Last Updated February 16, 2024
A Catering Contract is also known as a:
- Foodservice contract
- Catering service agreement
- Hospitality and food service agreement
What is a Catering Contract?
A Catering Contract is a written agreement between a food service provider and a client. Our Catering Contract template suits a variety of hospitality and food services, such as:
- Social event catering
- Corporate contract catering
- Wedding catering
- Food truck services
Whether you own a catering business or work independently, having a written contract ensures the caterer and client are clear on the terms and conditions of the arrangement. This mutual understanding not only helps prevent disputes but also outlines the process for dealing with disputes if they occur.
What should I include in my Catering Contract?
Our questionnaire will guide you through the basic terms of your catering agreement. Discuss the event(s) with your caterer or client in advance to fill in the form with details such as:
- The catering services to be provided
- Event address and time
- Menu and guest information
- Caterer and client information
- Billing (including optional deposits and late fees)
We also include an option to address intellectual property rights. For instance, if a caterer creates new and specific recipes for a client, you should clarify who retains ownership of that intellectual property. You can also add a term for confidentiality to prevent anyone in the agreement from sharing the recipes.
Confidentiality may also apply when corporate clients hire catering services for business lunches on a regular basis. Throughout your interactions, catering staff may learn information about the client’s business or employees that should be kept confidential. Including a confidentiality term in your contract helps prevent anyone from disclosing sensitive information for either the length of the agreement or indefinitely.
How should I price catering services?
Caterers often charge clients either a flat rate or an hourly fee (or a combination of the two) for catering services. What you choose depends on several factors, including your duties and responsibilities for the event, the menu items you’ll serve, and the guest count.
Consider these factors when calculating billing details:
- Food and drink costs
- Supplies (dishes, linens, glassware, etc.)
- Service fees (may include overhead expenses)
- Bar services
- Labour
Our Catering Contract template also allows you to include or exclude VAT from your charges. If you’re a VAT-registered business, you must charge VAT on your services. The standard rate in the UK is currently 20%.
How do I write a cancellation policy?
LawDepot’s Catering Contract template helps you account for potential contract cancellations by including an optional term for cancellation notice periods. You can also write a specific cancellation policy in our “Additional Clauses” section at the end of the questionnaire.
A notice period is the time frame in which a party can send a cancellation letter to end the contract early. Notice periods typically range between one and four weeks, depending on the length of the contract. By requiring notice for cancellations, you can ensure you're not wasting time or resources planning for an event that won’t happen. Plus, this gives caterers an opportunity to find another client to fill their new availability.
You can also address a cancellation fee in the “Additional Clauses” section of the questionnaire. For instance, if the caterer spent time ordering special ingredients or creating a new recipe, they may ask for a partial payment to compensate for their effort and time. Alternatively, caterers could charge a deposit fee and retain it as payment if the client cancels the contract early. However, if a dispute occurs, keep in mind that courts are unlikely to enforce an overly large cancellation charge.
The cost of the cancellation fee may also depend on how much notice the client or caterer provides. For example, if you require at least 10 days’ written notice and the client cancels within 7 days of the scheduled event, you may be entitled to full event costs. If necessary, research formulas for cancellation fees in the catering industry (often based on notice periods and lost profits) before settling on an amount.
What are the IR35 rules and how might they apply to me?
The IR35 rules are taxation regulations that apply to off-payroll workers. These rules likely apply to you if you operate your catering business as an individual, partner, or intermediary (i.e., sub-contractor).
It’s critical to understand how these tax rules affect you and how to prepare for them. Visit the UK’s government services website for more information.