Free Examples of Catering Contract Templates

To help you grow your business, we've created a fairly simple yet reliable catering contract template in Word and PDF versions so you can use it over and over.

What's in this model?

• Event details including menus 

• Cancellation

• Legal terms

• Payment terms

 

What is a catering contract?

A catering contract is a service agreement between a caterer and a client that specifies the details of a catering service taking place over a specific period of time for one or more events.

 

What is catering?

Catering is the service of food that is provided outside of a location, such as a restaurant. It is also the food service that is provided inside a place, such as a conference center.

In this case, the caterer is responsible for preparing the food and serving it to customers. In fact, the restoration is often supported by a caterer.

But, in some cases, one person can do the catering work, such as an individual who cooked a meal for a group of friends.

 

What are the types of catering contracts?

Catering contracts can be of two types, namely long-term contracts and short-term contracts. Long-term contracts are contracts that last at least one year. Short contracts have a duration that is generally less than 3 months. There are many restaurants that offer these contracts. Catering contracts are negotiated between a customer and a service provider.

 

How much should I charge for catering?

When you begin to write your business plan, it is essential to break down the cost of catering. Since catering is considered part of the service industry, the amount you budget for staff will impact your bottom line. Once you put your plan on paper, you will have a better idea of ​​pricing for catering services. 

• Consider the standard percentage range: according to Cater's source, the average pre-tax take for caterers is 7-8%. That's almost double the profit that sit-down restaurants enjoy. It's possible to do more, and some caterers return up to 25%, but the market and your niche will make a difference. When considering using a catering quote calculator, set yourself a lofty goal, but be realistic about the profit you're likely to make.

• Market analysis : for comparison purposes, do an informal market analysis of your competitors. If you're the only caterer in town, you'll need to assess what the market will tolerate in terms of catering prices. If you are competing with others, understanding their prices is essential. Include a product comparison in your analysis. For example, prices are not comparable between a boutique caterer and a local grocery store.

• What is the event? Don't make the mistake of quoting a catered price without considering the details of the event. Providing packed lunches for a business meeting is quite different from a formal affair like a wedding. You can list your services on your website, but don't offer prices. Force a potential customer to contact you, so you can find out more about their needs. This gives you the ability to sell them on your services and offer varying prices, depending on the client. 

Consider the following list of questions you can ask to help break down catering costs:

• What type of event is planned?

• Is it formal or casual?

• Do you want the food served buffet style or individually wrapped?

• What kind of beverage service do you need?

• Would you like alcohol?

• Do you want plastic crockery or prettier crockery/cutlery?

• When will the food be served and when will the event end?

• Would you like us to provide you with tablecloths, chair covers or centerpieces?

• What is your ideal menu?

Once you have all of this information, you can start estimating the actual cost. Then add your profit target to get a breakdown of catering costs for the customer.

• Communicate with the customer: make a strategic decision about the distribution of catering costs that you share with your customers. For example, you don't need to explain how much you pay a bartender, kitchen staff, or servers. Instead, list the bar cost or event staff cost. If you choose to give a total price or a price per head, you can get out of a deal. Breaking it down gives the customer options. If your price is $200 over their budget, they may be willing to go without chair covers or flatware to stay within their budget.

• Reflect and learn: After each catering event, be sure to make a final breakdown of catering costs and compare it to your first estimate. It's always possible for something unexpected to happen that will increase your bottom line costs, but planned expenses should be considered. For example, if a tray of food falls on the floor, it is your responsibility to absorb the cost. Conversely, if you forgot to include dram shop insurance in the cost of your bar, you'll need to factor it in for the next event you host.

 

How does collective catering work?

Catering contracts are legal agreements between the customer and the caterer to provide food and refreshments at the workplace, for a specified period. There are many types of catering contracts and each of them has advantages and disadvantages.

Contracts should be fair to both parties and able to give accountability and value to the customer as well as a realistic reward and/or incentive to the caterer.

Here are the main types of catering contracts:

Cost plus

• An estimate is established by the caterer.

• The caterer operates the service according to the budget.

• If the budget is exceeded, the client pays the difference; if savings are made, they are passed on to the customer.

• The grant may change monthly.

• Contractors charge management fees.

 

Cost plus warranty 

• Same advantages as 'cost plus' plus the caterer guarantees certain lines in the budget i.e. labor costs, percentage of gross profit, miscellaneous expenses as a percentage of sales and management fees.

• Ensures that any benefit from increased sales will reduce the profit subsidy.

• Cost lines will be “fixed” or guaranteed and billed to the customer.

• The customer does not usually benefit from any savings, but an agreement can be reached to split the savings between the caterer, the customer and the catering team.

• The contract may incorporate performance-based incentive management fees.

• A service level agreement (SLA) is established and the caterer undertakes to put part of his fees into play.

• Caterer performance is measured against the SLA.

• The grant will vary.

 

Subsidy/No cost

• The caterer normally has complete autonomy over the price, menu and any miscellaneous charges and how these will be applied.

• Subsidies can only be considered in high-volume sites where prices close to shopping streets are acceptable.

• No cost to the customer and the caterer takes all the risk.

• For zero subsidy and a concession contract, certain parameters should apply, such as sovereignty over service levels, hours of operation, supply and pricing.

• A profit and loss account is managed by the caterer but these are not given to the customer.

 

Fixed price or cost/subsidy

• The annual budget, including all known variables, is prepared by the caterer.

• The annual cost is divided by 52 to calculate a weekly lump sum subsidy, or by 12 to calculate a monthly lump sum subsidy. This cost is charged to the customer.

• The client does not pay for overspending and knows exactly how much the subsidy will be each month.

• The management fee element of the subsidy may be an incentive, but it is not entirely fair to the caterer as they are already taking the risk of providing the service.

• Lower quality contractors could reduce quality and overhead to improve their profit.

• Management fees are often higher to take into account possible risks.

 

Fixed cost per head

• An annual budget is prepared and calculated to provide a fixed cost per user.

• The customer is billed using the daily numbers multiplied by the food cost per person.

• Caterers have systems in place to count the number of users.

• This is a common style of contract for hospitality, schools and for customers where the customer does not pay for their meal.

 

Concession

• In addition to the zero subsidy, a percentage return (usually from sales) is given to the customer each month.

• The caterer provides customers with monthly sales volumes.

• Usually used in retail or high street.

• These are usually high volume contracts.

 

Royalty contract 

• To be used preferably as part of a long-term strategy.

• Provides the customer with a guaranteed return on sales percentage each month.

• Transfers food cost and inventory management risks to the caterer.

• The customer's royalty percentage is maintained even if the caterer's profit is reduced in the event that the caterer does not control its costs.

• The royalty contract incentivizes both parties.

• Provides an alternative to a service level agreement based on incentive management fees.

• Only applicable in high turnover operations.

 

Important Terms

How to write a catering contract?

A catering services contract creates the basis of the legal relationship between the event organizer and the caterer. Some caterers use their own contract while others draft new ones for each event. In any case, both parties should carefully review the document before signing it.

In order to draft a catering contract, you will need to follow the steps below:

• Event details

Customer engages a caterer to provide food and beverage and related services for the following event (“Event”):

- Date

– Event start time (for guests)

– Event end time (for guests)

– Location (“Location”)

– Estimated number of guests

 

• menu to serve

The Parties have agreed on the menu attached to this catering contract. The caterer reserves the right to make minor changes to the menu if key ingredients cannot be obtained for reasons beyond the control of the parties.

The following limitations will apply to this reservation of rights: “No alcoholic beverages will be served without a separate agreement relating thereto.”

• Coordination with the venue

The caterer must have access to the site at the latest a few hours before the start time of the event and a few hours after the end time for cleaning. The caterer will make all necessary arrangements, at the customer's expense, to obtain this access.

• Payment terms

In exchange for the Caterer's services as specified in this Catering Agreement, Customer will pay the Caterer per person attending the Event. The exact amount due will be determined and provided in writing by the cbind to the caterer, one week before the event with a final count of the guests.

 

• Responsibilities for Related Costs

The customer is solely responsible for all costs and/or deposits associated with the use of the site, and for obtaining all necessary permissions, authorizations or other requirements of the caterer providing services on the site.

• Insurance and indemnification 

The Caterer has, or will obtain, general liability insurance relating to the services of the caterer at the event. However, the client will indemnify and hold the caterer harmless from any damage, theft or loss of the caterer's property occurring during the event, caused by any of the client's guests.

• Cancellation 

If the Customer must cancel the Event, the Customer must provide written notice to the Caterer, along with any required cancellation fees outlined in this Catering Agreement, to effect the cancellation.

The client understands that by entering into this contract, the caterer is devoting time and resources to this event and that, therefore, cancellation would result in a loss of revenue and business opportunities of an amount difficult to calculate with precision.

The cancellation fees that would be charged will be quoted based on the number of days remaining before the event and the percentage of the total estimated costs. 

• Legal compliance

The caterer will work in accordance with all applicable local health department rules and regulations relating to food preparation and food service.

• Mission 

This contract may not be assigned by either party without the written consent of the other.

• Limitation of Remedies 

If the caterer cannot fulfill its obligations under this contract for reasons beyond its control, the caterer may find and retain a substitute catering company at no additional cost to the client, or refund the cbind. The caterer will not be liable for any damages or additional compensation under these circumstances.

 

• Dispute Resolution 

The parties agree not to post any negative information about the other arising out of this Agreement or the Event on any online forum or website without providing written notice of the intended content thereof, and without giving the other party the opportunity to resolve any problem between the parties amicably.

• Jurisdiction and place

This Agreement shall be construed in accordance with state law and any legal action must be brought in the county or state mentioned.

• Signature

Now, both parties will sign the contract after reviewing all the terms and conditions stated in the contract.

 

What is included in the catering contract?

A catering contract plays an important role in the success of an event. Whether you are signing an agreement for a general matter or a more specific event like a wedding, the purpose of any catering contract is to spell out the responsibilities of each of the parties involved.

Here are the key points that should be included in a catering contract:

• Event Information: One of the first things your catering contract should state is the name of the client, the date and time of the event, and the location of the event. This information must appear on the contract so that the customer and you accept the terms of the contract for this said date. Make sure the customer's contact information is also on the contract, such as email address, phone number, or fax number.

• Costs: This part of the contract should break down the costs of the event and what is billed to the customer. The elements to be included in the costs are the minimum and maximum number of guests, the price per person, the price per child invited, the type of service ordered by the customer and the estimated total cost of the event supported. If you charge overage fees for longer hours of service or difficult transportation, these potential fees should also be included in your contract.

• Types of service and staff: It is important that the client understands how many servers they are getting for their negotiated price and the type of service they are ordering so that there is no confusion at the event. Indicate on the contract the type of service the customer is receiving, such as a buffet, hors d'oeuvres with tray, or a seated event. Include on the contract the number of servers, buses, and bartenders your business has and list any charges for additional service members.

• Menu and drinks: A catering contract should have a full breakdown of the menu the client receives at their event. Include dishes, appetizers and drinks on the contract. This will eliminate any confusion of a customer having to compare a bill later if they are unhappy with their service.
• Tterms and conditions: The last section of a catering contract should list the terms and conditions of the relationship between you as the caterer and the customer. List information about your liability insurance, the deadline by which the guest can make changes to their number of guests or menu, and payment information. Break down payment information by the amount of a deposit due, the amount of the refundable deposit, and the date the final balance payment is due from the customer. Outline your cancellation policy and whether a guest receives a refund if canceled before a certain date