[redbeerd cantu]

The standard pricing scheme for a business is that the food cost be around 30% of the price, which would cover the cost of the ingredients, the labor to produce the final product, and provide you with a profit.

For instance, looking at the attached food cost worksheet, you'll see that each portion of tapenade cost $0.88 to produce. If I were to have my food cost be 30% of price (30% profit margin), then I would charge $2.93 per portion.

Pricing is relative to the product being sold. For instance, beef would have a very thin profit margin, as it is difficult to charge three times the price of a raw steak, unless one is running a high-end restaurant.

 

[redbeerd cantu]

This all depends on how much food is involved. This is going to be difficult to accomplish without someone getting screwed. Most likely it will be the customer be over charged. If you have a 25% food cost and charge him another 25% markup then his food cost would be 50% on the items he buys from you. I would do something like this with the least amount of labor I could. You can't expect to make the same amount as you would for a retail catering sale. You are really more of a cooked food wholesaler for him to sell retail. You would also have to think about any overhead and taxes you have to pay. This may not be worth your wild but, you need to understand that his restaurant needs to resell your food at a reasonable price to make this venture feasible. Lets say you have a Chicken Cordon Blue dinner for catering and sell that for $18 per person. There is no way he could resell that meal for $31.50 and make the same amount of profit in $$$$$ as you do.

And this is where ethical practices come into play...

 

[redbeerd cantu]

This consideration of reducing your profit for the sake of establishing an ongoing relationship is valid. I didn't consider it when I posted my reply.