Question 1

What should be included in the 'Cost Per Head'?

Accepted Answer

This should be the all-in cost you pay the caterer per person. It typically includes food, beverages, and sometimes basic service staff. Be sure to clarify with your vendor if taxes, gratuities, and special equipment rentals are included in the per-head price or billed separately.

Question 2

How do I determine 'Revenue Per Head' if it's part of a larger ticket price?

Accepted Answer

If catering is not ticketed separately, you must allocate a portion of the main ticket price to it. A common method is to use the cost-plus approach; for example, you might decide that the catering portion of the ticket price is equal to its cost plus a desired 20% margin. Alternatively, you can survey past attendees to gauge the perceived value of the F&B service.

Question 3

What is a good ROI for event catering?

Accepted Answer

This varies widely. For some events, break-even (0% ROI) on catering is acceptable, as F&B is treated as a necessary cost to enhance the attendee experience. For others, like fundraising galas, catering is a key profit center, and a high ROI is expected. A typical target for profitable catering is often in the 20-40% range.

Question 4

How can I use this calculator to compare different caterers?

Accepted Answer

Request a detailed per-head quote from each potential caterer. Enter their 'Cost Per Head' into the calculator while keeping your 'Revenue Per Head' and 'Number of Heads' constant. This will directly show you which caterer offers the most profitable option for your event.

Question 5

Does this calculator account for labor and service charges?

Accepted Answer

This calculator is based on the 'Cost Per Head' you provide. It is crucial to confirm with your caterer if their per-head price includes all labor, service charges, and taxes. If it doesn't, you should add those additional costs to the per-head figure to get an accurate ROI.

Catering Per Head ROI Calculator

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Understanding Catering ROI

Frequently Asked Questions

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