Set one comparable decision contract
Record these assumptions before calculating
- The same guest count, menu outcome, venue and service duration. (not complete)
- Format-specific production and service run sheets. (not complete)
- Loaded labour cost by task, not only wage hours. (not complete)
- Equipment, transport, setup and return requirements. (not complete)
- A capacity and quality check for each format. (not complete)
format contribution = quoted event revenue - food and consumables - format labour - equipment and logistics - expected format-specific loss
- format labour
- Preparation, packing, setup, service, replenishment, clearing and cleanup for that format (CU per event) — run sheet and loaded labour record
- equipment and logistics
- Transport, hot/cold holding, crockery, hire and return resources (CU per event) — internal record or supplier quote
- format-specific loss
- Labelled scenario for waste, breakage, returns or failed service caused by the format (CU per event) — comparable event record or scenario
Keep one currency, indirect-tax basis, time horizon and cost boundary throughout. Scenario values below are invented currency units (CU), not benchmarks.
Worked example: Buffet, Plated or Drop-Off: Compare the Cost Model
Invented 100-guest comparison at the same 6,000 CU revenue: buffet cost 4,300 CU, plated 4,750 CU and drop-off 3,650 CU under their stated scopes.
| Line | Calculation | Result |
|---|---|---|
| Buffet contribution | 6,000 - 4,300 | 1,700 CU |
| Plated contribution | 6,000 - 4,750 | 1,250 CU |
| Drop-off contribution | 6,000 - 3,650 | 2,350 CU |
| Drop-off vs buffet | 2,350 - 1,700 | 650 CU |
| Case | Changed input | Decision result |
|---|---|---|
| Drop-off base | 3,650 included cost | 2,350 CU |
| Drop-off + setup crew | 3,650 + 500 | 1,850 CU |
| Drop-off + crew and hire | 3,650 + 500 + 300 | 1,550 CU |
Turn the calculation into an operating decision
- Freeze guest outcome and scope.
- Map tasks and resources for each format.
- Cost labour from time, not a guessed percentage.
- Add equipment, transport and expected loss.
- Compare contribution and capacity at the same revenue or quote each format fully.
- Write inclusions and handoff responsibilities before quoting.
- Comparing formats with different deliverables without stating them.
- Ignoring clearing, cleanup or equipment return time.
- Using one waste assumption for every format.
- Treating customer setup as free when the business still coordinates it.
- Changing menu and service format at the same time without isolating effects.
Questions to settle before acting
- Should every format have the same price?
- Not necessarily. First compare at a common revenue to expose cost differences, then build a complete quote for each promised scope.
- How should waste be handled?
- Use comparable event records where available and show a range. Do not assume one format always wastes more.
- What if a format frees kitchen capacity?
- Add only the contribution from a plausible alternative booking or use; do not assign opportunity value without an actual option.
Sources and methodology
- Buffet, Plated or Drop-Off: Compare the Cost Model: calculation boundary — Margin101: Formula, unit, assumption and limitation reference for the primary decision handoff.
- Food safety and eating out — U.S. Food and Drug Administration: Safety context only; economics and local compliance remain separate.