To price a private dining or holiday party package, set a per-person rate that covers food cost, labor, and room opportunity cost, then add a food-and-beverage minimum, a service charge of 18% to 22%, and sales tax. A typical holiday package lands between $55 and $95 per guest, and the minimum should equal what the room would earn on a normal busy night. Price the package so you earn a profit even if the group drinks less than you hoped.
Know what the room is worth first
Before you quote anyone, calculate what the space earns on a regular night. If your private room seats 30 and on a December Friday it would normally generate $2,400, that is your floor. A group that spends less than that is costing you money, even if the party looks full.
| Group size | Normal-night sales | Suggested F&B minimum |
|---|---|---|
| 15 guests | $900 | $1,000 |
| 30 guests | $2,400 | $2,600 |
| 50 guests | $4,000 | $4,500 |
Holiday weekends and the Friday before Christmas deserve a higher minimum. Weeknights in early December or January can be lower to fill dead days. For tips on filling your calendar, see How to Book Holiday Parties at Your Restaurant.
Build the per-person price
A package price is a menu price with extra costs built in. Work through these pieces:
- Food cost per guest. Aim for 28% to 32% of the food price.
- Dedicated labor. A server for every 12 to 15 guests plus a captain or bartender.
- Room and setup. Linens, decor, music, extra cleaning.
- Profit. Keep your normal target margin.
If food costs $18 per guest and you want 30% food cost, the food price is $60. Add a drink package if you offer one.
Choose a package structure
- Set menu: one or two entrée choices; fastest, cheapest, and easiest to forecast.
- Family style: shared platters; feels generous and runs well on prep.
- Passed appetizers and cocktail party: higher bar sales, lower food cost.
Fewer choices mean less waste and quicker service. Our guide to Pricing Catering and Large Orders covers the same cost logic for off-site events.
Handle drinks carefully
Alcohol can make or break an event. Offer three options: a consumption bar (guests pay per drink on one tab), a limited open bar with a hard cap, or a drink-ticket system. A limited open bar at $25 to $35 per guest for two hours is common. Make sure your price assumes real consumption and your wine and cocktail costs match your normal list. See How to Price Wine by the Glass and by the Bottle if your pours need a refresh.
Add service charges and deposits
State your service charge (usually 18% to 22%) and tax in writing. A service charge is not a tip, and it can be taxed differently depending on your state, so confirm with your accountant. Collect a deposit of 25% to 50% at booking and the balance on the day. Add a cancellation policy: the deposit is non-refundable inside 14 days, and the final guest count is due 72 hours before.
Takeaway: A party package should earn at least what the room would earn on a normal night. Set the minimum from your own sales history, then price each guest from food cost, labor, and a service charge you state up front.
Track whether packages actually pay
After each event, compare actual sales and labor against your quote. If you routinely lose money on 15-person groups, raise the per-person price or require a larger minimum. Run an event report in your POS tagged by event type, and review results each quarter. Cobblestone POS can tag large-party checks, apply the service charge automatically, and report on event revenue, and it is free for independent restaurants with no monthly fee instead of the $470+ per month charged by Toast. For a New Year's Eve version of the same approach, read How to Plan a New Year's Eve Event at Your Restaurant.
Use the calculator linked above to turn your numbers into a quote you can send the same day. Speed wins bookings, and a clear package price shows the guest you run a professional operation.
Download the free party package pricing calculator