The Guide to Pricing Your Catering Services in Nigeria

How do you know what to charge for a catering job in Nigeria?

If you have ever catered for a 100 - or 200-guest event, received compliments about the food, delivered everything successfully, and then sat down afterwards wondering, “Where did all the money go?” — this guide is for you.

You may be an excellent cook. You may have delivered exactly what the client requested. You may even have received another recommendation from the event.

But if, after paying for ingredients, staff, transportation, gas, packaging and other expenses, there is little or nothing left for you, then you don't really have a profitable business.

Catering is a business.

And running a catering business is not only about what happens on the day of the event. A large part of your success is determined before you enter the kitchen — when you calculate your costs, prepare your quotation and decide what you need to charge.

While researching this article, we looked at different approaches to catering pricing, including guidance from catering businesses and pricing resources. One thing stood out: successful pricing isn't simply about choosing a number that sounds reasonable.

It is about understanding your costs, understanding your market and making sure the price you charge allows your business to survive and grow.

But there is another question we kept coming back to:

How does a local caterer in Nigeria take all this advice and actually apply it to their business?

That is what this guide is about.

We are not going to tell you that every caterer should charge ₦X per plate.

We are not going to tell you that a particular cooler of rice must always cost a certain amount.

Prices change. Ingredients change. Labour costs change. Transport costs change. The size and requirements of every event are different.

Instead, we want to give you a pricing formula you can apply to your own catering business.

The Catering Pricing Formula

A simple starting point is:

Total Price = Food Cost + Labour Costs + Overhead & Contingency + Transport/Logistics + Profit

And if you are charging per plate:

Price Per Plate = Total Price ÷ Number of Plates

This formula is simple, but the important part is understanding what belongs inside each category.

Let's break it down.

1. Food Cost: Don't Price With Yesterday's Market

Food is probably the first thing that comes to mind when you think about catering costs.

Rice.

Chicken.

Beef.

Fish.

Oil.

Tomatoes.

Pepper.

Onions.

Spices.

Drinks.

Packaging.

And everything else required to prepare the menu.

But here is where many caterers make a mistake:

They use an old price to prepare a new quotation.

The Nigerian market can change quickly.

You may buy a bag of rice for ₦55,000 today and discover that the same bag costs ₦60,000 or more shortly afterwards.

So if a client asks you to cater for an event happening on Friday, don't simply calculate the food cost using the price you remember from the previous month.

Do a current market survey.

For example, if the event is on Friday, you could check your major ingredient prices around Saturday or Monday of that week, depending on your purchasing schedule.

The goal is to understand what the market looks like now, not what it looked like when you last purchased the ingredient.

Add a price buffer

You can also build a small buffer into your ingredient calculations.

For example, you may decide to add a 2%–5% buffer to certain costs where price movement is a concern.

This is not necessarily additional profit.

Think of it as protection against unexpected changes.

If rice, cooking oil or another important ingredient becomes more expensive before you purchase it, you have some room to absorb the increase without immediately reducing the quality or quantity of the food.

Your quotation should protect the quality you promised the client.

2. Labour Costs: Your Time and Your Team Are Not Free

This is another area where small catering businesses sometimes underprice themselves.

You calculate the food.

You calculate transportation.

But then you treat labour as an afterthought.

Don't.

Make a proper list of everyone and everything required to deliver the event.

For example:

Cooks
Kitchen assistants
Cleaners
Servers/waiters
Supervisors
Dishwashers
Drivers
Setup and cleanup staff

If you need 10 cooks and each person will receive ₦30,000, that is:

10 × ₦30,000 = ₦300,000

That ₦300,000 needs to appear in your calculation.

And don't forget associated costs.

What will they spend on transportation?

Do you need to feed the team?

Will they need accommodation?

Will they need to travel to another location?

Will the event require them to arrive several hours before the event?

These are real business costs.

Build a labour buffer where necessary

If you know transportation or staffing costs can change before the event, you can include a small buffer in your labour budget.

For example, a 2%–5% buffer can provide some protection against unexpected increases.

The principle is simple:

Don't allow an unexpected labour cost to come directly out of your profit.

3. Overhead and Contingency: Plan for What You Don't Expect

This is where terminology can become confusing.

Your overhead can include recurring business costs such as:

Kitchen rent
Electricity
Gas
Equipment maintenance
Equipment depreciation
Administrative costs
Packaging materials
Cleaning supplies
Storage
Business communication expenses

But there is another category you should think about:

Contingency.

Contingency is money set aside for things that may happen during the job.

For example:

Extra food required
Broken plates or serving equipment
Additional fuel
Unexpected staff expenses
Last-minute purchases
Extra guests
Additional setup requirements

Imagine a client tells you they are expecting 100 guests.

You prepare exactly 100 plates.

Then 15 additional people arrive.

What happens?

You don't want to be standing in the kitchen thinking:

“Where am I going to get the money to prepare more food?”

This is why some caterers plan an additional margin of food beyond the exact guest count.

You can think of it as:

“The people the invitation didn't tell us about.”

But remember: this additional food should be included in your costing from the beginning. Don't simply absorb the cost.

4. Transport and Logistics: Don't Forget the Journey

Transportation is not just the cost of getting yourself to the venue.

Consider everything involved in moving your catering operation.

You may need to account for:

Fuel
Delivery
Vehicle hire
Driver costs
Loading and unloading
Parking
Tolls
Multiple trips
Equipment transportation
Return transportation

A catering job outside your normal service area should not automatically have the same price as an event five minutes from your kitchen.

Distance has a cost.

If you need three trips to transport food and equipment, calculate those trips.

If your team needs to travel separately, calculate it.

If you need to return equipment after the event, calculate that too.

5. Profit: The Money That Allows the Business to Continue

After calculating all your costs, you still need to make a profit.

This sounds obvious, but many small businesses calculate:

Food + Labour + Transport = Price

And stop there.

That's not sustainable.

Your business needs money left after the event.

Profit allows you to:

Replace equipment
Handle unexpected expenses
Invest in your kitchen
Hire better staff
Improve your service
Market your business
Save for expansion
Pay yourself properly
Survive slower periods

Your profit margin should not simply be a random number.

Look at your costs, your market, your experience, the complexity of the event and the value you provide.

Catermonkey's current pricing guidance similarly recommends looking at actual costs, market rates and perceived value together, rather than relying on only one of them.

For example, a simple food delivery job and a full wedding catering service should not necessarily have the same pricing structure.

The amount of work, risk and responsibility is different.

Don't Copy Another Caterer's Price

One of the biggest mistakes you can make is asking:

“How much does another caterer charge?”

and then copying their price.

Instead, use competitor pricing as market information.

Suppose three caterers in your area charge:

Caterer A — ₦X
Caterer B — ₦Y
Caterer C — ₦Z

Don't immediately decide to charge the average.

First ask:

What exactly are they offering?

Does their price include:

Delivery?
Servers?
Setup?
Drinks?
Disposable plates?
Cutlery?
Cleanup?
Premium ingredients?
Special packaging?

Two caterers can charge completely different prices and still both be correct because they are offering different levels of service.

Compare the full package, not just the headline price.

A Simple Example

Let's say you are catering for 50 guests.

Your estimated costs are:

Cost Amount
Food ingredients ₦200,000
Labour ₦80,000
Overhead/contingency ₦42,000
Transport & logistics ₦20,000
Subtotal ₦342,000

Now suppose you decide you need a 20% profit margin on the calculated cost:

20% of ₦342,000 = ₦68,400

Your estimated selling price becomes:

₦342,000 + ₦68,400 = ₦410,400

For 50 guests:

₦410,400 ÷ 50 = ₦8,208 per plate

The exact numbers will obviously change from one event to another.

The important thing is the process.

You are no longer guessing.

You can explain where your price came from.

Your Quotation Should Have an Expiry Date

This is especially important in Nigeria.

A quotation prepared today should not necessarily remain valid indefinitely.

Why?

Because the prices used to calculate it may change.

Imagine you send a quotation in August and the client doesn't respond until October.

Should you automatically honour the same price?

Not necessarily.

Your quotation should clearly state an expiry or validity period.

For example:

Quotation validity: 7 days from the date of issue. Prices are subject to review after the validity period.

This protects both you and the client.

The client knows that the price is based on current conditions.

You know that you are not committing your business to prices that may no longer be realistic weeks or months later.

What If the Client Comes Back Later?

This is another important part of pricing.

Imagine you send a quotation today.

The client doesn't respond.

Two weeks or one month later, they come back and say:

“We are ready to proceed.”

Don't automatically copy and resend the old quotation.

Review it.

Check:

Current food prices
Current labour costs
Current transportation costs
Guest count
Menu changes
Event location
Service requirements
Any additional requests

Then prepare a new quotation if necessary.

This is particularly important for events that are several weeks or months away.

Your client isn't being charged more simply because you want to increase your price.

The new quotation may reflect a completely different cost environment.

Don't Be Afraid to Explain Your Price

Sometimes a client will say:

“Another caterer is cheaper.”

Your first response shouldn't necessarily be to reduce your price.

Ask:

What does their price include?

Maybe their price excludes:

Delivery
Servers
Setup
Drinks
Packaging
Cleanup

Or perhaps they are simply operating with a much smaller margin.

You should understand your numbers before negotiating.

If a client cannot afford your full package, you can consider offering a simplified package rather than simply cutting your price.

For example:

Instead of reducing the price of the same service, you could remove an additional service, change the menu or adjust the package.

That way, the client gets a lower price without forcing you to deliver the same work for less money.

Pricing Is Part of Your Business Strategy

There is no single price that every Nigerian caterer should charge.

A caterer serving 50 people in Lagos may have completely different costs from one serving 50 people in Enugu, Abuja, Port Harcourt or another location.

Your costs are different.

Your suppliers are different.

Your transport costs are different.

Your customers are different.

Your positioning is different.

Your experience is different.

So don't build your entire business around:

“What is everyone else charging?”

Build it around:

“What does this job actually cost me, what value am I providing, what is my market willing to pay, and what price allows my business to remain profitable?”

The Formula to Remember

Before sending your next catering quotation, remember:

TOTAL PRICE

Food Cost

Labour Costs
Overhead & Contingency
Transport & Logistics
Profit

Then:

PRICE PER PLATE

Total Price ÷ Number of Plates

And finally:

QUOTATION

Give it an expiry date.

If the client returns after the quotation has expired, review your costs and issue a fresh quotation.

Final Thoughts

Good food may bring the customer to your business.

Good service may bring them back.

But good pricing keeps the business alive.

You shouldn't finish a successful event and realise that your profit disappeared somewhere between the market, the kitchen and the event venue.

Know your numbers.

Know your market.

Review your costs.

Build reasonable buffers.

Price for the work you actually do.

And most importantly:

Don't confuse being affordable with being profitable.

Your catering business deserves to make money.