There is no general profit margin at which catering companies operate due to their many differences in size, services provided and other factors. Margins can be improved with a number of focused strategies, including specialization, catering-specific software and an emphasis on organization and scheduling, according to BetterCater, a company that provides software solutions to caterers.
Caterers need to learn how to be good entrepreneurs in addition to being good cooks and servers. This involves mastering the art of setting a schedule and knowing what to charge for time, supplies and preparation, states BetterCater.
Caterers can improve their profit margins by developing a niche. If they work in a specialized area they can charge more and move into social circles which help lead to referrals.