How much deposit should a caterer ask for?

There is no standard percentage. Add up the costs you must pay out before the event and could not recover if the customer cancelled, and set the deposit at least that high, as a share of the job total. Explain it in the quote so the customer can see it is tied to real costs.

Are catering deposits refundable?

That is for your terms to say, in writing, before the customer pays. Some caterers keep the deposit if the customer cancels, and refund it, wholly or partly, if the cancellation is early enough that the date can be resold. Whatever you decide, a deposit far bigger than your real loss is risky to rely on, so have the terms checked.

Do I need a contract for catering?

You need something in writing that the customer has accepted. A short agreement or a quote with clear terms that the customer accepts can do the job. A verbal agreement leaves you arguing from memory when the numbers change or the customer cancels.

What should a catering contract include?

The parties, the event details, the menu and inclusions, the price and whether it includes GST, the deposit and balance with dates, the final guest numbers deadline, cancellation and refund terms, how changes are handled, allergen responsibilities, weather or site problems and liability.

When should the balance be paid?

Before the event, not after. A common approach is to ask for the balance a week or two before the day so that the money has arrived before the food is served. Put the date in the agreement and on the invoice.

Last updated 26 October 2026

Guide

Catering deposits and contracts: what to put in writing

A catering deposit secures the date and covers the costs you commit before the event, and there is no single percentage that is right for every caterer. Size yours from your own commitments: add up what you must pay out before the day (stock ordered, hire deposits, staff you have booked) and set the deposit at least that high, as a share of the job total. Then put the deposit, the payment dates, the cancellation and refund terms and the final guest numbers in a written agreement the customer accepts before you hold the date. This is general information, not legal advice.

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What a deposit is for

A deposit does two jobs. It turns an enquiry into a booking, because a customer who has paid is a customer who has decided. And it covers the costs you take on the moment you say yes: a date you can no longer sell, stock you order early, hire you must reserve.

Because of the second job, the right size is not a habit or a round number. It is a figure you can explain.

How to size a deposit

List what you must commit before the event and could not recover if the customer cancelled. In the example, a $6,200 job needs $1,100 of stock ordered ahead and a $350 hire deposit. That is $1,450 committed, or about 23% of the job.

A deposit of 25% ($1,550) covers it with a little to spare, leaving a balance of $4,650 due 7 days before the event. The percentage in this example is an illustration. Yours comes from your own commitments, and a job with no early costs needs a smaller deposit than one with a big hire order.

Refundable or non-refundable

Say which, in writing, before the customer pays. A deposit that is described as non-refundable but is far larger than any loss you would actually suffer can be challenged, and the safer position is a deposit sized to your real costs with clear terms about what happens when the customer cancels at different times. Consumer and small business protections can apply to catering contracts in Australia, and the rules change, so have your terms checked by a lawyer or your industry association.

A sensible shape is a sliding scale: the deposit is kept, and nothing more is due, if the customer cancels early; part or all of the balance is due if they cancel inside the period when your costs are already committed.

What to put in a catering agreement

A one or two page agreement is enough. It should cover each of these:

The parties: your business name and the customer’s, with contact details.
The event: date, start and finish times, venue, and any access, power or space requirements.
The menu and what is included, with quantities, and what is not (for example crockery, staff beyond service, rubbish removal).
The price, whether it includes GST, and any extras such as travel or a late-night loading.
The deposit: amount, due date, and what it secures.
The balance: amount and due date.
The final guest number: the date by which the customer confirms it, and what happens to the price if it falls or rises after that.
Cancellation and refund terms, at each stage up to the event.
Changes: how a change to the menu or numbers is agreed and priced.
Allergens and dietary requirements: that the customer tells you in advance and who is responsible for what.
Weather or site problems for outdoor events, and what happens if you cannot serve for a reason outside your control.
Insurance and liability, as advised by your insurer or lawyer.

Make the customer accept it before you hold the date

The agreement works when the customer has seen it and accepted it, and you can show they did. Send it with the quote, take the deposit when they accept, and keep the accepted copy with the booking. A date held on a verbal yes and no deposit is a free option for the customer and a cost to you.

Questions

Short answers

How much deposit should a caterer ask for?: There is no standard percentage. Add up the costs you must pay out before the event and could not recover if the customer cancelled, and set the deposit at least that high, as a share of the job total. Explain it in the quote so the customer can see it is tied to real costs.
Are catering deposits refundable?: That is for your terms to say, in writing, before the customer pays. Some caterers keep the deposit if the customer cancels, and refund it, wholly or partly, if the cancellation is early enough that the date can be resold. Whatever you decide, a deposit far bigger than your real loss is risky to rely on, so have the terms checked.
Do I need a contract for catering?: You need something in writing that the customer has accepted. A short agreement or a quote with clear terms that the customer accepts can do the job. A verbal agreement leaves you arguing from memory when the numbers change or the customer cancels.
What should a catering contract include?: The parties, the event details, the menu and inclusions, the price and whether it includes GST, the deposit and balance with dates, the final guest numbers deadline, cancellation and refund terms, how changes are handled, allergen responsibilities, weather or site problems and liability.
When should the balance be paid?: Before the event, not after. A common approach is to ask for the balance a week or two before the day so that the money has arrived before the food is served. Put the date in the agreement and on the invoice.

Do the sum with your own numbers

Use the catering quote builder, or see how catering invoicing software does it for every job.

Also read: what to include in a catering quote
Also read: how to price catering

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