Question

Recent figures show that most caterers have a profit margin of...

A. 50–90%.

B. 5–10%.

C. 10–30%.

D. 20–50%.

Answer 1

The answer is letter C. Catering businesses has lower costs on foods and labor. Compared to restaurants, catering has higher margins on profit. Typically, it earns 10% - 12% profit margin while a restaurant would expect a 4%- 7% profit margin.

Answer 2

Answer:

The correct answer would be option C, 10 to 30 percent of profit.

Explanation:

Catering is a business which involves in the provision of one of the following services to people, families, functions, parties, weddings, ceremonies, meetings, offices, schools, etc: Food, Lighting, Event management, crockery, etc. Catering business usually earns more profits than traditional restaurant businesses as catering does not require a full time open space facility, and full time labor. So the costs of this business is normally low. So they earn more profits like between 10 to 30 percent usually.