Costing The Event
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Uploaded by PowerfulHappiness4189
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Summary
This document discusses factors that influence pricing for events, including labor, food, service style, and competition. It highlights how food prices can vary based on quantity and the importance of catering companies considering customer budgets and needs when creating a menu and service level. Ultimately, a good reputation is important to attract accounts and repeat business.
Full Transcript
Costing the Event Pricing for an event depends upon several factors. These factors include the costs of labor, food, style of service, on- or offsite event, overhead, and competition. The charges are based on the customer-guaranteed count plus additional costs for add-ons such as special services a...
Costing the Event Pricing for an event depends upon several factors. These factors include the costs of labor, food, style of service, on- or offsite event, overhead, and competition. The charges are based on the customer-guaranteed count plus additional costs for add-ons such as special services and specialty items. Large group functions may have a lower cost per-person than a small group because food prices are better for large quantities of food. Competition among local caterers for a specific style of catering influences the mark up of food cost for an event. When there are a limited number of caterers offering upscale food and service, a company may be able to charge an additional fee due to a high demand and an outstanding reputation. Whatever the situation, the customer's budget and needs must be foremost in arriving at a menu and level of service that offers the customer a fair value for the amount charged. The catering company must be able to make a profit to stay in business. Typically, a 25 to 30 percent food cost percentage is used when pricing a menu item. A good reputation goes a long way in attracting accounts and repeat business.
