guessing games, but rather have a solid, reasonable figure to equate quality service with just the right cost.

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Page 1: Catering event costing 101 what every startup caterer should know

By Anthony Franco

Page 2: Catering event costing 101 what every startup caterer should know

If you are a start-up caterer, or you’ve just opened your catering firm, chances are, you have a very limited knowledge as to how much to charge your clients.

It shouldn’t be too cheap that any profit is already negligible, nor should it be too expensive that clients will balk at hiring your service.

Pricing is really crucial since it will determine your business’ profitability and over-all financial stability.

Page 3: Catering event costing 101 what every startup caterer should know

Take note of the details of the event Before you offer your price, always take time to sit

down and discuss the details of the event with your client.

Make sure you jot down everything that he’s been telling you.

Make sure everything is itemized and well-spelled out in the contract.

Page 4: Catering event costing 101 what every startup caterer should know

Breaking down the cost The usual catering proposal has to be itemized according to the following details:

Menu

Beverages

Rental charges

Staffing

Any additional expense

Taxes

Don’t forget to specify everything that’s going to be included, from the basics, down to the extras and freebies

Page 5: Catering event costing 101 what every startup caterer should know

Do the head count If you think that a package deal is not an ideal option,

then try pricing your service based on the number of guests that your client will be having.

Tell your client that every set has a minimum and maximum number.

Page 6: Catering event costing 101 what every startup caterer should know

Offer your price on a cascading manner, like offering a per head cost between 50 to 100 people, while offering a little discount for guests between 100 and 200. On the other hand, try giving a larger discount if guests number between 200 and 400 people.

Page 7: Catering event costing 101 what every startup caterer should know

Research the market rate in your area

The food service industry has a highly competitive landscape and clients will always go for the one that offers them the best value for money.

Page 8: Catering event costing 101 what every startup caterer should know

And don’t forget this… See to it that you thoroughly read the details of your

contract before signing a deal with your client.

Make sure that you have informed your client of all additional charges.

Page 9: Catering event costing 101 what every startup caterer should know

What you’ve discussed verbally should be well-stated on paper so that everything is transparent and that you have your recourse should your client raise any issues with regards to your service.

Always write down the costing, have it checked and signed by your client to protect your interest, as well as make sure that he gets only the best service that you can offer.

Page 10: Catering event costing 101 what every startup caterer should know

As the Product Specialist of Better Cater, I’m working hard to develop catering software that will give the caterers power to control food cost and give you the ability, knowledge, and confidence to do your job perfectly and to your specification.

-Anthony Franco

Product Specialist, Better Cater

www.bettercater.com