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The Ultimate Guide to Starting a Home-Based Catering Business

Here are the key steps to follow to start a home-based catering business.

Get the Home-Based Catering Business Guide

Launching a home-based catering business can open the door to a fulfilling career. Grasp the fundamentals to start, from licenses and permits to essential marketing strategies.

Clicking the "Get the Survey Now" button constitutes your express request, and your express written consent, to be contacted by and to receive automated or pre-recorded call, texts, messages and/or emails from via phone, text, and/or emails by Auguste Escoffier School of Culinary Arts at the number(s)/email you provided, regarding furthering your education and enrolling. You understand that these calls , texts, messages and/or emails may be generated using an automated or pre-recorded technology. You are not required to agree to receive automated or pre-recorded calls, texts, messages or emails as a condition of enrolling at Escoffier. You can unsubscribe at any time or request removal of street address, phone number, email address via Escoffier website .

With lower startup costs than a restaurant and the ability to determine your own hours and dishes, a home-based catering business can be an exciting entry into culinary entrepreneurship!

With no brick-and-mortar, “customer-facing” space needed, starting a catering business from home can be more affordable**, and a great way to either supplement your full-time income or replace it entirely.

Still, this is a big undertaking. However, you can follow this step-by-step guide for helpful tips in getting your home-based catering business off the ground, and start wowing clients with your delicious food!

On-Site vs. Off-Site Catering

Catering services are generally split into two categories—on-site and off-site. With on-site catering, the food is cooked and completed at the event location, like a wedding venue or hotel. With off-site catering, food is cooked somewhere else and then brought to the event location. This is often the case with catered business lunches and private parties.

As a home-based caterer, you may have the option to work either of these methods into your business. You could do the prep work at home, and bring everything to the event location for the final cooking and plating. Or you could do all the cooking from your home kitchen, and deliver the completed dishes to the venue.

The method you choose could be influenced by your city and state catering regulations, so make sure to do your research before determining your business model.

Take the Culinary Career Survey

We’ve compiled a checklist of all of the essential questions into one handy tool: career options, culinary interest surveys, educational opportunities, and more.

Know Home-Based Catering Laws

Before you file any paperwork or spend a dollar to establish your business entity, you need to know what is possible (and legal) in your area.

Does your city/county/state even allow for catering out of your home? And if so, does your kitchen meet the health department guidelines? These rules may require extra ventilation, a three-compartment sink, and non-permeable surfaces, like stainless steel countertops. Rules vary from state to state and city to city, so make sure to get the specific details for your region!

You may find that while you can operate the business side of your catering operation from home, you may still need a commercial kitchen rental where you can do the actual cooking for off-site catering. You may have to rent a shared commercial kitchen, or you may be able to cut costs by operating out of a kitchen at a local church, restaurant, or community center. Get creative!

Start Looking at the Numbers

There are two factors to a business’ profitability—income and expenses. Before you jump into your new venture, start sketching your financial outlook and making some projections so you can build a profitable business.

What Can It Cost to Open Your Doors?

There are costs associated with every business—your job is to figure out how much you may need to spend starting and operating your catering business at home. Additionally, you should calculate your anticipated income to determine how long it may take to recoup those startup costs.

Keeping your expenses low at the beginning can help you become profitable sooner. Instead of buying all new equipment and serving dishes, what can you find second-hand or borrow? Can you purchase and store ingredients in bulk to save some money?

After you figure out your potential startup expenses, think about how you’ll pay for them. Will you be able to cover these startup costs out of your personal bank account, or do you need to seek a small business loan or grant? Even if you don’t need outside funds right away, you may want to secure a loan just to cover any possible emergencies that may occur as you get up and running. Unexpected expenses can crop up, like higher food prices or broken equipment that needs repair.

Remember to factor in the cost of a rented kitchen space if you need one!

How Much Can You Expect to Bring In?

How many events can you reasonably cater per year? And how large do you plan for those events to be? This is a vital part of your planning process and goes to the very heart of your home catering business.

It’s not all about how many events you can do—it’s about how many you want to do. Flexibility is part of the appeal of this business model, so it’s up to you to decide what you want your business to look like.

Is this going to be a full-time venture with a team that serves large weddings and corporate events? In that case, you want every weekend to be booked.

Or do you envision it as a supplemental business to your full-time job, or a fun money-making hobby? If that’s what you envision, you may only plan to do one small, high-end dinner party per month, focusing on personalized service and top-shelf ingredients.

Do you plan to be a company of one? This will limit the size of the event you can manage, but it may also reduces your expenses.

These factors determine how much income you can make per year. Build out a rough calculation of the amount you can expect to make versus your anticipated expenses to make sure there’s room for profitability.

If financial planning seems a bit daunting, Escoffier’s Online Food Entrepreneurship program can help you grasp the culinary math fundamentals to start a food business, such as money management, purchasing, receiving, menu pricing, inventory, and more!

Create Your Business Entity

Name your home-based catering business.

Time to brainstorm some names!

Check with your Secretary of State (if you’re in the U.S.) to make sure that the name hasn’t already been registered. It’s also a good idea to do a web search of the name to make sure there are no catering businesses that already hold that name. Remember, you want to make it easy for people to find and remember you.

Plus, putting in a little research upfront can allow you to avoid confusion or legal troubles from a similarly-named company.

Build Your Business Structure

Consult with an attorney and/or tax professional to decide what the best business structure for your company will be.

A sole proprietorship is the easiest to create, but it doesn’t keep your personal and business assets separate. A limited liability company will protect your personal assets from business debts or liability, but it is a little more complicated to set up. If you’d like help with setting up your business, consider contacting a local small business center.

Once you’ve established your business name and structure, you can register for an Employer Identification Number (EIN) with the IRS.

Set Up Your Business Banking

Keep your personal funds and business funds separate, so you can accurately track your profit and expenses. This may also make paying your taxes much easier at the end of the year!

Get Any Required Licenses and Permits

Each state, county, and city will have its own requirements for permitting and licensing. To start, you’ll probably need a business license. Contact the Small Business Administration (SBA) to get guidance on the rules in your local area.

If your state allows you to cater from your home kitchen, you may need an annual health inspection from the local health department. You may need a food handler’s or food manager’s license as well.

And if you plan to sell alcohol as part of your catering services, you’ll likely need a liquor license to stay in compliance.

Long story short: be diligent in your permits and licenses! An error here could lead to financial or even legal trouble down the road.

Get Liability Insurance

Even if you take proper precautions, any time you cook for others there is some element of risk. If someone gets ill from eating something you cooked—even if it’s not your fault—you may face liability. Liability coverage can protect you and your business if something unfortunate happens. A specialty insurance provider like the Food Liability Insurance Program may be a good fit for this type of business.

You may also need to update your homeowner’s insurance since you’re running your business out of your home. Contact your insurance company for details.

Craft Your Menu

Now that all the paperwork is out of the way (for now), let’s talk food!

Caterers may choose numerous specialties, from regional cuisine to farm-to-table to plant-based catering. Choosing a specialty in your menu plan reduces your pool of possible clients, but it also makes it easier for you to stand out and market directly to your ideal customer. After all, if I’m a client who wants to serve guests a gluten-free, vegan meal, I’m probably more likely to hire the gluten-free vegan caterer than a “jack of all trades.”

“The most valuable part of my Escoffier education has been the knowledge I gained from all of the Chefs. Each one had a different take on things. It was a great experience.”* Kathy Gadison, Escoffier Culinary Arts Graduate

To avoid reinventing the wheel for every event, you can opt to offer a set number of dishes that customers can pick from. You may also want to establish “tiers” in your menu, with each tier having a different per-person cost. This gives your customers flexibility in choosing their dishes while still working with their budgets.

When pricing your menu, consider your food costs , labor costs, and additional overhead (insurance, kitchen rental space) to make sure you can cover all of your expenses and still have some profit left over from each event.

Also, consider your service method when designing your menu. If you’re only offering buffet-style catering, you may want to avoid dishes that rely on exquisite presentation or need refrigeration. Finally, think about on-site vs. off-site delivery. Food that you plan to deliver from your home kitchen to the venue must maintain quality through the transport and setup process.

Escoffier’s Online Food Entrepreneurship program curriculum may also examine the various aspects of menu design and management, including how to use home-based catering menus as a strategic financial tool.

Assess Your Equipment

What do you have, and what do you need?

If you offer baked goods on your menu, for example, you may need a second stand mixer or multiple ovens. A dedicated catering refrigerator can give you extra cold storage, plus make it easier to keep your catering supplies safe from hungry family members if you’re cooking at home.

You may also need chafing dishes and Sterno to keep food hot when it reaches its destination, plus serving utensils and dishes.

When you have all these extra items, where will you keep them? If you have a large garage or storage shed, that can work. But you may need to rent a storage unit nearby to keep these things out of your home or rental kitchen space.

Start Building Relationships with Vendors

As a catering business owner, you have access to wholesale food suppliers that can supply you with bulk ingredients at better prices. They may also be able to help you source specific ingredients, which is valuable if you’re in a specialty market.

Start communicating with vendors early to get an idea for who has the best prices, quickest delivery times, and most responsive customer service. And if you’d like to source ingredients from local farmers and small food producers, start reaching out early to build relationships.

When it comes to sourcing, think beyond the food. If you can source linens, flatware, and plates as part of your service, you may be able to charge a higher rate and provide a useful service to your clients. So strive to develop relationships with rental vendors as well.

Start Marketing Your Home-Based Catering Business

How will you get the word out? If you plan to cater to an older crowd, you may want to go with traditional marketing methods, like taking an ad out in a local publication. If your ideal customers are younger and tech-savvy, social media is probably a better place to target your efforts. Focus on high-end photography.

You’ll most likely need a website. A website makes you “findable” online, and it can be your home base to display menus, testimonials, photos, and pricing. It’s also where you can share your story and credentials, like your Food Entrepreneurship degree or diploma , and what is special about your cuisine.

“For me, having access to the school online means it is now possible to receive the culinary education I have desired, while still being able to grow my business and take care of my family, without even having to leave our valley. It is awesome that in my lifetime, we have developed the technology making this educational venture even an option. I am grateful for the opportunity, to say the least.”* Kristen Douglas, Online Culinary Arts Graduate, Owner & Catering Chef at The Main Event

Hire and Train Your Staff

If you’re catering small events, you may be able to handle them on your own. But as events get larger, they often grow in complexity.

Even if you can handle all the cooking on your own, who is going to serve it? Two or three people may be enough to keep a buffet well-stocked, but if you plan to do seated meals, you may need more staff to prevent slow service and cold food.

If you’re an Escoffier graduate, you may be able to find some team members among your fellow alumni through the Escoffier Alumni Association !

Collect Reviews and Testimonials

One of your best sources for new clients can be be old clients. Along with relying on word of mouth, encourage past customers to leave positive reviews and testimonials you can share.

Some bookkeeping software has this function built in. After you send the final invoice and the client pays it, the software can send out an automated email with a link to your review platform of choice.

Celebrate Major Moments Through Food

Starting a catering business at home can be flexible and rewarding! You have the opportunity to make rewarding connections with interesting people and help them to celebrate life’s big events through food. But it can also be challenging and demanding.

Education can be a great way to prepare you for starting a catering business. Escoffier’s Online Food Entrepreneurship programs include core culinary principles, marketing concepts, and business planning methods that may help demystify some of the important concepts of entrepreneurship and help set you up for success. And with online culinary school , you may even be able to complete your program while you start your catering business. To take the next step in your entrepreneurial journey, contact us today to get started!

Interested in learning more about culinary entrepreneurship? Try these articles next:

• How to Start a Bakery Business From Home
• How to Start a Restaurant with Little to No Money
• How to Start a Food Business From Home

This article was originally published on June 11, 2021, and has since been updated.

*Information may not reflect every student’s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.

**Consider your situation and resources to determine what is affordable and on budget, for you.

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How to Start a Home-Based Catering Business

A Step-by-Step Guide

Launching a home-based catering business can be a rewarding and flexible career option! In our guide, explore what you might need to start: from licenses and permits to marketing strategies.

Clicking the "Get the Guide Now" button constitutes your express request, and your express written consent, to be contacted by and to receive automated or pre-recorded call, texts, messages and/or emails from via phone, text, and/or emails by Auguste Escoffier School of Culinary Arts at the number(s)/email you provided, regarding furthering your education and enrolling. You understand that these calls , texts, messages and/or emails may be generated using an automated or pre-recorded technology. You are not required to agree to receive automated or pre-recorded calls, texts, messages or emails as a condition of enrolling at Escoffier. You can unsubscribe at any time or request removal of street address, phone number, email address via Escoffier website .

Ultimate Guide to Start Your Home-Based Catering Business

Whether you’re an at-home chef or someone with a professional cooking career, you can start your own catering business to share your talent with paying customers. The art of catering is extremely sought after by all types of clients, and it’s a perfect way to showcase your own delicious creations for various events.

If you’re interested in offering your own at-home catering services to customers, this guide has the information you need to get started. No matter what type of food you love to make, you can become a home-based caterer who turns doing something they love into a profitable, successful business.

Table of contents

The catering market by the numbers.

The world of home catering is always evolving, and it looks like it’ll continue to grow in the coming years. In terms of market growth and outlook, the size of the catering sector in the United States grew by an impressive 16% in 2021 . The industry had a total valuation of approximately $9.51 billion in 2021 and a staggering $10.59 billion in 2022.

There are several reasons for this surge in market growth. For one, more customers are ordering food to be delivered versus picking it up. Numbers show that approximately 74% of customers prefer delivery compared to 26% of customers who prefer to pick up food.

Now is an excellent time to start if you’re interested in running an at-home catering business. A preference for online catering is another reason why the market is continuing to thrive. If you’re considering starting a catering business , make sure you incorporate some form of online ordering to help you grow.

How to become a caterer

If you’re interested in becoming a professional caterer, there are a few things you’ll need to do. Here are the three main components that you should consider to provide your delicious food to customers:

• Education: At a minimum, you should have a high school degree before you can become a professional caterer. Most parts of the country require caterers to receive a license, and some choose to pursue a degree in higher education. The degree can come from an American Culinary Federation (ACF) accredited school or smaller local vocational institutions.
• Skills: Not only will you need to know how to do professional cooking, but you’ll also need to have deep knowledge of proper food handling and sanitation. If you’re running the business from home , you’ll require commercial-grade appliances and a large enough fridge and freezer to store your food safely.
• Duties and responsibilities: As a professional caterer, you’ll help plan menus and integrate your clients’ requests and any special dietary needs. Depending on the event, you may also be responsible for setting up tables and chairs and preparing the tables with linens, plates, glasses, and cutlery. You’ll also load and unload your vehicle with all the necessary food, supplies, and equipment. Of course, caterers also prepare and serve the food to their customers.

The benefits of starting a catering business

If you love the art of cooking, there are many excellent benefits to starting your own at-home catering business. Here are some pros – and cons – if you decide to take on this new role:

• Flexibility: As a business owner , you’ll have the flexibility to choose your own schedule. If you need some time off, all you need to do is simply let your clients know when you are and aren’t available. This also gives you the freedom to do other things you love, focus on new hobbies, or simply enjoy a nice vacation with your family whenever you want to.
• Profitability: Running a home-based business costs less than paying for a brick-and-mortar location. Lower overhead means more money in your pocket and higher profitability for you. Without paying rent or commuting, you’ll save money while you make more cash over time. You can start out small and grow as demand increases.
• Pros and cons: Owning a catering business is a great option for any chef at any level, as long as you have a good business plan. Some of the cons include potential liability if something goes wrong with your food, separating your business life from your home life, and dealing with high-pressure clients.

How to start a catering business from home

Now that you know more about what kind of skills and responsibilities you’ll have as a home-based caterer, it’s time to examine how you can start your own catering business.

Every successful business starts with proper planning. Remember these tips to help you get ahead of the game:

• Market research: Take some time to do market research and look closely at your competition. Research what types of food people like best in your area and the kind of events that typically require caterers. Look at trends in catering to figure out what’s hot and what’s not. Read reviews of other caterers to help you get a better idea of what customers are looking for and what they don’t like in a caterer.
• Target: Use the market research you do to help you narrow down your target market. It’s important to decide what you want to specialize in now. Whether it’s sweet desserts, five-course meals, or finger foods, determine which menus you plan to offer and which are the most profitable. Remember to keep the cost of food, transportation, and cleanup in mind as you narrow down your target.
• Niche: Every successful business knows its niche and does it well. Perhaps you want to cater for weddings, or maybe you prefer to serve food at corporate events. Other professional cooks enjoy serving food during the holidays. Look carefully at all the options and consider which aspect of catering you want to master.
• Marketing: Come up with a business name and logo to help you market your new catering business. Choose a short, catchy, and creative tagline to help you with branding. Use tools like social media and networking to help spread the word about your business online and in person. Always incorporate your business name, logo, and tagline on everything from your website and business cards to your social media accounts.

Menu and pricing

Not all caterers are alike, so coming up with an amazing menu and setting your pricing in advance is crucial. Come up with some signature menu items and price each one accordingly. Consider offering bulk discounts to those who need catering for larger events or offer your menu a la carte so clients can pick and choose what they want.

Much of your pricing structure will depend on what type of catering you plan to do. Remember to take things like the cost of ingredients and the total time it takes to prepare and make each dish into account. Here are the four most common types of catering to consider:

• Industrial catering: This catering serves food to schools, prisons, and other companies with large contracts. You can also choose to provide food to the movie, television, and general entertainment industry niches.
• Business catering: For business catering, you’ll serve boxed lunches and buffet-style meals to local businesses and non-profit organizations. Business catering is one of the best ways to market your business. Many happy customers will spread the word and give you free word-of-mouth advertising.
• Mobile catering: A mobile caterer serves food from concession stands or various parking lots. Your menu will be more limited with this style since you won’t have a large commercial kitchen to work from. However, you have more flexibility with this option, and it’s easier to offer simpler menu options or rotate your selections.
• Social event catering: In terms of catering businesses, this catering type is one of the most demanding. As a social event caterer, you’ll serve food for weddings, retirement parties, and other social events. This business model allows you to make various foods based on the event, and it’s another excellent way to take advantage of word-of-mouth marketing.

Set up your kitchen

TV Cooking Show in Restaurant Kitchen: Portrait of Black Female Chef Talks, Teaches How to Cook Food. Online Courses, Streaming Service, Learning Video Lectures. Healthy Dish Recipe Preparation

Having a workable kitchen with the right equipment is the cornerstone of catering success. Here are a few important things you’ll need to consider:

• Appliances and equipment: Stock your kitchen with heavy-duty appliances like a large fridge and freezer, a chef’s oven and stovetop, and fryers. You’ll also need smaller appliances like a food processor, a stand mixer, and a quality blender. Make a list of the tools and equipment you’ll need, including a variety of pots and pans, mixing bowls, utensils, and food storage containers – just to name a few.
• Space and storage: You’ll require plenty of space to move around, so choose a large area with room to walk back and forth between different zones. Of course, storage is of the utmost importance so ensure you have a large chest freezer and a walk-in fridge (if you have room in your kitchen). Keep fresh and dried produce stored separately, and ensure you’re storing fresh meat, eggs, and dairy items correctly and at the appropriate temperature.
• Prep zone: Use stainless steel tables to create a prep zone where you can chop, mix, and prepare your foods separately from the cooking and baking area. Your prep zone should be located near a sink so you can wash and sanitize your hands between handling different foods. A three-compartment sink is great for rinsing foods, washing hands, and doing dishes, so each task has its own separate place.
• Make some changes: You may need to remodel your kitchen to make room for your home catering business. Consider hiring a skilled, experienced handyman near you to help you complete the work. Install shelving or upgrade your electrical capacity to handle heavy-duty industrial appliances without overloading the system.

With a kitchen appliance home warranty , you can have peace of mind knowing that if any of your covered appliances break down due to normal wear and tear, the cost of repairs or replacements will be covered. This can help you avoid the potentially high cost of repairing or replacing a major kitchen appliance out of pocket.

Transportation

In most cases, you’ll need to be able to safely transport your delicious food to the customer. Here are some tips to ensure that you follow the proper methods of transportation to keep the food fresh, delicious, and safe to eat:

• Food preservation and temperature: Use insulated carriers to keep the temperature of your food at the correct level and to keep everything fresh and tasty. Utilize food pan carriers that fit differently sized food pans and can retain the temperature of dishes for up to seven hours. These tools allow you to transport meals to various events and locations without having to worry about your hard work spoiling before it arrives.
• Drinks preservation and temperature: The same rule applies to beverages, so make sure you use an insulated container for both hot and cold drinks. Certain beverages, like hot tea, can lose their freshness, while iced drinks can end up being watered down by the time they arrive. Use insulated dispensers with a faucet and provide ice separately to keep drinks fresh for up to seven hours.
• Proper packaging: Never package hot and cold foods together as it poses a safety risk. Cold food can also cause the temperature of your hot dishes to lower, which may result in spoilage. Store all your food in separate containers or pans to reduce cross-contamination and spoiling, and keep everything covered using snug lids, plastic wrap, or aluminum foil. Hot food should be kept at a temperature of 140 degrees Fahrenheit or higher, and cold foods should be stored at 40 degrees Fahrenheit or lower.
• Organization: Good organization is the key to helping you prevent an accidental mess while transporting your food. Use built-in shelving inside your catering vehicle and fill the shelves before you place anything on the floor. Load the heaviest items first and then place lighter items on top to keep the heavier items from crushing them. Stack boxes on top of each other and keep them in place with horizontal poles. You can also use the walls of your vehicle or other catering equipment as support. Empty your vehicle before you load it again to eliminate unnecessary clutter.

Use catering management software

There are several excellent catering management software programs, like E-Cinch , available to help you with things like scheduling, time management, and task management. Choose a software program that uses a booking management calendar so you can keep track of current bookings, schedule appointments and phone calls, and prevent accidental double bookings. The software should sync with your Google calendar or other digital calendars.

Look for programs that generate reports like invoices , checklists, proposals, and profit and loss reports. Customer relationship management (CRM) is a helpful tool that helps you organize and track your customer and vendor information in real time while giving employees the same information. Some examples of quality catering management software include Releventful , Connecteam, Foodstorm , and Tripleseat. Compare the prices and benefits of several programs before you decide which one is best for your business needs.

License and permits

Every restaurant and professional caterer must have the proper licensing and permits in order to do business. Each type of license and permit has its own unique requirements, and they may vary based on your specific location.

To find out which ones you need, get in touch with your state or occupational health licensing department. Check the U.S. Food and Drug Administration (FDA) list of regulations and codes , which should provide you with more details about the food service regulations in your specific state. The Small Business Administration (SBA) also has guidelines regarding the catering rules in each state.

Here are some examples of some of the licenses and permits you will need: 

• Business license: Every business must have a current and valid business license in order to be approved to conduct business in its specific jurisdiction. Apply for a business license on your state’s official website. You can get one after you prove that you’ve complied with all the other requirements regarding catering permits and licensing.
• Food handler’s license: Any person who handles food must have a food handler’s license and prove they have received the proper food safety training and certification. You’ll need to take a short course and complete a final exam. This can usually be taken online, although many community colleges and private culinary schools offer food handling courses.
• Catering license: All professional caterers must have a catering license, and some may also be required to have a separate food vendor license. If you’re delivering food to a client or a client’s event, then you’ll need this license. Most county health departments provide these types of licenses.
• Home occupation permit: When operating a catering business from your home, you may need to get a home occupation permit and business license. Check with your local city council to confirm and research whether there are any restrictions based on your location. You may also need to contact your local zoning administrator, fire department, and local building department to confirm that your home is in compliance with local building codes.
• Building health permit: Some states require caterers to get a building health permit. This permit ensures that you comply with sanitation regulations, so check with your local health department to determine if you need this type of permit.

Hire and train your staff/personnel

Small catering jobs can typically be handled independently, but as your catering business grows, you may find that you could use extra help. Catering larger events and those with bigger, more complex menus usually requires a few helping hands.

Even if you’re completely capable of making all of the food yourself, you may need some help transporting and serving it. Having help with the cleanup will also take some of the stress off of you. If you’re serving food buffet-style, you might want to hire people to keep the buffet stocked and the food warm. Sit-down meals require plenty of people to serve food, take dirty plates, and confirm that customers are happy with their meals.

If you attended a culinary school, you may be able to reach out to current students or ask a few of your fellow graduates for help. Some examples of positions you may want to hire include cooking assistants, sous chefs, drivers, servers, and dishwashers. If you need help with marketing or accounting for your business, consider hiring administrative help as well.

Remember that no matter how experienced your new staff members are, you’ll still need to provide training . The key is to ensure that your new hires are able to provide your clients with the level of service they deserve. This also helps to protect and preserve your brand and your reputation. Hiring a separate office manager or accountant can be especially helpful if you don’t have experience with bookkeeping or if you need someone to handle scheduling and appointments, tax filing, and other administrative tasks.

Promote your business

Once you have your equipment in place, all of the required licenses and permits, and a solid business plan, it’s time to do some marketing to promote your catering business. Keep these key elements in mind to ensure that you reach new customers and your target market:

• Website: Now that the business of ordering food online is skyrocketing, having a well-made website is essential for success. Design a unique website that showcases your specialties, includes your menu, pricing, and what type of businesses or events you cater to, and provides some interesting information about your background. Include a contact page so interested customers can ask questions to find out more about what you offer. Using one page on your site to showcase your portfolio of past successful catering gives people a clear idea of what you make and how it’s presented. Your “about” page should include information about you, your experience, and your background in food prep, cooking, and catering.
• E-commerce: If you’re planning to take payments online, integrate a payment platform on your website so you can accept credit cards and/or other payment processing platforms like Paypal or Venmo.  You can also consider an e-commerce checking account which would allow you to manage your store safely and simplify your budgeting since it integrates with a lot of tools for better management. Besides integrating such accounts with, for example, QuickBooks, Shopify, Stripe, and so on, you can also use it to view all your e-commerce finances from one account.  Consider adding things like automated order confirmations, partial deposits, and fast, easy quotes to potential customers. The more features of e-commerce you can offer, the more customers you’re likely to reach.
• Digital marketing: Use search engine optimization (SEO) to drive customers to your website by incorporating as many valid keywords as possible. Target locals by also using local SEO terms in your website content, blog posts, and general marketing. Add your website to local catering directories so people can find you based on your niche (i.e., vegetarian menus or weddings).
• Social media: Stay active and engaged on as many social media platforms as possible. Set up a Facebook, Twitter, and Instagram account with your business name, website, and logo. Answer customer questions and add new content regularly so you’re on top of the algorithm. Link to blog posts you’ve written and use expert language that shows you’re an experienced chef in your field.
• Photos: Always include clear, enticing photos of your food products, dishes, and desserts. You can also include photos from various events you’ve catered to. Use these photos everywhere, from your website and social media posts to your portfolio and menu. Take high-quality professional photos and choose pictures that really highlight what makes you different from the competition.
• Tasting events: Host occasional tasting events where potential clients can try out samples of your most popular dishes and desserts. The chance to actually taste the food you make is one of the best and most effective ways to draw people to your catering business. Include a list of ingredients for each dish so customers know what they’re getting.
• Reviews: Customer reviews are one of the most effective ways to market your company. After every event you cater, ask your clients if they’d be willing to post a review online. The more positive reviews you get, the more interested others will be in using your services. Ask people to review your business on your social media accounts so that they’re recent and relevant. Don’t hesitate to send your customers a link to a custom survey so you can gauge how well you’re doing and where you need to improve. Not only are reviews great for marketing, but they can also help you identify pain points to help you tweak your menu and your services.

If cooking is your passion, consider starting your own catering business from home. With the right target market, proper planning, and some creative marketing, you can experience the flexibility and creative freedom that catering brings. Use the tips from this guide to inspire you as you venture into the world of at-home catering, and soon you’ll be reaping the rewards of success. 

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How to Start a Catering Business from Home

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Do you love quality food and have a passion for hospitality? Then starting a home catering business could be a great career to pursue.

But have you considered the legal aspects that come with running a business?

This article gives a step-by-step guide to starting your own catering business from home and staying legally compliant with local regulations. 

Why Start a Home-Based Catering Business

Starting a catering business from home has several advantages, including lower overhead costs, flexible hours, and the ability to control the quality of the food and service. 

It also allows you to take personal care of your customers and build a loyal customer base — meanwhile fulfilling your passions for food and hospitality. 

There are some drawbacks to consider, such as limited space for food preparation, zoning regulations, and potential challenges in scaling the business.

Additionally, building credibility and competing with larger, established catering companies can also be difficult.

10 Steps to Starting a Catering Business From Home

If you’ve contemplated the pros and cons of why you want to start a home-based catering business, let’s begin with writing a business plan. 

1. Develop a Business Plan

Writing an elaborate business plan will be your main guide and reference to how you will run your business. 

It draws out clear goals and presents a legitimate document that states you’re serious about your intentions. 

Below, are key factors to include in your business plan.

Target Customers

To determine the target market for your catering business, you should first analyze your ideal customer. Consider their age, income, place of residence, and lifestyle.

Also, take a look at your competition and find out how you can make your business stand out from the rest.

You can use this information to create customer personas and develop a marketing strategy that speaks directly to your target audience.

Projected Costs

Starting a catering business from home can involve a range of costs. Some of the potential expenses may include:

• Obtaining necessary licenses and permits
• Purchasing kitchen equipment and supplies
• Building a website
• Marketing and advertising
• Insurance 
• Transportation 
• Staffing 

A home-based catering business can cost anywhere between $10,000-$80,000 depending on the factors mentioned above and the overall scale of the business.

Menu and Drinks

When developing a menu, it is important to consider the target audience, the theme of the event, and dietary restrictions. 

The menu should also include visually enticing and delicious food while considering the cost of ingredients and preparation time. 

Additionally, some events require a full bar, while others may be dry events. So beverages should complement the food and consider the guests’ preferences.

Pricing Strategy

To determine the pricing structure — the minimum amount needed to cover costs and make a profit while remaining competitive should be at the forefront of the pricing strategy.

A catering company’s pricing strategy should also consider the cost of ingredients, equipment, and labor.

Moreover, the pricing structure can be based on a per-person or per-item rate ranging from $20 to $200 per guest.  

Always do diligent research on your competition and standard pricing in your area to ensure your competitive prices.

Name of Business

Choosing a unique name is critical for a catering company because it helps build a brand identity and differentiates the company from the competition. 

A name should be memorable, easy to spell, and relevant to the type of food or service offered. The name should also be able to be used as a domain name and on social media platforms. 

Also, it’s best to ensure the name is not already trademarked by another business.

You can learn how to protect your chosen business name by registering it here .

Research the Home-Based Catering Business

If you plan on cooking all your home-cooked specialties and sending them off to events for your clients to enjoy — you may have to reconsider. 

​​While some states allow operating out of your home kitchen, others may require a commercial kitchen or prohibit home-based food businesses altogether. 

This is why It’s important to obtain any necessary licenses and permits, such as a food service establishment permit.

There can be restrictions on the size and efficiency of your kitchen as well — further complicating your eligibility to use a home-based kitchen.

Consulting with a lawyer or business advisor can help ensure that all legal requirements are met and that the business is set up for success from the start.

2. Decide on Your Business Entity

The next step in starting your catering business is to choose your business structure. This decision will determine your legal obligations and how you run your business. 

In this section, you’ll find the main types of business structures catering businesses choose from, plus their advantages and disadvantages. 

Sole Proprietorship

A sole proprietorship is a type of business entity where the owner is responsible for all aspects of the business and personally liable for its debts and obligations.

Advantages:

• Simple and inexpensive to set up and maintain
• Complete control over the business
• Direct access to profits
• Easy to dissolve or sell

Disadvantages:

• Unlimited personal liability
• Limited access to capital
• Difficult to transfer ownership
• Difficult to raise funds
• Limited growth potential

A sole proprietorship is a good choice for entrepreneurs who want to start a small, low-risk business with minimal upfront costs. However, it’s important to consider the potential risks and limitations of this entity before making a decision.

General Partnership

A general partnership is a type of business entity where two or more owners share the responsibilities and liabilities of running the business.

• Shared responsibility and workload
• Easy to set up and maintain
• Pooled resources to raise capital
• Simplified taxes 
• Unlimited personal liability for all partners
• Profits must be shared among partners
• Difficulty in transferring ownership
• Potential for disagreements and conflicts among partners

A general partnership is designed for two or more people who want to start a business together and share the responsibilities and profits. 

But much like a sole proprietorship, this form of partnership has potential risks and limitations, such as unlimited personal liability, 

It is also advisable to have a written partnership agreement to clarify the responsibilities and expectations of each partner.

Limited Partnership

A limited partnership is a type of business in which one or more general partners manage the business and are personally liable for its debts — and one or more limited partners contribute capital but have limited liability.

• Limited liability for limited partners
• Attracting investors is easier due to limited liability
• Tax benefits for limited partners
• General partners can raise capital while retaining control
• General partners have unlimited personal liability
• Limited partners have limited control over the business
• More complex to set up and maintain
• Requires a written partnership agreement

A limited partnership is for those who need additional capital from investors but want to limit their personal liability. However, there can be conflicts between partners that can lead to legal disputes. Moreover, legal counsel should be sought before forming a limited partnership.

Limited Liability Company

A limited liability company (LLC) is a type of business entity where the owners have limited personal liability for the company’s debts and obligations.

• Limited personal liability for owners
• Flexible management structure
• Pass-through taxation (profits and losses are passed on to owners)
• No limit on the number of owners
• Fewer formalities and record-keeping requirements compared to corporations
• Can be more expensive to set up than a sole proprietorship or partnership
• Tax laws and regulations can be complex
• Some states have annual fees or franchise taxes for LLCs
• Limited life span if a member dies or leaves the company

An LLC is a good choice for businesses that want the liability protection of a corporation but the flexibility and simplicity of a partnership/ sole proprietorship. It’s important to carefully consider the tax implications and regulations in the state of operation before forming an LLC.

Corporation

A corporation is a type of business entity that is legally separate from its owners and shareholders, providing limited liability protection.

• Limited personal liability for owners and shareholders
• Ability to raise capital through the sale of stock
• Perpetual existence, regardless of changes in ownership
• Enhanced credibility with customers and suppliers
• Tax benefits, including the deductibility of business expenses
• More complex and expensive to set up and maintain than other entity types
• Double taxation of profits (profits taxed at both the corporate and individual levels)
• More formalities and record-keeping requirements
• Potential for conflicts between management and shareholders

A corporation is for businesses that plan to raise capital through the sale of stock and have a long-term growth strategy. 

However, it’s important to carefully consider the costs and formalities associated with forming and maintaining a corporation. Plus, the potential for conflicts between management and shareholders.

3. Register Your Business

Registering a business involves several steps, which vary depending on the type of entity and the state or country of operation. 

Generally, the process involves choosing a business name, registering for a tax ID number such as the Employer Identification Number (EIN) , obtaining any legal documents, and registering the business with a registered agent .

4. Obtain Necessary Licenses, Permits, and Qualifications

Next, you will need to obtain any necessary licenses, permits, and qualifications for starting a catering business. 

Here are the main aspects to consider:

Licenses and Permits

• Research and obtain any required licenses and permits from the state or local government, such as a food service establishment permit or business license
• Check with the local zoning board to ensure that home-based catering business is allowed in the area
• Obtain any necessary tax ID numbers

Food Safety Qualifications

• Determine the necessary food safety qualifications required by the state or local government, such as a food handler permit or eTIPS certification
• Develop and implement a food safety plan that meets regulatory requirements and follows best practices
• Train employees in food safety practices and ensure that they follow the plan at all times

It’s important to thoroughly research and comply with all legal requirements to avoid fines, legal action, or damage to the business’s reputation.

5. Open a Business Bank Account

Opening a business account helps separate personal and business finances, streamline accounting, and build business credit. 

To do this, you will need to select a bank or credit union, provide documentation such as a tax ID number and fill out the necessary paperwork. 

A separate business account also contributes to a professional image — making tracking expenses and preparing taxes easier.

6. Get Business Insurance

Many liabilities can be involved when handling food and beverage if not done correctly. Business insurance covers liability claims, property damage, and other risks. 

It can also protect your personal assets in the event of a lawsuit or litigation.  

As mentioned earlier, consulting with a legal professional about the types of insurance you need will be best to keep you legally compliant. 

From this, business insurance can provide you peace of mind and protect the business from financial loss.

7. Set Up Your Kitchen

If you’ve ensured your legal compliance with your kitchen regulations, let’s review how to set up your kitchen. 

Here are the main steps to consider:

• Purchase or lease necessary equipment, such as ovens, stoves, refrigerators, and storage containers
• Ensure that the kitchen has proper ventilation, lighting, and plumbing
• Stock up on essential supplies, such as cooking utensils, dishware, and cleaning supplies
• Develop and implement a cleaning and sanitation plan to ensure food safety and maintain cleanliness
• Train employees in food safety practices and proper equipment use
• Regularly maintain and inspect equipment to ensure it’s functioning properly

A well-equipped and organized kitchen can increase efficiency and ultimately contribute to the success of the business. Making it critical to prioritize food safety and cleanliness in the kitchen to prevent contamination and ensure a sanitary environment. 

8. Hire and Train Your Team

If you wish to hire a team and scale your business with the help of passionate employees — hiring and training a competent team is essential for the success of your catering business. 

• Determine the roles and responsibilities needed for the business and create job descriptions
• Recruit and screen potential candidates, such as through job postings, referrals, or staffing agencies
• Conduct interviews and select the best candidates for each position
• Develop a training program to ensure that employees are knowledgeable and skilled in their respective roles
• Provide ongoing training and support to maintain employee satisfaction and ensure high-quality service
• Foster a positive work culture and encourage teamwork and collaboration

It will be hard to grow your business if you do not hire people who are capable and excited to come to work. Ensuring a pleasant work environment is paramount so your clients can benefit from a professional, friendly, and happy staff. 

9. Choose Your Delivery System

From the kitchen to the customer, the speed and efficiency of your delivery system will play a big role in the quality of your service. 

When it comes to fresh food, you want to deliver your goods as quickly as possible without compromising the aesthetic appeal of the dish. 

That said, here are the main delivery options available in the market:

• Self-delivery: The business uses its vehicles or personnel to deliver the food
• Third-party delivery: The business partners with a third-party delivery service, such as Uber Eats, DoorDash, or Grubhub
• Pickup: The customer picks up the food directly from the business location

Whichever method you choose, the delivery method must be reliable and professional so that your reputation as a catering service won’t be tarnished. 

10. Market Your Business

Marketing is essential for the success of any business, and the catering business is no exception. 

Here are some effective ways to market a catering business:

• Optimize your website for search engines and ensure it’s mobile-friendly
• Use SEO or PPC advertising to increase online visibility and attract potential customers
• Create social media accounts and regularly post engaging content, such as food photos, menu updates, and customer reviews
• Provide free tastings or samples to potential customers and receive feedback
• Hire influencers or food bloggers to promote the business on social media
• Join exhibits, expos, or food festivals to showcase the business and network with potential customers and partners
• Offer discounts or promotions to first-time customers or referrals
• Partner with local businesses or charities to sponsor events or donate food

Marketing is an ongoing process that requires consistent effort and creativity. By implementing a mix of these strategies, a catering business can increase its visibility and attract new customers. 

Fired Up to Start a Home-Based Catering Business?

If you love food and have a passion for hospitality, starting a home-based business can be a fun and lucrative venture. 

It can take a lot of preparation and execution to make things work. Plus, it can be a headache to maintain legal compliance and tax implications. 

With doola, we take care of your finances and keep you organized so you can focus on creating delicious dishes and growing your business.

To ensure that the financial aspects of the business are taken care of, contact us today to get a free consultation for our bookkeeping services.  

Is catering business from home profitable?

Starting a catering business from home has the potential to become a lucrative business venture. 

How much does it cost to start a catering business from home?

The initial investment to start a catering business from home can cost between $10,000- $50,000 depending on quality, number of staff, and overall business size. 

What do you need to start a catering business from home?

Depending on your state, the licenses and permits you need will vary. However, setting up a kitchen and delivery system is essential.

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How to Start a Catering Business in 9 Steps

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The catering industry attracts a broad range of entrepreneurs. Maybe you’re an excellent cook, maybe you love throwing parties, or maybe you’re interested in event planning and want to get the ball rolling by catering.

Or maybe you’re like Dannella Burnett, of Gainesville, Georgia, who formed her catering business back in 2009, and your reason is simple and sweet:

“I figured if I could cook for other people and put food on their plates, I could put food on my family’s plate,” Burnett says of her decision to start Oakwood Occasions.

But as Burnett knew even in the nascent stages of starting a catering business and expanding to event planning, the business is about much more than putting food on plates. It’s about thinking your way through stressful situations, planning for the unexpected, and most importantly, running a business just like you would any other.

In this guide, we are going to take you step-by-step through everything you need to know about how to start a catering business. With a little help, you'll be delighting guests at parties, events, and festivals in no time.

How to start a catering business in 9 steps

Before you get to the following steps to starting a catering business, note that you should decide on the type of catering business you want to start before learning how to start a catering business.

Some caterers only do cocktail reception drinks and small finger foods, others do buffet-style catering, and some do the sit-down catering that you might see at a banquet or wedding. Once you know what kind of catering you want to do, you can get on to the next steps.

Step 1: Choose your business name and business entity type

Once you have the type of catering business you want to start in mind, you can move on to choosing a name for your business and defining the entity for it as well. You'll want to choose a name and make sure it's available in the state where you're opening your catering business. In most states, you can check business name availability online with the Secretary of State.

You'll also need to choose the business entity you want your business to operate as. Here you've got a lot of options depending on a few things, including whether you want to go it alone or not.

If you decide to operate as a sole proprietor, your business will be unincorporated and be owned by you alone (or you and your spouse). If you want to have a partner for your business, or want to avoid taking on all personal liability for your company, you can choose to register your business as a general partnership, a limited partnership, a limited liability partnership, a limited liability company, or another business entity. Each offers different protections for the partners and the business.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Write a business plan

Once you have your business name and entity chosen, the next step on the "how to start a catering business" checklist involves writing a business plan. This will take some work, but it will pay off in the long run because you'll have the plan to fall back on and it can help you know what to expect while running your business.

You can use a business plan template or you can make a plan on your own. When you do make the plan, it should include quite a bit of research. You'll want to include an overview of your company, a market analysis, your business's organization, the specific products and services you'll be providing, and your marketing and financial plan. If that sounds like a lot, don't worry—you can always add to your plan as you learn more about the catering business world.

Importantly, though, you should also research your competition and identify potential customers. Is there a particular type of catering that is needed in your area that is currently underserved? For example, if you live in an area with a lot of golf courses, you may find that they are always in need of caterers for weekend events. Your market research into the needs in your area can go a long way to helping you sustain your business.

Part of your business plan for how to start a catering business should also include the vendors and suppliers you plan to use. Look into sourcing all the supplies you need, including linens, utensils, china, even tables and chairs for some events, and of course the food. When it comes to non-food items, Burnett suggests renting first, before buying things outright.

“At the beginning, you can rent anything you might ever want or need,” she says. “And renting is great: You know what the cost will be and you don’t have the upfront cost of purchasing something.

“But at some point, though you want to buy those things yourself because you still can charge for them and basically you’re paying for the ownership of them. And they ultimately pay for themselves.”

When it does come time to buy, equipment financing can provide you with the funding you need to cover the cost of supplies.

Step 3: Register your catering business and get an EIN

Depending on the business entity you chose, your business's name might by default be your name. If you want to change that, you might need a DBA or "doing business as" name. You'll want to register your business and its name with the state you plan to operate in.

For a catering business, because you're handling food, this might also require some other registrations depending on the rules in your state. The health department might need to check out the place where you're cooking and preparing the food you'll be serving, for example.

You'll also want to apply for an employer identification number also called an EIN. You can apply for one online from the IRS in just minutes and enjoy the benefits of having one for years to come. It can serve as a business tax ID number and help you do other business tasks like applying for a credit card and paying your employees.

Step 4: Get all licenses and clearances needed to start a catering business

As with most industries involving food prep, you can’t just, well, do it. You need to obtain a business license from the state, as well as a food handling license. You also need to pass a county or state health inspection—a residential kitchen likely won’t cut it, so consider looking for a commercial kitchen that has already been approved.

Some other requirements you might need to consider include workers' compensation insurance and permits or licenses to work out of certain venues—the monthly or annual costs of which can cut into profit margins.

If you’re unsure of what will be required, get in touch with your local Chamber of Commerce , Small Business Development Center , or the Small Business Administration to find out more.

It's not a bad idea to consult a lawyer in your area who specializes in the food or service industry for help filing everything and getting all of the registrations squared away before you start cooking.

Step 5: Determine your pricing

Pricing your work depends greatly on where your business is located and what kind of catering you do. Many businesses create price tiers that provide a certain level of service and amenities for various amounts. Burnett never went down that route.

“I started off doing custom proposals for people, and I’ve stayed with them throughout these nine years,” she says. “It takes a lot more time, but a lot of my proposals get accepted, rather than a package deal where it may or may not fit what someone is looking for. If they don’t need something, if it doesn’t pertain to their event, it’s not going into their pricing. If they need more, they pay for more; if they need less, they pay for less."

To get an idea of what costs what, Burnett says that her price per person has varied from $7-$8, for light appetizers for cocktail hour, up to $80 for filet and lobster.

“It varies because we do buffets, plated dinners, simple appetizers, or [events] where we’ve just dropped off food and they’ve served it themselves—to very high-end menus with unique ingredients,” she explains.

Step 6: Hire, train, and outfit your staff

It’s unlikely you can cater an event all by yourself, so staff is a requirement. Hiring and training staff is something that came organically for Burnett, but that might not be the case for you, so do whatever is best for your business is recommended here.

“At the first location, we brought on staff members one by one as we needed people. There was no real formal training from the beginning," she says.

You may be able to find staff just as easily, either by word-of-mouth or by combing your own network. But you might also need to reach out on foodservice-oriented job-seeking sites, or look into how competitors found their staff. Just keep in mind that what works for you when you're starting a catering business might not be what works once your business starts growing.

"But when we moved into our new location, at the Hall County Government Center, we opened up a café, coffee shop, and expanded the catering business at the same time. Since we were going to have in-house staff as well as catering staff, we had to go through a much more extensive training period.”

Here’s another place where having capital at the start comes in handy: If you’re hiring and training staff before they actually work an event, you need to set aside training dollars.

Additionally, uniforms, including vectorized logos, can be “really cheap or really expensive,” in the words of Burnett.

“Hey, I want aprons with logos on them—getting that logo vectorized for $75-$80, then $5-$7 a piece depending on how big you want the logo. Then you have to buy the apron. If you need 20, 30, 40 of those—that adds up,” she says.

Step 7: Market during your own events

When it comes to marketing and advertising your business, Burnett has one suggestion that trumps all the rest.

“When you’re putting food in somebody’s mouth, that’s the best time to find your next client,” she says. “It’s through the guests that are attending the events you’re catering for.”

Otherwise, it depends on what kind of catering you specialize in. If you focus on weddings, you’ll want to attend bridal shows—which involve bringing food samples and sometimes buying a booth. Corporate catering might involve more focus on LinkedIn advertising, where you can buy leads; you might also pay people to knock on doors and pass out fliers to bigger businesses.

“Really, it’s about networking. A lot of word of mouth, a lot of referrals,” she says. When you're just starting a catering business, that’s where the putting food in someone’s mouth tactic comes in.

Step 8: Get funding

Burnett made the decision to start her business out of necessity after her husband lost his job in the wake of the 2008 financial crisis. She had previously worked in food and retail management, and she fell back on that experience when it came time to find a new source of income.

“A woman at my church said, ‘Why don’t you reopen your catering business here at the church?’ I didn’t think you could do that, but we called the health department and had them do a site visit at the church kitchen. It was deemed sufficient for commercial use, so I had my church kitchen licensed as a catering commissary, and I launched the business with zero capital, zero plan. Nothing but me, myself, and I,” Burnett explains.

Burnett found herself in business well before she expected to be. Despite making things work, she says luck took the place of capital and wouldn’t recommend that path to other future caterers.

“There are some things that I could look back on that I would say either by sheer doggedness or dumb luck, the next right thing did happen,” she says. “Was it more stressful because there wasn’t a plan at the beginning or there wasn’t capital? I think definitely.”

Burnett notes that, for the catering industry, access to capital is especially important: “Most small businesses fail because they don’t have the capital to get them through the ebbs and flows. And in something like the catering business, there should naturally be some ebb and flow, whether it’s the seasonality of the type of catering that you do, or the calendar—seasons and holidays.”

If you aren't as lucky as Burnett, you will probably need some funding to get your catering business off the ground and through slower months. Knowing how to acquire capital is one of the keys to figuring out how to start a catering business. There are plenty of routes you can go to acquire small business funding to get your business going.

If you want to go the traditional route, you can go for a traditional term loan, a business line of credit , or maybe a business credit card . Once you're established you can look into getting an SBA loan .

Step 9: Plan for emergencies — both financial and others

You should have extra capital when you start out, and continue to budget wisely as you go, because you never know when something will go wrong in the catering industry.

"Things break, so you have to replace them. Maybe you started off with china for 200 and now you only have china for 150 because they break,” says Burnett, listing the things that caught her off-guard when starting out.

“Repairs to vehicles: Catering can be hard on your vehicles, so you’ll need replacements to tires. The price of gas, when it went sky-high, it had an impact. Food was costing more. And people understood that food cost more to a certain extent, but people still had in their head that they need to do a lunch for $10 or $15 a person, and when the price of gas and food has gone up, it’s easy for that not to be profitable.”

But preparing for the unexpected is about more than budgeting. Most events are catered at a venue that can be 30 minutes, an hour, or even a few hours away from the kitchen. That can put you in a tight spot.

“The ability to be a MacGyver is a requirement. Every venue is different, and if you forget something, you’ve gotta figure out how to make it work,” Burnett says.

Start Your Dream Business

How to start a catering business: The bottom line

Catering isn’t an easy business. Burnett says you need to “know what you’re getting into,” due to the physical and demanding nature of the work.

“You can be a great cook, and that doesn’t necessarily make you a great caterer,” she says.

But Burnett was able to build a massively successful business—so much so that she actually began tapering off of catering in 2019 to focus more on event planning—off little more than an idea that was born in a church kitchen.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How To Write a Catering Business Plan w/ Templates (PDF, Word Doc)

Whether you’re starting a catering business full-time or planning to operate out of your house initially , writing a business plan is essential to getting clear on the type of catering business you want to open. After all there’s some pretty important stuff covered inside of what can seem like a stuffy document.

For the purposes of starting a catering company, think about the business plan as the one place you put your operation details. Things like the cooking equipment you need to purchase and the total cost, tentative catering menu, food costs, and who your target customer is. These are all super important details you need to understand before opening! This document provides a place for you to organize everything.

By the end of this guide, you’ll be able to draft your plan and start on that first catering gig you’ve been planning to open. We also provide templates you can use in PDF and Word Doc you can download and edit. Let’s get started.

Page Contents

Executive Summary

Introduction, company description, mission statement, company concept, market analysis, target market, industry analysis, competitive analysis, management structure, product line and services, sales and marketing, financial plan, funding request, financial forecast, operational plan, download templates.

Catering spread for a Mexican food concept.

Start your business plan with an executive summary. This is a way to introduce your catering business so whoever is reading your business plan will know what to expect. This will include a brief introduction of your catering business, a description of your company, the services your catering business will be providing, and the customer focus.

A quick introduction helps the reader get a bird’s eye view of your catering business. Here you’ll be talking about what to expect and what you can offer as part of your catering service.

This section isn’t considered lengthy. This usually has two to three sentences. What you need to focus on when writing this down is by the end of it, your reader will more or less understand what your catering business is all about.

Here’s an example introduction you can use as a guide:

The Big Spoon is a small catering business headed by Lydia Smith. She specializes in Italian cuisine but can cater to American, Mexican, and Asian dishes as well. The Big Spoon can accommodate an intimate dinner for 2 up to a large party of 50 accompanied with table settings and chafing dishes to complete that delicious home-cooked meal experience.

Just by the introduction, the reader will know how big your catering business is, what cuisine they can expect to order, and how many people the business can cater for. It also gives them an introductory glance about your catering style wherein you already provide more than just food but also a table setting so they don’t have to look for a supplier for this separately.

Keep your introduction informative but also short enough. You will be able to add in more to the details later on.

Some food trailers make more than 50% of their annual revenue from catering gigs.

A little background on your catering business is needed in the company description part of the business plan. Here, you can describe the meaning behind the name for your catering business, who the owners are, and what their roles are going to be. Who will be in charge of cooking? Who will be in charge of accounts and marketing?

This may just be brief but this is a way for you to introduce what’s going to happen behind the scenes of your catering business.

Catering works great for food trucks and restaurants.

Although your catering business may sound self-explanatory, it would still be of great help to you if you mentioned the services you’ll be offering.

For example, The Big Spoon already mentioned in their introduction that they’ll be catering food and offering table settings. They could also add that they will be offering an ice cream station and even a cocktail bar.

You will describe more of this in detail later on but you can summarize it and mention it here already.

Customer Focus

For a catering business to flourish, you must know your target market early on. And though a thorough explanation of that can be found in the Market Analysis section, you can briefly state them in this portion as well.

Also, remember that your customer focus would also have to coincide with your skills. You can’t be targeting customers who are vegans if your culinary skills and knowledge do not include cooking vegan food. This is why it’s important to write this early on so you can narrow down the customers you are planning to cater to.

What’s your mission statement?

Businesses with clear goals stated from the start lead to a successful operation. Why? Because every decision you make revolves around these goals which will lead you closer to success.

Here’s a sample mission statement to picture it out clearly:

The Big Spoon aims to cater delicious home-cooked meals to its customers. Every dish that is served will contain natural and fresh ingredients. We see to it that the service we provide is top-notch so that our customers will feel as if they are being served in a fine restaurant in the comforts of their own home or wherever they choose to have us cater them.

By writing this down in your business plan, you and your staff will have to stand by the standards you’ve set for yourselves. For instance, as stated in The Big Spoon’s mission statement, no fast food will be served and no artificial ingredients will be used so you and your staff will always remember this by heart.

By following this and revolving your decisions around your mission statement, you will be able to keep such standards which will lead to pleased and returning customers.

This is the section of the business plan where you can finally put in detail the concept you’ve been planning for your catering business. Remember the things you’ve been holding back in saying in the introduction? This is the time to write them all down now.

Related Reading: 7 Powerful Ways I Promote and Market My Catering Business

You can start by answering the following questions:

• What cuisine will you be offering?
• How many people can you cater to?
• Will you be offering healthy options such as vegan, keto, or paleo meals?

You may also add in other concept ideas that are not mentioned above. Just make sure to cover everything so you can have a basis for your product line and services to be tackled later on.

A compelling catering business logo.

Planning to put your business out there means you also have to know the industry you’ll be diving into. This is to help you analyze your potential customers, the growth of the catering business in your area, and the competition.

As mentioned above in the customer focus, your skills will have to match your target market. You’ve already written a brief introduction about it so in this section, all you have to do is to explain it in detail.

The catering business has been going on for a long while now so it’s important to gather in as much information as you can regarding this industry. This is to help you figure out if there is a potential market for your business and how to put your plans into action.

Another helpful guide is to look into the type of cuisine most people in your area look for. You can then incorporate it into your business and offer it as part of your menu.

The bottom line is that analyzing the industry around you helps you plan better for the future of your catering business.

You will not be the only catering business in your area. You’ll have to consider restaurants as your competition too. Check their prices and set menus. Do a competition check by tasting their food once in a while. Knowing who the players are in this competitive business game gives you the upper hand because you’ll be aware of their strengths and weaknesses and how to deal with them on the field.

Determine the key players in your business.

A catering service is run by a few people. In this section of the business plan, you’ll list down everyone who is working on this business alongside you as well as the roles they possess in your business. This includes:

• Business Partners
• Accountants
• Co-chefs (If you’re not the only one doing the cooking)

Why is this so important, you might ask? Stating clear business roles and laying out the management structure keeps everyone in check and helps avoid any misunderstandings. Most businesses that don’t define this early on end up having a messy workflow. So make sure to state each duty clearly for everyone to follow.

Burgers are a proven catering option.

This section of the business plan goes hand in hand with your company concept. Here you can present your different sample menus for all the cuisine you wish to cater to. Be sure to include the prices for the set menus per head.

You can also write down the services you plan to offer. Here are some you can consider for your catering business:

• Out of town catering
• Cocktail station
• Set up style (buffet or plated)
• Table setting (formal or casual, rustic or summer feel)
• Wait staff or food display only

Writing them all down in this section will keep your business more organized which is very important when you start on your catering business.

Grilled chicken is another popular option for caterers.

How are you going to market your catering business? Do you plan to have an ad out in your local newspaper and on social media? Both strategies are fine but you need to find more ways to get your catering business out there.

One way to market yourself is to partner up with rental spaces such as function halls that do not provide food. Give them a proposal that when there are inquiries regarding the rental of their halls, they would present your set menus to the guests as well so they don’t need to trouble over finding a caterer.

Related Reading: How I Started a Legit Catering Business Out of My House

Partnering with several event coordinators is also a way to get your business known. People these days hire event coordinators to do all the planning for them. They expect these coordinators to answer all their questions from food, music, and decorations. By partnering up with an event coordinator, they’ll be the ones to pitch in your catering business to their customers.

Remember to uphold your mission statement as well. By providing good food and high-class standards during your catering event, you’re already marketing your products and services to the number of people you’re catering to. So always make an exceptional first impression because that will stay with the guests long enough for them to remember hiring you on their next and succeeding events.

Plan your financial future.

Knowing where you’re going to get the funds to start your catering business is a must. This is how you’ll know if your plans are going to be achievable or not. Besides, having a solid financial plan will also allow you to go through with your ideas without any interruptions.

In this section, break down your financial plan into two categories which are your plans to request for funding and your financial forecast.

Some business owners are ready to put up their catering business due to having saved enough money through the years. But what if you lack the funds to do it? Don’t fret. You can still loan from the bank and invite investors.

Whatever your plan is that deals with requesting for funding, include it here so you can document it.

Make conservative and best case scenario financial forecasts.

Reaching break-even is the ultimate goal when you’re putting up a business. You can compute how long it will take you to reach it early on in the planning stage.

You can also list down all your proposed expenses here which include the following:

• Pots, pans, and other large kitchen appliances and tools for cooking
• Chafing dishes
• Dessert displays and trays
• Table cloths, plates, glasses, and utensils
• Uniforms for you and the staff
• Storage boxes and food warmers

You may also add in tables and chairs if you do not want to keep on renting these. But sometimes, the venue where you’ll be catering can provide these as well.

Download Now: Bakery Business Plan Templates for 2021

Be sure to include your staff’s payroll expenses. Since catering events are not done daily (unless you’ve already made a name for yourself and you’re booked every day), you can just have your wait staff be on call and pay them per catering event rather than a daily wage.

By computing these, you’ll know just how much you should allot for your startup capital and how much should your goals be to reach during every catering gig in order to profit off of it.

What’s your operation plan?

Put your plan into action by making a timeline of your operations. Here is an example:

Date Plan [Insert Date Here] – Finalize the business documents you need such as permits and registrations for your catering business.[Insert Date Here] – Start marketing your business on social media and the local news. Send out proposals for partnerships with event coordinators and function halls.[Insert Date Here] – Hire and train staff.[Insert Date Here] – Start catering when booked.[Insert Date Here] – Achieve goals and reach break-even.

The appendix section of the business plan is where you can put all your documentation. This includes photos of your food and table setting and your copies of the permits and registration for your catering business.

Here are the catering business plan samples in PowerPoint, Word Doc, Google Doc, and PDF. These are ideal for commercial or home-based catering businesses.

• Catering business plan template Google Doc
• PDF catering business plan sample
• Catering PowerPoint template
• Catering businesses are ideal because there is no space for you to rent which is considered one of the main expenses that can be quite heavy on the pockets. You will be cooking in the comfort of your own home. Just make sure your place can handle heavy cooking and there is enough space for you and your staff to move about.
• It would be nice to learn more about the different cuisines as you go along so you can cater to a wide variety of audiences.
• Include a checklist of all the equipment you need to operate at the start. These equipment requirements make up the bulk of your startup costs. You can download a checklist of frequently used catering equipment here .

Throughout this entire guide, we have been referring to your readers as one of the main reasons why you should make your catering business plan easy to understand. But in truth, making this business plan is for you as well. You will need this plan when you’re requesting for financial assistance in banks and this would also serve as your work guide. So remember to keep it detailed and easy to comprehend because you will be using this on the road to putting up your business.

While opening a catering business can be extraordinarily rewarding there are a few factors you should consider before deciding to push ahead. Creating a business plan lets you understand what the factors are, what’s going to make this business become a success, and how you can profit from the venture.

If you’re serious about starting a catering business, don’t forget to sign up for our Food Business Startup Kit . This free community will give you access to exclusive interviews with catering professionals you can use to help grow your own business.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

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About the Author: Brett Lindenberg

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How to Start a Catering Business From Home 

Home » Blog » How to Start a Catering Business From Home 

Starting a catering business from home is like preparing a plate of Cacio e Pepe, Rome’s most famous and delicious dish.

There are only 4 simple ingredients: Pasta, ground black pepper, pecorino cheese, and a ladle of cooking water. The result is an exquisite taste of Italy that, when first eaten, astonishes even the most seasoned culinarians. 

The secret, of course, is the ingredients and how you bring them together; they must be regional, fresh, and infused accordingly.

Just like when you start a catering business from home: It, too, needs the right medley of business ingredients to create a balance for success. Things like licenses, permits, kitchen appliances, your menu, target market, pricing, and ordering platforms. 

Hungry to learn more? Great, because as the Italians say: “l’appetito vien mangiando” (appetite comes with eating).

Step 1: Determine if it’s Feasible

Before you start a catering business from home, you should determine that it’s feasible with your state, property, and family life.

For instance:

Does your state allow it?

Some states allow you to run a catering business from home while others don’t. And some states only enable you to prepare specific types of food, while others are more flexible. Contact your state’s food regulatory board to learn more about your local rules before investing.

Is your kitchen up to the task?

Most states require home-based catering businesses to meet specific food prep and hygiene standards. These can include separate fridges, freezers, storage areas, or a separate commercial kitchen with water and sewage to avoid cross-contamination. 

Pros and cons of a home based catering business

Legalities and logistics aside, before you start any home-based business, consider the pros and cons and the effect they might have on you and your family. For example, a commercial kitchen is no place for adventurous little ones, and your daily family life and business duties often intertwine.

Here are some pros and cons when you start a catering business from home so you can judge if it’s right for you.

The cons of starting a catering business from home: 

• It can prove challenging to keep home life and work separately
• Catering events often occur during unsociable hours, such as weekends and evenings
• Running a catering business from home requires precise organization and planning skills
• Handing food requires training, certification, permits, and the right equipment
• Working from home reduces your contact with other people and businesses
• All business owners work long hours
• You'll need insurance for any potential liability issues caused by your products
• One lousy event/meal can generate unfavorable word of mouth

The pros to starting a catering business from home:

• Any amateur chef with a solid business plan and an entrepreneurial spirit can start a catering business
• Home-based businesses are often cheaper to start, making them an excellent option for new business owners on a shoestring budget
• Running a catering business from home reduces your overheads, such as rent and commuting
• You'll have flexibility over your working hours and control the conditions
• You can start small and grow with the demand
• Choose to work part or full-time
• And of course, you'll eat better

Step 2: Get the Business Licenses and Permits You Need 

You’ll need 2 key ingredients when you start a catering business from home: Licensing and permits. Each license and permit has its own requirements, which you apply for from different state agencies, and the time to get them varies.

3 ways to find out what licensing and permits your new home-based catering business might need are:

• Contact your state health or occupational licensing department to learn about your needs.
• Review the U.S. FDA department’s list of regulations and codes  for food service regulations in various states.
• Contact the Small Business Administration  (SBA) for guidance on catering rules in your state.

But before you lose yourself on a government website, here’s a list of the most common catering business licenses and permits:

Business license

Every business needs a local or county license to gain approval to operate in its jurisdiction. You obtain a business license by applying via your official state’s website. You’ll only receive one when you’ve proven you comply with all other catering permits and licensing requirements.

Food handler’s license

Anyone who handles food requires a food handler’s license/food safety certificate and training. The certification involves a short class ending in a final exam, which you can take online or at a local community college or private culinary school.

Catering license

Caterers need a catering license (and maybe a food vendor license) if your catering business model involves delivering your goods to your client’s event. You apply for a catering license by contacting your county health department.   

Home occupation permit

To start a catering business from home, you might also need to apply for a home occupation permit/business license with your local city council. Review any restrictions about your location and ensure your local council allows you to start a catering business from home to avoid future disappointment.

Consider contacting your local building department, zoning administrator, and fire department to verify that your home business occupation aligns with all building and city codes. 

Building health permit 

Your state might also require you to get a building health permit to prove you comply with all sanitation regulations. It’s your responsibility to ensure you’re compliant, so talk with your local health department to find out more.  

Tip: The  Small Business Administration offers information on state and federal licenses for many business types. And local Small Business Administration offices  provide business development services to anyone starting a new business. 

Now, with feasibility, licenses, and permits in the pot, it’s time to get your kitchen ready:

Step 3: Get Your Kitchen Ready

You’ve got a lot of work to do to ensure your kitchen is ready for action and complies with your local health department’s regulatory requirements.

Standard kitchen equipment won’t cut the mustard for your catering business. You’ll need industrial-grade appliances and equipment, which are more complex and expensive. And, your kitchen must be large enough to fit your commercial kitchen appliances, equipment, and of course, to prep and cook your food. 

Catering kitchen design requirements can include: 

Food storage, hygiene, and prep areas

Design your kitchen to comply with all health and safety standards regarding food storage, hygiene, and prep. You might need separate commercial-grade refrigerators, one for raw foods and another for prepared food. Storage areas for dried and fresh produce, extra ventilation, and stainless steel work areas. A 3-compartment sink, and a separate one for you and your staff. 

Gas, water, and electricity

All your gas, electricity, water supplies, and appliances must meet regulatory catering standards. You’ll need to set your kitchen up with adequate fire extinguishers, fire blankets, a first aid box, and an emergency plan if things get too hot to handle!

Waste disposal

Proper waste disposal and management systems are essential in any catering kitchen, especially when handling raw produce and used cooking oil. Some states require catering businesses to employ a regulated 3 rd party company to remove and dispose of their waste. Contact your state’s health and safety department to find out more. 

Kitchen equipment

Purchasing new kitchen equipment can be costly; it’s advisable to make a list that suits your budget and stick to it. That said, you could need the following equipment and appliances in your kitchen: 

• A catering refrigerator for extra cold storage
• A chest freezer
• For baked goods, a stand mixer and a dedicated oven
• Another oven for all non-baked goods
• Fryers and burners
• Stainless steel prep tables
• Stern's and chafing dishes to keep food hot during transportation
• Serving utensils and dishes
• Blenders and juicers
• An assortment of pots, pans, utensils, and crockery
• Designated garbage bins

Restaurant Depot is a great place to source equipment. You don’t have to buy it all upfront; you can rent larger appliances from any commercial food equipment business on a need-to-use basis. 

And search for high-quality new and 2 nd hand commercial kitchen equipment at restaurant supply stores throughout the U.S. As you can see from the the image below there are many locations across the country where you can get the equipment you need. 

Step 4: Define Your food Specialty

You’ve got 2 approaches to choose from when starting a catering business from home. You can offer a jack-of-all-trade service or define your specialty. There are a range of niche markets like plant-based, gluten-free, vegan catering, or farm-to-table regional cuisine. 

Both approaches have pros and cons, so let’s boil the broth. Defining your specialty can reduce your client pool, but as you focus on one specific niche, it’s easier to run your catering business, and you can market directly to your ideal clients.

In contrast, catering to multiple niches provides a larger pool of customers, but it also increases your equipment and production needs and makes it harder to establish yourself as the go-to catering business for your location.

An excellent example of defining your specialty is Hannah Carter, founder of Oggs. Hannah found a gap in the catering market for a vegan alternative to eggs using aquafaba (the liquid leftover from cooked chickpeas). While her niche has a smaller customer base, she grew her business into a $3 million per year venture by defining her specialty.

When defining your specialty, consider on-site versus off-site delivery because any food you deliver to a client’s venue must maintain quality throughout transport and setup.

The menu you choose also defines your target market; I’ll explain why that’s important next.

Step 5: Identify Your Target Market

Your target market is the group of people who’ll love what’s on your menu. Once you know who they are, you can create a menu and a marketing strategy that’ll suit their tastes.

Many new catering businesses succeed by conquering one niche, enabling them to bring the highest quality food to their target market’s table while reducing overheads.

And there are plenty of niches to choose from, here are just a few:

• Corporate events
• Regular lunch meals to corporate offices and workplaces
• Bridal showers
• Wedding parties
• Birthday parties and anniversaries
• Family reunions
• Holiday events
• Festivals and sports

You can define your target market even further. For example, some catering businesses focus on cocktail parties, finger foods, or international cuisines like Indian food or good old American BBQ. You can even target specific cultures and events, such as providing a Kosher menu for a Bar Mitzvah and advertising using Jewish publications.  

Step 6: Determine Your Menu Pricing

Determining how to price your services can be challenging when you start a catering business from home. You can’t just charge whatever you like because if you overprice, you could lose prospective clients. Yet if you underprice, you might not turn a profit. So, what do you do?

The solution to the pricing problem involves accounting for these 5 factors:

• Your location is a huge factor. A catering business in New Hampshire could charge more per person than one in Louisiana, as per statistics from worldpopulationreview.com .
• Your catering niche affects your pricing because cooking for people with special dietary needs, such as vegan, gluten-free, or dairy-free, costs more than the average buffet.
• Labor costs concerning how long it takes to prepare each dish/menu.
• Food costs of every ingredient you use. 
• Additional overheads such as insurance, licenses, and permits.  

When determining your menu pricing, you aim to cover all of your expenses and earn a profit from each event. To help you achieve it, you can use one of the following pricing strategies:

Price tiers

Many catering businesses use price tiers that provide a specific menu and level of service for various amounts. Each tier menu you create has a different cost per person, giving your clients flexibility when choosing their menu while staying within their budgets. Price tiers also make it easier to run your catering business since you’re working with fixed menus.

Custom proposals

An à la carte approach takes more time to create since it’s unique to each client. But the upside is your clients can create a menu that suits their tastes. Custom proposals make your service unique, and clients are often happy to pay for the privilege.  

Many articles and resources are available to help you price your menu. Check out the  Pricing Guidelines for Catering and the New York Food Truck Association’s complete pricing guide to learn more. 

Step 7: Set up Your Ordering Platform

Online ordering has become an essential tool for the catering industry. It enables your audience to reach you directly, allowing clients to book your services and order food from any smart device.

Any catering business worth its salt needs a modern, streamlined ordering platform to receive orders, bookings, payment, and schedule future events. But your ordering platform should also account for your catering business’s distinct needs because the saying, “We eat first with our eyes,” applies. 

And it’s the sight of delicious looking food that’ll turn prospective clients into paying customers. It pays to invest in an ordering platform that presents your catering menu with mouth-watering images and allows you to create an illustrative description of each item. 

Step 8: Get your First Clients (and Keep Them)

How you get your first clients depends on your catering specialty. For example, caterers specializing in weddings could attend bridal shows, lease a booth, and hand out tasty food samples. Corporate caterers could focus on LinkedIn advertising. And, you can reach out to new venues in your location, ask what type of events they accommodate, and if they need a catering business to accommodate their needs. 

But the best type of marketing for a catering business is word-of-mouth marketing . WOMM is free as people promote your business because they’re happy with your service. Client referrals are essential.

You encourage WOMM and keep your customers coming back for more by providing exceptional service and great tasting food every time. And encourage referrals by rewarding clients with discounts or a thank you meal for recommending your catering business.

The takeaway: To ensure your catering business rises like a soufflé, focus on creating and maintaining strong customer relationships and incentivizing WOMM and referrals at every opportunity.  

Now you have the ingredients to start a catering business from home, next “Mise en place,” the ones that suit your menu.

Treat each stage as you would preparing your favorite dish; take your time and don’t skip any steps. 

And if you find you can’t handle the heat, don’t get out of the kitchen because, as the French say: “Non si può avere la botte piena e la moglie ubriaca.”

I’ll leave you to look that one up!

This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.

Terry OToole

Terry is a serial entrepreneur with over 25 years of experience building businesses across multiple industries – construction, real estate, e-commerce, hotelier, and now digital media. When not working, Terry likes to kick back and relax with family, explore Taoism’s mysteries, or savor the taste of fine Italian red wine.

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Restaurants | How To

How to Start a Catering Business in 10 Steps

Updated April 2, 2024

Updated Apr 2, 2024

Published August 30, 2023

Published Aug 30, 2023

WRITTEN BY: Mary King

This article is part of a larger series on Restaurant .

1. Learn About the Catering Industry

2. research your market, 3. determine your niche, 4. choose a kitchen location.

• 5. Write Business Plan & Raise Funds
• 6. Secure Permits, Licenses, & Insurance
• 7. Purchase Equipment & Supplies
• 8. Draft Your Contract & Terms

9. Hire Staff

10. market your catering business, why start a catering business.

• Tips for Catering Success

Bottom Line

There are thousands of catering businesses in the US, partly because it is so easy to start one. Starting a catering business requires from $5,000 to $40,000; one-tenth of the cost of opening a restaurant. Catering businesses have much better profit margins than restaurants—as high as 25%. There has never been a better time to start a catering business.

Key takeaways:

• Catering businesses have unique niches, providing food for weddings, corporate events, conferences, and social events.
• Startup costs range from $5,000 to $40,000 for small, independent catering businesses.
• The profit margin for a catering business is high—from 10% to 25%—because of its lower overhead.

If you love to cook and interact with new people, and have strong organizational skills, a catering business could be a great fit for you. Here’s how to start a catering business:

Catering is a complex industry, ranging from small, independent caterers working from a home kitchen to enormous corporate and resort catering operations with truck fleets and dozens of staff. Catering clients are just as varied, from weddings to funerals to corporate events and conferences, and more. You’ll frequently find yourself collaborating with event planners and coordinators rather than clients.

Here are some great places to learn about the catering industry:

• The International Caterers Association (ICA): This nonprofit organization focuses on educating caterers and prospective caterers. They organize skills classes, and educational trips, and provide scholarships to advance professional caterers’ knowledge.
• National Association for Catering and Events (NACE): This industry organization has a slate of online classes in accounting, catering services, sales, and event management. You can learn at your own pace and only pay for the classes you want. Prices range from $149 ( for members) to $199 (non-members) per class.

On the NACE website you can take online courses to learn catering skills. (Source: NACE)

If you want a crash course in catering basics, work a few events as an on-call catering server or cook. Caterers are always looking for temporary staff to work on one-off events like weddings, and this is a quick way to learn everything from setting up buffet tables to handling rental equipment.

Catering businesses can be successful virtually anywhere. It’s all about knowing your market, knowing what other catering companies will be your competition, and what sort of customers are most likely looking for your catering services. This research will come in handy later when you write your business plan in step 5, so keep detailed notes.

A great place to start researching your market is Data Axle Reference Solutions . This government-owned database includes information about current and historical businesses throughout the US. Most public libraries have subscriptions to Data Axle Reference Solutions, so if you have a library card, you can look up caterers in your ZIP code or metro area completely for free. This database shows you a business’s contact information, location, sales volume, and projected expenses.

You can see a heatmap of local catering businesses on the Data Axle Reference Solutions website.

Knowing what caterers are operating in your area, along with their projected sales and costs, will help you with the next steps.

Most catering companies find a niche to fill in their local market. Whether that is wedding catering, catering for corporate events and office operations, or being the go-to caterer for outdoor events or conferences. Any gathering that has a lot of people to feed can use catering services.

The main markets for catering services are weddings and corporate events. In fact, in a recent poll, independent caterers said that 35% of their 2022 sales came from weddings, and 52% of caterers say that most of their revenue regularly comes from weddings.

Members of the ICA report weddings as their highest revenue generator. (Source: Nuphoriq)

If you don’t want to focus on weddings, you could concentrate on corporate clients that frequently need food for meetings, training sessions, conferences, and events. Catering for other commercial businesses like concessions or coffee shops, bakeries, and restaurants that buy baked goods, desserts, or ready-to-eat meals. You could also focus on non-wedding social events like funerals, bar and bat mitzvahs, and reunions. Choose your niche and design a menu to target the customer types you want to attract.

The next major decision you need to make is where you will cook. To operate legitimately, caterers need to prepare their food in a kitchen that is licensed by the local health department. In most places, that leaves you with three choices:

• Independent commercial kitchen space
• Shared commercial kitchen
• Home kitchen

Though some states do not license home kitchens for catering businesses; you’ll need to check with your local health department to find out what options are permitted in your area.

With commercial kitchens, you have two major options: to lease an independent commercial location or lease space in a shared commercial kitchen. Leasing a shared commercial kitchen is typically less expensive, but you’ll have to work around the schedule of other businesses that use the space. If you’re starting with just a few event bookings, a shared kitchen is the best option. If you plan an extensive menu with lots of business right out of the gate, you’ll want an independent location for yourself.

States that license home kitchens for catering businesses will likely do a physical inspection of your kitchen before granting your permit. Many states that allow home catering businesses have restrictions about pets in the home, so check with your health department before proceeding with a home kitchen.

5. Write Business Plan & Raise Funds

With your catering niche and location sorted, it’s time to write your business plan . Your business plan will help you secure business loans and entice investors. It will also force you to focus on the foundational details of your business.

Your business plan should include the following sections:

• Executive summary: Brief summary of the entire business plan that allows for a quick, at-a-glance read
• Business description: Couple of pages that list essential business facts like hours of operation, your proposed location, startup costs, and profiles of you and any managers
• Market Analysis: Overview of what niche your catering business fills in your area, including a list of your main competitors and your strategies for doing business in the same market
• Menu and service offerings: Sample menu and a description of the types of events you will cater
• Operating plan: Details how you will run your catering operation on a day-to-day basis, describing exactly who will perform which tasks (you or an employee)
• Marketing & sales strategy: General sketch of how you plan to market your business
• Financial projections: Projections for the first three years of operation, to show potential investors your planned path to profitability

Present your completed business plan when applying for small business loans or equipment financing or seeking investors. Having a plan written before you begin looking for funds speeds up the fundraising process.

For a small home-based catering business, a business plan might seem unnecessary. However, the market research and financial projections in your business plan will give you the best picture of the road to profitability. Plus, many states request a business plan when you register your business.

6. Secure Permits, Licenses & Insurance

You’ll need basic business licenses to operate a catering business, and in most areas, you’ll need food safety permits issued by your local health department. Food safety permits typically require a health inspector to visit the space where you will prepare food to ensure it meets health and safety standards.

Catering companies typically need the following permits and licenses:

• Basic business permits: This includes registering your business with your Secretary of State’s office, getting an employer identification number from the IRS, and obtaining local sales tax and resellers permits.
• Health and safety: These are permits like food handlers certifications and a food safety license that covers your building. If you operate out of a freestanding commercial kitchen, you’ll also need a certificate of occupancy from your local fire marshal.
• Operational permits: These types of licenses allow you to sell alcohol or hold an event in a public space. Some locations will also require noise permits and temporary structure permits if the event you are catering has music or tents.
• Construction permits: If you are renovating a building for your catering business, you’ll need building permits. The scope of your construction plans determines what type of permits you need; check your local building office for guidelines.

If you can afford one, getting a liquor license that covers off-site events is a good idea. You’ll be able to charge more for your services if you can supply the bars for events. Some states and counties allow you to purchase one-off event-specific liquor licenses; check your local laws for your options.

Getting your permits is also a good time to secure insurance. In addition to general business insurance , you’ll also need food vendor insurance . If you have employees, workers’ compensation insurance is also a must.

Finally, you’ll need to insure any vehicles that you use to transport your products to off-site events. If you have employees who drive their personal vehicles to and from and work at off-site locations, you’ll want to ensure that your general liability insurance covers them as well.

7. Purchase Equipment & Supplies

You’ll need to purchase cooking equipment, refrigeration equipment, and food storage supplies to get started. Though, if you are cooking from a home kitchen or an already-stocked commercial kitchen, your purchases will be much less than if you start with a raw commercial space.

In the beginning, you can get away without purchasing specialized serving equipment like chafing dishes, tables, and dishware. You can rent all of these types of equipment from event rental companies and pass the rental costs onto your catering clients. Since many catering clients prefer to choose stylish serving pieces for their events, renting these items is also easier.

As your business grows, however, you may want to accumulate some standard items like chafing dishes and basic dishware. Then, you can charge customers for their use without paying a rental company.

For general supplies like your starting food inventory and paper goods, you may want to open accounts with food suppliers . If your catering business is very small, you may not have enough sales volume to interest a commercial supplier, though. In that case, discount clubs like Costco and Sam’s Club are great fits, as are food-service-focused brands like Restaurant Depot. They all require memberships, but as a registered business selling to the public, you should be able to avoid sales tax on your purchases.

You’ll also want to consider tools to help you invoice clients and accept payments. There have never been more options for catering software that you can operate directly from a smartphone or personal computer. A system like Square Invoices can send estimates, proposals, and final invoices from your device and prompt customers for deposits and final payments on your preferred schedule.

You can build a professional invoice in seconds using Square Invoices.

8. Draft Your Basic Contract & Terms

Before you respond to your first customer inquiries, you should write out your standard service contract. Create related policies like a cancellation policy and refund policy, too. Doing this now ensures you aren’t forced to make these decisions under duress.

When you sit down to write your contract terms and related policies, ask yourself the following questions:

• How far in advance will you accept bookings?
• What percentage of the balance will you require as a deposit?
• Will you allow cancellations? And if so, how soon after booking are cancellations permitted?
• Are any tastings included in the lead-up to the event (as is typical for weddings)?
• How will you handle menu change requests?

Create a contract template in a word processing app like Google Docs so you can easily update it when you book a new client. Leave room for basic information like customer name, contact information, date and time of the event, event type, and a minimum and maximum number of guests. Then include sections for all of your contract terms, requesting your customers’ initials to confirm they have read the details.

Leave room in your contract for a copy of the menu, and any rental equipment the event will need (or that the customer requested). Include itemized pricing for the food, rentals, staff, and other charges. Then, finish the contract with a designated place for you and the customer to sign.

Signatures and initial blocks throughout a catering contract could be the difference between winning and losing a chargeback dispute. Over the years, I have seen many caterers win a multi-thousand-dollar chargeback because they could provide a signed and initialed contract.

Catering typically requires some employees. Most catering companies have fewer than 50 employees; 30% of caterers have 10 or fewer full-time employees and between one and 30 part-time staff. The employee types you need will depend on your service style and what types of events you book.

Typical catering employees include:

• Dishwasher: Dishwashers tend to be paid minimum wage or a little higher. If you are spending all day cooking, you’ll be relieved to have someone cleaning as you go.
• Cooks: The more cooks you have, the more clients you can book. Cooks tend to earn between $14 to $20+ per hour, depending on their skill level and your market.
• Servers: If you do a lot of seated dinners or events with tray-passed food, you’ll likely have some servers on your team. Catering servers can be paid minimum wage plus tips, or a flat hourly rate (typically from $20 to $35).
• Bussers: Bussers are typically reserved for larger catering operations or events. Smaller caterers tend to rely on servers to perform double duty as servers and bussers. Bussers are paid a flat hourly rate (typically $15 to $20) or minimum wage plus tips.
• Bartenders: If your event has cocktail service, you’ll need bartenders. Bartenders tend to prefer to earn a flat hourly rate plus tips. Because offering bar service increases what you can charge clients, catering bartenders are usually the highest-paid hourly employees. And if you ban tip jars on your bars, you’ll need to pay them well—from $35 to $50 per hour is not unusual.
• Delivery drivers: If your business is mostly ready-to-eat meals that are dropped off, with no staff attendants (typical of corporate catering), you’ll likely have more delivery drivers than waitstaff. Catering delivery drivers tend to earn a flat hourly wage plus tips.

Post your available jobs on job posting sites like Indeed and ask friends to share the listing on their social media channels. Caterers in major markets like Chicago and New York may prefer to hire on-demand employees from an event staffing agency.

You pay a flat fee per hour and the staffing agency handles all the administrative work from filing employment forms to processing paychecks. This tends to be pretty expensive—up to $60 or more per person per hour—but if your work is highly seasonal, it could be worth the expense.

Since most catering jobs are part time, you could tell some of the servers and bartenders at your favorite restaurants that you are hiring. But tread lightly as it is considered rude to “poach” staff from another business, and if employees quit their existing jobs to work for you, it could affect your relationships with local business owners.

Once your business is established, you need to tell clients how to find you. Marketing is how you do that. Successful marketing for a catering business blends several channels, from an ecommerce-optimized website to an active social media presence and a strategy for collecting and displaying customer testimonials.

The McAlister’s Deli catering website includes mouth-watering images of catering setups at the top of the page. (Source: McAlister’s Deli)

The most important part of a catering business marketing plan is a high-functioning website. Your website should have a few key elements:

• Menus with mouthwatering images of your food
• A gallery of images that shows eye-catching images of past events you have catered
• A contact form where customers can send catering inquiries.

Depending on your catering niche, you may also want a full online ordering page so customers can place orders in advance with little assistance. Our guides to building a restaurant website and our ranking of the best restaurant website builders can help you get started.

In addition to digital tools, caterers also need traditional paper advertising materials like trifold paper menus and business cards. You can design these yourself using a tool like Canva, or hire a freelance designer from sites like Fiverr or Upwork. These are valuable for obtaining new business from off-site events. You can also include them with complimentary food samples that you drop off to potential clients (which should also be part of your marketing strategy).

See our favorite digital menu templates and hard copy menu templates for design inspiration.

A cloud-based point of sale can also help you log customer contact information for future email or text message promotions. While some events you cater will be one-time affairs like weddings, others can create repeat business. Segmented customer lists can allow you to send updated menu offerings to local event planners, or reminders for family-style holiday catering packages to individual clients.

Square Marketing tools help you create eye-catching email campaigns to drive repeat business.

There are several reasons to start a catering business. Caterers work for themselves, and no two days are the same. You get to be part of some incredible events and join a close-knit network of small business owners who are passionate about food.

Here are some other reasons you should consider opening a catering business:

• Low overhead: Most small caterers are very small teams, consisting of the owner and maybe a part-time helper or two. If you are able to operate from a licensed home kitchen, you’ll even save on rent.
• High profit margins: The flip side of that low overhead is much higher profit margins than other food-based businesses. Caterers typically see a profit margin of 10%–25%.
• Low startup costs: In many parts of the US, you can start a catering company from your home with less than $10,000 in startup capital. That’s less than 10% of what you would spend to open a restaurant.

In 2023, the catering industry is booming. In a recent survey by the International Caterers Association , half of the surveyed ICA member caterers reported annual revenues between $1 million and $7.5 million, with more than 90% saying their sales increased between 2021 and 2022. While weddings brought in the most revenue overall for 35% of caterers, corporate catering was the largest area of growth.

Most caterers report annual revenues above $1 million. (Source: Nuphoriq)

Challenges of Starting a Catering Business

As with any business, opening a catering business has some challenges. While you will work for yourself and set your hours, those hours can be long (especially during wedding and holiday seasons).

Before you submit your first catering contract, you should consider whether you can handle:

• Fluctuating demand: Catering can be a feast-or-famine business as demand fluctuates throughout the year. You’ll have more inquiries than you can handle for the graduation-wedding-family reunion season in May and June, while you’ll be scrounging for sales in September.
• Challenging clients: You’ll frequently be preparing food for major life events like rehearsal dinners, weddings, and milestone anniversaries. Clients for these events can be incredibly picky, and there are no do-overs; these are once-in-a-lifetime moments. If fielding 47 emails about tray-passed crab puffs makes your skin crawl, catering may not be a fit for you.
• High pressure and tight deadlines: Catering is about events, and events are about having everything ready at a specific time. There is usually no way to get extra time or make up for a mistake later.

If you feel that catering may not be a fit for you, consider our list of the best businesses to start to get some fresh ideas.

Key Tips for Catering Success

Catering businesses have a lot of moving pieces and deal with a ton of information. After several years fielding catering inquiries, writing (and rewriting) catering contracts and working events, these are my top tips for catering success.

Respond Quickly

When you get an event inquiry, respond immediately. Most customers are inquiring with several caterers for their event. Responding quickly makes it more likely they will book with you. If you are unavailable for the date or time of their event, letting them know as soon as possible allows them to move on to another caterer (and stop emailing you).

Network With Other Caterers

When I booked catering and events for a Southern California restaurant, I joined a networking group of other event coordinators and salespeople in the neighborhood. Whenever one of us had an inquiry for an event we didn’t have the time or space for, we reached out to the rest of the network to take the gig.

The customers got their needs met, and we all benefited from the system. It’s easier to tell a client you are already booked when you can pass them off directly to another caterer you trust. Both the customer and the caterer you referred the business to will remember how well you took care of them. It’s more than good karma—it’s good business.

Incentivize Referrals

The most influential advertising is word-of-mouth. Ask your clients to refer your catering business to others, and give them a little reward for their effort. This could be an informal arrangement like delivering a box of baked goods to their office ahead of a busy party booking season, or a formal program where you track each referral and offer the referring customer a perk like a gift card to a local coffee shop or a discount on their next event order. Check out our guide to using referrals to generate quality leads for more tips.

Use Software to Save Time

Caterers need to keep track of a ton of information, from event inquiries, event proposals, contracts, banquet event order sheets, menus, rental agreements, invoices, and more. Luckily, there are tons of options for catering management software nowadays. Most of it is cloud-based, so you access all your paperwork from a smartphone if you are at an off-site event. As a former catering and event manager, I promise you these tools will save you time and prevent embarrassing mistakes like double bookings, lost rental agreements, or missing menu information.

Starting a catering business is a low-cost way to start a food service business. If you like to cook and have good organization and people skills, you’ll easily make a lucrative profit as a caterer. A successful catering startup needs a detailed business plan, a craveable menu, and a detailed catering contract to be prepared to convert customer inquiries into lucrative events.

About the Author

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Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

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How to Start a Catering Business in 10 Steps

By Shannon Mulligan

There are a lot of reasons to take a love of cooking down the path of entrepreneurship with a catering business. Catering, which is very different from working in a traditional restaurant, is a malleable business that allows you to flex your event planning and execution muscles—all while throwing great parties, visiting new and interesting locations, and testing out your favorite recipes for a willing audience.

Yet, how do you go about taking your love for cooking, parties, and travel, and actually, you know… start a catering business? 

Fret not. We’ve got you covered with the 10 essential steps to starting a catering business, from how to find your niche, to market research, to the hiring tools you’ll need to market your brand new business. 

How to start your own catering business 

The catering industry resulted in $12 billion in revenue in 2022, and increased in size by 16%. That’s a lot of money—uh, opportunity—up for grabs for you to start a small business in catering. It’s important to think about the kind of catering business you want and find the rhythm that suits you and your customers. Do you want to run your business from your home? Rent out commercial space? Run things yourself? Hire staff? 

We know: it’s a lot to consider. Luckily, we made a handy list:

• Flexible working schedule where you decide your own hours 
• Able to choose your own working location
• Control over the clients you work with
• Choosing your own level of growth 
• More control over customer retention rates
• Customer satisfaction is crucial, and can float or sink your business
• Potentially repetitive work
• Usually working evenings and weekends

It’s important to look at the catering business from all angles before diving headfirst into it. If you’re still here and ready to build your business, we’ve got 10 important steps to consider before starting. 

1. Find your niche

When thinking about starting any business, ask yourself what you want to offer and why.

Some questions you may want to consider on your path to finding your culinary lane: 

• What’s your specialty? 
• What type of food will you serve? 
• Who is your main clientele?
• What size of functions work best for you? 

From there you can narrow down and discover what catering business model may work for you: 

• Event-style:  In this model, you may have courses to serve or hor d’oeuvres to pass around.  
• Family-style:  This is a lot less laborious because it allows you to serve dishes on a long table à la family style.
• Off-premise: This model is great for drop-offs and delivery that require little service from staff. 

2. Conduct market research

Once you’ve decided on the type of food you’re going to make, as well as the catering model you’re likely to do, the next step is to conduct market research. 

Market research is essential to your business, whether you’re starting a catering company or a veterinary practice (though it’s best not to confuse the two). Every budding entrepreneur needs to map out competitors , customers, needs, and more before their business even begins to take shape.

For a catering business, it might be good to: 

• See the competition. Research other catering businesses in your neighborhood or city, what they offer, where they are, and who their primary customers are. This will help you when trying to differentiate yourself from your competitors.  
• Talk to family and friends. Your nearest and dearest are a great resource for first-hand info on catering successes (and failures) to help you craft yours.
• Read a lot of reviews. Where caterers went right or really wrong is going to be apparent in company reviews. Folks are far more likely to leave a negative review rather than positive so keep that in mind. Constructive feedback, however, is a gift! 

3. Create a business plan for your catering company

Once the essentials that form the foundation of your catering business are complete, you’re ready to start work on a business plan . 

A business plan is going to explain to potential loan officers, investors, and yourself, really, what the business is, how you intend to run it, market analysis, what you offer, and how profitable you’ll be after the first year and onwards toward three or five years.

Business plans are fairly standardized across many types of industries. You can use a template to create your own. But for a catering business, there’s the unique aspect of food. This goes back to your culinary niche: who are you serving, and what kind of food are you bringing them? 

Include as many details as possible about your intended audience. Your specialty, for example, may be a culturally-specific cuisine from your own ethnic background or heritage because of the success you’ve seen serving at your family functions. Say it’s Jamaican food. You could serve a  broader community underserved in that cuisine. This is where you’d note that specificity down, and why it’s important to your overall business. 

4. Finance your catering business

Start-up costs vary from business to business, but an optimal range for catering is somewhere between $10,000 and $50,000 . Catering can be done out of your home and part-time, which means you can start small. If you intend on having more equipment and using a food truck or a brick-and-mortar space, then your costs go up. 

To finance your catering business, you have a few options: 

• Personal or business loans
• Business line of credit
• Personal savings
• Crowdfunding
• Angel investors

5. Research licenses, permits, and insurance for catering businesses

Before launching right into your catering business, you’ll need to investigate licenses, permits, and insurance required to operate. These will vary state-to-state, but the most common licenses and permits are: 

• Zoning permit
• Business license
• Health permits

In addition to these, it’s worth looking into business insurance to cover any liabilities for your business. For catering, this coverage is a safety for expensive items like cooking equipment, and can cover any claims that resulted in food poisoning, injury, or property damage. 

6. Find the right location for your catering business

Your business plan likely outlines this, but location is important . If you’ve decided to remain at-home, then you won’t need to seek out additional help like a real estate agent. You will, however, need to know your state’s rules about selling food from your home. These differ state-to-state but, generally, you’ll need a food vendor’s license to be able to sell homemade goods. 

If you’re opting for a bigger catering business, seek out real estate help for the perfect commercial spot for you. You’ll need to consider: 

• Layout, such as where the kitchen is and where storage will be
• Competition nearby
• Cost of rent
• Access to parking for transportation

7. Order your equipment and supplies

Now we’re into the nitty gritty of your catering business: what supplies and equipment do you need for success? 

Some typical start-up catering items include: 

• Insulated food pan carriers
• Chafers and chafing dishes
• Serving equipment like trays, utensils, stands
• Countertop induction cookers
• Additional food storage, like a freezer or extra fridge
• Dinnerware, flatware, and glassware
• Uniforms for yourself and any staff
• Catering vehicle

8. Hire catering staff 

As you know, catering can be a lot of work: so you know you’re going to need help to plan, cook, and serve your best meals. If hiring employees is in your business plan and allocated in your finances, that’s a great first step. Next, you’ll need the right tools to hire your catering staff. 

Homebase has everything your catering business needs to hire the right folks for support. From posting job listings, to streamlining applicants, to getting all of their hiring and onboarding documentation ready, Homebase makes hiring easy for you so you can keep focusing on growing your business. 

9. Market your catering business

The day is here! It’s time to market your catering business. 

Getting the word out for a new business can seem intimidating, but it doesn’t have to be—at least not with the right tools , strategy, and help in place. Word-of-mouth is extremely valuable: you want your customers to hype you up as much as possible. But without knowing what they say and when, here are a few more options to you can control when it comes to marketing:

• Create a website that you constantly tend to with fresh copy and menus
• Partner with local businesses and charities to expand your reach 
• Use social media and tailor content specific to the platform and your voice (i.e. don’t indulge in a TikTok trend if it’s really not your thing)
• Invest in a good food photographer to get the best angles of your favorite meals 

10. Get the right tools to run your catering company 

With the essentials of your company in place, you’ll need the right tools to ensure your budding catering business thrives. 

Consider using the following:

• A point-of-sale system for your customers
• Social media scheduler for your posts
• Email marketing and automation to send notes to your customers 
• Homebase for hiring , scheduling employees and tracking their hours , and payroll  

How to start a catering business FAQs

How much does it cost to start a catering business.

It can cost between $10,000 and $50,000 to start a catering business. 

What are the risks of starting a catering business?

Some of the most common risks for starting a catering business include working long hours, staff turnover, customer demands, not enough finances, not enough customers, and overestimating food needed, leading to waste

How can you effectively hire for your catering business?

Homebase can help you effectively hire for your catering business. Homebase streamlines all hiring and onboarding tasks from templated job-listings for specific roles ,to managing applicants, to sending onboarding documents to your new employees.  

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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How to start a catering business in 7 steps

Editorial team.

While the restaurant industry has been slow to rebound following the pandemic, business is booming for catering companies. Analysts estimate that the global catering services market size will grow by $103.28 billion from 2022 to 2027. It’s a great time to consider starting a catering business.

Catering businesses are not one-size-fits-all. Some specialize in different events; other caterers focus on a type of food or cuisine, such as charcuterie or Italian desserts. And, there are many logistics to consider. Caterers may need special licenses, as well as space to prepare meals, transportation to get food to the event location, and a way to accept payment on-site (wherever that may be). 

As you consider these logistics and others, keep these steps to starting a catering business in mind to help you get off the ground successfully. 

1. Build a catering business plan

Most small businesses benefit by having an organized business plan that lays out your mission, team, key differentiators, target customers, financial projections, and more. Catering business plans are often similar to those written by restaurants. Our guide to writing a restaurant business plan is a good starting point for building a similar plan for your catering business. 

A business plan will guide you, your team, and your investors as you make big decisions about financing, menu items, vendors and partners, and marketing. Most investors and lenders will ask for a business plan before signing on to fund your catering business. Make sure you spend a little time completing your market analysis, sales strategy, sample menu, business operations plan, and financial statements. 

2. Choose your business format

Catering companies can take many shapes and forms. Some small catering businesses specialize in specific events, such as weddings, corporate events, social events, like baby showers and birthdays, or concession catering at festivals. Catering companies can also fall into different formats, such as ghost kitchens , on-site catering, and offsite catering that you can run out of your home kitchen. 

There are pros and cons to each of these options. On-site catering means you’ll probably be limited to events at which there is a kitchen to prepare your food, but it can also be helpful to start a business without needing to locate (and pay for) kitchen space. Off-site catering means you’ll likely need to consider the extra logistics of preparing and transporting food before you arrive at the event. Some dishes are better served piping hot, so preparing them off-site may be doing your customers a disservice. 

3. Create a pricing strategy

Pricing is especially critical in the food and beverage industry, where profit margins tend to be slim. Strategic pricing will help drive demand for your catering services. As you consider how to price your catering offering, take these factors into account. 

• What’s the competition? Are there dozens of other catering companies in your area, or are you one of a few select options? 
• What do your ingredients cost? Is your menu going to be full of seasonal ingredients, international ingredients, or reliable staples that don’t fluctuate in price? 
• Can you control portions? Will you be running a buffet-style catering business, or can you standardize portions to keep costs consistent and predictable? 

Food and beverage costs tend to fluctuate from season to season, so you may need to adjust your menu over time. As you start serving customers, Clover POS systems integrated with business management apps can help you refine your pricing process.

4. Design your menu 

Next, choose a menu that can travel. Designing a catering menu can be a little tricky. Depending on where you prep and cook the ingredients, you may need to prepare some items in bulk and plate them onsite. If you plan to use an on-site kitchen, you may have to bring the right tools with you to make sure you have what you need to cook your meal. You may also need to take custom orders into account if you’re catering a wedding or special event. 

Many catering businesses start with a set list of menu items for customers to choose from. Take orders ahead of the event so you can prep ingredients for each dish you serve–and avoid waste . Once customers choose their meals, you can order from suppliers, identify the equipment you need, and plan your timing. 

As you design your catering menu , think also about what items require ingredients that are readily available from suppliers. The supply chain issues from earlier in the pandemic are largely behind us, but you never know when weather or other factors could disrupt your plans.

5. Get the right licenses

Like restaurants, catering businesses need certain permits and licenses before they open. Our guide to the licenses needed to open a restaurant is a good place to start learning what you’ll need to operate in compliance with food service regulations. 

Most catering companies need a business license from the state, as well as a food handling license. Your kitchen may also be subject to a county or state health inspection—which could be difficult if you’re working out of your home kitchen. To learn more about your business license requirements, check with your local Chamber of Commerce , Small Business Development Center , or the Small Business Administration . 

6. Package like a pro

If you’re prepping food offsite and simply dropping it off, you’ll need the right packaging to make sure everything arrives perfectly. Most experts recommend keeping your packaging simple. Look for lightweight, sturdy materials that protect the food from leaks, spills, and dents. Eco-friendly packaging is a big plus. 

Look for opportunities to add your business name somewhere on the delivery. Packing tape with your business’s name on it is a simple, affordable option. Or, add stickers to each delivery with your logo. 

7. Figure out how to accept payments 

Caterers often find themselves traveling here, there, and everywhere to serve their guests. Whether you’re serving at a state fair or a mountaintop wedding, you’ll need a way to accept all payment types . Clover’s restaurant POS system is equipped to accept cash, check, major credit and debit cards (swipe or chip), and contactless payments such as Apple Pay ® and Google Pay™.

And, Clover Flex and Clover Go easily travel wherever your catering event takes place. Clover Flex comes with built-in LTE capability, so there’s no need for a WiFi connection to complete a sale.

It’s likely you’ll learn more as you get started developing and figuring how to manage your catering business. Forge partnerships with event planners and venue staff who can help show you the ropes. These people have worked with caterers in the past and can give you tips for providing a great customer experience. 

It’s really common for business owners to make mistakes when they’re first starting out, so we’ve written an eBook to help. When you need more support, Clover is here for you. Connect with a Clover Business Consultant today  to learn more about the tools and resources available for running your new catering businesses. 

This information is provided for informational purposes only and should not be construed as legal, financial, or tax advice. Readers should contact their attorneys, financial advisors, or tax professionals to obtain advice with respect to any particular matter.

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How to start a small catering business at home

Table of Contents

How to make a business plan

1) executive summary, 2) business overview, 3) market analysis, 4) products and services snapshot, 5) marketing plan, 6) operations plan, 7) financial plan, how to register your business, how to deal with taxes, how to send professional invoices, how to promote your home catering business, digital marketing, build a website, social media, online directories, traditional marketing, insurance for caterers, equipment for caterers, qualifications for caterers, food safety, how to manage your finances.

If you have a passion for food and an entrepreneurial spirit, then you might want to start a small catering business at home. 

It’s a perfectly achievable goal, but there are a few crucial steps you need to take before you can start doing business. 

In this guide, we’ll cover everything you need to start your own catering business from home, including:

• How to make a business plan.
• How to register your business.
• How to deal with taxes.
• How to send professional invoices.
• How to promote your home catering business.
• Insurance for caterers.
• Equipment for caterers.
• Licenses and qualifications for caterers.
• Food safety.
• How to manage your finances.

The first step to starting any business is a robust business plan . You can break it down into seven parts.

An executive summary is an overview of your business idea. It should include:

•  A basic definition of your business.
• A list of business goals.
• A product list.
• Your target customers . 
• Where and how you intend to sell your products.
• Your financial strategy.

A business overview should include:

• Your official business name. 
• A rundown of your brand identity. 
• Your business structure. 

If you have a mission statement, this is the place for it. Describe your background and your vision for the future. 

Describe your competitors and any industry trends you’ve noticed. Write about your target consumers and explain what your catering business can offer them that others can’t.  

Expand the product list from your executive summary. Explain, in detail, the features and benefits of the service you offer.

Talk about how you plan to market your catering business. Work how much money you can devote to marketing, then break your budget down.

This is the most practical section. Describe your base of operations and your operational needs, including equipment, supplies, shipping options, funding, and other resources.

If you need outside funding, like a business loan, you’ll have to prove you can handle money. That’s where a written financial plan comes in handy. 

Most financial plans include:

• An income statement: How much money your business brings in per week, month, quarter or year, minus your business-related expenses.
• A balance sheet: A list of your business assets and liabilities.
• A cash flow statement: A list of when your income and liabilities come in and go out every month. 

Before you register your catering business, you’ll need to decide your legal structure. For example, will you operate as a sole trader or a limited company ?

A sole trader is a simple structure. You have complete control over profits and you’ll be responsible for any debts. 

A limited company can give a more professional image and gives you limited liability for debt. The main downside of a limited company is the more complicated admin. 

Next, choose your business name. If you’re going with a limited company, you’ll need to register it with Companies House . If you’re setting up as a sole trader, you can register your name when you complete a self-assessment tax return. 

Finally, you’ll have to apply for a food business registration with HMRC. You need to register at least 28 days before you begin operating your catering business. 

If you choose to set up as a sole trader, you’ll need to register as self-employed with HMRC so you can manage your taxes. Sole traders pay income tax in the tax bands you’ll be familiar with already. 

• Personal Allowance: Up to £12,570 (0%)
• Basic rate: £12,571 to £50,270 (20%)
• Higher rate: £50,271 to £150,000 (40%)
• Additional rate: over £150,000 (45%)

When you register your catering business, you’ll receive a Unique Tax Reference (UTR). You’ll need this information for submitting your income tax return annually. 

If you register as a limited company, you’ll need to register with HMRC as an employer, not self-employed, because you’ll be acting as both a director and an employee.

After this, you’ll need to sign up to PAYE (pay as you earn) so you can pay yourself through the limited company. 

Instead of income tax, limited companies need to pay corporation tax on all their taxable income. Unlike income tax, it’s just a flat rate of 19%, so it can be more forgiving when you start seeing substantial cash flow. 

As an employee of your own company, the income you pay yourself will be taxed with the normal income tax rates. 

Invoicing is one of the more tedious parts of running your own business. 

To keep you right, here’s a checklist of everything you need to include for a professional invoice.

• A unique invoice number. They need to be different for each client. For example, John Smith’s invoices could be numbered JS1, JS2, JS3 etc.
• Invoice Date.
• Company or business name.
• Limited Company Registration Number.
• VAT Registration Number.
• Limited Company Address.
• Contact details – email, address, and phone number.
• Client or agency’s name and address.
• Description of the services you’re providing to the agency/client.
• A breakdown of hours and rates. For example, 35 hours at £40 per hour.
• Date when the services were supplied.
• Amount charged for services.
• VAT charged (at 20%).
• The total amount charged (including VAT).
• Your business bank account details (sort code and account number).
• A client reference number or Purchase Order (PO) number.

A lot of invoices also include payment terms, including late payment information.

Businesses normally provide 30-day payment terms, but it’s entirely up to you. Just make sure you invoice as soon as possible so you get your payments on time. 

Since invoicing can be a pain, try downloading accounting software . It’ll automatically record all your transactions and let you easily produce professional invoices, on the go. 

Promoting your catering business is the best way to ensure a steady stream of business from new customers. To help you get the word out, we’ll share some simple marketing tips. 

The internet is usually a person’s first port of call when looking for a service, so a strong digital marketing strategy is important. 

Your website is the online face of your business, so it’s crucial that it makes a good first impression. Your website should include contact information, products, prices, and an “about me” page.  

A good website will make sure you appear when people search for caterers on search engines like Google. You can improve your search engines rankings by:

• Paying for Google ads.
• Making your site SEO (search engine optimisation) friendly.
• Asking your customers to leave Google reviews.

You can ask a professional service to build your website to do it for you, but a cheaper option would be to use a website builder (CMS software). There are loads that are beginner-friendly, and they can guide you through the whole process to help you make a professional website. 

Social media platforms like Facebook, Twitter, Snapchat, LinkedIn, Instagram, TikTok, and YouTube are all thriving social media platforms that have millions of users. Getting noticed by those users should be your main goal. 

For the best results when promoting your catering business on social media platforms, you should follow these golden rules:

• Follow other food channels, and engage with their content. 
• Post content often and regularly. 
• Make your content interesting to users, not just promotional messages for your business.
• Engage with users by replying to their comments, taking polls, making quizzes, and running competitions. 
• Switch up your content between written posts, videos, and photos. 
• Always link back to your business website in your posts. 

You should try to stay active on more than one social media platform, if you can. That being said, you may need to adjust your content and tone of voice for each platform you use. 

For example, Instagram, Snapchat, and Facebook put an emphasis on images, whereas TikTok and YouTube focus on video content. 

As we mentioned above, paying for Google ads is a great way to get your website at the top of search engine results. 

But you should also register with online directories, such as:

• Google my business .
• Facebook’s local business service . 

The Google service will make sure you appear on Google maps when people search for caterers, while Facebook’s service will automatically send information about your business to social media feeds of anybody in your area .

Alongside digital marketing, some more traditional forms of marketing can also be effective. You should consider:

• Making business cards to hand out.
• Printing flyers and posting them locally.
• Teaming up with other local businesses to promote each other.
• Encouraging customers to spread the word.
• Encouraging friends and family to recommend your business.

As a home catering business, you’ll have a lot of expensive equipment that needs to travel with you most of the time. Insurance will cover you in case anything happens to your equipment. 

But it’s not just the equipment you should consider covering. There are quite a few insurance policies that you should consider. 

First of all, if you have staff, you’re legally required to have employers’ liability insurance. It covers legal costs and compensation payments if an employee takes you to court. 

Aside from that, these insurance policies are also worth considering:

• Public liability insurance
• Professional indemnity insurance
• Employers’ liability insurance 
• Business contents insurance
• Stock insurance 
• Product liability insurance 
• Personal accident insurance 
• Business interruption insurance
• Business legal protection insurance

There are also a number of insurance companies that can provide specialised cover for caterers. Just search for caterer insurance and you should find what you need. 

Running your catering business from home means you should already have a lot of the equipment you need in your kitchen already. Most of the new equipment you’ll need to find is for storage, transportation, and presentation. 

Here are some essential bits of kit you’ll need:

• Holding Cabinets 
• Chafing dishes 
• Food pan carriers 
• Hot food tables and accessories 
• Catering carts
• Catering service trays 
• Drinks coolers
• Punch bowls or jugs
• Buffet serving utensils
• Tabletop and buffet displays 
• Food and drink fountains 

The last two, displays and fountains, aren’t necessary. But they can add a bit of flare to the table, if you don’t mind spending a little extra. 

To legally sell food you’ve prepared in your home, you and your staff need a second level food safety qualification. 

You can get this qualification from a number of places, including:

• The Nationwide Caterers Association (NCASS). This is a full-day course that costs about £100.
• Food Safety UK . This is an online course that costs about £10. 

It’s worth repeating, this is not an optional qualification. Operating without one is illegal. 

Food safety is your number one concern as a catering business, as one mistake could spell disaster. 

To be safe, you should contact a local environmental health officer through the Government’s food safety website . They can send an official to help you by:

• Inspecting your home kitchen.
• Advise you on any upgrades you need.
• Check your walls and countertops are in good condition and easy to clean.
• Assess your kitchen hygiene knowledge and ability. 

Aside from general hygiene, your other biggest food safety concern will be allergies. Again, there are specific rules you need to follow as a caterer. 

For more information, check out our article, “ Allergen advice for caterers to consider for events ”.

Financial management can be stressful and time-consuming when you’re self-employed. That’s why thousands of business owners use the Countingup app to make their financial admin easier. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one place. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward!.

• Counting Up on Facebook
• Counting Up on Twitter
• Counting Up on LinkedIn

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Catering Business Plan Template

Catering business plan.

If you want to start a catering business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their catering businesses.

How to Write a Business Plan for a Catering Company

Below are links to each section of your catering business plan template:

Next Section: Executive Summary >

Catering Company Business Plan FAQs

What is the easiest way to complete my catering business plan.

Growthink's Ultimate Catering Business Plan Template allows you to quickly and easily complete your Catering Business Plan.

Where Can I Download a Catering Business Plan PDF?

You can download our catering business plan PDF template here . This is a business plan template you can use in PDF format.

What Is a Catering Business Plan?

A catering business plan provides a snapshot of your own business as it stands today, and lays out your growth plan for the next five years. It explains your business’ goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan?

If you’re looking to start a catering business or grow your existing small business you need a business plan, especially if you are seeking financing for your business. A business plan will help you raise funding, if needed, and plan out the growth of your company in order to improve your chances of success. Your catering business plan is a living document that should be updated annually as your catering company grows and changes.

How Do I Write a Successful Catering Business Plan?

The best way to write a catering business plan is to follow a proven catering business plan template. This template should include the following information: Executive Summary, Company Analysis, Competitive Analysis, Industry Analysis, Customer Analysis, Marketing Strategy & Plan, Operations Plan, Management Team, Financial Projections & Plan, and Appendix.

What Are the Sources of Funding for a Catering Business?

With regards to funding, the main sources of funding for a catering business are savings and/or credit cards of the business owner, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a catering business or cafe is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a catering business. They might consider funding a catering company with multiple locations or a massive footprint, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual or small location could never achieve such results.

What Are the 3 Types of Catering Service Businesses?

There are three types of catering service businesses: on-premise catering, off-premise catering, and event catering.

• On-premise catering is when the caterer sets up a temporary commercial kitchen space at the client's location.
• Off-premise catering is when the caterer provides delicious food for events such as picnics, weddings, cocktail parties, and other meetings off-site.
• Event catering is where the caterer prepares food that is served at special events, corporate events, or family events.

What Are The 5 Steps to Starting a Catering Business?

Starting a catering business is not as difficult as one might think. Here are the five steps needed to get your catering business up and running:

• Come Up With a Business Idea : This is probably the most important step, as it will lay the foundation for everything else you do. When brainstorming business ideas, make sure to think about what you’re good at and what you enjoy doing.
• Do Your Research : This step is important to ensure your business is viable and has the potential for success.
• Create a Catering Business Plan : A business plan is a document that outlines your goals, strategies, and financials. It’s a must-have for any business, but especially for a catering business.
• Obtain Your Business License : In order to legally operate your catering business, you will need to obtain the necessary business licenses.
• Secure Funding : If needed, you will need to secure funding in order to get your catering business off the ground.

Once your business is up and running, it’s time to start promoting it! Create a marketing plan and start spreading the word about your new catering business to potential clients.

What are the Benefits of Starting a Catering Business?

There are numerous benefits of starting a catering business, including:

• Low Overhead Costs : One of the benefits of catering is that the overhead costs are relatively low, especially when compared to other food preparation businesses such as restaurants. This means you can make a profit with fewer customers and staff members.
• Flexible Schedule : Typically have a flexible schedule, which is ideal for those who want to be their own boss and have more control over their time.
• Variety of Services : Can offer a variety of catering services and menus, which gives you the ability to target a range of customers.
• Repeat Customers : Typically have a high percentage of repeat customers, as people often use catering for specific events like weddings, business meetings, conventions, etc.
• High Demand : Another benefit of catering is that there are typically high demands for this type of service during certain times of the year, including holidays and warm weather months when people are hosting events outside.

What are the Pitfalls of Starting a Catering Business?

While there are many benefits to starting a catering business, there are also some potential pitfalls that should be considered. These include:

• Not Enough Demand : Before starting a catering business, it’s important to do your research and make sure there is enough demand for your services.
• Lack of Experience : If you don’t have experience in the catering industry, it will be difficult to start and succeed in this business.
• High Startup Costs : This type of business can have high startup costs because of the equipment needed, as well as all of the miscellaneous costs that come with starting any business.
• Competition : Catering is highly competitive and there are many established catering companies already servicing your market. This means you need to do everything possible to set yourself apart from your competitors in order to be successful.
• Time-Consuming : Catering is a time-consuming business and it can be difficult to balance it with other obligations.
• Limited Scalability : Catering companies are limited in their scalability, meaning you can only expand so much before you hit a limit. This could be problematic if your goal is to grow your business significantly.
• Unpredictable Income : Catering services can be very unpredictable when it comes to income, as they can vary greatly from one event to the next.
• High Risk : As with any business, there is a certain amount of risk involved in starting and running a catering business. You need to be prepared for the possibility of not making a profit or even losing money.

CATERING BUSINESS PLAN OUTLINE

• Catering Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Catering Business Plan Summary

Other Helpful Business Plan Articles & Templates

BUSINESS STRATEGIES

How to create a catering business plan

• Jeremy Greenbaum
• Sep 7, 2023
• 11 min read

When starting a business , especially when starting a service business , crafting a meticulous and transparent business plan is essential. A catering business plan is a meticulously crafted manuscript that outlines your company’s ambitions, tactics and financial projections. This invaluable document not only charts a precise course when starting your food business but also serves as a culinary compass. Keep reading to learn how to write a strong catering business plan.

Looking to promote your business online by making a website ? Try Wix’s website builder .

Writing a comprehensive catering business plan is crucial for the success of your venture. It provides a roadmap for your business, helps attract investors and funding and guides your decision-making process regardless of your type of business . Here are the six main parts of a catering business plan:

Executive summary

Company and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

The executive summary is a concise overview of your catering business plan. It should provide a clear and compelling summary of your business idea, goals and strategies. This section is typically written last but appears at the beginning of the business plan.

An effective executive summary for a catering business plan should include:

A brief description of your catering business and its unique selling proposition

An overview of your target market and how you plan to capture it

A summary of your financial projections, including revenue targets and profitability

An outline of your catering marketing strategies and how you intend to promote your services

02. Company and domain names

Choosing the right business name for your catering venture is crucial for building brand awareness and trust. It should reflect your company's values, be memorable and resonate with your target audience. Consider using a business name generator (or specifically a restaurant business name generator ) for inspiration and brainstorming ideas.

Be inspired: Catering business name ideas

When selecting a domain name for your catering website, it's important to choose something that is easy to remember, relevant to your business and available. Conduct a domain name search to check its availability and consider best practices (e.g., keep it short and simple, avoid numbers and hyphens, use keywords and check to make sure it aligns with your brand identity and values).

Once you’ve landed on a business name and structure, follow the steps for registering your business .

03. Market analysis and research

Including market analysis and research in your catering business plan is essential for understanding the competitive environment and building a better business strategy. Conducting market research will help you identify your target market, assess customer preferences and understand the demand for catering services in your area.

An overview of the catering industry, including trends and growth opportunities

An analysis of your target market, including demographics, psychographics and buying behavior

A competitive analysis, identifying key competitors and their strengths and weaknesses

A SWOT analysis (strengths, weaknesses, opportunities, threats) to assess internal and external factors that may impact your business

04. Operations plan

The operations plan outlines the practical aspects of running your catering business. This includes details about location, premises, equipment and staffing needs.

Key elements to consider in your operations plan:

Location and premises: Choose a location that is easily accessible for clients and has sufficient space for food preparation, storage and office operations. Determine the layout and design of your premises to optimize workflow and create an inviting atmosphere for clients.

Equipment: List the necessary equipment for your catering business, such as commercial kitchen appliances, serving utensils and transportation vehicles.

Staffing: Define the roles and responsibilities of your staff members, including chefs, servers, event coordinators and administrative personnel. Consider their qualifications and training requirements.

05. Marketing and advertising plan

The marketing and advertising plan lays out the strategies you will use to promote your catering business, including your plans to create a business website . It helps you identify the most effective channels to reach your target audience and maximize your marketing budget.

Consider the following when creating your marketing and advertising plan:

Target audience: Define your target market segments based on demographics, psychographics and event types.

Branding: Develop a strong brand identity that reflects your catering business's values, mission and unique selling proposition. (If you need help creating a logo, check out these food-related logo ideas and use a logo maker .)

Pricing strategy: Determine your pricing structure based on factors like food costs, overhead expenses, competition and desired profit margins.

Promotional channels: Identify the most effective channels to reach your target audience, such as social media advertising, email marketing, event sponsorships or partnerships with wedding planners or corporate event organizers.

Marketing campaigns: Plan specific marketing campaigns tailored to different segments of your target market. This could include seasonal promotions, referral programs or discounts for repeat customers.

By incorporating these strategies into your marketing and advertising plan, you can effectively promote your catering business and attract clients.

06. Financial plan

The financial plan is a crucial part of any catering business plan. It outlines how your business will be funded initially and provides a timeframe for reaching profitability. Remember to include:

Startup costs: Estimate the initial investment required to start your catering business, including equipment purchases, leasehold improvements, licenses, permits and marketing expenses.

Revenue projections: Based on market research and pricing strategies, project your anticipated revenue over the first few years of operation.

Expenses: Identify all the ongoing expenses involved in running your catering business, such as food costs, labor, rent, utilities, insurance and marketing expenses.

Cash flow statement: Prepare a cash flow statement that outlines the inflows and outflows of cash in your business on a monthly or quarterly basis. This will help you anticipate any cash flow challenges and plan accordingly.

Profitability analysis: Assess the profitability of your catering business by calculating gross profit margins and net profit margins. This will give you an understanding of the financial health of your business.

Catering business plan examples

These draft business plans provide a starting point for developing your own catering business plan. Customize them according to your specific business goals, target market and unique selling proposition. A well-crafted business plan will set you on the path to success in the competitive catering industry. Check out these service business examples to help you get started:

Example 1: full-service catering business

ABC Catering Company is a full-service catering business specializing in corporate events and weddings. We offer a wide range of menu options, focusing on fresh, locally sourced ingredients and exceptional service. Our target market includes businesses in the downtown area seeking high-quality catering for their meetings and events, as well as couples planning their dream weddings. With our experienced team and commitment to excellence, we aim to become the go-to catering provider in the region. Our projected revenue for the first year is $500,000, with a net profit margin of 15%. We will leverage digital marketing strategies, including social media advertising and partnerships with local event planners, to reach our target audience.

Company name and domain name

Company name: ABC Catering Company

Domain name: abccateringcompany.com

The catering industry is witnessing a transformative shift, driven by a growing demand for exceptional dining experiences at events ranging from weddings to corporate gatherings. As clients increasingly seek convenience and sophistication, there is a rising preference for professionally curated dining solutions.

ABC Catering Company is strategically positioned to cater to a discerning clientele, primarily focusing on upscale weddings, corporate events and social gatherings. Our target demographic includes professionals, high-income individuals and event planners who value creativity, diversity and flawless execution.

Within our competitive landscape, ABC Catering Company faces established players like XYZ Culinary Creations and Gourmet Gatherings Inc. XYZ Culinary Creations stands out for its innovative presentations but struggles with consistency, while Gourmet Gatherings Inc. excels in personalized experiences but lacks comprehensive menu options for specific dietary needs. Through a holistic understanding of our market and competitors, ABC Catering Company is poised to make its mark by capitalizing on trends, addressing client preference, and navigating challenges effectively.

Location: ABC Catering Company will be situated centrally, boasting easy client access and ample parking, with premises encompassing a commercial kitchen, storage areas and an integrated office space.

Equipment and resources: Our operations will be powered by a cutting-edge commercial kitchen, an array of elegant serving utensils, dedicated transportation vehicles and essential office equipment.

Staffing and expertise: Our skilled team—comprising accomplished chefs, meticulous servers, creative event coordinators and capable administrative personnel—will orchestrate exceptional catering experiences.

Hiring and qualifications: Selection will be based on qualifications and industry experience, ensuring that our chefs, servers, event coordinators and administrative personnel uphold our commitment to excellence.

Target audience: Our prime focus lies on capturing the interest of downtown businesses and engaged couples in the wedding planning process.

Branding: Forge a robust brand identity that encapsulates our values, mission and distinctive selling proposition.

Pricing strategy: Strategically set prices, factoring in food expenses, operational costs, market competition and desired profit margins.

Promotional channels: Harness the potential of social media advertising, email campaigns, event sponsorships and collaborations with wedding planners and corporate organizers for optimum outreach.

Marketing campaigns: Devise targeted marketing endeavors tailored to different subsets of our audience, encompassing seasonal offers, referral initiatives and loyalty discounts.

Startup costs: The estimated initial investment required is $200,000 for kitchen equipment, leasehold improvements, licenses, permits and marketing expenses.

Revenue projections: Based on market research and pricing strategies, projected revenue for the first year is $500,000.

Expenses: Ongoing expenses include food costs, labor, rent, utilities, insurance and marketing expenses.

Cash flow statement: A monthly cash flow statement will be prepared to track inflows and outflows of cash.

Profitability analysis: Gross profit margins are projected to be 60%, with a net profit margin of 15%.

Example 2: corporate catering business

XYZ Corporate Catering is a specialized catering business focusing on providing high-quality food and service for corporate events. We offer customized menus that cater to the specific needs and preferences of our corporate clients. Our target market includes businesses in the technology and finance sectors. With our experienced team of chefs and event coordinators, we aim to become the preferred catering partner for corporate events in the region. Our projected revenue for the first year is $400,000, with a net profit margin of 20%. We will utilize targeted email marketing campaigns and establish partnerships with event venues to reach our target audience effectively.

Company name: XYZ Corporate Catering

Domain name: xyzcorporatecatering.com

XYZ Corporate Catering operates within the thriving corporate events sector, where businesses seek top-notch catering solutions for meetings, conferences and other professional gatherings. This segment is characterized by a growing preference for high-quality, customizable menus that cater to diverse dietary requirements and corporate themes. As the demand for elevated culinary experiences in the business realm increases, XYZ Corporate Catering is poised to capitalize on this trend, delivering exceptional service and tailored offerings to meet the unique needs of corporate clients.

Our target audience encompasses a wide array of businesses, from small enterprises to large corporations, spanning diverse industries. We are well-positioned to cater to these businesses through our flexible menu options, streamlined delivery and commitment to professionalism. The competitive landscape includes a mix of established catering services and local vendors, with key differentiators being the quality of offerings, reliability of service and expertise in handling corporate events. XYZ Corporate Catering's focus on culinary excellence, efficient logistics and strong client relationships will set us apart in this competitive arena, positioning us as a trusted partner for corporate event catering needs.

Location: XYZ Corporate Catering will thrive in a strategically located facility, housing advanced kitchens, storage solutions and dedicated administrative spaces.

Equipment and resources: Our operations will be fortified by cutting-edge kitchen equipment, elegant serving tools and efficient delivery vehicles.

Staffing and expertise: Our adept team—composed of seasoned chefs, professional servers, meticulous event coordinators and capable administrative personnel—will ensure flawless execution.

Hiring and qualifications: We will selectively hire individuals with expertise in the catering industry, focusing on chefs, servers, coordinators and administrative staff with a track record of excellence.

Target audience: Our primary focus will encompass downtown businesses and engaged couples in the wedding planning process.

Startup costs: The estimated initial investment required is $150,000 for kitchen equipment, leasehold improvements, licenses, permits and marketing expenses.

Revenue projections: Based on market research and pricing strategies, projected revenue for the first year is $400,000.

Profitability analysis: Gross profit margins are projected to be 70%, with a net profit margin of 20%.

Why should you create a catering business plan? Top benefits to consider

A well-written business plan provides valuable guidance and direction. It helps you define your goals, identify potential challenges and develop strategies to overcome them. Among its many benefits, a business plan can aid with:

Funding: A comprehensive business plan is essential for attracting investors or raising money for a business from financial institutions. It demonstrates the viability of the catering business and showcases the potential return on investment.

Resource planning: A catering business plan will help you understand what resources, supplies and staff are required to start and operate the business successfully. It allows for proper planning and allocation of resources. To learn more about what it takes to start different catering businesses, read our guides - How to start a food truck business , How to start a food prep business , How to start a frozen food business .

Competitive insight: By conducting market analysis and research as part of the business plan, you can gain insights into the competitive environment. This information helps in developing effective marketing strategies and positioning the catering business in the market.

Risk management: A well-prepared business plan allows you to identify potential risks and develop contingency plans to mitigate them. It provides a framework for risk assessment and management, ensuring the long-term success of the catering business.

Financial planning: One of the crucial aspects of a catering business plan is the financial plan. It includes details about initial funding, projected income, expenses and profitability. This information is vital for you, your investors and your lenders to assess the financial viability of the business.

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Catering Business Plan: How to Write Catering Business Plan

Writing a catering business plan is the first step to starting a catering business . A business plan makes it easy to map out your catering business ideas and see these ideas become a reality. 

Key Takeaway - The catering business is about proper and adequate preparation. From planning a menu to preparing meals for social events, there are several things to prepare for and take into account.

With a food catering business plan, you can build the perfect manual and guide to run your catering business successfully. It becomes easier to reach out to investors for funding as well. 

A catering business plan is easy to write and contains the same essential elements as other restaurant business plan formats. However, when writing a business plan for catering business, add catering industry-specific sections.

Let’s review how to write a catering business plan for your catering business.

How to Write a Catering Business Plan

Writing a catering business plan is more than just filling out a downloadable catering business plan template. Your passion for your catering business idea must be evident in each business plan section.

From the executive summary and company overview to your operational and marketing plan, your business plan must translate the ideology of your business. Do not just copy and paste something you see online.

When writing a business plan for catering business, include these sections:

Executive Summary

Company overview, team and management, market and opportunity, business operational plan, products and services, marketing plan, financial projections.

Your executive summary, usually one page, is the opening section of your business plan. It should make an excellent first impression of your business. The executive summary is a summary of your business plan.

When writing your executive summary, give a quick rundown of your company's income, costs, break-even point predictions, and other financial information. The executive summary comes last after you’ve written different sections of your catering business plan.

Your catering business overview should include details of your company. The company overview is a more practical version of the executive summary. It should describe the client experience, ownership and management components, and business operations.

For instance, you can explain your order management and order fulfillment process. This is an excellent space to mention your plan to buy a catering food truck. You can also note the job opportunities your catering business will create and future expansion plans.

This section is a great place to explain your eCommerce team structure and organogram. Start the section by explaining your role within the company. Then, you can drop a few highlights of team workflows and day-to-day tasks.

If your catering business scale-up plan will require more hands, mention their roles in this section. You can explain how you find to recruit your team members and your projected salary range.

Researching your market is essential. Knowing your niche market , who and where your customers are, and your potential competitors is crucial to the success of your catering business.

It’ll be great to explain consumer behavior. For example, how many events happen in the area every week? How many venues can you partner with? 

Market research will help you know the types of catering businesses that will succeed in your chosen market. It will also help you strategize how to stay ahead of the competition. When writing this section, use graphs and charts to explain your findings.

Explain your business process flow in this section. From how you will attract clients to how you will serve meals at an event, your operational plan is a great place to explain your workflow in detail.

The business operations portion of your catering business plan contains details regarding customer experience management. You can include your plan for sales and inventory management , restaurant accounting , warehouse management system , and food supply chain management for the items on your menu.

This section should explain the tiny details of your business activities. As a tip, highlight the different management processes of your catering business.

If you plan to specialize in a menu item for specific events, then this is the place to discuss it. For instance, your catering business may focus on cocktail parties or weddings. In this case, your menu item and prices will differ from a catering business that serves office lunches.

You may also serve a specific type of cuisine, such as Mexican or Indian dishes. Ensure you include a sample of your menu and pictures of your meals. Include details about your pricing as well.

Unlike other businesses in the food and beverage industry , customers only require catering services for events and occasions. Therefore, you must be positioned so potential customers will call you first when they have events.

Referrals are a big thing in the catering industry. However, you can leverage the opportunities that the internet has to offer. From owning a catering website to building your online presence on social media, there are various marketing strategies you can adopt.

You can list your catering business on marketplace online directories for event planners. Whatever your marketing strategy is, explain it clearly in this section.

Opening a catering business is not as expensive as starting a brick and mortar restaurant business . However, it is essential to discuss your financial projections and eCommerce accounting strategies if you plan to get a loan from the best banks .

You can give a five-year financial projection for your catering business. In financial projections, you must account for both fixed and variable costs.

Fixed costs include the following:

• Catering insurance
• Rent or lease payments
• Equipment costs
• Legal costs
• Fees and permits

Variable costs include the following:

• Costs of restaurant supplies such as wholesale meat , wholesale diary , wholesale produce , and wholesale seafood
• Delivery van costs
• Advertising and marketing
• Salaries and wages

6 Action Plan for Catering Business

• Choose a Format

There are various ways to write a catering business plan. Presenting your business plan will determine whether the reader will be captivated upon opening the document. 

Here’s a format you can use:

• Contents page
• Executive summary
• Marketplace overview
• Product/service description
• Marketing plan
• Support materials
• Do Your Research

Research is crucial to succeeding in any food service business. A simple survey will clear up. Will you operate at home? What events will you cater? Will you specialize in a particular type of food? 

Conducting research will also help you know the type of regulations you must comply with and the catering business license you need to operate your business. Ask questions from residents and check online for more information.

• Decide on Your Brand

Yes, there are a lot of catering business ideas. However, you must choose your specialty to be able to create a unique selling proposition for your brand. 

Do you want to specialize in weddings? Will you serve corporate events only? Deciding on this will determine your business operations, branding, and restaurant management system .

• Be Aggressive With Marketing

Marketing is something you should not get tired of doing. There are a lot of catering businesses in the U.S., and some restaurants are diversifying into offering catering services now. 

While the market opportunity is enormous, the competition in the industry is fierce. Therefore, having solid marketing and advertising plan is crucial to the growth of your business.

• Create Your Menu

Creating your menu is essential. First, decide your menu items and prices. Be realistic when setting your price. Consider the cost of obtaining the item at a wholesale vs retail price and the overall overhead costs to run your business.

• Try Software Automation

Restaurant technologies can streamline your business operations. For instance, payment processing software can help you accept payments online and make it easier for customers to pay via credit card on your website.

POS systems and catering management software will help you automate your catering operations. Invoice management software is another tool that will help your business accounting workflow.

Wholesale distribution management software and warehouse inventory management software will optimize your inventory management processes. In addition, you can manage supplier relationships with vendor management software.

Frequently Asked Questions About Catering Business Plan

Starting a catering business requires adequate preparation. A catering business plan will help you plan and serve as a manual to run your business successfully. Let’s answer some frequently asked questions about business plan for catering businesses.

What Skills are Needed for Catering?

A caterer needs the following skills:

• Planning menus for events
• Preparing food and beverages 
• Presenting and handling food and beverages
• Monitoring events
• Selecting and setting up event venues
• Managing inventory and wholesale supplies
• Creating packing slip for shipments

Do Caterers Set Up Tables?

Yes . Full-service catering businesses are responsible for setting up tables.

What Questions Should a Caterer Ask a Client?

A caterer should ask a client the following questions:

• What type of event are you planning?
• When will the event hold?
• Where would you like the event to be held?
• How long would you like the event to run?
• Why are you planning this event?
• Do you have an event theme in mind?
• What is your total budget or your budget per person?

Serve in Style

Having a catering business plan will make it easy to grow catering business . Applying for a business loan or getting investors interested in your business is also easier. Keep your sections clear and straight to the point when preparing your catering business plan.

You may need to prepare an elevator pitch when presenting to investors. Pitch your business confidently, project your passion for the industry, and keep it simple.

How to Start a Home-Based Catering Business

Pros, Cons and Steps to Opening a Catering Business from Home

• Home Business
• Small Business
• Online Business
• Entrepreneurship
• Operations & Success

Overview of a Catering Service Business

Pros and cons of a catering service home business, what you need to get started in a catering service home business.

• How to Start a Home Based Catering Business

Leslie Truex has over 20 years of experience as a writer and a home entrepreneur. She is the author of multiple books on running a home business.

Do you enjoy cooking for others? Are you the go-to person to cook for family events and holidays? You can turn that passion into profits by starting a home-based catering business.

While there is no surefire recipe for a successful home catering service business, a dash of culinary skills, determination, and grace under fire can go a long way. Catering businesses can be run from home full or part-time, and earn between $30,000 and $80,000 a year, according to Shmoop .  

You can start small, catering events you can manage on your own or with a couple of helpers to see if a catering business is really something you want to pursue. Start-up costs depend much on how big you want to start, your state's requirements for selling food made from home, and what you already own to help you get started. On average, you can expect to invest $10,000 to $50,000 to get started, according to Entrepreneur.com.   But if you start with small events, you should be able to open your business for less.

Many catering start-ups succeed by conquering a niche; focusing on a particular food and/or certain kinds of events to keep overhead low and advertising focused. For instance, if you're expertise is in kosher food, you'd focus on Jewish events such as Bar Mitzvah, and promote through Jewish publications and other sources Jewish people would read. Other niche markets include family reunions, business or non-profit parties and events, and weddings.

It's the perfect job for amateur chefs.

It provides opportunity to advertise on the job -- potential customers are eating your food.

The top 50 US caterers generate less than 15% percent of the industry revenue, according to a  Business Wire  article, meaning there's room for small operations.

You can start small and grow, or stay small.

You can start part-time, working only weekends, and then expand to full-time as you get clients.

A bad meal can generate bad word of mouth.

Clients might make unreasonable demands or be difficult to work with.

Mishandled food can guests sick, creating potential liability issues.

Catering businesses require a great deal of organization and planning skills, plus a commitment to being on time. People are expecting you to bring food and service it. You can't not show up if you plan to have a successful business.

Before you jump into a catering business, you should decide a few things:

• Will you focus on a specific type of food or event? For example, will you just do cocktail parties?
• Will you cook on the client's premises or cook at home and deliver the meal? This could mean buying special equipment to keep the food warm or cold during transport.
• Does your state allow you to cater from home, and if so, do you need any special inspections or permits? Contact your state's occupational licensing agency or health department to find out what you need to do to be approved to operate a home-based catering business.  

Once you've determined the above, you should gather needed equipment and supplies. Most states that allow home-based catering have specific rules about food handling. For example, you may need to have a set of cooking utensils, pots, pans, servers, etc that are used for business only and not from your personal kitchen. The same may be true for food ingredients. In some cases, you might be required to have an entire separate kitchen.  

How to Start a Home Based Catering Business

If you're ready to start cooking, here are the steps to starting your home-based catering business.

Emily Roberts. © The Balance 2019

• Decide what type of catering you want to do.
• Contact your state occupational licensing or health department to learn what permits you need and any laws you need to abide by.
• Set up your business structure. To protect your personal assets from the business, consider setting up a limited liability company. Or, if you're working with someone else, set up a partnership.   You'll need to name your business before setting up your business structure and getting licenses.  
• Contact your city or county about obtaining a business licenseand obtain liability insurance  to protect your business if someone gets sick.
• Write a detailed business plan.
• Marketing plan and materials.
• Create your menu. You can make your life easier by having a set list of items from which clients can mix and match to create their event menu. 
• Buy professional cookware, dishware, utensils and other food-preparation and serving tool.
• Contact vendors to obtain your food and supplies wholesale. Give them flyers so they can promote your business to their customers.
• Develop a system for collecting and responding to testimonials and referrals .
• Consider offering discounts for referrals.
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Setting up a Catering Business from Home

All you need to know about starting and running your business.

In this article

What is a Catering Business from Home?

Do you have a passion for cooking? Are you an organised person with a flair for business? If so, setting up your own catering business from home could be extremely rewarding. Not only will you have the luxury of working for yourself, but you can also use your creative cooking skills and entrepreneurial streak to create a potentially lucrative business.

Your catering business can encompass many different tasks. Your responsibilities as a caterer could include:

• Planning a menu.
• Sourcing ingredients.
• Preparing and cooking food.
• Transporting or delivering food.
• Presenting or serving food.

Running your own catering business from home can be extremely profitable. The catering industry in the UK is worth more than £405 million. Since the initial outbreak of the Covid-19 pandemic, when businesses and events were closed, the catering industry is now beginning to regain momentum. With more people than ever changing careers, now could be the perfect time to enter the world of catering.

A catering business from home, also known as home catering, would involve you preparing and cooking the food at home. You can then deliver the food to parties, functions and events. Depending on the type of catering business you choose to run, you could also present and serve the food. Some caterers even choose to be involved in the clean-up process after the event. A catering business can be a part-time or full-time career. If you are looking for a more flexible schedule, you can choose your own hours and only accept certain bookings. Caterers usually get most of their business in the evening or at weekends.

As a caterer, the success of your business is likely to depend on several factors, such as:

• The quality and taste of the food you supply – Sourcing food from quality suppliers is key. You may also want to plan a menu that suits different tastes, can be changed to accommodate food allergies and features vegetarian and vegan food. It is also important to consider the practicality of the food you cook and how time-consuming or difficult the dishes are to prepare. Most importantly, your food should be delicious. Consider trying your recipes on friends and family before including them in your menu.
• Your organisational skills – All caterers operate in different ways, depending on the type of caterer they are. The behind-the-scenes food preparation can be time-consuming and is a key aspect of catering. Being organised is essential to the success of your business.
• Marketing and word of mouth – Marketing your business is key, especially in the beginning. You could create fliers and online posts, attend food fairs and wedding fairs, and advertise online. Word of mouth is also a great way to ensure your business succeeds. You could receive repeat business from the same client, or they could recommend you to others.

Depending on the type of catering you provide you may first have a meeting with the client. This meeting is where you will discuss the menu, the number of people you will be catering for, the venue and the client’s vision.

Some caterers choose to have a pre-prepared menu that the client can choose from. This menu will have been planned ahead of time and will feature tried and tested dishes.

There are many different ways to run your catering business from home. Think about the type of business you want to run and how best to achieve this before starting up your catering business.

Types of Customers

The types of customers you plan to cater for is also known as your target market. There are a variety of customers you can target with your catering business.

Potential target markets include:

• Businesses and corporations.
• Parties and other social events.
• Weddings and other formal celebrations.
• Outdoor events.
• Children’s events.
• Vegetarian or vegan customers.
• Customers with specific religious beliefs, for example, Halal food.
• Regular or repeat customers.

Many caterers will opt for a specific target market, based on a number of factors.

This could include:

• Your pricing strategy – How much do you plan to spend on your menu and how much do you plan to charge your customers? Many caterers have a price per head for events they cater. The price you charge per person will affect your target market. For example, wedding caterers will usually charge more per head, compared to catering for children’s birthday parties.
• Your menu – The menu you provide will be a significant factor in the type of customers you attract. A caterer who cooks gourmet food will target different customers to a caterer who provides buffet food.
• Competition – Before deciding your target market, it may be worth researching other caterers in your area. For example, if there are a lot of social event caterers but very few corporate caterers, it may be worth tapping into this less competitive market. Researching your competition can also help you to find ways to stand out.
• Your abilities and experience – This could be another significant factor in deciding the type of catering you will provide. For example, if you are an experienced chef who is looking to open your own catering business, you may be more likely to target upmarket events with sit-down meals.

Equipment You Will Need

A catering business can be a low-investment enterprise. However, even though you are working from home, you will likely need to purchase specialist equipment. The type of equipment you will need will depend on the type of catering you plan to provide.

Typical start-up costs and the cost of catering equipment can vary significantly based on a number of factors, such as the type of catering you will supply, your equipment needs and the size of the catering jobs you plan to provide. The cost of purchasing equipment for your catering business can vary significantly.

Below is a general list of equipment required for many caterers.

Cooking equipment

Cooking equipment requirements can vary significantly, based on the type of catering you will provide and the amount of food you plan to prepare. You may be able to use some of the cooking equipment you already have in your home, such as your oven and grill. However, for large-scale catering, you may require additional cooking equipment. Some caterers even convert a dedicated space or room in their house for their business. You may also want to consider cooking equipment that can be transported and stationed at an event. This could include induction cookers and portable gas ranges.

This could include cooking utensils and serving utensils. Some catering businesses also provide their customers with eating utensils, so consider the type of catering you will provide before purchasing utensils. Investing in a good set of professional kitchen knives may also speed up your prep work.

Pots and pans

This could include frying pans, woks, saucepans and crockpots. It may be worth investing in more expensive, higher-quality pots and pans initially to save you from needing to replace them. Non-stick pans can also be a huge advantage.

Kitchen tools and accessories

Depending on the food you are supplying, there are some additional kitchen accessories you may require. This could include blenders, food processors, chopping boards, colanders, thermometers and timers.

Additional supplies

This could encompass any other items that are required for cooking and storing your food. Examples include aluminium foil, clingfilm and baking paper.

Food stock and ingredients

It is not recommended to purchase stock or ingredients until you have finalised your menu. In fact, many caterers choose to only purchase stock once they have secured a client. This is especially true of fresh food, meat and perishables. This is to avoid food wastage and loss of investment. However, it is recommended that you spend time sourcing your ingredients, even before you gain clients. This ensures you have the best ingredients at a competitive price. Consider wholesale food distributors, manufacturers and local suppliers. Once you have secured some clients, it may be more cost-effective to buy some food stock in bulk.

Transport supplies

If you are preparing the food at home, you will need equipment to transport the food from your home to the event location, without losing temperature. Insulated food trays or containers will help to keep the food hot or cold. For any food that does not require a specific temperature, storage boxes and containers should be sufficient.

Food labels

Food labels are essential in catering. It is required by law to show the name of the food, any allergen information, additives and if any ingredients have been irradiated or come from genetically modified sources. For more information on the 14 food allergens all caterers should be aware of, consult our knowledge base .

Display items

Many clients may prefer to hire a caterer who also considers how the food will be displayed. This could be especially true if you are catering for a special event or providing a buffet. You could even add the cost of renting display items to your price list. Display items could include risers, cake stands, centrepieces, display trays and folding tables. Warming trays and chafing dishes can also be used as a practical yet attractive way of displaying cooked food and keeping it hot.

Serving equipment

Depending on the type of event you are catering for and the venue, you may have to provide serving equipment. This could include serving platters and serving utensils, such as tongs and ladles.

Consider how you plan to transport the food from your home to the event. If you already have a car, you may be able to use this for transport. However, if you are planning to cater large events with more than a hundred people, you may want to consider investing in a dedicated van or food delivery vehicle.

Cleaning equipment

When you receive a visit from the Environmental Health Office (EHO), they will pay particular attention to how you keep your kitchen, food preparation and food storage areas clean. You will likely require different cleaning materials for different areas of your kitchen. Some cleaning equipment you should invest in includes cloths, sponges, a sweeping brush, a mop, antibacterial surface cleaners, sanitiser and dishwashing soap.

Appropriate clothing

Even though you may be preparing the food at home, you should still ensure you are wearing appropriate clothing. An apron and hairnet should be worn for hygiene purposes. Gloves may also be recommended when preparing food. If you plan to serve food as part of your catering business, you may also need to invest in a uniform.

Typical Costs

Start-up costs can vary significantly, depending on the type of catering business from home you plan to run. To help you get an idea of the typical start-up costs you can expect, we will look at the factors you need to consider.

Equipment costs

As mentioned above, the cost of purchasing equipment can vary significantly. To reduce your equipment costs, you could look into renting some of the larger, more expensive equipment. To get an estimate of how much equipment is likely to cost you, make a list of the things you need. Equipment costs can vary from £1,000 to as high as £50,000.

Costs of advertising

It is generally recommended that businesses spend no more than 10% of their revenue on advertising. So if you expect to make £50,000 per year, no more than £5,000 should be spent on advertising. If you plan to advertise at wedding fairs, expect to pay around £200 + VAT for your space.

Food hygiene training

The costs of food hygiene training can vary significantly. Food hygiene training is a legal requirement and is something that many potential clients will look for. We offer online food hygiene training with certification for £20 + VAT. You may also want to consider undertaking training for Allergen Awareness. Consult our online Food Hygiene courses for more information.

The cost of business insurance can vary significantly, depending on the type and amount of coverage you choose. Public Liability Insurance, Product Liability Insurance and Legal Indemnity Insurance are usually recommended for catering businesses. You should expect to pay £100-£200 per year for insurance.

You should aim for the cost of your stock to be no more than 30%-40% of your food sale price. This means in order to estimate your food stock costs, you first need to estimate the price of your menu and the number of menu sales you plan to make each month. For example, if your menu is priced at £20 per person and you plan to cater for 500 people per month, your menu cost is approximated at £10,000. This means you should be spending no more than £3,000-£4,000 per month on ingredients.

Replacing or upgrading equipment

It is inevitable that some equipment will need to be replaced or upgraded as your business grows. The cost of this will vary significantly depending on the type of equipment you are replacing. For example, upgrading your car to a van could cost £30,000, whereas replacing utensils may only cost £100.

Typical Pricing

How much you charge customers could vary, depending on a number of reasons. Many catering from home business owners find it easier to have a price per head for their catering. It can be very difficult to decide how much to charge, especially when you are just starting your business.

Pricing can vary significantly, with some caterers charging £10 per head and others as high as £100 per head. The quality of the food and service you provide will determine your pricing. If you are proving a gourmet sit-down meal, your pricing is likely to be significantly higher than if you are providing a cold buffet.

There are several factors to consider when deciding your pricing.

Ingredients

Once you have planned your menu, calculate how much the ingredients are going to cost. As mentioned earlier, your ingredients should be no more than 30%-40% of your food sale price, although many caterers aim for 30%. Once you have calculated the ingredient cost, you can use this to calculate the food sale cost.

Labour and time

How much time is it going to take you to prepare and organise for the job? Will you need to hire any additional staff? These are all important considerations when deciding your pricing.

Overhead costs

This could include delivery costs and any other business-related costs. This could include the cost of your insurance and electricity and gas. You can split the total of these costs between your different clients.

Any other services you provide

If you are involved in serving the food or cleaning up the venue, this should also be included in your pricing.

Safely Running a Catering Business

You will inevitably receive a visit from the Environmental Health Office (EHO) within the first weeks or months of opening your catering business. They will check that you are safely running your catering business and have the correct protocols in place.

To ensure you are safely running your catering business, there are several protocols you should follow.

Be aware of HACCP and use risk assessments

Hazard Analysis and Critical Control Point (HACCP) helps you to manage food and hygiene safety procedures. This ensures you have minimised potential hazards and risks and are actively promoting safety procedures. Although written risk assessments are not a legal requirement in businesses with less than 5 employees, they can help to protect you and your customers and demonstrate your awareness of HACCP and the actions you have put into place. For more information about HACCP, consult our knowledge base .

As mentioned before, food hygiene training is an essential safety protocol for catering businesses at home.

Firefighting equipment

Businesses are required to have firefighting equipment on site at all times. Consult gov.uk for more information on firefighting requirements.

Be aware of cooking temperatures

This helps to reduce or eliminate the risk of food poisoning. Using a food thermometer could be an excellent way of ensuring food is cooked and stored at the correct temperature. The Food Hygiene Company has some useful information on food temperature guidelines for you to consult.

Cleaning protocols are essential in the food industry. Ensure you are aware of recommended protocols and are following them at all times. For more information about cleaning, sanitising and disinfecting, consult our knowledge base .

Food contamination risks

Being aware of food contamination risks is essential. Wash surfaces and equipment thoroughly, keep food separate and be aware of how you can pose a contamination risk.

Legal Requirements

There are several legal requirements you must adhere to when setting up your catering business:

Apply for a food business registration

The first thing you will need to do when setting up your catering business is to apply for a food business registration. You can apply for this on the government website , and it is free of charge. If you run a food business without registration, you can be fined or receive a prison sentence of up to 2 years. You must apply for the food business registration at least 28 days before you begin trading.

Set up as a sole trader with HMRC

If you are running your catering business as an individual or as a self-employed person, you will need to register as a sole trader. You will have to name your business and keep records of all your income, profits and expenses. You do not have to pay to register as a sole trader.

Food hygiene certification

Food hygiene training is a legal requirement for caterers. Obtaining a food hygiene certificate is the easiest way to prove that you have undertaken food hygiene training.

Liability insurance

Public and Product Liability Insurance protects you against claims for injury or property damage. Injury encompasses illness and food poisoning at an event you catered for. This insurance covers legal costs and compensation payouts if you are sued.

Legal indemnity insurance

This helps to protect you against a claim from a client who is dissatisfied with the service you provided. This insurance can cover legal defence costs and compensation costs.

Planning permission

Depending on how much food you plan to make, you may need to get planning permission. Contact the planning team at your local council to find out whether you have the correct planning permission and building regulations approval.

Positives of Owning a Catering Business from Home

There are multiple benefits to owning a catering business from home:

• You are your own boss and can work in the comfort of your own home.
• Caterers can have a flexible schedule. You can set your own working hours and choose how often or how little you work.
• You can do something you are passionate about.
• You do not need to undergo any specialist training.
• Starting up a catering business from home can be relatively easy.
• You can choose the size of your business. You can choose to remain a small catering business from home or opt to grow the business.
• You are likely to see client loyalty and receive repeat business or recommendations.
• Catering can be extremely fun and rewarding.
• It is easy to plan and predict your revenue and overall profits.
• It can be easy to link in other industries, such as private parties and weddings.
• You can pick and choose your own clients. You can turn down work or particular clients with no implications.
• There is unlimited income potential.

Negatives of Owning a Catering Business from Home

Although owning your own mobile ice cream business has many potential benefits, there are some important potential negative aspects you should consider.

• Start-up costs can be quite high.
• Catering businesses require commitment and can be time-consuming. As you are the boss, all the responsibility falls on you.
• Depending on where you live, there may be a lot of competition, making it more difficult for you to succeed.
• The cost and maintenance of equipment can be quite expensive. You also need to consider the possibility of expensive equipment breaking suddenly and encountering unexpected costs.
• Impacts on the economy can hugely affect the catering industry. As we have seen with the Covid-19 pandemic, industries such as catering can be the first, and worst, industries to be affected. This is completely outside of your control.
• You may be limited to the amount of equipment and stock you can order and store. As you are using your home space, you need to consider this when planning your business.
• There is a potential for cross-contamination or food poisoning.

Planning Your Catering Business from Home

Planning your business effectively is key to its success.

There are some key steps you should follow when planning your business:

Decide your target market

Deciding what type of catering you aim to deliver is a key consideration. There are many different types of caterers, including:

• Corporate catering – Corporate catering involves catering for corporate functions. This could include meetings, mixers and other corporate events. Corporate events can be large or small, so keep in mind the size of the event you are capable of catering for.
• Wedding catering – Wedding catering usually incorporates a sit-down meal with a buffet in the evening.
• Social events catering – This could include birthday parties, christenings, funerals, retirement parties and baby showers.
• Food trucks – Food truck catering is growing in popularity. You can have a food truck that parks in high-traffic locations daily. Alternatively, food trucks that are hired for specific events, such as festivals, fairs and weddings, have grown in popularity.
• Buffet catering only – Specialising solely in buffet catering can help to simplify and streamline your business. You can supply a menu of catering options to potential clients who can specify which food they would like. You can choose to supply hot and cold food or only cold food.
• Sit-down catering only – Sit-down catering can be more time-consuming and require more organisation and planning. However, sit-down caterers can usually charge more per person, compared to buffet caterers.
• Dessert catering – This type of catering has grown in popularity in recent years. It has become a trend to provide a variety of desserts or personalised cakes and biscuits at events.

Plan your equipment requirements

What equipment do you need to start your business? Would it be cheaper to rent the equipment rather than buying it? Is there any equipment you can buy later on, once your business is more established?

Calculate your start-up costs

This can help you figure out whether you can fund the start-up costs yourself or whether you need to consider a business loan.

Develop your catering business plan

This helps to give you a clear plan, aims and actions. A business plan can help you to establish costs, potential profits, your target market and any opportunities or threats you should be aware of. Take a look at our business plan template to help you effectively plan your catering from home business.

Think of a name for your business

Your business name is very important, as it is the first impression customers will have of your catering company and how you will be recognised. Think of your name carefully and run it by friends and family before you register it with the government.

Ensure you have the correct paperwork and have followed all legal requirements

This helps you to avoid any fines or delays in opening your catering business. Consult our list of legal requirements above.

Download our business plan

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How to Start a Catering Business from Home in Canada

A home catering service business is a business that operates from home and provides food service at a remote site such as a cruise ship, hotel, park, hospital, pub, aircraft, filming site or studio, event venue, or entertainment site (wedding parties, birthday parties et al).

According to the information that is currently available, Canada’s catering market size peaked in 2019 at 3.75 billion US dollars.

The coronavirus (COVID-19) pandemic caused the market to shrink, falling to $3.35 billion in 2020. According to Technavio’s most recent industry analysis, the catering services market will increase by USD 104.92 billion between 2020 and 2025, rising at a CAGR of 4.4 percent.

Steps on How to Start a Catering Business from Home in Canada

Conduct market research.

In order to optimize revenue from the business, someone launching a home-based catering operation needs to conduct trustworthy market research. Please take note that the first stage in conducting market research for your home-based catering business should be to create market-based research questions that are consistent with your main goals and objectives.

In this regard, you should look for information that will provide you with trustworthy data, information that will give you an idea of what your potential market will be looking for in a catering business, information that will also help you run your home-based catering business with less stress, and help you grow the business to profitability.

a. Who is the Target Market for Catering Business?

• Graduation Parties
• Wedding Planners
• Business luncheons and Trade Shows
• Annual General Meetings
• Event Planners
• Corporate Organizations
• House Parties
• School Events
• Birthday Parties.

b. Is Catering Business from Home in Canada a Profitable Business?

Yes, the catering business is indeed a profitable business. According to credible statistics, a catering firm can make up to 20% from a single catering contract, all other things being equal. A food truck or restaurant business is unlikely to make that much from a whole day’s worth of work.

However, in general, catering profit margins far exceed those of the typical full-service restaurant. It is considerably closer to the fast food and food truck margin.

c. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to catering business from home. This is so because catering business from home is a niche idea in the catering and food services industry .

d. Who are the Major Competitors?

• CLS Catering Services
• Big City Catering Services Toronto
• Cole’s Catering Services
• Culinary Catering Services
• Elizabethan Catering Services
• The Chef’s Hat Catering
• Encore Catering
• Elle Cuisine
• Top Notch Catering
• The Food Dudes
• Decadent Catering & Fine Foods Inc.
• Sugar Catering
• Chef Paul’s Catering
• Daniel et Daniel Catering & Events
• Cravings Fine Food & Catering
• 10tation Event Catering
• Kitchen Door Food Co
• The Catering Company
• Freshly Made Catering

e. Are There County or State Regulations or Zoning Laws for Catering Businesses from Home in Canada?

Yes, there are county and provincial regulations and zoning laws for catering businesses in Canada. A license is required by the Safe Food for Canadians Act (SFCA) and Safe Food for Canadians Regulations (SFCR) for food businesses to operate in accordance with the laws governing food.

The SFCR determines whether you require a license based on the activities you engage in, not the kind of business you operate.

f. Is There a Franchise for Catering Business from Home in Canada?

No, there are no franchise opportunities for catering businesses from home in Canada.

g. What Do You Need to Start a Catering Business from Home in Canada?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Catering facility
• Goods and Services Tax/Harmonized Sales Tax (GST/HST)
• A Corporate Bank Account
• Suppliers of food ingredients and drinks
• Startup Capital

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a catering business are;

Creative Catering Business Name ideas

• Lovelyn Morgan© Home Catering Services, Inc.
• Chef Windsor® Catering Services, Ltd.
• Rita Foods© Caterings Services, Inc.
• Stella Walter® Caterings Services, Inc.
• Calgary Culture™ Caterings Services, Inc.
• Delight Taste™ Caterings Services, Ltd.
• Food O’clock© Caterings Services, Ltd.
• Fresh Pots® Caterings Services, Inc.
• Catherine Caterers© Caterings Services, Inc.
• Ellen Halland© Caterings Services, Inc.
• Chef Rosa® Caterings Services, Ltd.
• Golden Fingers™ Caterings Services, Ltd.
• Mississauga Caterers© Caterings Services, Inc.
• Chef Kathleen® Caterings Services, Inc.
• Regina Caterers™ Caterings Services, Inc.
• Halifax Cooks™ Caterings Services, Inc.
• Chef Jacinta© Caterings Services, Inc.
• Julliet Landrum® Caterings Services, Ltd.
• Grand Style© Caterings Services, Inc.
• Chef Alice© Caterings Services, Inc.

Register Your Business

A. what type of business structure is best for catering.

You have four alternatives for business structures when creating a catering business in Canada, but the corporation is the one that most people in this industry take into account. Because a corporation has limited liability—the owners are not liable for the debts or liabilities of the business.

Obtaining funding from investors or financial organizations is simpler. Additionally, it is necessary to be incorporated in order to transact business with governments or other companies, and business income can be distributed in the form of dividends or salaries, allowing you to minimize your tax liability.

Please note that all Canadian businesses must register their names in their respective provinces or territories, with the exception of sole proprietorships that use only the owner’s legal name without any additions (except in Newfoundland and Labrador, where neither partnerships nor sole proprietorships are required to register their names).

b. Steps to Form a Corporation in Canada

You must complete these steps in order to become a corporation:

• Whether it’s a federal or provincial/territorial incorporation, register your business.
• Contact the Canada Revenue Agency to open a corporate income tax account and obtain a federal business number (CRA).
• In all other Canadian jurisdictions where you want to conduct business, register as an extra-provincial or extra-territorial corporation.

c. What Type of License is Needed to Open a Catering Business in Canada?

• General Business License
• Health and Safety Permit
• Food Handler’s License
• Liquor license
• Health and trade license
• Lift clearance license
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections for your kitchen

d. What Type of Certification is Needed to Open a Catering Business in Canada?

These are some of the certifications you can work towards achieving if you want to run a catering business in Canada;

• Clean Health Certificate
• Food handler Certification
• Catering Training Certificate

e. What Documents are Needed to Open a Catering Business in Canada?

• Council Permit
• Business and liability insurance
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document

f. Do You Need a Trademark, Copyright, or Patent?

If you plan to open a catering business in Canada, you probably won’t need to file for trademark protection or intellectual property protection. This is true because the nature of the business makes it possible for you to run the company successfully without needing to take legal action against anyone who uses your intellectual property.

Cost Analysis and Budgeting

A. how much does it cost to start a catering business from home in canada.

You should budget slightly above $65,000 CAD to be able to successfully launch a catering business from home in Canada.

b. What are the Costs Involved in Starting a Catering

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $3,300.
• Marketing, Branding, and Promotions – $2,000.
• Business Consultant Fee – $2,500.
• Insurance – $2,400.
• Rent/Lease – (Since you will be operating from home, you should ignore this expenditure)
• Operational Cost (salaries of employees, payments of bills et al) – $20,000
• Start-up Inventory – $5,000
• Catering Equipment and Wares – $25,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. What Factors Determine the Cost of Opening a Catering Business in Canada?

• The size of the catering business
• The choice of location
• The required licenses and permits
• The type of food and services (catering rental services)
• The cost of branding, promotion, and marketing of the catering business
• The cost of the insurance policy covers
• The cost of registering the business
• The cost for the purchase of catering equipment and wares
• Source of your food ingredients, supplies, and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the catering business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

You don’t need to build a facility for your catering business since you will be operating from home.

e. What are the Ongoing Expenses of a Catering Business from Home in Canada?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Transport and logistics
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Caterer (Owner) – $50,000 Per Year
• Cooks (Assistants) – $30,000 Per Year
• Waiters/Waitress (Contract) – $28,000 Per Year
• Cleaners – $25,000 Per Year

g. How Do You Get Funding to Start a Catering Business in Canada

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Ellen Halland© Caterings Services, Inc. is a catering business that will be based in Vancouver, British Columbia, Canada. Our intention of starting a catering business in Vancouver, British Columbia is to deliver the best quality catering services at an affordable price to a wide range of customers.

Our services will involve catering for parties, outdoor events, weddings, holiday parties, birthday parties, corporate events, picnics, anniversaries, special events et al.

As part of our plans to make our customers our number one priority, we have perfected plans to work with our clients to provide customized services based on their budgets. We will be involved in delivery services, rentals services, event management, and consultancy services.

b. Products and Service

• Local food sales
• Intercontinental food sales
• Small chops and snacks
• Catering wares and equipment rentals

c. Mission Statement

Our mission is to establish a standard catering business that will meet all the catering needs (cooking, event planning, rentals, training, and consultancy services) of people in Vancouver, British Columbia and neighboring cities in the province.

Vision Statement

Our vision is to become the leading home catering brand in Vancouver, British Columbia.

d. Goals and Objectives

The goals and objectives of a catering business are to provide food service at a remote site or a site such as a cruise ship, hotel, park, hospital, pub, aircraft, filming site or studio, event venue, or entertainment site (wedding parties, celebration parties, and birthday parties et al).

e. Organizational Structure

• Chief Caterer (Owner)
• Cooks (Cooking Assistants)
• Waiters/Waitress

Marketing Plan

A. swot analysis.

• Ideal location for a catering business in Canada
• Highly experienced and qualified caterer
• Availability of different types of delicacies
• Moderately priced menu
• Reliable and efficient inventory management system.
• Financial constraints may restrict the publicity and branding of the business
• A new business that will be competing with well-established catering businesses in the city.

Opportunities:

• A rise in the number of people who would want to organize events that will require the services of caterers within our market space
• Online market, new services, new technology, and of course the opening of new markets.
• The arrival of a new catering services business within our market space
• Economic uncertainty
• Liability problems
• The government could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

b. How Do Catering Services Businesses Make Money?

Catering services businesses make money by preparing and serving;

• American food sales
• Catering equipment and wares rentals

c. Payment Options

• Payment via bank transfer
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Sales & Advertising Strategies

• Introduce your catering business by sending introductory letters alongside your brochure to event planners, park managers, hotels, schools, religious organizations, clubs, corporate organizations, households, and other key stakeholders throughout the city where your catering business is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across
• Create a basic website for your business so as to give your business an online presence
• Directly market your catering.
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

The amount a caterer charge in Canada depends on some factors, for example, if a caterer wants to cater to 100 guests, they will charge about $1,200 for drop-off and $2,500 for buffet-style services. The services the caterer is offering and the type of food will determine the amount they will charge.

b. How Much Profit Do Catering Owners Make a Year in Canada?

It depends, but the available report shows that on average, catering business owners make anywhere from $25,000 a year to $120,000 and above.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the catering business
• The types of food, snacks, and other services
• The location of the catering business
• The management style of the catering business
• The business approach of the catering business
• The advertising and marketing strategies adopted by the catering business.
• The number of years the catering business is in business

d. What is the Profit Margin of a Catering Business?

A basic guideline in the catering business is to keep food cost percentages between 28 and 32%. But rather than being a general rule that applies to all catering businesses, this is more of a recommendation.

e. What is the Sales Forecast?

Below is the sales forecast for a catering business. It is based on the location of the business and other factors as it relates to such startups in Canada;

• First Fiscal Year: $250,000
• Second Fiscal Year: $320,000
• Third Fiscal Year: $450,000

Set Up your Shop/Office

A. how do you choose a perfect location for catering business in canada.

• The demography of the location especially as it relates to families and the frequency of parties and events
• The demand for catering services in the location
• The purchasing power of the residents of the location
• Accessibility of the location and the road network
• The number of catering businesses in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What Province and City are Best to Open a Catering Business in Canada?

• Toronto, Ontario
• Calgary, Alberta
• Quebec City, Quebec
• Charlottetown, Prince Edward Island
• Saskatoon, Saskatchewan
• Nova Scotia, Halifax Manitoba, Winnipeg
• Mississauga, Ontario
• Vancouver, British Columbia
• Kitchener, Ontario
• Hamilton, Ontario.

c. What Equipment is Needed to Operate a Catering Business from Home in Canada?

As expected, before you can open a catering business, you will need cooking gas, deep freezers, fridges, blenders, serving utensils (plates, ashtrays, glasses, flatware), and drums et al.

Hire Employees

When it comes to hiring employees for a standard catering business, you should make plans to hire a competent chief caterer, caterers (cooking assistants), waiters and waitresses, and cleaners.

Launch the Business Proper

No catering business opens its doors for business without first planning an opening party to formally launch the business. If you are on a tight budget, you could do a soft opening celebration instead of a grand opening event. Alternatively, you might want to do both.

The bottom line is that by properly launching your catering business, you will be able to formally let residents of your community know that you are open for business.

a. What Makes a Catering Business in Canada Successful?

• Choose a good location to launch the business
• Make sure you offer a wide variety of foods (give your customers options)
• Throw an open house grand party before officially opening the catering business in Canada
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your catering business in Canada
• Leverage all available online and offline platforms to promote your catering business in Canada

b. What Happens During a Typical Day at a Catering Business?

• The catering business is open for the day’s work
• The caterers (cooking assistants) prepare the food
• Foods are delivered to customers or event venues as requested
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Catering Business in Canada?

• Excellent culinary skills
• Excellent customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a catering business environment or niche catering
• Experience in managing people
• Experience in business administration
• Experience in preparing a wide variety of delicacies.

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