Costing food to sell to a restaurant

Discussion in 'Professional Catering' started by marrey25, Feb 4, 2018.

  1. marrey25

    marrey25

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    So I have a catering business and I was approached by an owner of a small restaurant that offered to buy some of my food to sell at his restaurant. I know how i price my things for a catering event but how much should i charge him for it? would it be the same that i would charge for normal catering?
     
  2. Pat Pat

    Pat Pat

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    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.
     
  3. cheflayne

    cheflayne

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    For normal catering, I assume you figure in wait staff costs, etc. If any of your standard costs, such as wait staff etc. don't figure into this scenario, I would back them out.
     
  4. lagom

    lagom

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    I would charge are much as the market can reasonably bare, keeping in mind the long term revenue flow and the ability for the restaurant to recover a profit. However don’t sell yourself cheap.
     
  5. redbeerd cantu

    redbeerd cantu

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    The standard pricing scheme for a business is that the food cost be around 30% of the price, which would cover the cost of the ingredients, the labor to produce the final product, and provide you with a profit.

    For instance, looking at the attached food cost worksheet, you'll see that each portion of tapenade cost $0.88 to produce. If I were to have my food cost be 30% of price (30% profit margin), then I would charge $2.93 per portion.

    Pricing is relative to the product being sold. For instance, beef would have a very thin profit margin, as it is difficult to charge three times the price of a raw steak, unless one is running a high-end restaurant.
     

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  6. chefbillyb

    chefbillyb

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    This all depends on how much food is involved. This is going to be difficult to accomplish without someone getting screwed. Most likely it will be the customer be over charged. 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. I would do something like this with the least amount of labor I could. You can't expect to make the same amount as you would for a retail catering sale. You are really more of a cooked food wholesaler for him to sell retail. You would also have to think about any overhead and taxes you have to pay. This may not be worth your wild but, you need to understand that his restaurant needs to resell your food at a reasonable price to make this venture feasible. 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.
     
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  7. redbeerd cantu

    redbeerd cantu

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    And this is where ethical practices come into play...
     
  8. Pat Pat

    Pat Pat

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    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.
     
  9. cheflayne

    cheflayne

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    Bottom line is that it is your responsibility to watch your bottom line and the restaurant's to watch theirs. Of course you need to keep in mind that your decisions also affect your gross. So consider the effect that your decisions have on the bottom line of the restaurant before making decisions that effect your gross.

    I think I understand what I just typed :~)