Catering Pricing Benchmark - US
Compare your catering pricing against market rates. See if you're leaving money on the table or pricing yourself out of jobs.
Catering Pricing Benchmark
Contractor Profitability Insights
Pricing strategies and profit optimization for catering businesses
US Wedding catering averages $70/person. Drop-off catering (Taco bar/BBQ) is cheapest ($15-$25/pp). Full service includes linens, china, and cleanup ($100+/pp). Alcohol is the biggest variable—Open Bar costs $30-$50/pp.
Cost Breakdown
Understanding where your Catering money goes
Material vs. Labor Ratio
| Category | Percentage |
|---|---|
| Materials & Supplies | 35% |
| Labor & Installation | 65% |
Typical Cost Ranges
Why This Breakdown Matters
Food cost is ~30%. The rest is operations.
These percentages are industry averages. Your specific quote may vary based on project complexity, material choices, and local labor rates.
Business FAQs for Catering Contractors
How do I know if my catering quote is fair?
Compare your quote against local market rates in the US. Check if all necessary items are included (like waste removal and Sales Tax), verify the contractor is licensed, and get 2-3 additional quotes for comparison. Use our quote analysis tool to spot hidden markups.
Do I need to pay Sales Tax on catering services?
Yes, in most cases. Legitimate businesses must be registered to collect Sales Tax (varies by state). If a contractor offers a "cash price" without Sales Tax, you likely won't get a receipt, a warranty, or protection from Better Business Bureau (BBB) if things go wrong.
What paperwork should I ask for from a catering contractor?
Always ask for a written quote (not an estimate), proof of liability insurance, and details on any required permit from your local municipality. Never let work begin without a signed contract outlining the payment schedule.
Is it normal to pay a deposit upfront for catering work?
Yes, to cover materials and secure your slot, but be careful. A standard deposit is 30-50%. Never pay 100% upfront. If a contractor asks for full payment before starting, that is a major red flag.
How do I check if a catering contractor is legitimate?
Verify their specific trade license (e.g., State License). You can also check reviews and look for complaints lodged with Better Business Bureau (BBB).
What are red flags in catering quotes?
Watch for quotes without itemized breakdowns, unusually low prices (corners will be cut), pressure to sign immediately, requests for full payment upfront, or contractors without proper licensing in the US.
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