The Catering Order Was RM4,800 — Then Overtime Ate the Profit

Jason runs a small catering business that serves weddings, company dinners and community events around Klang Valley. One Saturday, he accepted an order for 180 guests worth RM4,800. The hall was full, the buffet looked impressive and the client paid on time.

From the outside, the event looked like a strong success. Yet when Jason checked his bank balance a week later, the profit was much smaller than he expected. The food cost was recorded, but several costs created by extra time were missing.

The quotation used the planned hours

Before the event, Jason estimated RM2,200 for food ingredients. Five crew members were scheduled for six hours at RM12 per hour, giving a labour cost of RM360. Equipment rental, transport and consumables added another RM940.

The planned total cost was RM3,500. Against sales of RM4,800, Jason expected a gross balance of RM1,300 before other business overheads.

The event did not follow the plan

The programme started late and dinner service continued three hours longer than expected. Five workers received overtime at RM18 per hour. That added RM270.

A second van trip was needed to collect equipment that could not fit into the first load, costing RM120. Extra cleaning and replacement linen added RM160. Those three items increased the job cost by RM550.

The real cost became RM4,050, leaving only RM750 before monthly expenses. The event still made money, but its margin was RM550 lower than Jason believed.

Record time as carefully as ingredients

For every event, Jason began recording each worker’s arrival time, service start, service end and departure time. He also recorded extra trips, last-minute purchases, damaged equipment and cleaning charges.

This showed which clients, venues and event types regularly required more hours. A job with the same number of guests could cost more when access was difficult, the hall had strict loading rules or the programme often ran late.

Compare the quotation with the final job

Jason now keeps two columns for each event: estimated cost and actual cost. The difference is reviewed before he prepares the next quotation.

If a type of event usually adds two hours of work, he includes that time in the price or clearly states the number of service hours covered. Additional hours can then be charged at an agreed rate.

This is not about surprising clients with hidden fees. Clear records help Jason quote honestly, protect his crew and avoid promising more work than the price can support.

Try this for seven days

For every job this week, write down the planned hours and actual hours. Add overtime, extra transport, cleaning, replacements and last-minute purchases. Compare the expected margin with the final margin, then adjust the next quotation using the real figures.