# Food Cost Question



## nickcim (Aug 24, 2011)

I recently started a private chef business in West Michigan (Savory Socials) and am in a whirl wind of decision making and foundation setting. I would like to know what would be an appropriate food cost percentage to run for small 10-14 person party's, 6-7 courses. The dinners will take place at the clients home, some use of their kitchen equipment, flatware, china, and glass wear, food will be provided by myself. I feel like i have most details worked out but am uncertain what to charge the client. What is this skill worth? What can i get away with as far as price goes? My current thought on this topic is the run the same as in the restaurant.... 30-35%

Any suggestions?


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## shroomgirl (Aug 11, 2000)

small parties, you're labor is a problem.....it's hard to charge an appropriate amount for small dinner parties.   We've had this discussion many times before and several members agree to disagree about how they handle pricing.


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## petemccracken (Sep 18, 2008)

> Originally Posted by *NickCIM*
> 
> ... My current thought on this topic is the run the same as in the restaurant.... 30-35%. Any suggestions?


As previously commented on in a Food Cost Question in the ChefTalk Feedback forum, my food cost percentage for small dinner parties is more in the range of 15-20%, tending towards the lower end the smaller the number of guests. This reflects the higher labor cost percentage for small parties.

Price = Food Cost + Labor Cost + Overhead + Profit

Food Cost is a constant per guest.

Labor Cost and Overhead Cost per person is inversely proportional to the number of guests, the more guests, the less cost per guest.

A restaurant or a caterer has the luxury of spreading labor and overhead across a large number of guests, thus lowering the cost per guest. A personal or private chef does not enjoy that luxury.

Pricing based simply on a food cost percentage, IMHO, is fraught with disaster unless the food cost percentage is based on similar functions and a restaurant or regular caterer does not qualify as similar!


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## uptownkevin (Sep 15, 2006)

NickCIM said:


> I recently started a private chef business in West Michigan (Savory Socials) and am in a whirl wind of decision making and foundation setting. I would like to know what would be an appropriate food cost percentage to run for small 10-14 person party's, 6-7 courses. The dinners will take place at the clients home, some use of their kitchen equipment, flatware, china, and glass wear, food will be provided by myself. I feel like i have most details worked out but am uncertain what to charge the client. What is this skill worth? What can i get away with as far as price goes? My current thought on this topic is the run the same as in the restaurant.... 30-35%
> 
> Any suggestions?


To be successful in catering or private cheffing small parties, you're going to need to scrap the "food cost %." Seriously, forget about all of the percentages and talk dollars and cents. Take Pete's formula above and use it : Price = Food Cost + Labor Cost + Overhead + Profit.

When figuring pricing, your profit should be first, then let everything fall into place. I just did a 22 person dinner the other night for around $2500 and I have done 12-14 person dinners in the range of $1400. But only you will be able to determine your pricing after you've developed a menu and included all of the costs (party labor, prep labor, transportation, menu, etc.).


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