Cancellation Terms That Protect You as a Caterer
A booking cancelled two weeks out costs you more than lost revenue: the buying is often already done and staff are already scheduled. Solid cancellation terms mean you don't have to absorb that cost entirely yourself. In this article we show how to build a sliding scale and what to set out in your quote.
Why you need cancellation terms
As soon as a booking is confirmed, you start incurring costs: you reserve staff, order ingredients, and possibly turn down other enquiries for that same date. A late cancellation therefore hits you not just in lost revenue, but in costs you've already made and can no longer undo. Without clear cancellation terms, a cancellation leaves you out of pocket, even if you did nothing wrong.
Building a sliding scale by date
Most caterers work with a sliding scale: the closer the cancellation lands to the event date, the higher the percentage you charge. A common structure is no charge for cancellations more than two months out, fifty percent of the quoted amount for cancellations within four weeks, and the full amount within a week. Set the exact percentages and windows to match how far ahead you yourself make irreversible costs, such as buying or booking extra staff.
What to charge on cancellation
Rather than a flat percentage, look at what you've actually spent or committed to: ordered ingredients you can't return, staff you've already confirmed, hired equipment with a non-cancellable booking. A deposit helps here too, since it already covers part of the cost before the cancellation terms kick in.
Setting cancellation terms out in your quote
Put the sliding scale explicitly in the quote or terms and conditions, not buried somewhere in small print at the bottom of a separate document. Spell out the windows, the percentages, and whether any exceptions apply, for instance in cases of force majeure. A client who sees this in writing upfront tends to experience a cancellation as fairer than if you only raise it once things go wrong.
Frequently asked questions
Can I charge for every cancellation?
Only if you've clearly set this out beforehand in your quote or terms and conditions. Without a prior agreement you have little legal ground to charge cancellation costs.
How many tiers should my sliding scale have?
Three to four levels usually work well: no charge well ahead of time, a rising percentage as the date approaches, and the full amount in the final window before the event.
What if a client cancels due to force majeure?
Many caterers include a separate force majeure clause, for instance for extreme weather or government measures. Define what falls under it in advance, so you're not improvising on the spot.
Does a deposit help alongside cancellation terms?
Yes. A deposit already covers part of your costs before the cancellation scale kicks in, and makes the booking feel more definite to the client straight away.
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