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

Step-by-step 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.

Answer 2

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.