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Old 02-28-2013, 08:10 AM   #4
Motley Q
On the road to being a farker
Join Date: 08-18-12
Location: marietta Ga

Suggestions from a former food and beverage director of a hotel management company. Our costs were figured monthly.

If you run food costs at 33%, you are high.

If you run double, or 50%, you will be out of business in no time.

Food cost % (beginning inventory + purchases - ending inv) = food sales

If you charge $1000 and food purchases cost $300, your food cost for the event is 30%

You calculate the food cost % by the net sale.

If you can run food and labor costs at about 65% of sales, then you can run a successful business.

If you don't know your costs and how to figure and maintain them, you are in trouble

Unfortunately, catering has relatively low margins compared to other food service businesses.

As madaboutq does, charge by the person and charge a minimum, know what your total costs are, and be competitive.

Last edited by Motley Q; 02-28-2013 at 09:42 AM..
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