A 120-cover restaurant kitchen is designed to serve 200 covers in 4 hours. On Monday at 10am, it is serving zero. That spare capacity has a marginal cost close to zero — the chef is on payroll regardless, the equipment is running, the gas is on. Filling that capacity with catering or private events is almost pure contribution margin.
Your idle capacity
Most restaurants have two idle windows: weekday mornings (before 12pm prep rush) and the full day on their slowest weekday (often Monday or Tuesday). A corporate lunch catering order for 80 people, cooked and delivered by noon, fits neatly in the morning prep window without disrupting dinner service.
Event segments
- Corporate lunches/dinners: 20–150 covers, menu set in advance, payment reliable. The easiest segment to operate.
- Private dining in-venue: buyout of the restaurant or a private room for birthdays, anniversaries, corporate teams. High AOV, low incremental cost.
- Off-premise catering: you provide food and service, guest provides venue. Requires transport and service staff. Higher complexity, higher revenue.
- Cocktail events: canapes, finger food, beverage packages. Low food cost relative to pricing, high margin.
Catering pricing
Price catering per head, not per dish. Corporate lunch: ₹350–650/head (veg/non-veg, delivery included). Private in-venue dinner: ₹1,200–2,500/head (menu from your regular card). Off-premise: ₹800–1,800/head plus a service fee for transport and staff. All prices should include GST, packaging, and delivery — no surprises on the final invoice.
Set a minimum of 15 heads for any catering order. Below that, the setup and admin cost makes the unit economics too thin.
Operations
Before you accept a catering order, confirm: guest count (with headcount lock 72 hours before), venue address and delivery window, menu 7 days in advance, and dietary flags. Build a catering prep list separate from your regular service prep. Use hot boxes for delivery (GN 1/1 containers in insulated carriers). Track every catering order in your POS as a separate 'event' revenue category.
Getting the first client
The fastest path to a first catering client is your existing regulars. Identify the 5 guests who have expense accounts and work nearby. Invite them to taste a catering menu during a quiet Tuesday morning. Leave behind a one-page menu with pricing. Three of those five will forward it to their admin or office manager. One will become a monthly client within 90 days.
10 years building POS and payments for Indian restaurants. Previously at Razorpay & Petpooja.