Find your cost per serving and food-cost percentage — for a single dish or a whole event. Aim for the 28-35% sweet spot.
Food-cost percentage is the clearest single number for whether your menu makes money. It answers one question: of every dollar a client pays for food, how much went to ingredients? Divide what a dish costs you by what you sell it for. If a plate costs $6 in ingredients and you charge $20, your food cost is 30% — right in the healthy range.
The industry benchmark for catering and restaurants sits at 28-35%. Inside that band you have room to cover labor, overhead, and profit; drift above it and margin evaporates. The target isn't identical for everyone: high-end caterers often run nearer 25% because clients pay a premium for quality and plating, while high-volume operators may accept 40% and make it up on scale. Pick the number that matches your positioning, then price every menu to hit it.
Two cautions. First, food cost is ingredients only — it is not your whole cost. Labor is tracked separately, and together food and labor form your "prime cost," which for most catering operations runs 55-65% of revenue. If your food cost looks great but you're still not profitable, labor is usually the culprit. Second, a percentage hides portion drift: a 30% dish quietly becomes a 38% dish when portions creep or a key ingredient jumps in price, so recheck your costs whenever your suppliers move.
Use Per dish mode above to cost a recipe and see its food-cost percentage before it goes on a menu, and Per event mode to check a whole quote's food cost against its revenue. Then feed those numbers into the pricing calculator to build a full quote, or read how to price catering per person.
The industry benchmark is 28-35%. High-end caterers may run closer to 25% because clients pay a premium for quality and presentation, while high-volume operations sometimes run 40%, making thin margins up on quantity. If your food cost climbs above the mid-30s, you are either underpricing or over-portioning.
Divide the cost of the food by the price you sell it for, then multiply by 100. Per dish: cost per serving ÷ menu price per serving. For a whole event: total food cost ÷ total food revenue. This calculator does both.
Cost per serving is the total ingredient cost of a recipe divided by how many servings it yields. If a recipe costs $40 in ingredients and yields 20 servings, your cost per serving is $2.00. Price it at $8 and your food cost is 25%.
No. Food cost is ingredients only. Labor is tracked separately; together they make up your 'prime cost,' which for catering typically runs 55-65% of revenue. Keep them separate so you can see which one is eating your margin.
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Benchmark sources: VantaInsights, Supy, Galley Solutions (accessed July 2026).