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Catering is the biggest line in most Indian wedding budgets and the thinnest-margin business serving it. The caterer carries perishable inventory, day-labour armies, fuel, and the immortal risk of "guests badh gaye" — all against a per-plate price fixed weeks earlier. What separates profitable caterers from busy ones isn't the paneer; it's plate-count discipline, costed menus, and terms that price risk. Here's the operating guide.
Per-Plate Pricing: The Market Bands (2026)
| Segment | Veg per plate | Non-veg per plate |
|---|---|---|
| Budget/community | ₹350 – ₹600 | ₹450 – ₹800 |
| Mid-market | ₹600 – ₹1,200 | ₹800 – ₹1,600 |
| Premium | ₹1,200 – ₹2,500 | ₹1,600 – ₹3,500 |
| Luxury/five-star-adjacent | ₹2,500 – ₹6,000+ | — |
Drivers within a band: counter count and live stations (the biggest lever — each live counter adds ₹50–₹200/plate), cuisine breadth, service style (buffet vs plated vs family-style), crockery tier, and dessert/chaat theatrics. Metro premiums apply as everywhere.
Food Cost Discipline: The 35% Line
The catering P&L in one sentence: raw material should run 30–38% of the plate price, labour 15–20%, fuel/logistics/rentals 10–15%, leaving 25–35% gross before your overheads. When a client negotiates the plate price down 20% "same menu," they're not negotiating your profit — they're negotiating it out of existence. The correct response is menu engineering: fewer counters, seasonal substitutions, controlled protein grammage — shrink scope, never just price.
Cost every menu as a sheet (ingredient grammage × market rates + labour + fuel) before quoting. Caterers who quote from memory subsidize weddings in bad market weeks — vegetable inflation is real and weekly.
The Guest-Count Guarantee: Your Most Important Clause
Catering's defining risk is the plate count. The industry-standard protection, in writing:
- Guaranteed minimum count, locked 72 hours before the event — you're paid for the guarantee even if fewer show
- Above the guarantee: per-plate billing by actual count (counted by coupons, plates issued, or headcount method — specify which)
- Count changes inside 72 hours: accepted upward if supply allows (at the rate), never downward
- The overflow rate can exceed the base rate by 10–15% — last-minute plates cost more to produce
This single clause converts the "guests badh gaye / kam aa gaye" chaos into arithmetic. Pair it with the advance structure: 25–40% at booking, balance to 90% before the event, settlement within 24 hours of the function on the final count.
Tastings, Menus, and Scope Paper
- Tastings are sales events with policies: charged (₹2,000–₹5,000, adjustable on booking) or bundled at premium tiers, for a fixed party size — the trial-policy logic transplanted whole
- The confirmed menu is an annexure to the contract: counters, dishes, grammage where it matters, service style, staff count, timings
- Change orders for menu additions after finalization, priced in writing — the mehendi-day "ek counter aur laga do" is either revenue or a loss, decided by whether you paper it
Staffing and the Service Layer
Day-labour is catering's second-biggest cost and its biggest quality variable: cooks, counter staff (1 per 25–35 guests buffet-style), service captains, dishwashing crews. Build a reliable bench with per-event rates, brief them on dress and conduct — service complaints outnumber food complaints at weddings — and track payouts per event (expense tracking against bookings shows which functions actually made money).
Compliance Notes Specific to Food
- FSSAI registration/license is mandatory (registration for small turnover, state license as you scale) — planners and venues increasingly demand the number on paper
- GST: outdoor catering runs 5% without input credit in most independent-caterer cases (the wedding-services rate table) — price knowing your inputs' GST is a cost, not a credit
- Cash discipline: wedding catering's settlement culture is cash-heavy, and the ₹2 lakh cash-receipt ceiling (Section 269ST) arrives fast at wedding scale — route balances through bank/UPI
The Operating Rhythm
Per event: costed menu → quoted with guarantee clause → advance banked → 72-hour count lock → market run priced against the sheet → function executed → same-night count reconciliation → settlement invoice within 24 hours → crew paid → actuals logged. Run the whole cycle — bookings, menus-as-notes, advances, settlements, expenses — in one free system, and the season's real margins become something you know by Diwali, not something you discover at the accountant's in July.