Economics of catering

Types of catering

Catering is the business of providing food and drink for others. It may be commercial (restaurants, hotels, cafés, takeaways, mobile food vendors) or institutional (schools, hospitals, prisons, the army), or for events (weddings, parties, conferences, banquets).

Menu planning

A menu must suit the customers, the occasion, the season, the budget and the kitchen equipment and skill. It should be balanced, varied in colour, texture and flavour, and show prices. Types include à la carte (each dish priced separately), table d’hôte (set menu at a fixed price), and buffet (self-service).

Caterers must keep records of costs: food cost, labour, fuel, rent and other overheads. The selling price is found from the cost and the profit wanted.

If food should be 40% of the price, divide the food cost by 0.4.

Worked examplePricing a portion

The ingredients for one portion of pilau cost TSh 1 800. Food should be 40% of the selling price. Find the price.

Divide by 0.40.

Answer: Sell at TSh 4 500 per portion.

Food is about 40% of the price; the rest pays for labour, overheads and profit.

Try itSelling price of a portion

Choose the food cost and the food-cost percentage.

Time plans and preparing a banquet

A time plan (work plan) lists what to do, who does it and when, working backwards from the serving time. Start with items that take the longest, dishes that can be prepared early, and leave final cooking and garnishing to the end. For a banquet (a formal meal for many guests), plan the menu, seating, table setting, service (waiters serve from the left, clear from the right), decorations, staff duties, hygiene and bills.

Time before serving	Task
3 days	Order ingredients, confirm numbers
1 day	Buy fresh foods, prepare sauces, set the hall
3 hours	Cook main dishes, make salads
1 hour	Set tables, finish desserts
15 minutes	Keep food hot, garnish, welcome guests

Check yourself A set menu at a fixed price is called

Check yourself If the food cost is TSh 2 000 and it must be 40% of the price, the price is

Check yourself A time plan is made

Key terms

Catering: Providing food and drink for others.
À la carte: A menu where each dish is priced separately.
Banquet: A formal meal for a large number of guests.
Overheads: The running costs of a business, like rent and fuel.

Summary

Catering may be commercial, institutional or for events.
Plan menus for the customers, season and budget.
Selling price = food cost ÷ food cost percentage.
A time plan works backwards from serving time.