How to win Corporate Clients with Perceived Value

THE CORPORATE

CATERER:How to Win Clients with Perceived Value

David Eicher C.E.C.Chef/Owner Nibblers Catering

Culinary Business Consulting

What is “Perceived Value” ?

• It is the “True Value” of what you are

offering.

• This is determined by your clients.

Set Food Cost Goals

set desired food cost % from budget or business plan

cost each item

create “menu mix”

Food Cost

Chicken-Fennel

Meatballs

The perceived value of “Chicken Fennel Meatballs”

is much higher than the boneless chicken thighs

we started with.

Menu Item Price: $11.65

Ingredients Portion Unit PRICE Unit Cost YieldTotal Cost

Chicken Meatballs 6oz. $1.42 $0.09 0.6 $0.89

Crushed Tomato Sauce 4oz. $1.19 $0.07 1 $0.30

Side Items Cost: $0.51

Beverage Cost: $0.14

Dessert Cost: $0.27

TOTALS $2.11FOOD COST 18.1%

Food Cost

“Fast Track”

Menu Item Price: $12.95

Ingredients Portion Unit PRICE Unit Cost YieldTotal Cost

Beef Brisket Flat 5oz. $4.06 $0.25 0.6 $2.11

Au Jus 1oz. $0.25 $0.02 1 $0.02

Horseradish Cream 1oz. $0.59 $0.04 1 $0.04

Side Item Cost: $0.78

Beverage Cost: $0.14

Dessert Cost: $0.27

TOTALS $3.36

FOOD COST 25.9%

The perceived value of certified angus

beef© brisket is present in the branding

Food Cost

Combined

“Menu Mix”

Chicken Fennel

Meatballs

$2.11 ÷ $11.65

=

18.1% Food Cost

Fast Track Beef

Brisket

$3.36 ÷ $12.95

=

25.9% Food Cost

$5.48 Combined

Cost ÷

$24.60 Combined

Sales =

22.3% Food Cost

When Food Cost Gives Way to the Dollar

Higher priced menu items

High volume (quantity)

Higher

Food Cost

ExampleFilet Mignon, Béarnaise

Menu Item Price: $23.95

Ingredients Portion Unit PRICE Unit Cost YieldTotal Cost

Filet Mignon 5oz. $10.99 $0.69 0.6 $5.72

Béarnaise Sauce 1oz. $3.89 $0.24 1 $0.24

Average Side Cost: $0.83

Beverage Cost: $0.14

Dessert Cost: $0.27

TOTALS $7.21FOOD COST 30.1%

Gross Profit Beef Brisket = $9.59

Gross Profit Chicken Meatballs =

$9.54

Gross Profit Filet Mignon = $17.00

Food Cost is an important management tool.

Just remember…

you pay bills with dollars not percentage.

Example: Corporate PicnicsProviding you are working within your food cost and sales budget plan,

you can give discounts based on volume to get the sale.

Higher Volume Sales

• Lower Sales Price

• Increase Volume

• Increase Gross Profit

• More $ in the bank

David Eicher C.E.C.

Chef/Owner

Culinary Business Consulting

david@nibblerscatering.com

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