Expert Guides
How much does contract catering cost?
Real world annual budgets, staffing models and service levels
One of the most common questions we’re asked is: “What should we realistically budget for workplace catering?”
The honest answer is: it depends. But there are clear, real world cost ranges based on office size, service expectations and how catering is funded. This guide shares real workplace catering examples to help you understand:
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- What different catering models look like in practice
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- How staffing structures typically work
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- What annual and monthly budgets can look like across different workplace sizes
The examples below are based on real-world catering operations and are intended to support early‑stage planning and internal conversations, before entering a formal tender or procurement process.
What drives the cost of workplace catering?
Annual catering costs are shaped by a small number of core factors:
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- Daily headcount on site
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- Catering model (cost‑plus, subsidised or free‑issue)
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- Number of outlets (single café vs multi‑space environments)
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- Food offer (breakfast, lunch only, all‑day dining, fine dining and hospitality)
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- Opening hours and service intensity
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- Staffing structure required to deliver consistently and safely
The tables below show how those factors come together at different scales.
Indicative annual catering budgets
The table below shows eight real workplace catering examples, covering large corporate offices, mid‑size workplaces, coffee‑led models and CPU/finishing kitchens.
| Employees on site (daily) | Catering model | Outlets | Annual cost (approx.) |
|---|---|---|---|
| 1,500 | Cost plus, enhanced subsidy | 2 (Café + Restaurant) | £650k - £700k |
| 650 | Cost plus, enhanced subsidy | 1 (Café) | £265k - £300k |
| 1,400 | Cost plus, subsidised | 2 (Café + Restaurant) | £615k - £625k |
| 900 | Cost plus, extended service | 2 (Café + Restaurant) | £830k - £850k |
| 1,200 | Free issue (all food & drink) | 1-4 outlets | £1m - £4.5m |
| 650 | Free issue (coffee only) | 1 (Coffee bar) | £100k - £150k |
| 650 | Cost plus | 2 (Café + Restaurant) | £300k - £350k |
| 180 | Free issue (CPU / finishing kitchen) | Coffee shop + pop ups | £500k - £550k |
Figures shown are indicative and based on real workplace catering operations. Costs vary depending on service hours, food specification, hospitality requirements and subsidy level.
What does a catering budget typically include?
Catering cost reflects how people use the workplace, not just what’s on the menu. Here are examples of the typical food and service scope by offer type
| Offer type | Food & drink offer | Typical service pat-tern |
|---|---|---|
| Large on site kitchen (subsidised / cost plus) | Breakfast, multiple hot lunches, deli, salad bar, barista | Full daytime |
| Mid size on site café | Breakfast, hot lunch, grab and go, salad bar, barista | Daytime |
| Extended service workplace | Breakfast, multiple hot lunches, dinner service, deli, barista | Extended hours |
| Free issue flagship workplace | All day food, breakfast/lunch/dinner, pop ups, hospitality | Full day + events |
| Coffee led workplace | All day barista coffee only | Daytime |
| CPU / finishing kitchen | Breakfast items, limited hot lunches, snacks, barista, hospitality | Part week |
At higher investment levels, catering often plays a wider role in a company’s overall workplace experience, supporting wellbeing, collaboration, culture and retention.
How staffing affects catering cost
Staffing is one of the largest drivers of a catering budget, and one of the most important factors in delivering consistent, high‑quality service.
Under‑resourcing leads to service pressure and burnout. Over‑resourcing increases cost without improving outcomes.
The most effective operations strike a balance between food quality, speed of service and long‑term sustainability.
Typical staffing structures by workplace size and model
| Workplace type | Typical on site team |
|---|---|
| Large multi outlet workplace | Manager, Deputy, Chefs, Baristas, FOH, Porters |
| Mid size on site café | Manager, Baristas, 1–2 Chefs, Porter |
| Subsidised cost plus workplace | Manager, Deputy, Chefs, Baristas, Porters, GAs |
| Extended hours operation | Manager, Deputy, Chefs, Baristas, Porters, CSAs, Admin |
| Free issue flagship workplace | Manager, Deputies, Exec Chef, Supervisors, Chefs, Baristas, Hospitality team |
| Coffee bar only model | Head Barista + fractional operational support |
| CPU / finishing kitchen | Manager, Head Barista, Hospitality Assistant + off site Chef Manager |
Understanding different catering models
Cost‑plus
You pay the actual cost of food, labour and overheads, with a transparent management fee. This offers flexibility and visibility and is commonly used in larger workplaces.
Subsidised
Some items are subsidised to keep prices accessible for employees while maintaining control over overall spend.
Free‑issue
All food and drink is funded by the organisation, often as part of a broader employee value proposition.
You can read more about different catering models in this expert guide.
Why we share real examples
Many catering proposals focus on menus and concepts first. In reality, budget clarity and delivery confidence are what help organisations choose a partner — and justify that decision internally.
Sharing real‑world ranges early:
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- Reduces procurement risk
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- Prevents misaligned tenders
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- Leads to better‑designed solutions
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- Saves time for all stakeholders
This is why we lead with evidence, not headline promises.
A final word on transparency
These examples are designed to be helpful and realistic, not prescriptive. Every workplace is different. The most effective catering solutions are tailored and built by:
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- Understanding how people actually use the space
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- Designing service around demand, not assumptions
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- Matching investment to outcomes that matter to the organisation
