[Pat Pat]

I don't know how you do your pricing when you cater, but for me, I sell the food at retail price; then the restaurant usually add a 20% markup for plating up the food.

 

[Pat Pat]

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...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.

That's not the case with prepared food. The restaurant that buys from you will save a bunch on labour and utilities, so the cost of your food will not directly translated into the restaurant's food cost.

If I sell my food to the restaurant for $18 and make a 10% profit, the restaurant can plate it up and sell it for $22 and make a 10% profit, while also covering other costs associated with serving the dish.