Caterers use "margin" loosely — but gross margin and net profit margin are very different numbers, and confusing them hides where money is actually leaking.
This guide separates the two, walks the full waterfall from revenue to profit, and gives the levers that move each line.
Gross margin (after food cost) should be ~65–70%. Net/operating profit margin — after labor, overhead, and taxes — is much smaller, commonly in the high single digits to mid-teens for a well-run caterer.
Gross margin is revenue minus food cost only (~65–70%). Net margin subtracts everything else — labor, overhead, taxes — leaving the real take-home profit, typically ~7–15%.
Price from real plate cost, cut food cost with ingredient-level inventory and waste tracking, staff to the event, engineer the menu toward high-margin dishes, and set minimums/fees so small jobs stay profitable.