Understanding Coffee Costs in Catering

So... How Much Is It, Really?

The cost of a gallon of coffee in a hotel or conference setting varies, but I’ve seen it range from $50 to $200+ per gallon— before tax and service charges.

Reactions to this are always strong. I’ve heard everything from:

• “I can’t believe they charge that much!”

• To my personal favorite: “Can I just buy half a gallon?”

  
  

At first glance, it feels outrageous. After all, a pound of good coffee beans costs what—$15? Maybe $25 for something high-end?

But here’s the thing: you’re not just paying for the coffee.

What You're Really Paying For

Let’s say you’re hosting a board meeting for six people from 9 a.m. to noon at a hotel. All you request is coffee. When the catering manager sends over the banquet check, you see:

1 gallon of coffee — $89++

It feels steep for just one item, right?

But let’s break it down. That coffee doesn’t magically appear at your table.

• A banquet staff member comes in at least an hour early to brew the coffee and set up the service.

• That same staff member likely stays on standby throughout the meeting to refill cups, replenish creamers, adjust the setup, and handle any last-minute requests.

• Once the meeting ends, they spend time cleaning everything up.

  
  

That’s potentially a five-hour shift for one staff member. At $10/hour (a very modest wage), that’s $50 in labor alone — and we haven’t even gotten to the cost of:

• Coffee beans

• Brewing equipment

• Urns and serving trays

• Disposable cups, lids, stirrers, creamers, sweeteners

• Linen for the table

• Dishwashing and laundry for anything reusable

  
  

And all of that is for a single item on the catering order.

But Don’t They Have Other Events?

Absolutely. Most hotel and catering teams are juggling multiple events at once. Yes—staff and costs are spread across them.

But the point of this example isn’t to suggest that your coffee is a bespoke service with a 1:1 labor ratio. It’s to show how many moving parts go into delivering something that, on the surface, feels “simple.” Even if the tasks are shared, the cost structure still applies across every single event.

So while it may seem like an $89 gallon of coffee is raking in huge profits, in most cases, the venue is making only a modest margin — if any.

It's More Than a Beverage

Next time you see that coffee charge on your catering order, I encourage you to pause and think about everything behind it. You're not just paying for hot water and beans — you're paying for service, logistics, labor, and all the little, unseen details that make your meeting or event run smoothly.

That’s the real value of catering.

The Hidden Costs of Catering

Catering is an intricate dance of logistics. This includes everything from equipment to the hiring of additional staff. Each element is essential to deliver a seamless experience.

Consumer Expectations

Guests often expect a certain level of quality and service. This requires caterers to maintain standards and invest in resources. When you hire a catering service, you're not only paying for food but for the expectation of excellence.

Adaptability

Events vary widely. A corporate retreat differs vastly from a wedding reception. Each event presents unique challenges. Caterers must adapt menus, staffing, and logistics to meet these needs.

Your Turn

Have you ever had a strong reaction to a catering quote or banquet charge? Maybe a moment where you thought, “Why is this so expensive?” I’d love to hear about it.

Are there other behind-the-scenes topics you’re curious about? Let me know what you'd like to see discussed next.

Until then, happy planning — and may your coffee always be hot!

---wix---