How Much Should a Restaurant Charge for Catering?

"How much should I charge for catering?" is one of the most common questions restaurant owners ask, and one of the hardest to answer with a single number.

There is no universal catering price. A fair, profitable price for a sandwich platter in one city may be too low or too high somewhere else, and the same restaurant may need different prices for pickup and full-service orders.

What you can do is build your price on a clear understanding of your costs, your market, and the value you provide. This article explains the factors that shape catering prices, the main pricing models, and how to research your market without simply copying competitors.

Why You Cannot Just Multiply Your Menu Prices

The most common shortcut is taking your regular menu price and multiplying it by the number of guests.

This often goes wrong because restaurant prices and catering prices cover different costs:

• Portions differ. Catering portions may be larger or smaller than a plated restaurant meal, depending on the format.
• Packaging adds cost. Disposable pans, boxes, lids, labels, and utensils are not part of a dine-in meal.
• Delivery and setup take time. Someone has to drive, carry, and set up.
• Labor shifts. Large batches may be efficient in some ways and labor-intensive in others.
• No drinks or add-ons. In the dining room, beverages and extras often help margins. Catering orders may not include them.

Your restaurant prices are a useful reference point. They are not a catering price list.

What Your Catering Price Needs to Cover

A catering price should cover every cost of fulfilling the order and leave a profit.

Food

The ingredient cost of every item in the order. This is the foundation of your pricing.

Portions

How much food each guest receives. Small changes in portion size have a large effect on cost across a big order.

Labor

Prep, cooking, packing, delivery, and setup time. Count the extra work catering creates, not just the time spent cooking.

Packaging

Containers, lids, boxes, labels, utensils, plates, napkins, and anything else that leaves with the order.

Delivery

Driver time, fuel, vehicle costs, and any delivery service fees.

Setup

Time spent arranging food on site, plus any serving equipment you provide.

Service

If staff serve guests on site, that labor needs to be priced in or charged separately.

Overhead

Rent, utilities, insurance, equipment, software, and payment processing all support catering, even if indirectly.

Market

What customers in your area expect to pay for comparable catering, and what alternatives they have.

Event Complexity

A last-minute order, a complicated dietary list, or a difficult delivery location all add effort.

Desired Margin

The profit you need for the order to be worthwhile. This is a business decision, not a fixed industry number.

The Main Pricing Models

Per-Person Pricing

The customer pays a set price per guest for a defined meal, such as a package with an entrée, side, and dessert.

Works well for: packages, office lunches, buffets, and events with a known guest count.

Watch for: portion assumptions, minimum guest counts, and what is included. Read more in catering pricing per person.

Package Pricing

The customer pays a set price for a package that serves a specific number of people, such as "Feeds 10."

Works well for: family gatherings, smaller groups, and pickup orders.

Watch for: customers stretching a package to feed more people than intended, which can lead to complaints about running out.

À La Carte Pricing

Each item has its own price, such as a tray of pasta, a dozen cookies, or a gallon of iced tea.

Works well for: add-ons, customers who know exactly what they want, and topping up a package.

Watch for: customers building an order that does not make a complete meal, and the extra time it takes to quote complicated custom orders.

Many restaurants use a combination: packages priced per person, with à la carte add-ons.

Researching Your Market Carefully

Looking at other catering menus in your area is useful. Copying them is not.

When you research:

• Compare similar formats, such as delivered office lunches with other delivered office lunches
• Note what is included: drinks, desserts, utensils, delivery
• Consider quality and portions, not just the headline price
• Look at several options, not just the cheapest

Use what you learn to understand the range customers expect, then position yourself sensibly within it.

Avoid competing on price alone. Catering customers often value reliability, food quality, convenience, and clear ordering. Being the cheapest option usually means thin margins and price-sensitive customers who leave for the next discount. A price near the middle of your local market, backed by good food and dependable service, is often a stronger position than the lowest price.

Questions to Ask Before Setting a Price

• What does this package cost me to produce, including packaging?
• How much labor does a typical order of this size take?
• What does delivery actually cost me?
• What do comparable options in my area charge?
• Is there a minimum order size that makes this worthwhile?
• Would I be happy to fulfill this order every week at this price?

If the last answer is no, the price may be too low.

Revisit Prices Regularly

Food costs, wages, and packaging prices change. Review your catering prices at least a few times a year, and whenever a major cost changes.

It is easier to make small, regular adjustments than a large, sudden increase.

Where to Go Next

• For a step-by-step method, read how to price a catering menu.
• To understand whether an order is worth taking, read how much profit should a catering order make?
• To structure packages so pricing stays clear, see how to build catering packages that are easy for customers to order.

Where Caterly Helps

Pricing is easier when you can see what comparable catering costs in your area and how your packages compare.

Caterly reviews local catering pricing, suggests package prices aimed at the middle of your market rather than the lowest price, and explains how confident it is in each suggestion. You review and set the final prices.

Explore more in Catering Pricing.