Alternative Catering
Hospitality Hub > Alternative Catering
Food trucks, pop-ups, event catering, ghost kitchens… the possibilities are almost limitless when it comes to alternative ways to get your food out there without committing to expensive overheads.
Most of the options present fantastic opportunities with reduced costs associated but there are still risks…
Read on for tips on maximising your returns
Margins: What You Need to Know in Mobile & Alternative Catering
Running or thinking of running a food truck, pop-up, or dark kitchen? Margins matter even more when your income is event-based or unpredictable. Here’s how to keep things profitable without needing a degree in physics.
1. Understand the Key Financials
Gross Profit = Sales – Direct Costs (food, drink, packaging)
Gross Margin = Gross Profit ÷ Sales × 100
Net Profit = After all costs: travel, fuel, pitch fees, staffing, insurance
Net Margin = Net Profit ÷ Sales × 100
💡 Good benchmarks:
Gross Margin: 65–75%
Net Profit Margin: 25%+ on successful days
2. Your Real Enemies: Inconsistency & Invisible Costs
Compared to venue based businesses, your fixed costs are lower—but your variable costs hit harder:
Weather
Poor event footfall
High pitch fees
Long travel or setup times
Uncertain demand
If you're not analysing event profitability (e.g. profit per hour or per day), you could be putting in long shifts for slim returns.
3. Keep Stock Lean & Menus Focused
Stock wastage and prep time kill margins fast:
Offer a tight, high-margin menu
Standardise portions
Batch prep where possible
Have a fallback plan for unsold food
Got questions? Book a FREE 30 minute call
4. Focus on Volume Days
You won’t get consistent weekday trade like a café, so you need to maximise the high days and minimise dead ones:
Lock in repeat events
Track which sites work financially—not just for brand awareness
Be ruthless with ditching low-profit setups
The Takeaway
Alternative catering gives flexibility—but it demands discipline. Keep your numbers tight and your menu efficient, and you’ll keep the freedom without losing the money.