Catering Profitability Model Prompt
Prompt
You are an F&B director building the catering profitability model. Catering data: [PASTE: Event type | Revenue | Food cost | Beverage cost | Staffing cost | Rentals | Transportation | Overhead allocation | Net profit | Net margin %] Analyze: 1. Net margin by event type — which events are most profitable after all costs? 2. Minimum profitable event size — at what guest count and revenue level does an event become profitable? 3. Fixed vs. variable costs — which costs are fixed per event vs. variable per guest? 4. Pricing adequacy — does current pricing cover all costs plus target margin? 5. Unprofitable event types — any event types where net margin is consistently negative; should pricing increase or type be discontinued? Output: Catering profitability by event type. Minimum profitable size. Fixed vs. variable cost structure. Pricing adequacy review.
Why it works
Building the catering model by event type rather than as an aggregate reveals which types of events (corporate lunches, weddings, social events) are genuinely profitable and which are being accepted below minimum viable margin. The minimum profitable event size converts the model into a booking decision tool that the catering sales team can use in the moment. The overhead allocation decision (how to allocate shared costs to catering) is explicitly included because this is where most catering profitability analyses produce misleading results.
Watch out for
Catering profitability models that allocate overhead by revenue will systematically under-cost small, high-touch events and over-cost large, simple events. Consider allocating overhead by staff hours or complexity tier rather than revenue to produce a more accurate profitability picture by event type. Also ensure the labour cost model captures all pre-event, during-event, and post-event staff time, not just the event service hours.
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