Wedding Catering Profit Margin

The normal food expenditure for a catering company should range from 27% to 29% of the company's total revenue. For an event that takes in $1,000, the amount that should be spent on catering should be between $270 and $290. Catering companies typically make between 10-12% of their revenue as profit. On the other hand, catering companies give you the flexibility to modify your personnel and food purchases in accordance with the number of events you have scheduled in the near future. In addition to the expenditures of food and labor, a catering company will almost certainly be required to pay rent for a commercial kitchen.

The average cost of opening a restaurant ranges from $100,000 to $300,000. Some types of catering enterprises have higher operating expenses than others do, depending on the category. The type of food that you intend to offer will determine the items that you need to purchase for the event. If you only plan to serve cold sandwiches, you won't have a need for any commercial ovens or grills. In order to provide hot sandwiches such as cheese steaks and other grilled hoagies, you'll require all of the necessary components.

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