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Catering to smaller groups as apposed to larger groups

post #1 of 5
Thread Starter 

How do I explain to a client that I have to charge more per head for a party of 70 than I do for a party off 150, or more  due to the profit margin .... you know what I'm asking , right ?

Can you give me a viable explanation to share with them ... Thanks !

post #2 of 5

Could you to offer a discount of ***% once the numbers are over 120?

post #3 of 5

Don't bring your profit margin into the discussion, instead your fixed operating costs (overhead) They can't argue with what it cost you to open the door.

Have a minimum charge for what you will do. Let's say it's 100 and the client can only guarantee 78, they will be charged for 100. Send them packing with a signed release of liability and the 22 extra meals. If they can't meat your minimum, then your not the caterer they were looking for.

post #4 of 5

Yes, it's how you present it-- you're not charging more for 70 than 150, you're charging less for 150 than for 70.

I.E., "volume discount" or whatever you want to call it. Do you think they would say, "HEY! Why am I paying less for 

150 than for 70? That's not fair." ? Not blarky likely. :rolleyes: 

 

Agreed you choose your minimum, based on flattened-out fixed costs, your personal fee, and rock bottom profit, then 

you stick to that minimum--or consider yourself to be losing money. 

post #5 of 5

Do it like this   Your minimum lets say is 100 guest at 20.00 pp  that's 2000.00.   Now they have 70  divide $2000.00 by 70 and you get $28.50 pp that's the price per 70  if it were 80 divide 2000 by 80  which is $25.00 per person , that's  the price for 80 That's the way its done in New York.

Chef EdB
Over 50 years in food service business 35 as Ex Chef. Specializing in Volume upscale Catering both on and off premise .(former Exec. Chef in the largest on premise caterer in US  with 17 Million Dollars per year annual volume). 
      Well versed in all facets of Continental Cuisine...

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Chef EdB
Over 50 years in food service business 35 as Ex Chef. Specializing in Volume upscale Catering both on and off premise .(former Exec. Chef in the largest on premise caterer in US  with 17 Million Dollars per year annual volume). 
      Well versed in all facets of Continental Cuisine...

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