Proper Food & Labor Costs For Off-Premis Caterers by Carl Sacks

The Basic Catering Equation for Off-premise Caterers

Revenue                                                                               100%

Subtract Prime or Direct Costs                                         - 55%

(food, beverage, rentals, party staff, hourly kitchen labor)

Gross Profit Margin                                                         45%

Subtract G&A (fixed) Costs                                              - 35%

(salaries, rent, utilities, insurance, truck leases, benefits, supplies, office expense, etc.)

Pretax Profit                                                                       10%