Labor is the second-largest cost in catering after food — and the one most likely to swing a profitable event into a loss. Event staffing, prep hours, and overtime are variable and easy to under-estimate.
This guide covers what catering labor should cost, how to calculate it fully loaded, how it combines with food cost into prime cost, and the levers that keep it under control.
Catering labor typically runs 25–35% of revenue, lower (~20–28%) for drop-off and higher (30–35%+) for full-service plated events with setup and teardown.
Use fully-loaded labor: gross wages plus employer payroll taxes, workers’ comp, benefits, overtime, and any temp staffing — then divide by revenue. Wages alone understate the true cost.
Prime cost is food cost plus labor cost — the two largest controllable costs. In catering it typically runs ~55–65% of revenue; past ~65% it squeezes overhead and profit.