The ‘Times Four’ Rule: A Smart Approach to Festival Pitch Fees

Succeeding in festival and event catering can be a lucrative venture. The ‘times four’ principle can help ensure this.

There are a few important things to consider to make sure you get your approach right and gear yourself towards making profit from events you trade at. Making sure you can generate a significant amount more than the cost of the pitch fee is imperative.

We walk through a handy rule you can employ when weighing up whether to trade at an event or not:

On the How to Succeed in Event Catering: Applying for Events and Festivals episode of the NCASS Podcast, guest Greg Gabriels of festival stalwarts The Mixing Jug discussed what he terms the ‘times four’ principle. He uses this principle when considering if trading at a festival or event is right for the business.

What is the ‘times four’ principle?

The ‘times four’ principle is a simple metric to employ when considering trading at an event or festival. It is a case of asking yourself ‘will you earn more than the pitch fee multiplied by four‘? So for example, if the pitch fee to trade at a festival is £1,000, will you comfortably take £4,000 from the event? If the answer is no, then it might be worthwhile for you to turn down this opportunity – at the end of the day, a business cannot afford to walk into a money losing situation.

It is important to mitigate risk wherever possible, and being prepared is always the best way to give yourself that.

You need to consider all the factors that make up what it costs you to trade at any given event, so you can calculate with greater accuracy what the ‘times four’ principle looks like for you in action. So for example, staffing costs, ingredients, insurance, fuel, equipment, accommodation if necessary, food and drink for yourself, as well as the pitch fee.

With everything added up, the ‘times four’ number should still give you some profit.

Just as important as employing the ‘times four’ principle and being clear on how you can make profit at the event, is knowing when it is better to walk away. There can be a real allure to trading at festivals because it always appears like a big opportunity, and you can sometimes feel you’d be ‘missing out’ by not going.

But if an event is demanding a pitch fee that leaves you with little to no chance of making any profit trading there, the risk outweighs the potential of the opportunity.

You want to make a profit at any event you trade at. Event organisers want the event to run as smoothly as possible and be able to rely on you trading at their event. If you can give them informed figures about how many customers you can serve and how much money you can make for the festival, you can negotiate honestly with them about a pitch fee you feel is fair. Bring the ‘times four’ principle into focus, be clear on how much you need to make.

The easier you can make things for an event organiser, the better chance you have of building up a relationship.

The ‘times four’ principle is geared towards ensuring trading at an event is the right move for your business. Profit is crucial for any business, and although certain opportunities at big festivals can appear attractive, if the pitch fee is too high or the ‘times four’ principle is not met, the right thing to do is walk away.

Want more top tips and handy insights on succeeding at event and festival catering?

Listen to the latest NCASS Podcast, discussing best practice when it comes to applying for events here on Spotify, here on Apple podcasts & here on Amazon.

We have a wealth of content and resources dealing with this topic, you can browse our range of guides featuring such content here.

The topic of Applying For Events in particular we have covered extensively – download our comprehensive guide on the subject here.

Alternatively have a look at our Golden Rules for Tendering at Events guidance.

Check out our Break-Even calculator for Events & Festivals here – this is a member only resource where you can input estimated costs and income to calculate how worthwhile trading at a given event really is for your business.