Proper Food & Labor Costs For On-Premise Caterers by Carl Sacks

Revenue                                                                               100%

Subtract Prime or Direct Costs                                         - 45%

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

Gross Profit Margin                                                         55%

Subtract G&A (fixed) Costs                                              - 45%

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

Pretax Profit                                                                       10%