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Methodology

Catering Quote & Margin Planner methodology

Build a catering quote from guest volume, food, labour, logistics, fixed costs, contingency and a user-entered target margin.

Educational only: Business decision support, not accounting, tax or legal advice.

Privacy: Calculations run locally; Margin101 does not receive your commercial inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: Market-neutral small-business planning using your own assumptions.

1. Formulas and units

Food cost
foodCostExTax = guests ร— food cost per guest

Where

guestCount
Guests (whole guests/event)Source: Business record
foodCostPerGuestExTax
Food cost per guest (currency units/guest, ex tax)Source: Business record
foodCostExTax
Food cost (currency units, ex tax)Source: Calculated output
Preparation labour cost
prepLabourCostExTax = preparation hours ร— preparation loaded rate

Where

prepLabourHours
Preparation labour hours (hours/event)Source: Business record
prepLoadedRateExTax
Preparation loaded rate (currency units/hour, ex tax)Source: Business record
prepLabourCostExTax
Preparation labour cost (currency units, ex tax)Source: Calculated output
totalLabourCostExTax
Total labour cost (currency units, ex tax)Source: Calculated output
Service labour cost
serviceLabourCostExTax = service hours ร— service loaded rate

Where

serviceLabourHours
Service labour hours (hours/event)Source: Business record
serviceLoadedRateExTax
Service loaded rate (currency units/hour, ex tax)Source: Business record
serviceLabourCostExTax
Service labour cost (currency units, ex tax)Source: Calculated output
totalLabourCostExTax
Total labour cost (currency units, ex tax)Source: Calculated output
Total labour cost
totalLabourCostExTax = preparation labour + service labour

Where

prepLabourCostExTax
Preparation labour cost (currency units, ex tax)Source: Calculated output
serviceLabourCostExTax
Service labour cost (currency units, ex tax)Source: Calculated output
totalLabourCostExTax
Total labour cost (currency units, ex tax)Source: Calculated output
Other variable cost
otherVariableCostExTax = packaging and logistics cost

Where

packagingLogisticsCostExTax
Packaging and logistics (currency units/event, ex tax)Source: Business record
otherVariableCostExTax
Other variable cost (currency units, ex tax)Source: Calculated output
Fixed event cost
fixedCostExTax = venue and fixed cost

Where

venueFixedCostExTax
Venue and fixed costs (currency units/event, ex tax)Source: Business record
fixedCostExTax
Fixed event cost (currency units, ex tax)Source: Calculated output
Base catering cost
baseCostExTax = food + labour + other variable + fixed costs

Where

foodCostExTax
Food cost (currency units, ex tax)Source: Calculated output
totalLabourCostExTax
Total labour cost (currency units, ex tax)Source: Calculated output
otherVariableCostExTax
Other variable cost (currency units, ex tax)Source: Calculated output
fixedCostExTax
Fixed event cost (currency units, ex tax)Source: Calculated output
baseCostExTax
Base catering cost (currency units, ex tax)Source: Calculated output
Contingency
contingencyExTax = base cost ร— contingency rate

Where

contingencyRate
Contingency rate (decimal fraction of event base cost)Source: User assumption
baseCostExTax
Base catering cost (currency units, ex tax)Source: Calculated output
contingencyExTax
Contingency (currency units, ex tax)Source: Calculated output
Protected catering cost
protectedCostExTax = base cost + contingency

Where

baseCostExTax
Base catering cost (currency units, ex tax)Source: Calculated output
contingencyExTax
Contingency (currency units, ex tax)Source: Calculated output
protectedCostExTax
Protected catering cost (currency units, ex tax)Source: Calculated output
Total catering quote
totalQuoteExTax = protected cost รท (1 โˆ’ target margin)

Where

targetMargin
Target quote margin (decimal fraction of catering quote revenue)Source: User assumption
protectedCostExTax
Protected catering cost (currency units, ex tax)Source: Calculated output
totalQuoteExTax
Total catering quote (currency units, ex tax)Source: Calculated output
Quote per guest
quotePerGuestExTax = total quote รท guests

Where

guestCount
Guests (whole guests/event)Source: Business record
totalQuoteExTax
Total catering quote (currency units, ex tax)Source: Calculated output
quotePerGuestExTax
Quote per guest (currency units, ex tax)Source: Calculated output
Target contribution
targetContributionExTax = total quote โˆ’ protected cost

Where

protectedCostExTax
Protected catering cost (currency units, ex tax)Source: Calculated output
totalQuoteExTax
Total catering quote (currency units, ex tax)Source: Calculated output
targetContributionExTax
Target contribution (currency units, ex tax)Source: Calculated output

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

2. Worked example

Input assumptions

The rows below come directly from the exact engine using the visible default fixture.

Guests
100 whole guests/event
Food cost per guest
12 currency units/guest, ex tax
Preparation labour hours
10 hours/event
Preparation loaded rate
40 currency units/hour, ex tax
Service labour hours
10 hours/event
Service loaded rate
40 currency units/hour, ex tax
Packaging and logistics
300 currency units/event, ex tax
Venue and fixed costs
200 currency units/event, ex tax
Contingency rate
0.1 decimal fraction of event base cost
Target quote margin
0.2 decimal fraction of catering quote revenue

Calculation and outputs

  1. Food cost

    foodCostExTax = guests ร— food cost per guest
    Guests
    100 whole guests/event
    Food cost per guest
    12 currency units/guest, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Fixed event cost
    200 money
    Base catering cost
    2,500 money
    Protected catering cost
    2,750 money
    Quote per guest
    34.375 money

    Engine result: 1,200 money

  2. Preparation labour cost

    prepLabourCostExTax = preparation hours ร— preparation loaded rate
    Preparation labour hours
    10 hours/event
    Preparation loaded rate
    40 currency units/hour, ex tax
    Service labour hours
    10 hours/event
    Service loaded rate
    40 currency units/hour, ex tax
    Contingency rate
    0.1 decimal fraction of event base cost

    Engine result: 400 money

  3. Service labour cost

    serviceLabourCostExTax = service hours ร— service loaded rate
    Preparation labour hours
    10 hours/event
    Preparation loaded rate
    40 currency units/hour, ex tax
    Service labour hours
    10 hours/event
    Service loaded rate
    40 currency units/hour, ex tax
    Contingency rate
    0.1 decimal fraction of event base cost

    Engine result: 400 money

  4. Total labour cost

    totalLabourCostExTax = preparation labour + service labour
    Preparation labour hours
    10 hours/event
    Preparation loaded rate
    40 currency units/hour, ex tax
    Service labour hours
    10 hours/event
    Service loaded rate
    40 currency units/hour, ex tax
    Preparation labour cost
    400 money
    Service labour cost
    400 money

    Engine result: 800 money

  5. Other variable cost

    otherVariableCostExTax = packaging and logistics cost
    Food cost per guest
    12 currency units/guest, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Fixed event cost
    200 money
    Base catering cost
    2,500 money
    Protected catering cost
    2,750 money

    Engine result: 300 money

  6. Fixed event cost

    fixedCostExTax = venue and fixed cost
    Food cost per guest
    12 currency units/guest, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Base catering cost
    2,500 money
    Protected catering cost
    2,750 money

    Engine result: 200 money

  7. Base catering cost

    baseCostExTax = food + labour + other variable + fixed costs
    Food cost per guest
    12 currency units/guest, ex tax
    Preparation labour hours
    10 hours/event
    Service labour hours
    10 hours/event
    Venue and fixed costs
    200 currency units/event, ex tax
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Fixed event cost
    200 money

    Engine result: 2,500 money

  8. Contingency

    contingencyExTax = base cost ร— contingency rate
    Food cost per guest
    12 currency units/guest, ex tax
    Preparation loaded rate
    40 currency units/hour, ex tax
    Service loaded rate
    40 currency units/hour, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Contingency rate
    0.1 decimal fraction of event base cost
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Fixed event cost
    200 money
    Base catering cost
    2,500 money
    Protected catering cost
    2,750 money

    Engine result: 250 money

  9. Protected catering cost

    protectedCostExTax = base cost + contingency
    Food cost per guest
    12 currency units/guest, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Contingency rate
    0.1 decimal fraction of event base cost
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Fixed event cost
    200 money
    Base catering cost
    2,500 money
    Contingency
    250 money

    Engine result: 2,750 money

  10. Total catering quote

    totalQuoteExTax = protected cost รท (1 โˆ’ target margin)
    Food cost per guest
    12 currency units/guest, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Target quote margin
    0.2 decimal fraction of catering quote revenue
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Fixed event cost
    200 money
    Base catering cost
    2,500 money
    Protected catering cost
    2,750 money
    Target contribution
    687.5 money

    Engine result: 3,437.5 money

  11. Quote per guest

    quotePerGuestExTax = total quote รท guests
    Guests
    100 whole guests/event
    Target quote margin
    0.2 decimal fraction of catering quote revenue
    Total catering quote
    3,437.5 money

    Engine result: 34.375 money

  12. Target contribution

    targetContributionExTax = total quote โˆ’ protected cost
    Food cost per guest
    12 currency units/guest, ex tax
    Packaging and logistics
    300 currency units/event, ex tax
    Venue and fixed costs
    200 currency units/event, ex tax
    Target quote margin
    0.2 decimal fraction of catering quote revenue
    Food cost
    1,200 money
    Preparation labour cost
    400 money
    Service labour cost
    400 money
    Total labour cost
    800 money
    Other variable cost
    300 money
    Fixed event cost
    200 money
    Base catering cost
    2,500 money
    Protected catering cost
    2,750 money
    Total catering quote
    3,437.5 money
    Quote per guest
    34.375 money

    Engine result: 687.5 money

Example

The rows below come directly from the exact engine using the visible default fixture.

Food cost
1,200.00
Preparation labour cost
400.00
Service labour cost
400.00
Total labour cost
800.00
Other variable cost
300.00
Fixed event cost
200.00
Base catering cost
2,500.00
Contingency
250.00
Protected catering cost
2,750.00
Total catering quote
3,437.50
Quote per guest
34.38
Target contribution
687.50

The exact engine-derived outputs are shown in the labelled rows below.

Interpretation

Protect every entered event cost and contingency before treating the quote as margin-bearing revenue.

3. Validation and boundary checks

  • All values must be finite and remain inside visible input boundaries.
  • Rates must remain below the engine-owned upper boundary.
  • The same cost must not be entered in more than one category.
Guests minimum
guestCount โ‰ฅ 1 whole guests/event โ€” A lower value is rejected before calculation.
Guests maximum
guestCount โ‰ค 100,000,000 whole guests/event โ€” A higher value is rejected before calculation.
Food cost per guest minimum
foodCostPerGuestExTax โ‰ฅ 0 currency units/guest, ex tax โ€” A lower value is rejected before calculation.
Food cost per guest maximum
foodCostPerGuestExTax โ‰ค 10,000,000 currency units/guest, ex tax โ€” A higher value is rejected before calculation.
Preparation labour hours minimum
prepLabourHours โ‰ฅ 0 hours/event โ€” A lower value is rejected before calculation.
Preparation labour hours maximum
prepLabourHours โ‰ค 100,000,000 hours/event โ€” A higher value is rejected before calculation.
Preparation loaded rate minimum
prepLoadedRateExTax โ‰ฅ 0 currency units/hour, ex tax โ€” A lower value is rejected before calculation.
Preparation loaded rate maximum
prepLoadedRateExTax โ‰ค 10,000,000 currency units/hour, ex tax โ€” A higher value is rejected before calculation.
Service labour hours minimum
serviceLabourHours โ‰ฅ 0 hours/event โ€” A lower value is rejected before calculation.
Service labour hours maximum
serviceLabourHours โ‰ค 100,000,000 hours/event โ€” A higher value is rejected before calculation.
Service loaded rate minimum
serviceLoadedRateExTax โ‰ฅ 0 currency units/hour, ex tax โ€” A lower value is rejected before calculation.
Service loaded rate maximum
serviceLoadedRateExTax โ‰ค 10,000,000 currency units/hour, ex tax โ€” A higher value is rejected before calculation.
Packaging and logistics minimum
packagingLogisticsCostExTax โ‰ฅ 0 currency units/event, ex tax โ€” A lower value is rejected before calculation.
Packaging and logistics maximum
packagingLogisticsCostExTax โ‰ค 10,000,000 currency units/event, ex tax โ€” A higher value is rejected before calculation.
Venue and fixed costs minimum
venueFixedCostExTax โ‰ฅ 0 currency units/event, ex tax โ€” A lower value is rejected before calculation.
Venue and fixed costs maximum
venueFixedCostExTax โ‰ค 10,000,000 currency units/event, ex tax โ€” A higher value is rejected before calculation.
Contingency rate minimum
contingencyRate โ‰ฅ 0 decimal fraction of event base cost โ€” A lower value is rejected before calculation.
Contingency rate maximum
contingencyRate โ‰ค 1 decimal fraction of event base cost โ€” A higher value is rejected before calculation.
Target quote margin minimum
targetMargin โ‰ฅ 0 decimal fraction of catering quote revenue โ€” A lower value is rejected before calculation.
Target quote margin maximum
targetMargin โ‰ค 1 decimal fraction of catering quote revenue โ€” A higher value is rejected before calculation.

4. Assumptions and source classification

  • All commercial terms, costs, rates and volumes are supplied by the user.
  • Money values use one consistent ex-tax basis.
  • No provider fee, jurisdiction, benchmark or demand forecast is embedded.
  • Raw engine precision is retained until display.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

5. Limitations

  • Results depend on the completeness and classification of entered records.
  • The planner does not forecast demand, customer behaviour or supplier terms.
  • This is educational business decision support rather than accounting, tax, legal or financial advice.
  • Labour rates, contingency and target margin are editable quote assumptions; no wage rule, tax rate, service charge, gratuity or hospitality benchmark is embedded.
  • Food-safety, licensing, venue, staffing and contract obligations remain outside this commercial quote model.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

Change history

  1. : Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.

Guides to interpret the decision and its assumptions.

  • Catering Quote Pricing Checklist

    Freeze event scope, quantities, labour, logistics, inclusions and change triggers before handing the record to the catering quote planner.

    Read guide
  • Deposit and Cancellation Terms for Events

    Size event deposits and cancellation checkpoints from committed cash and recoverable work without giving legal advice.

    Read guide

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