The structural problem
Indian wedding bookings are typically 6 to 10 weeks out. In that window, paneer can move ₹40/kg, oil ₹15/L, vegetables 30 to 50%. If your quote was based on today's prices and you executed at next month's prices, you eat the difference. Most caterers absorb 4 to 8% margin loss per event this way.
The formula
The 1.15 buffer is the variance allowance for mandi priced commodities over a 6 to 10 week window. It is the cheapest insurance you will buy.
Worked example: 200-pax wedding, mixed buffet
Menu: 12 dishes (5 starters, 6 mains, 1 dessert station). Sum of recipe costs per pax = ₹185. Apply 1.15 buffer = ₹213. Variable labour (cooks + servers) per pax = ₹35. Packaging (chafing fuel, disposables) = ₹15. Total cost per pax = ₹263. Target food cost % = 32%. Plate price = ₹263 / 0.32 = ₹822/pax. Quoted at ₹825 (round-up). 200 pax = ₹1.65 lakhs revenue, ~₹52,000 contribution after variable costs.
What changes between booking and execution
| Commodity | Booking ₹/kg | Execution ₹/kg | Δ |
|---|---|---|---|
| Paneer | 320 | 360 | +12.5% |
| Onion | 32 | 44 | +37.5% |
| Tomato | 28 | 22 | -21.4% |
| Oil | 140 | 152 | +8.6% |
| Chicken | 240 | 260 | +8.3% |
The 1.15 buffer absorbs all of the above. Without it, your recipe cost would have been ₹208 instead of ₹185, a 12% recipe cost overrun on the event. At 200 pax that is ₹4,600 of pure margin loss.
What to add into your contract
- Re quote clause for any single commodity that moves >25% from booking date. This protects against extreme spikes.
- Pax fluctuation band: guests confirmed 14 days before; +5% accommodated, -10% with reduced refund.
- Last mile cost tracked separately: fuel + transport per km, not absorbed into plate price.
- Service charge: 8 to 12% on food + beverages, transparent on the contract.
Track every booking against actuals
After each event, capture actual ingredient cost vs quoted cost. Within 6 to 8 events, you will know which dishes underestimate and which overestimate. The recipe library tightens; the buffer can shrink from 1.15 to 1.10 once you have the data.
Open the menu pricing tool →