How is catering cost per person calculated? Seven items

Food, staff, equipment, transport, overheads, waste and margin: a guide to comparing quotes.

“How many liras per person?” is the headline of a catering quote, but many items lie behind that number. The reason two different quotes come for the same menu is usually that one of the seven items below is set up differently.

1. Food cost

It makes up on average 38–45% of the total price. Price swings in meat, fish, olive oil and dairy are the most sensitive part of this item. For premium menus the share can rise to 50%.

2. Staff

Kitchen and service staff are 25–30% of the total cost. The legal minimum wage, insurance, meal and travel allowances and overtime determine this item. As the service type increases (buffet → seated service) staffing needs multiply.

3. Equipment and set-up

Plates, cutlery, tablecloths, buffet equipment and heaters create a rental cost of 25–60 TRY per person. Set-up and take-down time also falls under this item.

4. Transport and logistics

The cost of hot- and cold-chain vehicles, drivers and fuel varies by distance and vehicle type. This item becomes significant at locations far from the central kitchen.

5. Overheads and management

Energy, water, rent, insurance and administrative staff total 8–12%. In a cost-plus model this item is written transparently as a separate “management fee”.

6. Waste and loss allowance

Trim loss during preparation and food left at the end of the day is usually 4–8%. In well-planned production this can fall under 3%, which is reflected directly in the unit price.

7. Profit and risk margin

Profit margins in the sector range between 6 and 12%. A very low quote may indicate that service quality will be compromised or that items may be added later.

How to compare quotes

When comparing two quotes look not only at the total price per person but at the scope of each item: is the staff count the same, is equipment included, is transport written separately? The Catering Budget Calculator on our site shows the items separately and is a good place to start a comparison.

A worked example

For a corporate dinner of 150 guests with the standard menu at 235 TRY, buffet service, 4 hours and 25 km distance: food is 35,250 TRY, staff 5,800 TRY, equipment 5,250 TRY, transport 1,350 TRY, subtotal 47,650 TRY and with 10% VAT a total of 52,415 TRY. That is about 349 TRY per person. This result is 49% higher than what looking at the menu price alone suggests; this gap is what is often perceived as “unexpected cost”.