How do I Price my Catering Services Profitably
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 28, 2025
- 3 min read
If you're starting a catering business for weddings, corporate events, or special occasions, one of the most important questions you'll face is: How do I price my catering services profitably? Pricing isn’t just about covering costs—it’s about building a sustainable business that supports growth, protects against risk, and delivers value to your clients.
At Wexford Insurance, we specialize in helping catering businesses succeed—not just with insurance, but with insights that support smart business decisions. In this guide, we’ll walk you through how to price your catering services profitably, while also highlighting the insurance coverage you need to protect your investment.
Step 1: Understand Your Costs
Before you set prices, you need to know your numbers. Break down your costs into two categories:
Direct Costs
Ingredients and food supplies
Staff wages (chefs, servers, delivery drivers)
Rentals (tables, chairs, linens, etc.)
Transportation and fuel
Indirect Costs
Marketing and advertising
Business licenses and permits
Kitchen utilities and storage
Insurance premiums (more on this below)
Step 2: Choose a Pricing Model That Works
Catering businesses typically use one of the following pricing models:
Per Person Pricing – Ideal for weddings and large events.
Package Pricing – Bundles food, staff, and rentals into one price.
Tiered Pricing – Offers basic, standard, and premium service levels.
À La Carte Pricing – Lets clients customize their menu and services.
Each model has pros and cons, but the key is to ensure your pricing covers costs and includes a healthy profit margin.
Step 3: Add Your Profit Margin
A typical profit margin for catering services ranges from 15% to 30%. Once you’ve calculated your total cost per event or per person, add your desired margin to determine your final price.
📊 Example: If your cost per person is $40 and you want a 25% margin, your price should be $50 per person.
Step 4: Research Your Market
Check what other caterers in your area are charging. Consider:
Event types (weddings vs. corporate)
Cuisine styles
Service levels
🔗 Read more: Browse local catering listings.
Step 5: Be Transparent With Clients
Clients appreciate clear, itemized quotes. Include:
Menu breakdown
Staffing details
Setup and cleanup fees
Travel charges
Insurance coverage (this builds trust and professionalism)
Step 6: Adjust for Seasonality and Demand
During peak seasons (like summer weddings or holidays), you may be able to charge premium rates. Offer discounts during slower months to keep your schedule full and cash flow steady.
Don’t Forget to Factor in Insurance Costs
Insurance is a critical part of your pricing strategy. It protects your business from unexpected losses and liabilities. At Wexford Insurance, we help catering businesses find the right coverage through programs tailored to the food service industry.
Here are five essential types of insurance to include in your pricing considerations:
Covers bodily injury, property damage, and legal claims from clients or guests.
Protects vehicles used to transport food, staff, or equipment.
Covers damage to your kitchen, office, or storage space due to fire, theft, or disasters.
Covers employee injuries and lost wages if someone gets hurt on the job.
Protects your catering gear—ovens, warmers, serving trays—from damage or theft.
Final Thoughts
Pricing your catering services profitably means balancing cost recovery, market competitiveness, and long-term sustainability. By understanding your expenses, choosing the right pricing model, and factoring in insurance, you’ll be better equipped to grow a successful catering business.
Need help protecting your catering business?
Visit Wexford Insurance to explore our specialized insurance programs for catering and food service professionals.
