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Ultimate Guide to Start Your Home-Based Catering Business

home based catering business plan

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

home based catering business plan

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.

home based catering business plan

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

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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

catering-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. 

Read more articles from Rocio Espinoza

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How to Start a Catering Business from Home

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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home based catering business plan

How to Start a Catering Business From Home 

home based catering business plan

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. 

home based catering business plan

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. 

home based catering business plan

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 O'Toole

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

Mary King

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.

National Association for Catering and Events online courses page.

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.

Heatmap of catering businesses in Wichita, Kansas.

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.

Bar graph from International Caterers Association.

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.

Square invoice for a catering company

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.

Bar graph from International Caterers Association.

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 email campaign for a catering company

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.

A bar graph from the International Caterers Association.

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

Mary King

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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 9 Steps

Eric Goldschein

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

home based catering business plan

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.

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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.

On a similar note...

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Catering Business Plan Template

Written by Dave Lavinsky

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

Start Your Catering Plan Here

Catering Business Plan

You’ve come to the right place to create your catering business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start a new catering business or grow their catering company.

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

Next Section: Executive Summary >

Catering Business Plan FAQs

What is a catering business plan.

A catering business plan is a plan to start and/or grow your catering business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your catering business plan using our Catering Business Plan Template here .

What Are the Main Types of Catering Businesses?

Catering services are available for a variety of different occasions including parties, weddings and corporate events. 

What Are the Main Sources of Revenues and Expenses for a Catering Business?

The primary source of revenue for catering companies is individual, private events and corporate events. 

The key expenses for catering companies are rent, wages and salaries, equipment and food costs.

How Do You Get Funding for Your Catering Company Business Plan?

Catering companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Catering Business?

Starting a catering business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Catering Business Plan - The first step in starting a business is to create a detailed business plan for a catering business that outlines all aspects of the venture. This should include potential market size and target customers, market resarch on the catering industry, the services or products you will offer, business operations details, pricing strategies and a detailed financial forecast.  You can quickly complete your catering business plan using our Catering Business Plan Template here .

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your catering business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your catering business is in compliance with local laws.

3. Register Your Catering Business - Once you have chosen a legal structure, the next step is to register your catering business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your catering business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Catering Equipment & Supplies - In order to start your catering business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your catering business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful catering business and catering business planning:

  • How to Start a Catering Business
  • How to Start a Catering Company

Where Can I Get a Catering Business Plan PDF?

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

Other Helpful Business Plan Templates

Photography Business Plan Template Event Venue Business Plan Template

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How to Start Your Own Catering Business from Home (updated)

Have you ever thought how to start your own catering business with your cooking skills from home? If you have thought about but not sure how to get started then keep on reading!

If you know your way around the kitchen and can whip up dishes that never fails at getting rave reviews, you could be on to something there my friend.

When I think of catering I immediately think of the show Friends because Monica was a caterer and ran her business from her apartment. I found a clip on YouTube.

The one where she catered a funeral and couldn’t get bring herself to collect payment from the widow. Enter Phoebe. Oh and watch Monica market her catering business at the end!

It might sound like an expensive venture but it doesn’t have to be. In fact, I’ve learned if you plan it carefully, start-up costs can be anywhere from $500 to $1,000.

But before I get into that, I’d like to share some food for thought (pun intended :)) about starting a home-based catering business.

A lot of folks start a business on a whim and let the excitement of being their own boss cloud their planning which in the long run can bite ’em in the hamburger bun.

Here are some things to remember when starting a home-based catering business.

Make Sure You Are In It for the Long Haul

Whether you’ve decided to do this full time or part-time, a home-based catering business can be demanding and stressful at times. Like running any business, there’s hard work involved.

So make sure you’ll be dedicated to see it through from beginning to end and willing to go the extra mile for the sake of your business.

The Kind of Skills You’ll Need For Starting A Catering Business

You should be able to handle working under pressure and be firm (remember Monica trying to collect payment at the funeral she catered). You also need to comfortable interacting with people to build your clientele.

Apart from having killer recipes, you have to have a knack for presenting your dishes and be very organized. You’ll have to have top-notch planning skills to be prepared for little emergencies like forgetting the napkins or how to handle a last minute no-show with one of your servers.

Ideas for Keeping Start-Up Costs Down

As I mentioned earlier, start-up costs don’t have to be high. If there’s careful planning you can keep them at a minimum. Let’s go over some ideas to do that.

Start small. Don’t go booking an event to feed hundreds of people when you’re only prepared to handle less than that. Think of doing birthday parties, engagement parties, bridal showers, or even sports-themed parties like the Super Bowl.

Rent equipment like  mid-range chafers , china, and linens while you’re getting started.

Suggestion: After you’ve earned some profit considered purchasing a piece of equipment once every quarter until you’ve completed your inventory.

Need a staff but can’t afford to pay for one? I you have teens in the family gather them up…you kids, nieces, and nephews. It’s a win-win because they can use this experience and put it on their resumes.

Partner up with someone who can help you with the food presentation and decoration like a party planner. It’s all about helping each other out with costs and exposing your businesses.

Ideas for Promoting Your Home-Based Catering Business

Work with a designer to create a website to promote your business. Some static pages like an about m and contact page, rates, and a page to post pics of events you’ve catered is all you need. You can also add a blog to share recipes and other cooking/baking tips with your audience.

Set up social media pages to connect and engage with your audience. Facebook, Instagram and Pinterest would be my pick of social sites to promote a catering business.  Just remember you don’t have to be on every social site out there.

Start a mailing list to clients updated on any promos and to gain new clients.

More Ideas On How to Start A Catering Business

  • Come up with a catchy name for your catering business.
  • Cook up fabulous dishes like old family recipes or your own signature recipes.
  • Offer an incentive to your clients like free drinks or dessert.
  • Prepare as much as you can in your kitchen and use the client’s kitchen as some caterers do like to cut veggies, etc.
  • Take a lot of photographs for your Instagram or Pinterest account.

Other Things to Remember

Check with your state to make sure you are in compliance with licensing and insurance.

To operate a home catering business, you may need a foodservice establishment license or a food handler’s permit, depending on your location. These licenses ensure that you comply with health and safety regulations when preparing and serving food to the public.

Additionally, you may be required to obtain a business license or permit from your local government to legally operate a catering business from your home. It’s crucial to research and understand the specific licensing requirements in your area to ensure compliance with the law.

Even though no special training is required for this type of business, it would be a good idea to continue enhancing your skills by taking a vocational course to learn how run and manage a successful home-based catering business.

Resources For Your Home-Based Catering Business

Here are a couple of websites that’s packed with great resources for caterers.

International Caterers Association

NACE – National Association for Catering and Events

Wrapping Up

I hope you found these tips and resources helpful. If you have any questions about anything in this post, feel free to contact me .

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Hi, I'm Cori. I'm a blogger and I run an Virtual Assistant business. I left my job in Corporate America so I could work from home and be with my family. I blog about the different ways to make money from home whether it's a work-from-home job, home-based or online business.

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Work from Home and Start a Home Business | PowerHomeBiz

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How to Start a Home-Based Catering Business

October 18, 2012 by Jenny Fulbright

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The catering business is one of the most lucrative and profitable home businesses with a high potential for expansion and growth. It is both financially rewarding and fun. Each catered event – whether birthday parties for children, breakfast in bed and intimate candlelight dinners for two, company dinner parties for 50, and wedding receptions involving a hundred or more guests — is a new experience and challenge with a new group of people.

Whether you cater events full-time or part-time , the opportunities are excellent. However, catering is demanding, requiring stamina, ability to work under pressure, and excellent interpersonal skills. Your success will greatly depend on your reputation. To build a good reputation in the business, you should be willing to work hard and be able to work under pressure. This kind of entrepreneurial business is definitely growing and becoming more popular with people of all income levels.

Demand for Catering

The demand for catering has increased tremendously through the years. According to the National Restaurant Association’s 2008 Restaurant Industry Forecast reveals that social caterers are one of the fastest-growing segments of the restaurant industry, with sales expected to reach $6.4 billion in sales. As impressive as the figure may be, it is highly likely that it still underestimates the industry, as many home-based caterers are not even listed in the phone book.

The increased demand for catering business is driven by the rising number of higher-income households, the number of weddings and increased corporate events with companies, corporations, charities, civic groups, event organizers and individuals calling on caterers to host on- and off-premises events. Businesses of all sizes are using catered lunches, cocktail parties and dinner meetings to build their images and increase company sales. It is a matter of keeping up with the competition in promoting a company and/or product.

RELATED: Starting a Bakery: Success in the Niche Food Business

Present lifestyles have also given way to increased demand for catered food services. Instead of laboring for hours, even days, in the kitchen preparing for parties or events, many homemakers now call on a caterer to provide sumptuous and unforgettable feasts for their guests. An increasing number of working mothers are paying to have catered birthday and graduation parties and wedding receptions handled by caterers. The reasons are simple: if she is working outside the home, today’s mother does not have the time or the energy to do all the planning and staging of a memorable party.

Even the concept of eating out is slowly being changed by the catering business: instead of going out to a restaurant to partake of a good meal, families can call on a caterer for that same great food.

RELATED: 7 Things You Need to Start a Restaurant Business

Choosing Your Catering Approach: On-Site vs. Off-Site

Catering services can be broadly categorized into two approaches: on-site and off-site. On-site catering involves cooking and serving food at the event location, such as a wedding venue or hotel. On the other hand, off-site catering entails preparing food elsewhere and delivering it to the event location, commonly seen in corporate lunches and private parties.

As a home-based caterer, you have the flexibility to adopt either approach. You can prep at home and cook on-site or do all the cooking from your own kitchen and deliver the completed dishes. However, it’s crucial to research your local catering regulations, as they may dictate your business model.

Navigating Legal Requirements

Before diving into your catering venture, you must understand and comply with local regulations. Does your city, county, or state permit catering from home kitchens? Ensure your kitchen meets health department guidelines, which may involve additional equipment like ventilation, a three-compartment sink, and non-permeable surfaces.

Sometimes, you might still require a commercial kitchen for off-site catering. Consider cost-effective options like renting shared kitchen spaces or collaborating with local churches, restaurants, or community centers.

Acquiring Licenses and Permits

Each locality has unique requirements for permits and licenses. You’ll likely need a business license and health department inspections for home-based catering. In cases where alcohol is served, a liquor license may also be necessary. Thoroughly research and adhere to all regulations to avoid future financial or legal complications.

Securing Liability Insurance

Even with stringent food safety measures, there’s always a slight risk of food-related issues. Protect your business and personal assets with liability insurance tailored to the catering industry. Consider updating your homeowner’s insurance as well, as your business operates from home.

Start-Up Costs of a Catering Business

Catering offers an opportunity for starting a food service business with a lower initial investment than opening a traditional restaurant.

Your goal should be to provide quality catering services, making each event memorable. Your business needs to provide exceptional catering services from food selection and preparation, serving food and utensils, setting up and cleaning up the designated serving area, coordination and consulting of foods to serve for a given event, and beer and wine bar.

In the catering business, you can start as small or as big as your wallet will allow. Your catering business can offer catering services for corporate events, meetings, holiday gatherings, picnics, weddings, family reunions, birthdays, graduations, and more.

RELATED: How to Start a Food Business

Success in catering hinges on managing your finances effectively. Start by estimating your startup costs and projected income. Optimize your budget by exploring second-hand equipment, bulk ingredient purchases, and potential funding sources such as small business loans or savings.

The start-up costs for a catering business will depend on what you put in your kitchen and can range from $1,000 (if you work from your own kitchen) to $80,000 (if you outfit a professional kitchen). Most caterers do the cooking on-site, either using their own facilities or equipment provided by the clients. However, you would still need to do some prep work in your own kitchen facilities (e.g., pre-cutting vegetables, etc.)

To keep your initial costs down, you can opt to start your catering business by renting items. You may rent the use of kitchen facilities, china, utensils, tables, tablecloths and linens, serving equipment, and other staples. Plenty of vendors exist to help you pull together the perfect event — decorators, designers, event planners, florists, bakers, and rental companies for portable toilets, cooking equipment, tents, chairs, linens, tableware, glassware, and silverware. You can start buying your own equipment only when you have steady revenues. By renting equipment, facilities, and supplies, you can use your first few months to build your reputation, develop capital for investment and expansion, and evaluate how much time and money you want to invest.

catering business

There is also the question of staffing, as starting a catering business solo is nearly impossible. Check the costs and viability of hiring temp workers through the staffing agency vis-a-vis keeping employees on a payroll. Word of caution: when hiring temporary workers from the staffing agency, give ample time before the event to meet the people to see what they look like and whether they can complete the tasks you need them to do.

You can also take the start-up period as the time to determine how this business will impact your family.

Income Potential

The income potential of catering depends on the size of the events you cater. Determine the number and scale of events you can realistically cater each year. Your choice should align with your business goals, whether a full-time venture catering large events or a part-time gig focusing on intimate, high-end gatherings. Strive to strike a balance between income and expenses to ensure profitability.

Like any other business, however, catering requires excellent management and organizational skills for the business to succeed. Your ability to keep your operating costs down while maintaining a high-quality service is also essential.

A quick survey of successful caterers nationwide shows that they began with zero capital by working out of their homes. The basic starting-up investment would appear to be around $500, with some big spenders capitalizing their idea with as much as $15,000 to get off to a fast start.

Many claim that profits in the catering business are the best in the food and beverage industry. An in-demand caterer in a large metropolitan area can easily gross upwards of $200,000 per year, while a small part-time caterer in a small town can count on at least $50,000 annually.

To cut down costs, you can employ several strategies to help keep your bottom line richer. You can use your house as your office, hire employees, and rent a kitchen in a nearby facility only when you have catering events. With its seasonal nature, catering usually does not require many year-round employees. However, it is very important that your business not only provides great food but high-quality service. The catering staff must be responsive, flexible, and professional to the client’s needs.

RELATED: Home Businesses with High Income Potential

What You Need to Open a Catering Business

The catering business is tough, with the details of preparing food off-premises and on-site for hundreds of people oftentimes mind-boggling. It is not easy to cater to an event of 400 people, much more if you start to do thousands, some 60 miles from your home (what if you forget the sauce?). Successfully running a small catering business takes much more than a passion for cooking and a knack for preparing tasty dishes. You have to be a superb planner and manager as well. You need to be extremely organized yet flexible enough to be able to deal with last-minute changes. You also need a strong affinity for people and a kind of intuition as to what people enjoy in different environmental settings.

Crafting Your Signature Menu

Your menu sets the stage for your catering business’s success. Choose a culinary niche, whether it’s regional cuisine, farm-to-table, or plant-based catering. Specializing narrows your clientele but enables you to stand out. Offering a variety of dishes and pricing tiers provides flexibility for your customers.

Pricing your menu requires carefully considering food and labor costs and overhead expenses such as insurance and kitchen rental fees. Ensure that your chosen dishes align with your service method, whether buffet-style or off-site delivery, to maintain quality during transport and setup.

As the culinary sophistication and desire to be entertained by many people have grown, customers today are looking for the catered experience to be more restaurant-like. Many caterers now offer signature dishes and house specialties as customers broaden their culinary experience. Others offer a family-style menu, especially for large informal functions and corporate meetings.

Caterers today have to be adept in satisfying the taste buds and excel in food preparation. To wow the socks off the clients, many caterers give ample focus on plate presentations, venue selection, and table decoration, among others. Some even hire artists to improve the presentation of the food, while some go to such lengths as indoor pyrotechnics, confetti guns, and laser-light shows. Others employ in-house artists to customize each catered event, from passing platters to plate presentations. Given the intense competition, caterers nowadays are prepared to do anything to keep the customer happy (and coming back for more).

RELATED: 10 Things You Need to Know When Starting a Home Business

Establishing Your Business Entity

Choosing the right business structure is a critical decision. Consult with professionals to determine if a sole proprietorship, limited liability company, or another entity suits your needs. Once decided, register for an Employer Identification Number (EIN) with the IRS.

Managing Finances: Separate Business and Personal Accounts

Maintain separate bank accounts for your business and personal finances. This practice not only simplifies tax preparation but also provides a clear overview of your profit and expenses.

Assessing Your Equipment Needs

Analyze your equipment inventory to identify any gaps. Consider investing in additional appliances like ovens or refrigerators if your menu includes baked goods or requires extra storage. Chafing dishes, Sterno, serving utensils, and dishes are essential for maintaining food quality at events.

Storage can be a challenge. Evaluate whether your storage space at home is sufficient or if renting a nearby storage unit is necessary to keep catering supplies organized and accessible.

Building Vendor Relationships

Forge relationships with wholesale food suppliers who can provide bulk ingredients at favorable prices. Consider sourcing from local farmers and small food producers if it aligns with your menu. Additionally, explore partnerships with rental vendors for linens, flatware, and plates to enhance your service offerings.

Marketing Your Catering Business

Effective marketing is key to attracting clients. Tailor your marketing strategy to your target demographic. Traditional methods like local advertisements might appeal to an older crowd, while tech-savvy customers may respond better to social media campaigns featuring high-quality photography.

A professional website is essential for online visibility, showcasing your menus, testimonials, photos, and pricing. Share your story and credentials, such as any relevant culinary education, to highlight what separates your catering business.

As with most businesses nowadays, looking at how your catering business can use the Web to market your business and generate more clients is important. Some catering businesses now offer online orders for entrees, sandwiches, salads, breakfast, beverages, and desserts, often with a minimum of 48 hours’ notice.

Staffing Your Events

As your catering business grows, consider hiring staff to ensure smooth operations, especially for larger events. Whether you need servers, bartenders, or kitchen assistants, having a reliable team is crucial to delivering exceptional service.

Collecting Reviews and Testimonials

Satisfied customers can be your greatest advocates. Encourage past clients to leave positive reviews and testimonials, which can significantly influence potential clients’ decisions. Utilize bookkeeping software to automate review requests after each successful event.

Celebrate Moments with Food

Starting a home-based catering business is a journey of challenges and rewards. As with any business, your success will be directly related to the soundness of planning and the working of that plan. Start small and keep it simple. Understand exactly what your client wants, and give him what he wants in the way of service that reflects upon the client in a complimentary manner.

Education plays a vital role in your success. While there is no requirement to get special education or training to become a successful caterer, taking some culinary institutes or vocational school courses can significantly help improve the quality of your food offerings. Consider enrolling in culinary entrepreneurship programs like Escoffier’s Online Food Entrepreneurship, which covers core culinary principles, marketing strategies, and business planning to equip you with the knowledge and skills needed for culinary entrepreneurship. You can also start out by working for one or more catering businesses to learn about the catering business and how the business works.

Launch your catering business today and celebrate life’s special moments through food. To take the next step in your culinary entrepreneurial journey, contact us and begin your program.

Additional Resources:

Associations:

  • International Caterers Association (ICA), 91 Timberlane Drive Williamsville, NY 14221, tel: 877.422.4221 fax: 888.210.4634
  • National Association of Catering Executives, 2500 Wilshire Blvd., Suite 603, Los Angeles, CA 90057 (213) 487-6223
  • National Restaurant Association , 311 1st St., N.W., Washington, DC 20001 1-800-424-5156

  Recommended Books on Catering Business:

  • How to Start a Home-Based Catering Business, 6th: *Become the top caterer in your area *Organize menus for parties, corporate events, and weddings … caterer (Home-Based Business Series)
  • Catering: A Guide to Managing a Successful Business Operation
  • The Professional Caterer’s Handbook: How to Open and Operate a Financially Successful Catering Business (with CD-ROM)
  • Catering Like a Pro: From Planning to Profit
  • Off-Premise Catering Management
  • Cooking Up a Business: Lessons from Food Lovers Who Turned Their Passion into a Career — and How You C an, Too

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As the owner of a catering company at allseasonscatering.com.au I would have really appreciated reading this before I started up. An invaluable aide to any budding caterer!

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How to Start a Home-Based Catering Business

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

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  • Small Business
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  • 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.
  • 37 Home Business Ideas
  • Selling Baked Good from Home
  • The Beginner's Guide to Starting a Catering Business
  • Starting a Personal Chef Home Business
  • How to Start a Self-Catering Business
  • How to Start a Home Based Cookie Business
  • 7 Home Business Ideas for Food Lovers
  • How to Start a Home-Based Tutoring Business
  • How to Start a Party Planner Home Business
  • Turn Your Hobby into a Home Business
  • Basics of Restaurant Catering
  • How to Start a Resume Writing Service
  • How to Start a Home Based Computer Repair Business
  • Get Tips for Running a Successful Catering Business
  • How to Get a Local Business License and Special Permits
  • How to Start a Home-Based Food Business

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How I Started a Legit Catering Business Out of My House

Have you thought about starting a catering business out of your home? Well, I have and I did it! Discover the ins and outs around starting a home based catering business!

Five silver chafing dishes lined up with a server preparing to serve food.

A home based catering business…has that concept ever crossed your mind? Come on…be honest, it’s ok! Because guess what? It crossed my mind a lot and I finally took the leap of faith and started my home based catering business! And you know what? You can do it, too!

My Background

Let me introduce myself before we dive into the details around a home based catering business. Hello!! My name is Amanda Mason and I’m the owner of Recipes Worth Repeating!   I’m a passionate food blogger who loves to create new recipes and share them with the world. I’m also a photographer and guys I’m a REAL good cooker (at least that’s what my 8 likes to tell me)!

About a year ago, I decided to venture out and expanded my food blogging business to incorporate catering. Why? Because my husband said I couldn’t open a restaurant. And you know what…after I thought about it, I kinda agree with him. In both high school and college I grew up working in restaurants. And I loved it. My passion for food started when I was a child. I’m from the south and I grew up with a momma and a grandma who made some of the best food in the world. I mean, I am from the south! Southern food! YUM! That’s where my passion for food began. They started me cooking at an early age.

But my passion for food really started expanding when I started working in restaurants. Working in restaurants is hard work, but my exposure was expanded and I loved it! Ok, so fast forward about 15 years…I’m married with littles. I cook a lot. And we entertained…a lot. And people were like, “Oh my goodness Amanda, you are an amazing cook! Can I have this recipe?” Now, multiple that statement and request by ay least 100. And that’s how I became a food blogger! I needed a way to share my recipe creations with a lot of people who enjoyed my cooking! And it’s turned into a successful business! But, I wanted more.

And then, an opportunity presented itself…

Dinner table with a spread of different foods such as grilled steak, potatoes, salad and bread sitting on a brown table.

I became friends with a family from my son’s pre-school. She was a lawyer and he was a traveling nurse. And they had 2 littles. They were crazy busy! Because they were so busy and on the go, they had a chef come in to make their dinners.

But, they didn’t really like his cooking. After talking to them and sharing my wild thoughts around toying with the idea of opening a restaurant, they asked if I would consider being their personal chef for a week. They were happy to be my guinea pigs because they knew I was a good cook. So I thought…what the heck, yep! Let’s give this a try and see what this looks like.

The Start of My Catering Business

For a week, I was their personal chef. I would prepare their meals on a daily basis and take it to their house so dinner would be on the table by the time they got home. And ya’ll…they LOVED it! They asked me if I’d be interested in being their full time chef for their dinners. I was so honored and humbled! But, I turned them down.

You’re probably like wait….wha?!?! I know..I KNOW! See here’s the thing…I loved it! I absolutely loved cooking for them and they adored my food. They told me I was a way better cook then their culinary chef. But I was working full time at an IT firm and I wasn’t willing to give up my IT job or my IT job income. In my IT job, I work from home a lot so I while I was cooking for them I would wake up super early in the morning and start my day at 7am and work 8 hours to be done at 3pm. From there, I’d start their meal prep in order to have dinner cooked and ready to deliver to them at around 6pm.

It was A LOT of work and I enjoyed it, but I wasn’t willing to give up my day job for it. My client friend told me I was crazy, but she understood. But she asked me, “Have you considered starting a catering business out of your house?” I hadn’t actually, but what an AMAZING idea!

Woman tying an apron in a bow behind her back.

So I started researching. Could I really start a catering business out of my house? Because I wasn’t willing to quit my day job…but I did want to do more with my cooking gift. I researched and had lots of conversations with Mr. Mason and we decided to do it! And it’s been a lot of fun!

As a part of giving back, I going to share with you the ins and outs of what I learned and what I implemented because I think these points are super valuable to consider before starting a catering business out of your house. They helped me and I think they’ll help you. So let’s dive into the things you need to research and consider before starting a catering business out of your home!

Insurance and Licenses

First things first…you’re going to need food liability insurance. It’s an absolute must. The first thing I thought about when deciding to offer catering services is what if someone gets sick from my food?! Since I’m catering outside my home, I contacted my homeowners insurance and had a conversation with them. They referred me to a company called Food Liability Insurance Program . Food Liability Insurance Program specializes in providing insurance for Food Trailers, Commercial Kitchen Renters, Food Trucks, Farmers Market Vendors, Caterers, Personal/Private Chefs, Concessionaires, Food Cart Vendors and Liquor Liability. It costs me right around $300 for a year’s worth of coverage, so definately check out what they offer to see if it fits your needs.

Your state may also require a business license so do your research to see if your state has that requirement. You can go to the Small Business Administration website to figure out if a license in required and if any fees are associated. Establishing a LLC may be sufficient for your catering business. It was for mine. Keep in mind though, if you use the kitchen in your home to cook for your catering business, your state may require a placard be visible that states the preparation of food is in a location that is not inspected and subject to regulation.

The takeaway here is…do your research and ensure you get the right paperwork filed, the correct licenses in place and the correct insurance coverage. It’s a BIG deal, so do your research to ensure you are setting yourself up for success legally!

One more thing to think about…are you going to serve alcohol with your catering business? If so, you’re going to need a liquor license. Different states have specific laws so it’s important that you understand your state’s liquor laws. Check out this article from ToastTab on the ins and outs around liquor licenses you may need.

Finding a Cooking Space

You have to ask yourself…do I have enough space in my kitchen to actually cater? Do I even want to deal with my home kitchen being turned upside down for catering purposes?

I lucked out on this one because when we bought our house, it came with a chef’s kitchen. I’m talking counters for days and 2 ovens. I also have 2 large refrigerators and 3 freezers. So I definately can justify having enough space to cook and store my food. But not everyone has this layout in their kitchen, so it’s something to really think about.

Do you have enough space to store ingredients and prepare food for 50+ people? If not, it’s ok! Don’t stress. There are several options to consider that may fit your particular need. A lot of places are now available for you to rent a commercial kitchen for a catering job. I know…it’s a brilliant concept!

Commercial kitchens and commissaries are commercial-grade facilities that are licensed for food service providers to prepare and store food. So if you don’t have a chef’s kitchen and you need a place to prep and cook your food but don’t know where to look, start here with  Renting a Commercial Kitchen .

Sometimes people also refer to renting commercial kitchen space as “Culinary Incubators”. A culinary incubator is a shared use kitchen that is a licensed commercial space that is certified for food production. Take a look at these culinary incubators to find one near you.

Some people are taking the approach to reach out to local restaurants to see if they can rent out the kitchen space after business hours. Don’t be afraid to pick up the phone and call some of your local restaurants to make an appointment to talk to their restaurant manager. Or…if you have a relationship with a restaurant owner, talk to them about this possibility.

Equipment and Storage

Every catered event I’ve ever been to has those silver warming trays and guess what, you’re going to need some too! And your going to need serving spoons, plates, bowls, cups, utensils, silverware etc. By the way, those silver warming trays are called Chafing Dishes and those little thing under them to keep your food hot are called sternos. Just in case you didn’t know because I found myself googling “silver warming trays for catering” until I learned the official name.

Six silver chafing dishes stacked next to white plates, bowls and silverware sitting on a white table.

Amazon can be a good resource when ordering equipment for your catering business, but I recently found a Restaurant Depot   near us where I bought all my equipment. And you don’t have to buy equipment if you don’t want to. You may not have the room to store all the catering equipment. You could always rent your equipment from a Commercial Food Equipment business near you. I was shocked at how many are near my house!

I chose to buy all my equipment because I cater about 5-6 times a year. But you may not want to deal with the equipment overhead and that’s understandable! Since I chose to buy all my chafing and catering dishes, I decided that I didn’t want to clutter up my garage and kitchen. So I opted to rent a small storage unit down the street. It’s a business expense write off and I’m not stumbling over my catering equipment in my garage!

Buying the equipment you need for your catering business is an investment. With all the food blogging and catering I do, I go through about 3 sets of pots and pans a year. Plus, I had to invest in 8 chafing dishes. And that’s not taking into account bowls, plates, utensils, etc. Even if you decide to rent your equipment, will the cost of renting eventually outweigh your profits? Renting for each job adds up.

See…there’s a lot to think about. It’s important to keep these things in mind when deciding on what you want to do with renting versus buying your catering equipment. And there’s no right or wrong answer. You have to do what’s best for you and your business.

Business and Marketing

So you’ve decided to start a catering business. Yeah for you! So exciting, for sure….but how are you going to market your business and services? What’s your marketing strategy? What’s your budget for marketing? Are you going to cater for large events, medium event, small events or a combination of each? Are you only marketing your services via word of mouth? Have you thought about advertising? Yeah…I know! There’s A LOT to think about here!

For me, I started out small. My first catering job was for 200 people. You’re probably like…umm…wait a minute. That’s not small at all and you’re right, it’s not. What I mean by small is I only wanted to start out with 5-6 catering jobs a year. And I didn’t want to go larger than 200 people at an event to start with. You’ll need to think about a couple things:

  • What is the maximum headcount you are willing to cater?
  • How many times a year do you plan to book your catering jobs?

From there, you can start to come up with a marketing strategy. For me, it was word of mouth and local advertising. And with that effort, I’ve been able to book 5-6 catering jobs a year. And that meets my business strategy for the time being.

Menu and Pricing

Onto the fun part!! The menu!! I didn’t come right out and say this but I hope it’s implied…you need to be a good cook if you’re going to cater. Like seriously, you need your food to taste really good! Or hire a really good chef…but regardless, the food you serve needs to taste yummy. I’m tired of hearing comments about “rubbery chicken” when I’m actually eating at catered events.

Three chafing dishes containing noodles, chicken skewers and grilled chicken thighs topped with parsley.

I kinda lucked out in the menu area. When potential customers come to me and ask for recipes/food, I send them to my website over at Recipes Worth Repeating and tell them to view my menu. I have over 200 recipes they can choose from. That approach can be overwhelming though so often times I collaborate with my clients to help them narrow down a theme. Meaning…do they want pasta, chicken, fish, BBQ, appetizers, etc. From there, I put together some menu samples and we’re off!

You also need to set your pricing. Some things you want to think about are food and labor costs. Also, are you going to do a fixed rate or a tiered rate? Personally, I always do fixed pricing which I base on a per-person or per platter basis. But that may change in the future as my business grows.

There’s a lot of good articles out there to help with pricing such as Pricing Guidelines for Catering . There are things you have to consider such as markups, overhead costs and accommodations for special diets. If you have to cater for people who have special diet needs, such as gluten free, vegan or dairy free…it can get costly! So get your pricing plan ready!

And ya’ll that’s a really good start! Those 5 items will get you well on your way to researching and asking the right questions to help you determine if you want to start a catering business out of your house. It’s takes a lot of planning and it’s hard work, but it’s extremely rewarding to have people tell you after eating your food at a catered event how good your food is and what amazing service you offer. And you know what the best part is? Booking a separate catering job from an attendee at the job you’re currently catering! Yeah…that happens a lot! So rewarding!

I hope this article both encourages and educates you on the ins and outs around starting a   home based catering business!

Did you find this article helpful? Then share it to your favorite BUSINESS and FOOD board on PINTEREST so others can benefit! 

Five silver chafing dishes lined up with a server preparing to serve food alongside three chafing dishes containing noodles, chicken skewers and grilled chicken thighs topped with parsley.

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How to Start a Catering Business From Home

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  • Types of Businesses to Start
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How to Determine the Products for a New Catering Business

What makes a home bakery business successful, how to start a food business from home.

  • How to Sell My Food & Catering
  • What Do I Have to Be Certified in When Starting a Bakery?

If you enjoy cooking and providing service to others, then starting a catering business from home might be for you. While there is no exact recipe to creating a catering business, you can increase your chances for success with knowledge of your state's food and health laws, a solid business plan and marking strategy, and a repertoire of mouthwatering recipes.

Find Your Cooking Calling

Most catering businesses are successful when they focus on a particular niche. By targeting a specific market, you can become an expert in that area, keep operating costs down and focus your advertising efforts.

For example, you might love baking cakes, tweaking traditional recipes and having all of your friends sample your products. You can take your passion for baking and perhaps focus on baking cakes for weddings. This allows you to purchase only the baking equipment you need to make your cakes and focus your marketing on wedding venues, bridal events and wedding literature.

Other niche markets include business events and small parties – activities that you can reasonably prepare for in your home. Instead of focusing on a particular type of event, you could also focus on a particular type of food such as barbecue, kosher or vegan. If you have an established brand identity, customers will feel more confident turning to you to cook for their events.

Develop a Catering Business Plan

Writing a business plan is important because it helps you transform your ideas for a catering business startup into a concrete plan to achieve it.

Understanding your target audience is a key part of a business plan. For example, in their startup phase, the owners of Bacon Co., a catering business themed around bacon in Milwaukee, made sure to properly plan their business through market analysis. For them, it meant having their friends and family try their recipes and give opinions through surveys. This allowed the owners to better understand their target market and refine their recipes.

Another important element to include in your business plan is your business structure. Consider setting up as a limited liability company, as it allows you to protect your personal assets from the business. You should also include your business’s mission statement, financial projections and marketing plans.

For example, if you plan to make organic cakes, you might include in your mission statement that you believe in the health benefits of organically sourced foods. In your financial projections, you would include costs of organic ingredients and how much net profit you expect to make per cake sold. In your marketing plans, you might plan to target local organic foodie newsletters and events.

If you don’t know where to start when writing a business plan, the U.S. Small Business Administration provides templates and guidance.

Home-Based Food Business Licenses

Each state has slightly different requirements when starting a home catering business. Contact your state’s occupation licensing or health department to find out exactly what you need. In general, you will need a business license, federal tax number (EIN), inspection from your local fire department and health inspection of your kitchen.

Ensure you are actually allowed to cook at home in your state or if you must use a professional kitchen. For example, in California, the California Home Food Act allows you to prepare low-risk foods from home. This means that you can prepare jams, baked goods, dried food and other low-spoilage food from your kitchen. Depending on how you sell your food – directly or indirectly – you might also need a yearly health inspection of your kitchen.

However, you will always be required to prepare dairy or meat-based foods from a professional kitchen. The additional costs for renting out a professional kitchen can vary depending on where you live. For example, in Los Angeles, renting space at Chef's Kitchen can cost as low as $30 a hour with an initial deposit of $1,000.

Create a Foolproof Menu

Create a menu of items that you can include in your catering services. Consider offering a variety of items so your customers can pick and choose the types of food they want at their events. Also, offer bundle packages to help you save on food costs and waste. For example, The Event Group, a catering company based in Arkansas, provides dinner buffet package deals. Customers choose which package they want, and the caterer provides the rest in a full-service atmosphere.

Your Kitchen Tools

Once you have decided on your menu, purchase the appropriate equipment and ingredients. If you are cooking from your home kitchen, you likely need tools that are dedicated to the business, separate from your personal kitchen tools. Purchase professional cookware and utensils from professional kitchen supply vendors for the best-quality products. Contact food suppliers such as The Baker’s Kitchen or Food Service Direct to buy ingredients wholesale.

Promote Your Food

Create a website and include a system for showing testimonials and referrals. Word-of-mouth advertising is especially powerful in the catering industry. For example, ZeroCater, a San Fransico-based office-lunch catering company, used word of mouth by first targeting small technology companies and startups that didn't have their own in-house food services. As the business grew, it was able to upmarket to larger companies in the same field.

If you don’t know how to make your own website, use services such as Shopify or Quick2Host to create a professional-looking online presence. Also, consider using social media platforms such as Facebook or Instagram. Create interesting and engaging content; for example, show attractive pictures of your food at different events that you have catered or include tips on the types of food that are popular to serve at a wedding reception.

  • Shmoop: Caterer
  • Smartycents: 6 Steps to Starting Your Very Own Catering Company
  • ProfitableVenture.com: Starting a Catering Business From Home With No Money – A Complete Guide
  • SBA.gov: Write Your Business Plan
  • Forbes: How to Quickly Master Social Media Marketing for Small Business
  • Journal Sentinel: Their Bacon Pop-up, Catering Business Sizzles
  • Santa Barbara Independent: Cottage Food Law Explained
  • The Event Group: Dinner Buffet
  • TechCrunch: ZeroCater Expands From Meal Catering to Office Snacks
  • Many home-based catering businesses operate as sole proprietorships because it is the simplest business form to set up and operate under. Unfortunately, it also leaves the owner/operator subject to the greatest amount of liability. Because incorporating your home based business might not be appropriate considering the costs involved, you may consider establishing a limited liability company (LLC), which is much simpler to establish compared with a corporation and exposes the business owner to much less liability than the sole proprietorship.

Michael is a writer in various subjects. He is a mechanical engineer and freelance writer, having earned a Bachelor of Science in Mechanical Engineering from Washington University in St. Louis. His articles have appeared mostly online.

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Catering Business Plan

Start your own catering business plan

Bright Future Youth and Family Services

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

Society lacks resources for the less privileged or homeless youth population. Eugene, like all the other cities, has a migration of homeless teenagers who have run away from home. They are here for a few months of the year and then they hitch down to California during the winter for warmer weather. These are young adults who have no idea how to be part of society. They can’t provide for themselves and eventually they have children and the cycle continues.

We provide at-risk youth alternative education and career assistance in Lane County. We want to make this experience valuable for our clients. We do this through a series of curricula funded by the Lane Workforce Partnership, Oregon Youth Conservation Corps, Oregon Department of Human Resources, and the local school districts.

Our most recent program is a culinary arts program in which students learn about food preparation and safe handling and then put this knowledge to use by preparing lunches for their peers at the Chambers School. After completing the 9-week curriculum, students are placed with a local food service business for a 60-hour practical training where they can continue to develop their skills. Currently, the culinary arts program is available to five students per 9-week school term, or approximately 25 students per year. Students enrolled in the program are selected because of their sincere interest in the culinary field and their excellent attendance.

According to the Eugene Area Chamber of Commerce, “[a]t the heart of the Eugene economy are the homegrown small and medium-sized businesses. Most of Eugene’s businesses employ fewer than 20 workers. From specialty retail shops to financial service firms, from management consultancies to ethnic groceries, Eugene’s small business community is diverse, active, thriving and well-supported. Including sole proprietorships and limited partnerships, there are more than 10,000 businesses in and around Eugene.” Eugene/Springfield’s population has grown 3.95% on average since 1998 and this new growth has meant new businesses and expanding opportunities for catering companies who can serve these businesses’ needs.

Catering For Kids anticipates that Eugene/Springfield businesses have unmet demand for catered lunch meetings and other events. And unlike other restaurant and food-related businesses, business to business catering is not as cyclical as business to consumer catering. Businesses continue to have lunch meetings and employees who wish to purchase their lunches year round. In order to gain some insight into the market size and demand, we undertook some limited market research. An email survey was sent to 144 Lane County nonprofit organizations that requested their current or future demand for catering services and their interest in patronizing a nonprofit catering business. We received many responses like the ones that follow.

“I think that this is a great idea and could be a good resource for the community. Springfield/Eugene Habitat for Humanity does not host many lunchtime meetings, however there is a group of about 13 or 14 Executive Directors of Habitat affiliates that meet here about every three months that might use your service.” – Susan Brown, Volunteer Coordinator, Eugene/Springfield Habitat for Humanity

“…if we do have an event that we need catering we will call your program first. We have a policy of using nonprofit organizations for services first.” – Bob Smith, Exec Dir, Pacific Youth Corps of Oregon

“Our needs for catering are not very large, maybe a few times a year. However, you may contact me to discuss the program. My son attends Chambers School and I would welcome hearing more details.” – Mark West, Lane County Agricultural Museum

“We do have General Membership Meetings where we require a venue for 50 to 100 people. I’m not involved with arranging the meetings but do know that our organization is in need of a place to meet where food and beer can be served. Perhaps you will hear from Dave – I think the first meeting is usually in October.” – Emily, Graduate Teaching Federation Office

Competition

A number of other caterers offer boxed lunches for business clients. However, none of these businesses specialize in serving the nonprofit sector, nor are they themselves a nonprofit that benefits the local community. Catering For Kids will specialize in developing excellent relationships with its nonprofit clientele. We believe that this unique position, combined with competitively priced, fresh, high-quality meals will set Catering For Kids apart as the premier caterer for the Lane County nonprofit sector.

Catering For Kids is dedicated to providing at-risk youth with an opportunity to gain work experience and transferable skills by providing our customers with  healthy, homemade foods and excellent service at reasonable prices. Employees of Catering For Kids will be students who are enrolled in the culinary arts program at the Chambers School and Career Center and are interested in gaining work experience in the restaurant and food services industry. The experiences the students have while participating in this program will assist them in making the transition from school to work and will allow them to develop entrepreneurial skills that will be transferable to any job in the future.

Expectations

The following benchmark chart indicates our key financial indicators for the first three years. We foresee slow but steady growth in demand for our services and consequent increase in operating expenses. During year one, Catering For Kids will serve its internal market only, as we ramp up to serving the external market in year two.

Financial Highlights by Year

Financing needed.

One of our revenue lines is grant funding, $15,000 annually. And we need and anticipate donations of $2,000 per month, plus some revenue from fees for lunches and event catering.

Problem & Solution

Problem worth solving.

Society has a problem, they do not have enough resources for the less privileged or homeless youth population. Eugene, like all the other cities, has a migration of homeless teenagers that have run away from home. They are here for a few months of the year and then they hitch down to California during the winter for warmer weather. These are young adults who have no idea how to be part of society. They can’t provide for themselves and eventually, they have children and the cycle continues. 

Our Solution

The Chambers School and Career Center is one of ten tax-exempt nonprofit programs of Bright Future Youth and Family Services. Our mission is to assist at-risk youth in the Eugene/Springfield area in becoming productive citizens by providing a learning and work environment where they feel challenged, respected, and accountable as they strive to meet the demands of adulthood.  We have a staff of approximately 250 employees and also utilize several volunteers each year who play a vital role in the organization. Bright Future prides itself on its diversity of funding sources that make for a fiscally strong organization. Agency revenues come from governmental contracts, charitable gifts, United Way funding, and fees for service

Target Market

Market size & segments.

Market Segmentation

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1. Internal Bright Future Customers:

  • Board of Directors meetings, serving 35-45 meals per month in either a buffet or lunch box format.
  • Board Sub-committee meetings, serving 40-50 meals per month in either a buffet or lunch box format.
  • Bright Future Counseling Center meetings, serving approximately 25 meals each week in either a buffet or lunch box format.
  • Miscellaneous meetings throughout the Bright Future organization, which has over 250 employees on staff.
  • Rolling cart lunch service at various Bright Future locations in Eugene/Springfield, serving boxed lunches and beverages only.

2. Nonprofit External Customers:

  • Catered meetings held by other nonprofit clients.

3. For-profit External Customers:

  • Rolling cart boxed lunch and College City coffee service in local government or private sector offices that are underserved by local restaurants and coffee shops.

Target Market Segment Strategy

Catering For Kids’ target market segment is nonprofit customers (including internal customers). We plan to target this group for several important reasons. First, we are a nonprofit organization and believe that we are better positioned to serve the needs of other nonprofits. Secondly, we believe that nonprofit organizations are more likely to try and continue to use a fellow nonprofit for catering services. And thirdly, we do not intend to jump into the commercial catering market in direct competition with for-profit caterers. Instead, this is a long-term growth opportunity that Catering For Kids may explore in the future. By postponing this direct competition, we believe our organization will be better able to remain focused on our primary objective: serving at-risk youth in Lane County.

Current Alternatives

There are several caterers in town that will compete directly with Catering For Kids for business, once we grow beyond serving our internal organization customers only. The key alternative caterers are:

  • Of Grape & Grain , which specializes in deli style boxed lunches and cafe-style dining. This is the caterer currently used by Bright Future.
  • Cravings Fine Foods , which specializes in event planning and cafe-style dining but which also offers deli style corporate boxed lunches.
  • Ariana’s Deli  (owned by Alpine Catering), which features online ordering of deli style boxed lunches for delivery.
  • Fetuccini and Co.  , which also features online ordering of deli style boxed lunches for delivery.
  • The Garden Deli , which also features online ordering of deli style boxed lunches for delivery.
  • Napoli Restaurant , which features Italian style boxed lunches with a limited menu and no delivery.
  • Brindiamo Catering , which features high-end boxed lunches with delivery, table decor and waitstaff.
  • Wild Duck Brewery , which features hot and cold boxed lunches as well as boxed salads and offers delivery for a small fee.
  • Oregon Electric Station , which specializes in high-end events such as weddings and corporate parties.
  • Alpine Catering , a full service caterer.
  • Oakway Caterers

Several of the above caterers, such as Napoli Restaurant, have a primary focus of operating their restaurant and may not put as much emphasis on catering details. Others, like Wild Duck Brewery, are focused primarily on large events and require a 15 person minimum for service. Still others, like Brindiamo Catering, are focused on very high-end customers and are out of the price range of many nonprofit organizations at over $12 per person. Therefore, Catering For Kids’s primary competitors are the smaller, deli-style caterers, such as Of Grape & Grain and Ariana’s Deli, whose prices are around $5-7 per person and who can be flexible with catering to small, less formal meetings.

There are also a number of low-end caterers that will compete with Catering For Kids even before we grow beyond our internal clients, as these caterers are currently used by some Bright Future programs now. These include:

  • Local and national grocery stores chains  such as Albertson’s that will make made-to-order deli submarine sandwiches, chips and sides.
  • Local and national sandwich fast-food chains  such as Togo’s and Quizno’s. Like grocery stores, these stores will also make made-to-order sandwich based meals that include chips and a beverage.

Although these providers offer low-cost fare, they are unable to offer much in the way of custom menu planning and do not differentiate between retail consumers and business or nonprofit customers. Thus, their services are one size fits all – they have a fixed and limited menu and their delivery hours are restricted to their normal hours of operation. Patronizing this type of business also does not benefit the community directly as does the Catering For Kids.

Our Advantages

Catering For Kids has the ability to provide internal and external customers with high-quality catered business lunches year round at competitive pricing while providing a valuable service to the community. We are able to provide this value because we have a pre-trained workforce – students of the Bright Future Chambers School and Safe & Sound Youth Project. These students are enrolled in the culinary arts program and have training in commercial food preparation and have food handler’s cards. This work experience will provide students with transferable skills that help facilitate their transition from school to work and provide an excellent public relations position for Catering For Kids. The instructor of the culinary arts program is an experienced restaurateur who will bring practical business management know-how to the business and serves as a role model to the students in the program.

As our organization is a school, which experiences a constant flow of students through its classes, the workforce of Catering For Kids will be constantly changing as well. This presents a challenge to the permanent staff to maintain the same high levels of customer service and quality that our customers demand, despite having an entirely new staff every nine weeks. However, we are confident that our teachers and staff members are committed to the success of this project. In addition, each class of students is quite small, which allows adequate supervision and quality control over the products created.

Keys to Success

Our Keys to Success: 

  • Cultivate an identity (brand) for the Catering For Kids business in the Eugene/Springfield community.
  • Expand our customer base into new areas within Eugene/Springfield.
  • Hire a year-round business manager for the catering business, thereby providing student employment twelve months of the year.
  • Expand the donor/corporate partner base and corporate contributions that add to the financial resources of Chambers School’s programs.
  • Provide students with entrepreneurial job skills that can open doors to future employment opportunities.
  • Acquire additional equipment to support future growth and offer greater flexibility, leading to expanded services offered by Catering For Kids that will further the goal of providing valuable work opportunities for homeless and at-risk youth.

Marketing & Sales

Marketing plan.

Catering For Kids strives to be the premier provider of healthy, homemade catered corporate lunches for nonprofit organizations.

The marketing strategy attempts to successfully communicate the unique value the program offers to customers. This strategy builds on the focus of high-quality lunches for catered meetings to the benefits that at-risk youth student workers gain from involvement in the program. The marketing strategy will continue to identify the needs of the corporate market and to communicate with this audience in the most effective and positive manner possible.

The growth strategy is based on continued attention to the quality of the customer’s experience in conjunction with identifying opportunities to expand the student participation in the program. Future changes in key areas, such as the facilities used for food preparation as our customer base grows will present considerable challenges for all aspects of the program.

Catering For Kids is committed to balancing its operating budget and operating on a solid financial foundation. These efforts are based on a mixture of revenues from catering events, fundraising, partnerships with local businesses and charitable gifting. Just as revenues are tracked, internal expenses will be closely monitored.

Catering For Kids is intentionally emphasizing the need to reduce reliance on donation-based revenues and looks toward revenues from catering customers to support the program. Indeed, our goal is to become self-sustaining, involving our students in the process of maintaining a profitable and competitive entrepreneurial venture that benefits our community. This is a considerable challenge, due to the number of local catering competitors, the small size of the program and the unpredictable costs in areas such as food.

 Fundraising Programs

  • First year revenues assume that internal Bright Future customers will begin using Catering For Kids in October for all catered board, committee and counseling meetings. A sales increase is anticipated in December when Catering For Kids may be used to cater company Christmas parties.
  • Per person pricing of $6.50 is assumed and is an average number. This number may be revised up or down to reflect costs of goods and competitor’s prices.
  • Anticipated donations are based on past donations received from grant-making foundations for similar Bright Future school-to-work programs. However, as it is a goal of this program to become self-sustaining, these funds taper off over the first year as Catering For Kids becomes more financially stable.

Locations & Facilities

Catering For Kids will be located inside the Chambers School and Career Center at 1390 Keasey Boulevard in Eugene, Oregon. The school facility includes a commercial kitchen that is licensed by the Oregon Department of Human Services to serve the public. Currently, the kitchen is used by the culinary arts program to prepare and serve breakfast and lunch for students during each school year.

So far, only three Eugene caterers offer online ordering, which means that the primary methods of ordering catered lunches in Eugene/Springfield is still by phone or fax. Catering For Kids will offer fax/phone ordering with either trained students or staff taking orders with a minimum two days in advance of delivery. During this first year, Catering For Kids will primarily serve Bright Future internal customers only and online ordering will be unnecessary. However, in the long term as more customers become used to ordering lunch online, Catering For Kids may update its website to receive online orders.

During year two, Catering For Kids will have a website that includes its complete menu and contact information. We will include this website address on as many printed materials as possible. For example, our thank-you notes, which will be included in every boxed lunch, will have our website address printed on them. The administrative offices of Bright Future currently updates and maintains the organization’s websites and we anticipate that this department will also handle the design and creation of the Catering For Kids website.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

  • Linked in business to business lead generation 
  • # of facebook page views 
  • # of twitter tweets and retweets 
  • Blog – share and get consultants to write expert artices 
  • Fundraising events – a little old school but donors expect this 
  • Facebook videos 
  • Videos and articles that take advantage of crowdfunding 

Ownership & Structure

Our organization is led by the director with the instructor(s) reporting directly to this director. A volunteer advisory board offers a broad range of social services expertise and years of business experience to the team.

Management Team

Christy Smith, the director of the Chambers School and Career Center, holds an MS in counseling from the University of Ohio and has been employed with Bright Future for the past 24 years.  She has over 30 years experience in working with at-risk youth and 16 years in program management including: personnel, grant writing, fiscal management, contract compliance, public relations, and daily operations.

Monica Kraft, the head of the culinary arts program at the Chambers School and Career Center has over 23 years of restaurant business ownership experience. While she currently owns La Pequena Taqueria, a successful  food booth that has been serving the Eugene Saturday Market for 23 years, she has also owned a catering business and cafe and was a founding member of the Keystone Restaurant, a fixture in Eugene since 1981. She received her teaching credentials at Kansas State University  and has been teaching the curriculum she developed for the Chambers School

The Volunteer Steering Committee consists of seven talented members of the Eugene/Springfield business and education communities. Combined, they bring years over 55 years of business experience, including two MBAs, to the table. These volunteers are dedicated to the success of the Catering For Kids and to ensuring that our area youth get the opportunities they deserve.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:

  • We assume direct food costs will be equal to or less than 30% of total direct costs.
  • We assume a slow-growth economy, without major recession or crisis in food contamination.
  • We assume that there are no unforeseen changes in government grant funding availability.
  • We assume a continued interest in restaurant and hospitality services by students of the Chambers School. It has proved to be a highly popular program in the past and we have no reason to believe this situation will change.
  • We assume a continued interest in using catering services by organizations and businesses in the Eugene/Springfield area.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Start-up Expenses

Dept. of Health Fees $100

Lease (Commercial kitchen) $8,000

Expensed Equipment $1,500

Software $500

TOTAL START-UP EXPENSES $10,000

We will also have $30,000 in mostly culinary equipment as long-term assets when we start. 

Sources of Funds

We will get our $40,000 from initial fundraising to a specific grantor that will front us the money, plus an annual $15,000 grant from the Eugene Downtown Commission. Our plan assumes $2K per month in donations. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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home based catering business plan

Starter Kit for Caterers

Catering Business Checklist

The Caterer Checklist covers key items that you may consider when starting your business. Getting a catering business off the ground can be complex and there are numerous government agencies that you may need to interact with to ensure the health, safety, and well-being of yourself, your team and your customers. Get a head start on the planning process by knowing upfront what to expect so you don't run into surprises that may delay your grand opening.

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One of the first decisions you will want to consider is whether you plan to prepare food in your own home or in a rented commercial kitchen. While working out of your private home gives you flexibility, you'll need to meet certain qualifications around what ingredients and equipment you can use, and there are limits on the amount of income you can earn before you will be required to use a commercial kitchen. If you meet these qualifications, you are considered a "cottage food operator" and can use your home's kitchen to prepare, package, store and handle cottage food products. Visit the  LA County Department of Public Health website  to apply for a Cottage Food Operation permit.

Also take into account City  zoning requirements  for working out of your home, as there are regulations around the number of deliveries and clients you may have per day to limit the impact of your business activity on your neighbors.

If you don’t meet the requirements for a Cottage Food Operator, you will need to operate from a commercial kitchen that has been approved by the LA County Department of Public Health to meet health and safety standards. There are several options to find a commercial kitchen – you may decide to rent shared or private space from a commercial kitchen for a few hours a week, set up your own commercial kitchen, or rent space from an existing operating restaurant or other business with a licensed kitchen.

Before you open your doors, you will need to register your business, your business name, and business entity. Check out the  online start-up guide  to get a tailored guide on how to formally register your business with the City, County, State, and Federal Government and get set up to pay business, sales, and payroll taxes.

It may be a good idea to check with a lawyer to consider the types of liability your business might have and determine the best type of legal entity for your catering business.

If you're planning to work from your home and want to make changes to your kitchen, you may need to apply for a building permit with the Department of Building and Safety. Building permits are required for electrical, plumbing and structural changes to a building, including additions, alterations, construction, and demolition. To obtain a building permit, you will need to file building plans, have them approved, and schedule an inspection to verify the work after it has been completed. Depending on the scale of the project, there are different  “plan check” options  for LADBS to review your building plans, ranging from an online application and automatic approval for simple projects to an extended review of architectural and structural drawings for large, complex projects.

If you plan to serve alcohol at an event, contact the  State of California Department of Alcohol and Beverage Control  (ABC) to find out the restrictions and requirements. Depending on if the event is public or private and who is organizing it, you may need to obtain a license. 

If you own a restaurant that has a liquor license, you may be able to add your catering business to your existing permit. 

Other options to consider if you're unable to obtain an ABC license can be to partner with an existing restaurant for alcohol sales or if it's a private event, consider asking the host to provide their own alcoholic beverages instead of having you provide them.

Before you start serving food, you’ll need to obtain a  Manager’s Food Safety Certification  for yourself and/or a designated employee.

California law requires an on-duty catering employee or manager to have state food safety certification.

All employees who handle food (preparation, storage, or serving) must also take a food safety training course and pass an examination to obtain a  Food Handler Card . New employees have 30 days to obtain the permit.

If you are planning to work as a Cottage Food Operator (out of your home instead of a commercial kitchen), you and any other person who prepares or packages the food will need to complete a food processor course within three months of becoming registered and every three years during operation.

Review the  Hiring Section  for information on additional wage and employment guidelines.

If you prefer a personal touch to getting your business off the ground check out the Resources Section of the Business Portal. You can find organizations that might be helpful to you along the way or visit one of the City's nine BusinessSource Centers for dedicated, free technical assistance. 

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What Licenses and Permits Are Needed to Run a Catering Business?

Starting a catering business requires that you obtain the proper permits and licenses, including a catering license and business license.

The essential guide cover

Get the Guide to Starting a Home-Based Catering Business

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 .

When you envision starting a catering business , you may think of dropping off cookie trays at bridal showers or cooking dishes full of lasagna for birthday parties. However, before you can start preparing food and serving it to others, you’ll need to obtain the necessary catering licenses and permits.

In order to run your catering company legally, you will likely need to obtain both business permits and food safety licenses. The exact permit requirements will vary depending on your location, but you can start with this general guide.

Catering Business Permits and Licenses

Obtaining the following permits and licenses for your catering company can allow you to legally conduct business operations.

Determine Your Catering Business Structure

Before you can begin applying for permits and catering licenses, you’ll need to officially create your business! Doing so requires you to determine not only your business name, but also how you’d like to structure your business .

If you plan on operating your catering business without much outside help and would like to keep things simple, a sole proprietorship may be a good option. This type of unincorporated business is easy to form, but it does not protect your personal assets in the case of a lawsuit or bankruptcy.

A limited liability company (LLC) is a bit more complicated to form, but it may protect your personal assets. As a member of an LLC, you will still be responsible for paying self-employment taxes.

If you need help determining which business structure is best for your operation, you can consult with an attorney or business advisor. Once you’ve determined your business structure, it’s time to decide on a business name and register your catering company. This can be done with the Secretary of State’s office or county clerk’s office, depending on the business structure and local regulations.

Obtain a Business License

As with all businesses, you will need to obtain a business license to operate your catering company. This license can typically be obtained at the city and/or county level, often from the office of zoning or tax office. Obtaining a business license allows you to conduct business in line with local laws as well as pay necessary local business taxes.

Register for an Employee Identification Number

An employee identification number (EIN) is essentially your business’s tax ID number. You can use this number to file taxes, apply for permits, and pay employees. It can easily be obtained for free through the IRS .

Resale License

A resale license, also known as a sales tax permit, allows you to collect taxes on any items you purchase and then resell. This includes ingredients you purchase and then transform, as well as any linens, plates, utensils, and chafing dishes you provide to your customers.

This license is typically less than $50 or even free to obtain .

Glasses of rose wine touching and hands reaching for cheese

No matter if you’re catering dinner parties or weddings, you’ll need a resale license.

Health and Safety Permits and Licenses

Along with making sure your business permits are in order, you’ll need to obtain licenses that confirm you are taking food safety seriously.

Food Handler’s License

Not all cities and states require those involved in food operations to obtain a food handler’s license. However, obtaining this license ensures that individuals have proper training regarding food safety topics like food storage temperatures, hand washing, and foodborne illnesses. Even if your area doesn’t require this license, obtaining it can help ensure your customers that you take food safety seriously.

You can receive this license by completing a course and then passing a test approved by your city or county health department.

Soapy hand washing dishes in a sink

A food handler’s license shows employees are well-versed in food safety practices.

Food Service License

Even if you are preparing food in one location and serving it somewhere else, you will still need to obtain a food service license in order to serve food to the public. This type of license may also be known as a food operating permit, food service facility license, or catering permit.

Depending on the location you are operating your catering business, this license may ensure the area where you prepare the food is up to health and safety regulations, and compliant with zoning regulations. It may also verify that the business is up to date with paying taxes.

This type of catering license can typically be obtained through your city or county health department. Some city health departments provide food service licenses that are specific to catering companies, while others do not.

You can expect to pay between $100 and $1,000 for a food service license.

Additional Permits and Licenses

These permits and licenses may apply to your business, depending on the specific details of your operation.

Home Occupation Permit

If you plan on preparing food in your home kitchen, you’ll want to check out local cottage food laws that indicate if and how you can sell food that is produced at home. Cottage food regulations can vary drastically between states and cities, so make sure to investigate the laws in your local area.

In some cities, your home kitchen doesn’t need to be inspected, but you do need to list the ingredients on all of the food you sell to others. In other places, you can produce some types of foods in an uninspected kitchen but not others.

With these nuances in mind, it’s essential that you learn about the specific regulations in your area. Contacting your local health department is a good way to get started learning about what you’ll need to do to legally produce and sell food out of your home.

Grey and white modern home kitchen

If you’ll be cooking at home, you will need to ensure your kitchen meets local regulations and codes.

Liquor License

Offering alcohol along with food means you’ll need to obtain a liquor license. Depending on your location, there may be a specific liquor license that allows you to sell drinks at authorized locations. This license is sometimes referred to as a liquor-by-the-drink license.

Depending on your city and state, you may also need to obtain a permit for every event where you serve alcohol.

Start Your Catering Business Off On the Right Foot

While obtaining the necessary permits and licenses to start a catering business may sound overwhelming, the truth is it’s just one part of starting a successful company! As a catering company owner, you may also be responsible for ordering ingredients, planning menus, and communicating with customers.

Fortunately, you don’t have to navigate these tasks on your own. Escoffier’s Food Entrepreneurship programs can introduce students to topics including cost control, menu design, foodservice accounting, and social media marketing. When students finish the program, they can leave with new knowledge, skills, and connections that may help them more easily launch a catering business.

To learn more about starting your own food business, read these next:

  • Ghost Kitchens & Ghost Restaurants: What Are They and How Do You Start One?
  • What Licenses & Permits Are Needed to Start a Food Truck?
  • How to Start Your Own Food Truck

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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.

kitchen appliance icon

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.

home based catering business plan

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.

Catering From Home

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.

home based catering business plan

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.

Catering Food From Home

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.

Owning A Catering From Home Business

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

Last Updated: March 9, 2024 Approved

This article was co-authored by Madison Boehm . Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston. There are 7 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 53 testimonials and 90% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 727,533 times.

If you host dinner parties for your family and friends every chance you get, you're up on food trends and you have an entrepreneurial spirit, consider starting a catering business. You have the advantage of starting small with relatively low overhead and building your business as you gain more clients. Read on for information on how to find your niche, launch your business and spread the word.

Finding Your Catering Niche

Step 1 Think about what food you love to make.

  • Lunch or brunch-style food. If you enjoy making sandwiches, quiches, tarts, salads, and other food that is generally served during the day, you might want to model your business around lunchtime service. You could cater business luncheons, daytime awards ceremonies, school functions, and so on.
  • Wedding reception or special event meals. Wedding caterers typically offer a variety of appetizers and finger foods along with several hearty entrees and a few desserts.
  • Desserts only. If you love baking and have a flair for making cookies and cakes, consider desserts-only catering. This may limit the types of clients who hire you, but you'll also have less equipment to buy.
  • Appetizers and cocktails. Clients are increasingly hiring caterers to create a trendy, festive atmosphere by serving only appetizers, sometimes accompanied by caterer-prepared specialty cocktails.

Step 2 Create a menu.

  • Try to have a variety of items to suit different tastes. Even if you specialize in one cuisine or type of meal, make sure your menu appeals to a lot of tastes. For example, if you want to offer a lot of spicy food, have non-spicy options as well.
  • Consider offering vegetarian and vegan options for clients who don't eat meat and other animal products.
  • Keep your menu to a manageable size, with food you're comfortable cooking made with ingredients you know you can source.

Step 3 Test your dishes.

  • Tweak your dishes until you're convinced they're delicious and crowd friendly.
  • Practice makes perfect. Make sure you've got the techniques, cooking times, and presentation down before you launch your business.

Securing Your Space and Supplies

Step 1 Find a space to rent.

  • Consider operating from a commercial kitchen. Some kitchens allow people to rent the space for a day or a few hours at a time. This situation could be the right one for you if you cater only on the weekends or a few times a month.
  • If catering is going to be your full-time business, you'll probably need a more permanent storage and cooking facility. Find a place with adequate plumbing so you'll be able to set up your cooking and catering equipment. Check with your landlord and your local zoning office to make sure you can install the proper equipment like ventilation hoods and grease traps.
  • If you plan to host tastings or sell food directly from your kitchen, look for a place with a storefront that's separate from the kitchen, and provide tables and seating for customers.

Step 2 Set up your kitchen.

  • Base your equipment purchases on your menu. For example, if many of your items are baked, install at least two ovens. If you have a lot of fried foods, opting for more than one fryer might be a good idea.
  • You may want to install multiple sinks to make your prep work more efficient, especially if you plan on hiring people.
  • Plan ahead for food storage, too. Multiple refrigerators and a walk-in freezer might be necessary to store dishes you prepare ahead of time. Heated and non-heated holding areas are important for holding temperature and storing prepared items.
  • Obtain all the pots, pans, and other kitchen equipment you need to make the items on your menu.
  • If you are starting a business, you should understand a fixed cost and a variable cost.
  • Fixed costs do not change every month. For example, the rent, utilities, and payroll.
  • Variable costs vary monthly, such as marketing expenses.

Step 3 Purchase the catering equipment that you will use on-site.

  • Many catering businesses provide plates, silverware, glassware, or disposable plates and utensils.
  • You may want to offer special display trays and tiered food platters to help make the catered event more festive.
  • Make sure you have the proper equipment to keep the food either cold or hot, such as chafing dishes with liquid fuel burners.
  • Consider buying linens, napkins, table decorations and centerpieces. Some catering businesses also offer tent canopies for outdoor events.

Setting Up Your Business

Step 1 Get applicable permits and licenses.

  • Instead of hiring staff right off the bat, you could also use a temp agency for your cooks and servers, at least until you build up your business.
  • Consider what type of uniforms you want your serving staff to wear.
  • Train your employees to provide the type of service you want to offer your clients.

Step 5 Apply for an account with food suppliers.

  • Produce can be acquired locally from farmers.
  • The makers of alcohol will sometimes give you a special deal on their brand if you display their logo at events.

Step 6 Market your business.

  • Submit your business information to wedding sites and ask for banquet halls and popular local wedding venues to refer potential clients to you.
  • Word of mouth is one of the best ways to get new catering business. Do your best to make the first few events go smoothly, and soon you'll have your hands full with new clients.

Community Q&A

Community Answer

  • Start small by opening a mobile food center (only if you have a van) or a small stall, tent, etc. Thanks Helpful 6 Not Helpful 0
  • Many caterers start by working at another catering company before jumping in and starting their own business. This will help you see if catering is truly the business for you. Thanks Helpful 5 Not Helpful 1
  • Plan ahead by contacting your staff in advance especially for an outside catering event. Time yourself adequately to meet the deadlines, consider transport time. For this you can take a trip to the area before hand. Thanks Helpful 3 Not Helpful 2

home based catering business plan

  • Operating a catering business from your kitchen or without the proper licensing can get you shut down. Don't skip this important step before launching your business. [7] X Research source Thanks Helpful 0 Not Helpful 0

You Might Also Like

Take an Order in a Restaurant

  • ↑ https://business.fullerton.edu/news/2018/08/29/how-to-be-a-foodpreneur-finding-your-niche-in-the-food-industry/
  • ↑ https://www.shopkeep.com/blog/how-to-make-a-restaurant-menu
  • ↑ https://www.entrepreneur.com/article/73784
  • ↑ https://pos.toasttab.com/blog/on-the-line/restaurant-kitchen-designs
  • ↑ https://pos.toasttab.com/blog/on-the-line/restaurant-equipment
  • ↑ https://www.fda.gov/food/resourcesforyou/industry/ucm322302.htm
  • ↑ https://www.legalzoom.com/articles/how-to-start-a-catering-business

About This Article

Madison Boehm

To start a catering business, start by deciding what kind of food or events you want to specialize in, like appetizers and cocktails or wedding receptions. Once you know what kind of food you want to make, start coming up with a menu and testing it on your friends and family. Also, since most local laws prohibit catering companies from operating in a home kitchen, you'll need to rent a space where you can prepare food. You'll also need to purchase catering equipment that you can use on-site, like serving platters and utensils. To learn how to set up your catering business and hire staff, scroll down! Did this summary help you? Yes No

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How to start a catering business

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Our experts

Written and reviewed by:.

If you have a passion for cooking and customer service, starting a catering business can be a relatively lean start-up idea.

Work can be sporadic and there will be plenty of competition, but with hard work and good marketing, you can quickly build a reputation and a solid base of clients.

From choosing a niche to writing a business plan, getting a food licence and catering insurance, we look at the steps you need to take to start a mobile or home-based catering business.

The steps to starting a catering business:

Who is catering suited to, choose your catering niche, decide how to start your catering business idea, develop your catering business plan, work out what catering licences you need, get catering insurance, get catering equipment, register your catering company, how to market catering companies, time and attendance software, selling your catering business.

Producing tasty and healthy meals quickly for groups of 200 people is no walk in the park. Even if your business is big enough to have a head chef to deal with the food preparation, having your own catering knowledge will still be crucial.

If you lack the necessary experience, consider taking some courses. If you don’t have the time or money to do a degree, there are a range of Catering Hospitality NVQ’s/SVQs available. At the very least, you should get some managerial experience in a catering business for an insight into how it all works.

In such a crowded market, it’s important to carve out a niche. Whether it’s a cuisine you have an interest in or a gap in the market you’ve identified, setting yourself apart from the competition with a unique and compelling proposition is the key to success.

The type of food you decide to make may well dictate the type of event you decide to work at, which will in turn inform your branding and marketing.

Generally catering is either private or corporate:

  • Private –  birthdays, weddings, anniversaries, funerals
  • Corporate –  catering for business events including office parties, awards ceremonies and other evening events, networking events and large meetings

Of course, you’re not just offering food, you’re offering a full service; an event, an occasion, an experience. You need to give people a reason to choose your business over another provider.

Take some time to diligently research your local market. What’s already being offered? What could you do better than others?

The corporate catering market

Serving the business sector will predominantly involve lunches for business meetings and training courses (cold sandwiches and other pre-cooked snacks), but may extend to business breakfasts and evening receptions, which could involve providing drinks and servers as well.

The major advantage with corporate clients is the opportunity for repeat business. Businesses like having a regular supplier, so if you provide a good service at a good price and you’re reliable, you’ll become invaluable to them. They will remember you and call you whenever they need some catering.

The food you serve to this sector will need to be good quality and freshly prepared, but since you will be preparing it at short notice, many times to several different businesses over the week, the gastronomic qualities of the food will not be the main concern. Your organisational skills may be more important than culinary expertise in this sector.

Concentrating on the corporate market can be one of the fastest ways to grow your catering business until you have established yourself as the preferred supplier to a large client base of businesses. Competition is fierce in this area, however, and you’ll have to work extremely hard to make an impact.

If you’re considering corporate catering, you’ll also want to consider things such as invoice payment terms, or even invoice factoring (more on the  costs of invoice factoring here ), to ensure you don’t have a gap in cashflow between needing to pay suppliers and waiting for payment from a client!

The private catering market

Alternatively, you could aim your catering service at the private sector. Predominately this will be catering for large family occasions such as weddings, funerals and birthday parties. To run this type of business will require good culinary skills, since the quality and range of your menu will be a major selling point, and you will have to be flexible enough to cater for any special requests from clients for their big day.

Think about offering extra services in order to stand out in the highly competitive private market. If you can save your clients time, effort and money by providing crockery and cutlery, servers, decorations and marquee hire for example, you’ll attract business much more quickly and it’s a good way of diversifying your revenue streams.

If you don’t want to focus on weddings, you can find a niche through specialising in a certain type of cuisine, offering themed events such as Mexican nights or hog roasts, or gourmet cuisine for dinner parties.

If you’re planning on catering for large, sit-down events, there are a number of different service styles you should be aware of.

  • Buffet –  guests queue up to help themselves to as much hot or cold food as they can stomach
  • Wave service –  suited to pre-set menus. A team of servers moves through the room dropping off plated food, usually starting with the head table in a wave. They then clear the tables in a similar fashion when the guests have finished
  • Drop-off –  food is pre-cooked and dropped off. There is no additional service of food from the provider. Guests help themselves or the customer organises their own service (generally better-suited to food that can be served cold)
  • Full-service –  can include set up, cooking and service, as well as cleaning and breaking down of the event afterwards

Once you know what type of cuisine and service you’re going to do, you can decide whether to run it from your home, as a mobile catering business, or from a fixed site.

Each come with their own advantages and disadvantages and it’s up to you to decide which best suits your ambitions.

Home catering business

As long as you have the necessary space and facilities, your home can double up as the base for your catering operation. This will save the costs associated with renting premises and buying equipment.

That said, making large quantities of food for lots of people might require more than just a home oven and family fridge/ freezer, so you may have to invest in some larger capacity equipment.

Mobile catering

The explosion in street food businesses in the UK has led to the growing popularity of having a mobile food van at events.

A mobile catering business gives you the freedom to go wherever the job takes you. You can pitch your van up at anything from a week-long music festival, to a day event or even a wedding.

Read more:  How to start a street food business

Fixed site catering business

Operating from a specially rented or purchased site will allow you to keep your home and work life separate. You will also have much more space for storage and large kitchen facilities and your business will seem like a more slick and professional offering to customers.

There are plenty of fully-equipped professional kitchens available for rent in London and the UK so you can get started straight away.

Foodstars offers  units specifically for caterers .

Whether it’s a home-based catering business plan or a mobile catering business plan, a business plan is the cornerstone of any successful catering operation. Taking the time to write one will give you a solid plan of action and a mission to work towards.

A big part of the research stage of your business plan is  calculating the size of your relevant market , where you’ll analyse exactly who your target customer is and how many you could potentially sell to.

It should detail:

  • You, the business  owner –  what relevant qualifications and experience do you have in the catering industry? Have you previously run a catering business? Or even worked as a chef or waiting staff?
  • The business –  what is the mission  of your catering business and how is it different from existing catering companies? Where will you find catering staff? How will the business be financed?
  • The service –  what type of cuisine will you be making? Where will you source equipment and supplies from? What red tape and regulation will you have to abide by? What insurance will you need?
  • The market –  who are your customers and how will you reach them? How big is the market you are targeting?
  • Strengths, weaknesses, opportunities and threats –  in what ways is your catering business better than the competition? In what way are you disadvantaged compared to the competition? Are there any threats to the success of your catering business?
  • The competition –  search around your local area for rival catering businesses, as well as indirect competition such as restaurants or cafes. What are their strengths, weaknesses and differences and what can you do better?
  • Start-up costs and sales forecast –  outline all the expected costs of purchasing food and equipment, premises or a van, bills, insurance, staff wages, website development and any other costs incurred in setting up your catering business

The process of researching and writing your business plan is a great way to establish the feasibility of your catering business and gain a realistic idea of the major costs you’ll need to budget and raise funding for.

Your catering business plan will also act as a valuable document in proving the viability of your business to investors.

Download our  business plan template here  to create the perfect plan for your business.

Any business that involves serving food to the general public brings with it certain risks. The potential for contamination and illness, or serving people with allergies is great, therefore you need the proper licences to show you’re a legitimate vendor.

Food business registration/ approval

Any business carrying out ‘food operations’ must be registered. This includes:

  • Selling food
  • Cooking food
  • Storing or handling food
  • Preparing food
  • Distributing food

Every premises where you carry out any one of the above activities must be registered, whether it’s your home, or even mobile/ temporary premises such as stalls or a van.

If you make, prepare or handle any meat or dairy products – unless it is for direct sale to consumers – you must have your premises approved by the council before you undertake any activity.

If you are planning to sell or supply alcohol you will need to apply for a licence from your local authority. Find out everything you need to know about the licences you need to  sell alcohol online here .

REMEMBER: You must register 28 days or more before you start any food operations. You can register  .

Food safety and hygiene regulations

As an ongoing part of your role, you will be responsible for ensuring that your catering company complies with food safety and hygiene regulations. Failure to do so could result in a financial penalty or even a prison sentence.

Your local council can inspect your premises, food, records and procedures at any time (and you won’t be given advance warning).

Your responsibilities include:

  • Making sure food is safe to eat
  • Not adding, removing or treating food in a way that makes it harmful to eat
  • Not misleading people about what food contains
  • Keeping records on the origin of your food
  • Displaying your food hygiene rating (if selling direct to the public)

You can find a full list of your responsibilities  here .

Rules governing any business that prepares food include:

The business premises:  Should be clean and in good repair, with adequate drinking water, pest control, lighting, ventilation, lavatory, hand washing and drainage facilities.

The room in which food is prepared:  Should have surfaces that are easy to clean and disinfect (including wall, floor and tabletop surfaces) and should have adequate facilities for washing food and equipment, storing food and removing waste.

The food handlers:  Should wear clean clothes and observe good personal hygiene. They should not smoke when preparing food and should be trained in all areas of food hygiene.

Equipment, containers and vehicles used to transport food:  Should be designed so that they can be easily cleaned and kept in good state of hygiene. Vans will often need to be refrigerated if transporting cooked food.

Food storage:  Food and food waste should be immediately cleared from surfaces and stored in a closed-lid container. Temperature controls apply to dairy products, cooked products and prepared ready-to-eat uncooked food. Although there is some flexibility, these foods will generally have to be stored at below 8°C, so many caterers have to use refrigerated vehicles.

Fire safety

All businesses are responsible for their own fire safety and you could face a fine or go to prison if you don’t follow regulation.

With an abundance of open flames in closed spaces, catering kitchens come with obvious risks.

You can arrange for a fire and rescue authority to come and inspect your property and suggest any important changes that need to be made to ensure you are compliant.

Read more about fire safety  here .

Caterers need to protect themselves against a variety of scenarios with adequate catering insurance policies. You’ll be operating in unfamiliar venues, renting equipment and working with new staff all the time.

Failure to do so could in you taking a major financial hit and even lead to forced closure.

Find a quote for tailored catering insurance from Simply Business  here .

Remember to read your policy carefully before signing on the dotted line to check it’s suitable for your needs.

The  Nationwide Caterers Association  (NCASS) offers a plethora of specialised advice and protection for UK caterers to help ensure they are safe, legal and profitable.

Catering public liability insurance

As a caterer, the success of your business relies on regular and direct interaction with the general public.

As well as injuries or damage to personal property, a  public liability insurance  policy will cover you against any claims made in the event that a customer falls ill as a result of eating your food.

Different venues may require you to have a different level of public liability insurance

Catering employer’s liability insurance

You’re required by law to have an  employer’s liability insurance  policy, whether you have 100 people or just the one working for your catering business. This is the case even If they are temporary agency staff, contractors or full-time staff.

Again, if a member of staff falls ill or is injured whilst working for you, this will protect you against their claim.

Catering van insurance

If you operate a mobile catering business then it’s essential that you take out catering van insurance or catering trailer insurance.

There are a variety of policies you could take out depending on the nature of your business.

Your policy should cover you against any likely scenario including theft and loss, damage, and fire damage (exposed flames inside vans comes with an obvious risk).

Other catering insurance

You should also think about investing in some or all of the following additional policies:

  • Business interruption insurance –  this will cover you for loss of profits in the event that the normal operations of your business are interrupted by accident or disaster
  • Stock insurance  –  catering businesses rely on having food stock that’s vulnerable to damage or loss. Stock insurance will protect you against the financial cost of that eventuality
  • Business contents insurance –  this covers loss or damage to equipment and furnishings. Your equipment is vital to the daily running of your business and a lot of it can set you back a fair bit. Therefor it’s important to cover your protected financially

Starting a catering business requires a lot of catering equipment.

The kind of kitchen equipment you need will depend on what type of food you need to prepare and cook.

For a basic catering operation, you’ll need refrigerators to keep supplies fresh, cooking equipment (including an oven, hob, fryer, and maybe a grill) and food preparation equipment.

Many catering establishments actually don’t have a as they’re expensive to run and can take a long time. A simple sink set-up and a willing washer allows you to wash up any needed utensils or crockery whenever it’s needed.

Be sensible when deciding what catering equipment you need. Don’t get overexcited and buy everything but don’t cut costs and find yourself underprepared.

This is why it’s good to detail all the equipment you might need in your business plan.

You also might need different equipment for different events. Some may require you to have crockery and cutlery, others may provide their own.

Catering utensils

Once you’ve got your large equipment sorted for cooking and storage, you need to buy all those essential catering utensils for food preparation.

Below is a list of the utensils that even the most stripped back catering operations should own:

  • Knives –  get a variety of knives for different tasks
  • Tongs/ Spatulas/ Serving spoons –  for manual handling of different kinds of foods
  • Sauce dispensers –  a variety for sauces and the delicate dispensing of dishes onto carefully arranged dishes
  • Scissors  snipping through baking parchment, meat, packages and all sorts of things
  • Chopping boards –  It’s so important to have a variety of chopping boards in different colours to avoid cross contamination
  • Colanders  for draining all those boiled vegetables
  • Peelers/ graters  for peeling root vegetables and zesting rinds onto dishes
  • Scales –  exact measurements are crucial for some recipes
  • Mixing bowls –  a variety of different sizes is essential when cooking for large numbers of people
  • Timers –  good cooking is all about good timing. A timer is a chef’s best friend
  • Thermometers –  it’s important that meat is cooked to the correct temperature so you don’t make anyone ill
  • Can openers –  get a fixed, table-top can opener if you want to open large cans in a hurry

The above is not an exhaustive list. Depending on the particular needs of your catering business you may need to invest in other specialist equipment. But it’s a good start for all your basic prep, cooking, and serving needs.

Mobile catering equipment

If you’re a mobile catering business you’re going to need either a catering trailer or a van.

If you buy a pre-owned van, much of the equipment you need could already be installed. Make sure it is safe and in full working order. Most of the utensils you need will all be the same.

You can find plenty of  catering vans and trailers on the NCASS website .

You’ll also need to find some storage space for supplies and equipment when not in use. Depending on the size of your operation, this could mean you take out a particularly big unit for storage.

Read more:  start a mobile catering business

Gas equipment

Any cooking equipment you buy that uses gas must be CE marked – showing it conforms to the European Economic Area’s (EEA) safety standards – and include a flame failure device to prevent build-up of flammable gas within the appliance if the flame is extinguished.

Other supplies – consumables

You’ll need to keep your eyes on those essential items that run out, otherwise known as consumables. You’ll be surprised how much it can derail an operation if you forget to keep stocks up.

Here are a few of the essentials:

  • Blue roll –  this affordable but absorbent kitchen staple is a lifesaver when it comes to spillages and cleaning.
  • Vinyl gloves –  disposable vinyl gloves are another essential to ensure kitchen hygiene. Cheap and disposable, they can be used for food preparation
  • Baking parchment/ foil –  for lining oven trays to prevent sticking and save on cleaning
  • Clingfilm –  essential for keeping food fresh and from pungent aromas infecting other food
  • Cleaning spray –  an anti-bacterial spray will keep your surfaces clean and prevent
  • Washing up liquid and sponges –  trust us – you’re going to be doing a lot of washing up

There are plenty of online destinations where you can order wholesale catering supplies.

Second hand catering equipment

Rather than splash out on loads of new and exciting equipment, you could instead invest in some perfectly serviceable second-hand catering equipment.

Then, when you start to make a bit more money you could invest in something better.

However, don’t buy shoddy equipment that’s likely to break down and end up costing you more in the long run. You can extend the life of your used catering equipment with regular cleaning and maintenance.

You can find second hand catering equipment in the UK  here .

Now you’ve identified your niche, decided how to operate, cooked up a catering business plan, got your licenses and insurance, and bought your equipment, it’s time to register your catering business.

First, you’ll need to come up with a creative and distinctive catering company name

Catering company names

Food service company names should embody what the values of a catering business are.

Think about what image you want to convey to the consumer and how they might find you online. If your catering business is targeted at weddings or another kind of speciality event, then reflect that in your name. If you’re serving a niche kind of food, include a relevant word in your name.

Using the word catering can also help for online search purposes.

Whatever it is, it should convey:

  • Professionalism
  • Cleanliness

Filthy Fred’s is unlikely to appeal to many…

How to register a catering company

Once you’ve got your name, you can take the exciting step of registering it as a limited company and feel your dream start to feel like a reality.

To do this you need to:

  • Check that the company name you want isn’t already taken
  • Decide on an official address for your catering company
  • Choose a SIC code for your company
  • Appoint a company director or directors
  • Outline your proposed company share structure
  • Choose your company shareholders or Persons of Significant Control
  • Sign a statement of compliance
  • Pay a company formation fee

You can find out more about  registering your company name here .

As mentioned earlier, the catering industry is a big business. That means there are a lot of players in the market and you’re going to have to work hard to make a name for yourself.

Here are some marketing ideas for your catering business:

Win customers with sampling sessions

Whether you land a spot at a farmers’ market, give away free samples on the street or get a stall at a bridal fair, allowing the public to sample your food is a great way of giving consumers a taste and showing the friendly face of your business.

As long as your food is delicious and you make sure they have your contact details, you’ll be forefront of their mind next time they need someone to cater an event.

Catering exhibitions

There’s a plethora of catering and hospitality exhibitions up and down the UK, giving you the chance to meet fellow , suppliers, equipment manufacturers and consumers.

Network and make connections and get your name out there.

Here are some of the UK’s biggest catering shows:

  • Hotel, Restaurant & Catering Exhibition
  • com beverage and catering
  • THE Catering Equipment Show
  • Street Food Live

Strong branding

If you’ve spent some time thinking about a good concept, a compelling offering and a great name then you should have no problem developing really strong branding.

Make sure it reflects what your brand is all about and is consistent across all your marketing.

Catering directory

Get your name in an online catering directory. There are plenty of local and UK-wide options online. This will help people discover you on search engines.

Mobile catering marketing

For mobile catering, your best canvas is your catering van or trailer. Have a bright, vibrant and eye-catching van, emblazoned with your contact details and you’ll essentially have a roaming billboard.

Getting good catering food photographs

Nowadays nearly everyone is an amateur food photographer, getting trigger happy with their smartphones at restaurants. But food photography is actually a very in-demand art form.

The truth is it takes skill to make food look appetising in a photo. The best way to ensure tantalising food snaps is to get a professional to take them but if you don’t, here are some tips:

  • Good,  natural lighting  is a must to make sure food looks enticing
  • Take the photo  as quickly as possible  if you want it to look fresh and vibrant
  • Create  pleasing arrangements  of food to make it look pretty and appetising
  • Think about  composition  and  background

As their business model relies on working at sporadic events, catering businesses usually rely on a lot of temporary workers for staff. It doesn’t make sense to pay people to be on your books all the time.

There are hundreds of agencies across the UK where you can find temporary event staff for as short or as long as is necessary.

Investing in time and attendance software is a great way to keep track of the hours that your temporary staff are working and that they are getting paid the correct amount.

Compare time and attendance software

Time and attendance software can help a catering business track hours and pay staff accurately

Payroll software

You’ll also need to pay all those temporary workers.

Investing in comprehensive payroll software can take the hassle out of the copious amounts of admin and red tape involved in paying employees.

Payroll software ranges from fully-managed options, to part-managed and pay-as-you-go depending on your needs.

Compare payroll software

Payroll software can help you have a slick and smooth catering operation

When you’ve grown your catering business to a satisfying size, or you simply feel like stepping away from the reins, you could think about selling it on.

BusinessForSale.com  lists a range of catering companies for sale up and down the UK. You can add yours to the website to be put in contact with a willing buyer.

You just need to provide:

  • Asking price

Written by:

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    Catering Business Plan. You've come to the right place to create your catering business plan. We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start a new catering business or grow their catering company. Below are links to each section of a catering business plan template example:

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    Ideas for Promoting Your Home-Based Catering Business. Work with a designer to create a website to promote your business. Some static pages like an about m and contact page, rates, and a page to post pics of events you've catered is all you need. You can also add a blog to share recipes and other cooking/baking tips with your audience.

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