Expert: Kay Cole - 2/5/2010

Question
QUESTION: Hi, I'm doing to catering jobs and I'm concerned about what I should charge. The first is for 75 people the menu goes as follows- meatballs,chicken skewers,mixed vegetables,rolls,toss salad, and red skin potatoes. The second- 75 people crab cups in phyllo dough,Asian style wings,chicken lettuce wraps,and a fruit tray. I'm just starting out and I don't want to break people, but I want to build a cliental and let my work speak for it self. Please help and thank you in advance.

ANSWER: Pricing can vary depending on many factors. Are you preparing the food, placing in alum. containers and just dropping off? Or are these full service jobs that you will provide serving pieces, set up, service and clean up - plates, napkins, etc.?

Have you checked the competitors pricing to see what others are charging for similar fare in your area? A meatball goes for a lot more in NYC than Jackson, MS.

Also, you want to be reasonable...but, you are doing it to make money - do not start off too cheap just to get the business and they will expect that pricing from then on.  It is smarter to do a "get your foot in the door" event for free than do so inexpensively that you do not make much money for your time.

In catering, there are so many other costs involved than the cost of the ingredients.

But, first tell me the type of catering you plan to do...and I will certainly try to help you from there. Best, K

---------- FOLLOW-UP ----------

QUESTION: Ok, thank you. The first one I am charging so little so yes I will be using aluminum pans and just dropping the food off. That's the one with the meatballs, chicken skewers,etc. The second one I believe will be full service nice chafing dishes ect. So, most importantly though I should check around to see what other are charging? I just want a ballpark type figure because there appetizers.

Answer
First of all...get a feel for what others in your area are charging...some of this research can be done on-line and, on others just make a call as if you were considering having a party.  Have mercy, and do not make them waste a lot of time; but, you can certainly ask for a range or feel saying that you are considering having the event catered and just need a rough idea.

I would make a cost sheet - you can estimate costs - you know about how much ground meat that you will need for the amount of meatballs, etc. Include other expenses such as the pans %26 anything else that you have to buy to produce the event. Also, include your labor (time to go to the store - prep - cook and deliver as if you were having to pay someone else. Add something for misc. as there will ALWAYS be some cost that you forgot to figure...ie: is it close by? Or, is gas a factor? If you have done or even thought about a business plan, you know what sort of profit margin you need to make the business worthwhile.  On drop off food, make sure that you know if the client is expecting you to provide napkins and that sort of thing.

On the full service event...lots more costs involved here...but, process to figure a sales price is the same. Except there are some fixed costs that might be involved whether 10 people or 500 people that effects the price per person. IE: if you have to rent a truck or such. Equipment rentals would be similar....I would start by renting what you need and later as you see how the business is progressing and perhaps buy some equipment.

I assume that you have checked with your local health department regulations - licensing laws and thought about liability insurance.  No matter how careful you might be with food production...let's say you drop off an order, and they leave it out for two days and someone eats it and gets sick....the responsibility could fall back on you. I would advise making sure that you are covered.

Also, remember that most caterers (me included) typically start off charging too little and you can work yourself to death - especially on a full service job...lots of planning, lugging, etc. Just make sure that you charge for your time!

Have you worked with a caterer before? If not, you might consider signing on as extra service help with the premier caterer in your city for a while...there is so much to learn outside of being a fabulous cook!

Another thought, I would recommend pricing per piece on the drop offs...not per person. You can recommend quantities you think that they will need...but, do not put yourself responsible when you will not be there to do anything about it. Full service jobs are typically priced per person..but, you are there to control and react if something runs low. When pricing per person, you are saying that you will have plenty of food for a set number...even if they are pigs!

Lots of thoughts here and I am unsure if I answered your original question...but, there are so many factors involved for you to consider when coming up with your price. IE: Where is the venue for the full service event - is there an ice machine, refrigerator (do you have to lug in coolers and ice) can you warm items up there...do you have to rent a Cambro?  Is the client a pain in the neck? In this case you might have an irritation fee of a hundred bucks at the top of your cost sheet!  JUST KIDDING! Seriously, I hope that this info helped, if only a wee bit. My best, K - feel free to write back if additional questions.