business plan for a small catering company

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10 free catering business plan templates and examples

• Published on February 8, 2024
• by Patricia Fernandes
• Last updated: 1 week ago

When starting a catering business, it’s essential to have a well-structured business plan in place. A comprehensive business plan not only helps you outline your goals and strategies but also serves as a detailed roadmap for success. However, creating a business plan from scratch can be a daunting task. That’s where catering business plan templates come in handy. Understand the importance of a well-devised plan for your catering venture , as it can significantly improve your chances of overcoming challenges and achieving long-term success.

Once you’ve found a suitable template, the next step is to customize it to fit your unique catering business. This involves filling in the specific details of your business, such as your target market, menu offerings, pricing, marketing strategies, and financial projections. Customizing key elements of the template allows you to tailor it to your specific goals and vision, ensuring that your business plan accurately reflects catering businesses. Understanding the challenges that come with taking on the catering industry, developing a strategy through a tailored catering service business plan from the onset can significantly influence your path towards achieving long-term success and stability.

Why Creating a Catering Business Plan is Essential

In the catering industry, having a well-thought-out business plan is crucial for success. It provides a roadmap for your business and helps you make informed decisions. Here are some key reasons why creating a catering services business plan is essential:

Defining Your Goals: A business plan allows you to clearly define your goals and objectives. It helps you identify what you want to achieve with your catering business.

Understanding Your Target Market: By conducting market research and analysis, you can gain valuable insights into your target market. This information will help you tailor your services to meet the needs and preferences of your customers.

Outlining Strategies: Your business plan serves as a guide to outline the strategies you will implement to achieve profitability. It includes details on your menu, pricing, marketing tactics, and financial projections.

Setting Yourself Up for Success: By carefully considering all aspects of your business and planning for potential challenges, you can set yourself up for long-term success in catering companies.

If you’re dreaming of starting your catering biz, you’re in the right place. We selected 10 catering business plan templates to help you get from daydreaming to doing. We’ve broken them down into three categories: Basic, Intermediary, and Complete, so you can find just what you need, no matter where you’re at in your catering business planning process.

Basic Catering Business Plan Templates

Template 01: the quick start guide.

This business plan template is like the fast food of business plans – quick, easy, and gets the job done. It’s perfect if you’re just getting your feet wet. Considering launching a catering service? Ensure you have a robust plan for your catering venture by understanding the essential components and pitfalls to steer clear of.

Use the Quick Start Guide Template

Template 02: The Budget Buddy

Focused on the numbers, this one helps you figure out your starting costs and financial plan for how you’ll keep the lights on.

Use the Budget Buddy Template

Template 03: The Startup Planner

This template helps you outline your business concept’s initial needs, legal structure, and pricing strategy.

Use the Startup Planner Template

Intermediary Catering Business Plan Templates

Template 04: conscious catering strategy.

Focusing on the growing trend for healthy and dietary-specific menus, this sample menu template is perfect for caterers wanting to market and specialize in health-conscious catering industry food offerings. Learn to adapt and enhance your catering business plan to cater to health-conscious consumers, ensuring the long-term growth and success of your business.

Use the Conscious Catering Strategy Template

Template 05: Full-Service Catering Plan

Designed for established catering services and catering companies ready to expand, this template focuses on operational and pricing strategies, detailed menu planning, and advanced, marketing strategies and techniques. It’s ideal for caterers looking to scale their operations and refine their service offerings. Discover strategies on constructing a lucrative catering business plan , with guidance on enhancing operations, menu selections, and marketing approaches. Visit Metrobi’s website to delve deeper.

Use the Full-Service Catering Plan Template

Template 06: Catering Growth Accelerator

Unless you’re planning to do everything yourself (spoiler: not a good idea), this template helps you plan out your dream team.

Use the Catering Growth Accelerator Template

Complete Catering Business Plan Templates

Template 07: the full feast.

This is the big one – a comprehensive marketing plan for a full catering company template that covers everything from A to Z. If you’re ready to dive deep, this is for you. Planning to launch or manage a catering service? Ensure you have a detailed catering service business plan to guide you through every step.

Use the Full Feast Template

Template 08: The Event Ace

Specializing in events? This template focuses on planning for different types of clients at events and managing bookings at networking events.

Use the Event Ace Template

Template 09: The Growth Guru

Thinking ahead? This template helps you map out marketing strategy detailed plan for how you’ll expand and grow over time.

Use the Growth Guru Template

Template 10: The Risk Wrangler

Every serious business owner faces challenges. This template helps you identify potential risks to business goals and plan how to handle them.

Use the Risk Wrangler Template

Taking Action and Customizing Your Business Plan

Now is the time to take action and start creating your catering business plan. While examples and templates can be helpful starting points, it’s important to customize them to fit your unique business needs. Remember, your catering business plan template is a living document that can be updated and adjusted as your business grows and evolves. Learn how you can adapt and refine your catering business plan to ensure it aligns with your goals, enabling sustainable growth and success in the competitive catering landscape. Explore strategies to advance and update your catering business plan , positioning your venture for enduring prosperity and distinction in the bustling catering market.

Turning Your Catering Company Dreams into Reality

Starting a catering business is super exciting, but it can also be a bit overwhelming. That’s where the catering business plan template comes in. They’re like your road map to success, whether you’re just starting to sketch out your catering equipment ideas or you’re ready to launch. So, grab the first operations plan template that fits your stage and start cooking up your new catering business and plan!

Why you must have a solid catering business plan

How will your catering business plan evolve as you grow your catering business

How to create a profitable catering business plan

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How To Write a Catering Business Plan

Caterers combine their chef skills with next-level organization and planning to craft beautiful and delicious foodscapes with flawless service. If this sounds like your dream job, build your catering business plan with this template.

Tyler Martinez Author

Tyler Martinez

Restaurant Banquet Event Order (BEO) Template

This free BEO template can help your restaurant optimize incoming catering requests and streamline documentation.

Business Plan for Catering Businesses Guide

Catering businesses navigate intersections of the restaurant industry where quality and quantity are always in the balance. Catering is born of a passion for providing good food for some of life's most important events, making a wedding even more delightful or a graduation party that much more memorable.

Some caterers specialize in intimate events for 40 people or less. Others have their mass-production chops ready to go for weddings or conferences with guest lists in the hundreds or even thousands. It all depends on what's in the catering or banquet event order form . 

To deliver quality recipes and execute seamless service, you’ll need to develop a system of planning to cater events that works for you. Whether you’re taking your home kitchen to clients or expanding your restaurant’s services, a business plan is a good place to start.

Why Build a Catering Business Plan?

Planning is the name of the game in catering, and sections of your business plan will be resources for your potential investors, your clients, and future you as you navigate the many steps that go into setting up a new catering business. 

A detailed roadmap is critical for the success of your catering business. 

Catering requires extensive planning, menu ideas , and preparation no matter the scale of the operation. Building a detailed business plan forces you to prepare to plan events –  it gets you thinking about the supply chains you have access to, the labor required to prepare and execute recipes, and what kinds of local networks you’ll be working in.

Caterers often juggle working with event planners, decorators, and venue managers while delivering on preferences and whims of your client – your business plan solidifies your vision so that you can communicate it to business partners and clients. 

How to Write a Catering Business Plan (Description, Examples, Proposals)

While the specifics of a business plan for a catering operation are unique, this restaurant business plan template is a helpful tool for imagining and executing your vision for a catering business. 

Download a customizable version of the template and read on to learn more about how to make it work for your catering operation.

Restaurant Business Plan Template

No matter where you’re at in your restaurant ownership journey, a business plan will be your north star. Organize your vision and ensure that nothing is overlooked with this free template.

Elements of A Catering Business Plan 

Executive summary.

Make a good first impression with a concise introduction to your concept and a summary of the operations of your catering business. An executive summary introduces key elements of your business plan – consider providing an overview of the budget, the business’s mission and core values, and a coherent vision for your recipes and brand.

Imagine an audience for the executive summary as you write it. How can you choose language and present your concepts so to grab the attention of potential investors, partners, and clients to get them interested in your idea and convince them to keep reading? How will the client experience you provide, from sales to execution, have your catering company stand out of the ranks? 

Company Overview

The company overview works with the executive summary to provide a quick look at your catering business, but this section is more practical than flashy. Provide a glossary for the rest of your business plan by describing your style of food and approach to service, providing information about the ownership and management of your business, and describing the client experience.

A particular concern of a catering business is delivering food to clients. Detail how you will travel with prepared food, if you plan to build or purchase a traveling kitchen, and what types of venues you see yourself working in. Consider including information about the kinds of jobs your catering business will create and how you will find talent to fill the roles you need to.

Team and Management

Start this section by defining your role in your catering business as the owner, manager, chef, research and development team or some combination of those roles. Then, provide information about who is going to execute the additional responsibilities and how you will find the talent to fill those roles. 

Unlike some other food service models, catering businesses can choose the scale on which they operate, and situations might require some innovative scaling. You might be a small, intimate family team or a contingent of dozens of managers, chefs, cooks, and service staff. Alternatively, you might hire from a pool of local staff when you need them on an event-by-event basis, keeping only a few essential employees on the payroll. Define the scale of your catering business in your plan for potential investors or partners.

Sample Menu

As a caterer, you will likely find yourself crafting custom menus for your clients from a list of recipes you’ve developed and tested – showcase both sample event menus and a larger recipe list in your catering business plan.

These menus from Catering Works are a great example of how you might imagine menus for different events. Catering Works emphasizes that a custom menu proposal including food and beverages is crafted for each client’s needs. How you plan to build menus for your clients could be included in this section of your business plan.

Your sample menu provides a lot of information to potential partners or investors and prompts you to start thinking about the finer details of your business. Consider providing information about how you will produce and deliver your services and what specialized and potentially cost equipment you need.

Anticipate what questions clients or partners might have about your menu as you design the sample and be ready to answer those concerns. Do you have options for the range of dietary restrictions? How flexible are your recipes?

Sample menus are one of the greatest assets of your business plan and building menus is a productive exercise for ensuring that your plan is airtight before presenting it to clients or investors.

Market Analysis

Catering is a relatively niche market – customers don’t go looking for caterers until they have an event to plan or group of people to feed. It's not like a restaurant where any customer could decide that this random Tuesday is the day to engage your services. The approaches you take to organizing, building, and marketing your catering business depend on the types of clients you can expect to serve.

Think back to the last time you were at a PTA meeting eating soggy finger sandwiches drenched in cheap mayonnaise and chicken salad without a hint of texture. Or, perhaps you had the good luck to find yourself a wedding recently but the chafing dishes of dry lobster mac and cheese and miniature meatballs distracted from the magic.

Those less-than-perfect experiences are market openings in your area for high-quality finger foods or family style event catering that doesn’t put quantity before quality. Finding that market opening can be tricky, but identifying a market opening and potential client base are central to your business plans.

Marketing and Publicity

Finding an opening in the catering market will help to direct your marketing and publicity strategy. Word-of-mouth marketing can be a valuable asset to caterers — everyone who is wowed by the food at your events will keep you in mind for their own upcoming events — but putting yourself in the position for your clients to find you in local directories or online is equally important. 

There are two types of clients that caterers will generally attract: clients who need to feed groups of people regularly, and clients who are hosting one-time events. Corporations, non-profits, event planners, even some venues and hotels – those will be the regular clients of a catering business, and marketing yourself to those clients through networking is crucial. 

Marketing online with a full website and a consistent social media presence will keep your clients thinking about you. Networking, maintaining relationships between your company (or the sales team), clients, and partner businesses like venues can help to ensure steady business.

If your market research leads you to a particular need for a catering business in your area, you might target your business to fill that need and state explicitly in your marketing plan how you will capture that market opening. If you’re a family style caterer, for what kinds of regular events in the area can you expect to be considered and hired?

Branded Graphics

One of the most exciting aspects of building a cohesive brand across your business plan is creating branded graphics that convey your brand’s concept to both potential investors and customers. Think about how you might represent the ethos of your catering business and the experiences that you plan to offer your customers through branded graphics and the design of the documents in your business plan. 

Branding for a catering company can be placed on everything from menus and business cards to the labels on chafing dishes. Work to extend the aesthetic of your brand into all of your operations – everything from tablecloths to delivery van vinyl wraps can build brand recognition.

Business Operations

Information about the client experience, sales and inventory, accounting, management structure, and the supply chain for the products on your menu is included in the business operations section of your business plan. Consider the role you plan to play in your business as well – will you be the ringleader, head chef, or a hands-off owner/manager?

Catering companies focus on delivering a coherent experience and your business plan might include detailed expectations for how you and your staff will approach clients during sales and handle their accounts through to execution.

This is your ultimate chance to plan for your business – build an outline of how your business will run from the daily to the quarterly. Who will be attracting clients and making sales? Cooking and serving at events? Delivering food and equipment? Who is ordering to ensure that all the necessary food and equipment is ready when it’s needed? Answering these questions will help you to complete detailed and accurate sales and financial projections.

Restaurant POS Comparison Tool

A free, customizable Restaurant POS Comparison Tool to research and compare point of sale systems in one Excel spreadsheet or editable PDF.

Sales Forecasts and Operating Expenses

The operating expenses for a caterer include the costs of labor, insurance, products, supplies, equipment, rentals, incidentals, etc. Additional expenses associated with a particular supply chain or networking and marketing costs are worthwhile considerations.

One common analysis to include in a business plan is a “break-even analysis ” which compares the sales required to break even with the cost of expenses each month. Investors will be interested in the potential for profit and loss before they contribute to your business, but to produce a profit and loss statement for a business that isn’t open yet will require some thoroughly educated projections.

A cash flow analysis details how you plan to spend on labor, supplies, and operations to show investors that the company can support itself without additional investments. Consider how the cost of supplies, labor, taxes, maintenance on equipment, cleaning supplies, and paper or plastic for service balance out with revenue by the end of each fiscal quarter. 

Financing and Loans

Opening a catering company might cost less than a brick-and-mortar restaurant – less staff to hire and train, a need to stock only what products you’ll be selling soon, and likely lower rent on a space for a kitchen than full restaurant. Even so, it’s crucial to carefully consider your finances and prepare to apply for necessary lines of credit or loans. 

This  financing guide is a useful resource for figuring out your fiscal fundamentals – it goes into detail about loan options from brick-and-mortar banks, alternative loans, Small Business Association (SBA) loans, merchant cash advances, business lines of credit, crowdfunding, asking family or friends, commercial real estate loans, equipment financing, and purchase order funding.

Depending on the amount of initial investment needed, you might work with a bank or private investor to get your catering business off the ground. Include information about how you expect investors to be involved with the business and any benefits they might gain by investing, such as discounts on services or priority booking.

Once you have a plan to fund your catering business, it is crucial to include that information in your business plan. Provide potential investors with information about other investors and detailed financial plans about the projections of profit and expenses of your business.

How to Present a Catering Business Plan

There are a few ways to prepare to communicate with investors about your business plan and get them interested. As you write and edit your plan, you’ll have become the world’s only expert on your catering business. Remember that the way you talk about your business should be tailored to the situation you find yourself in.

First, send your business plan to investors and banks far and wide – put your concept and plan in the hands and minds of as many people as possible. You can’t hear no (or yes!) unless you ask. 

You might also want to try out networking events, where your 30-second elevator pitch will come in very handy so you can communicate everything you need to about your plan for a catering company quickly. Be sure to include something exciting or make an opportunity for questions to keep people talking. 

Once you secure a meeting with a potential investor or partner, you’ll want a more detailed presentation that presents all the key elements of your business plan – for a catering business, that will likely include the experiences at the core of your business.

It’s good to anticipate potential questions and prepare answers for questions you encounter for the first time. When networking, be honest and genuine, even if you don’t have a ready answer for each question that comes your way – investors will be interested in your charisma and savvy just as much as your ability to build a detailed plan.

Get Catering!

Build your business plan, read it over and over again, and make edits until it perfectly encapsulates the vision you have for your company. Then, once you've got your business off the ground, you'll have to keep those pitching skills sharp, because you'll be showing off what you can do for clients at every function you cater — and hopefully, in future client meetings with all the guests you delighted at your last event.

Related Catering Business Resources

• How to Open a Catering Business
• Catering Business Name Ideas
• Catering Menu Ideas
• Catering Licenses and Permits
• Catering Ideas and Concepts

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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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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.

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Catering Business Plan

Every event or occasion calls for good food. And although the majority of people like good food, not everyone has the talent to cook the same.

And if you are someone who receives constant compliments for your cooking then you must have thought of having your catering business.

But having a catering business is much more than that. It all boils down to the quality of your service in the end, but before that, you need to have a strategy to attract your customers’ attention, build trust, manage your finances, and many more.

All of the above might sound a little overwhelming, but it doesn’t need to be. All you need is a catering business plan.

Catering Industry Highlights 2023

Here is an overview of the current state of the catering industry in 2023:

Market size and growth potential:

Employment scenario:, number of operational businesses:, major market drivers:, key market trends:, financial plan:.

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How Can a Catering Business Plan Help You?

The catering business is one of the most rewarding careers as it not only lets you pursue your passion, it has the potential to grow into a huge business by size and volume if planned properly.

A business plan is helpful for a catering business because along with great cooking skills, great management skills are an integral part of a successful catering business.

A business plan can help you conduct your daily business activities without chaos, have good finances, help you find your desired customers, and make your unique business idea a marketable one.

Things to Consider Before Writing Your Catering Business Plan

Make a list of items you can serve.

Having a list of items you will serve, helps you organize your services better. It also helps your customers understand what you can offer and decide if your service is the right one for them or not.

It also becomes important that you design your menu as per your target audience’s tastes and preferences.

Figure out your location and staffing coasts

Figure out from where you’ll provide services, what would be the amount of rent you’ll have to pay, which location would be good for your business , etc.

Apart from that, you also need to figure out staffing costs, the size of your team, the skills required, and so on.

Figure out where you’ll get your supplies from

Getting good supplies is essential for a catering business. Because you need to pay attention to quality as well as the taste of the food you’ll offer. Having a fixed supplier helps you maintain consistency in the quality of your food.

Make a list of important equipment

Although many catering services work on the go and prefer to rent equipment, it is a good practice to have the basic equipment in case of contingency. It would also decrease your reliance on other people, and pose fewer challenges while gathering supplies for new orders.

Having your equipment also makes it easier for you and your team to prepare orders as you get familiar with how to use those tools.

Now that you have done the research, let’s learn how you can write a business plan for yourself.

How to Write a Catering Business Plan?

A good catering business plan consists of a clear description of your business’s functioning, your target market, the services you offer, the size of your company, a pricing strategy, and a well-designed employee management system.

Now you might wonder, where to start from, how to go about writing a plan from scratch, and most importantly how to know if you have written a good one.

Well, you need not worry.

You can easily write a well-rounded business plan either through a pre-designed template or through online business plan software.

Moreover, online business plan software can help you write a flexible business plan that grows alongside your business.

Catering Business Plan Outline

This is the standard catering business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• Financial Summary
• Legal Entity
• Locations and Facilities
• Facility Design
• Boxed lunches
• Buffet style lunches
• Alternative Providers
• Future Products
• Internal Bright Future Customers
• Nonprofit External Customers
• For-profit External Customers
• Market Analysis
• Market Trends
• Market Growth
• Value Proposition
• Competitive Edge
• Distribution Strategy
• Marketing Programs
• Pricing Strategy
• Promotion Strategy
• Of Grape & Grain
• Cravings Fine Foods
• Ariana’s Deli
• Fettuccini and Co
• Napoli Restaurant
• Brindiamo Catering
• Wild Duck Brewery
• Oregon Electric Station
• Local and national grocery stores chains
• Local and national sandwich fast-food chains
• Strategic Alliances
• Organizational Structure
• Management Team Gaps
• Personnel Plan
• Other General Assumptions
• Fundraising Strategy
• Fundraising Programs
• Funding Forecast
• Start-up Summary
• Income Statement (5-Year Projections)
• Balance Sheet (5-Year Projections)
• Cash Flow (5-Year Projections)

Although your plan will keep changing as your business grows, here are a few key sections that would form the foundation of your business plan:

1. Executive summary

This executive summary section would be the first one on your plan. It provides a summary of all that your business stands for. It can be divided into the following subsections:

• Objectives : This segment would consist of the chief objectives of your company. What it aims to achieve, who it wants to serve, and where it wants to reach.
• Mission : This segment includes the mission statement of your business, it consists of what market gap you plan on filling with your business.
• Financial Summary : This segment will give a summary of the past and present condition of your finances as well as projected gains of your business.

A clear executive summary can come in handy if you need funding.

2. Operational Strategy

The operational strategy section helps you plan how to work toward achieving your business goals. It can be divided into the following subsections:

• Day-to-day activities : In this segment, you’ll write an overview of the best way of carrying out your business from onboarding clients to fulfilling the services.
• Long-term goals : This section would consist of long-term goals like serving a certain number of clients, growing your business to a certain size, and expanding to a certain number of branches, etc.

A good operational strategy would make your business activities less chaotic and prevent them from being all over the place.

3. Market Analysis

In this segment, you’ll write down every single detail you can find out about the market. It would include the following segments:

• Market trends : Knowing about all the prevailing market trends can help you design a plan that would change as per the evolving market, and also help you maintain the foundation your company stands on. It would also give you an overview of what your competitors are doing.
• Target Market : This segment would describe everything about your target market. The locations they prefer, the kind of cuisines they are into, how and when they procure catering services, etc.

This segment helps you understand what you are getting yourself into.

4. Services

This section consists of a detailed description of the services you offer. For example, the events you cater to, the volume of people you can serve, the food options your services have, what additional services you offer, etc.

This segment helps your target audience understand your services better, it helps them in deciding whether you are the right fit for them or not. So, make sure you describe your services in a clear and precise manner.

5. Financial Plan

The financial plan segment includes everything starting from the funds you need to start your business, the funds you need for procuring supplies and employing people, the projected cash flow of your business, expected profit, and loss of your business, pricing strategy, etc.

Download a sample catering business plan

Need help writing your business plan from scratch? Here you go; download our free catering business plan pdf to start.

It’s a modern business plan template specifically designed for your catering business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

A business plan software like Upmetrics is the best way to draft your business plan. This incredible tool comes with step-by-step instructions, customizable templates, and 400+ sample business plans to help you get started.

So, whether starting a catering business or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.

So what are you waiting for? Start planning today!

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Frequently asked questions, how do i write a business plan for catering.

Writing a catering business plan from scratch requires a lot of research, but you can report it most effectively with the help of a catering business plan example. Using our business plan software, you can also quickly finish your plan in just a few hours or less.

What should be included in a catering business plan?

These are the key components of a business plan your catering plan must include to stand out to investors:

• Executive summary
• Business Overview
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Where to find business plan writers for your catering business?

While many business plan writers are available to help you, believe it or not, no one knows your business better than you. So we recommend you write your catering business plan and outline your vision as you have in your mind. You can use AI business plan generators like Upmetrics to speed up the writing process.

What are some common mistakes to avoid when writing a catering business plan?

Following are some of the common mistakes to avoid when writing a catering business plan:

• Poor market research and ignoring industry trends.
• Inadequate and inaccurate financial projections.
• Undefined goals and lack of details.
• Including outdated and irrelevant information.
• Not proofreading the document for typos and grammatical errors.
• Not regularly updating your business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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

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

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

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

Executive Summary

Catering spread for a Mexican food concept.

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

Introduction

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

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

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

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

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

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

Company Description

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

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

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

Catering works great for food trucks and restaurants.

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

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

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

Customer Focus

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

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

Mission Statement

What’s your mission statement?

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

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

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

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

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

Company Concept

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

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

You can start by answering the following questions:

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

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

Market Analysis

A compelling catering business logo.

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

Target Market

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

Industry Analysis

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

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

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

Competitive Analysis

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

Management Structure

Determine the key players in your business.

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

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

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

Product Line and Services

Burgers are a proven catering option.

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

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

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

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

Sales and Marketing

Grilled chicken is another popular option for caterers.

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

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

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

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

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

Financial Plan

Plan your financial future.

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

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

Funding Request

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

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

Financial Forecast

Make conservative and best case scenario financial forecasts.

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

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

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

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

Download Now: Bakery Business Plan Templates for 2021

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

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

Operational Plan

What’s your operation plan?

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

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

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

Download Templates

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

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

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

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

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

Want to start your own food business?

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

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

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

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About the Author: Brett Lindenberg

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BUSINESS STRATEGIES

How to create a catering business plan

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

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

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

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

Executive summary

Company and domain names

Market analysis and research

Operations plan

Marketing and advertising plan

Financial plan

01. Executive summary

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

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

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

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

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

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

02. Company and domain names

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

Be inspired: Catering business name ideas

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

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

03. Market analysis and research

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

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

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

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

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

04. Operations plan

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

Key elements to consider in your operations plan:

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

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

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

05. Marketing and advertising plan

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

Consider the following when creating your marketing and advertising plan:

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

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

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

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

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

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

06. Financial plan

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

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

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

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

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

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

Catering business plan examples

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

Example 1: full-service catering business

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

Company name and domain name

Company name: ABC Catering Company

Domain name: abccateringcompany.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Example 2: corporate catering business

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

Company name: XYZ Corporate Catering

Domain name: xyzcorporatecatering.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Here is a free business plan sample for a catering company.

Have you been toying with the idea of launching a catering business but feel overwhelmed about where to start?

Look no further, as we're about to guide you through a comprehensive business plan tailored for the catering industry.

Creating a solid business plan is a crucial step for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you'll employ to turn your catering dreams into a thriving reality.

To streamline your planning process and get you started on the right foot, feel free to utilize our catering business plan template. Our team of professionals is also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your catering company?

A good business plan for a catering business must be tailored to the unique challenges and opportunities of the catering industry.

Initially, it's important to provide a comprehensive overview of the catering market. This should include current statistics and an analysis of emerging trends, similar to what we've outlined in our catering business plan template .

Your business plan should articulate your vision clearly, define your target market (such as weddings, corporate events, private parties), and establish your catering company's distinctive approach (gourmet, budget-friendly, ethnic cuisines, etc.).

Market analysis is a critical component. You'll need to thoroughly research local competitors, understand industry trends, and identify the preferences of potential clients.

For a catering business, it's imperative to detail your menu offerings. Describe your range of cuisines, menu flexibility for dietary restrictions, and how your selections cater to the tastes and needs of your intended clientele.

The operational plan is vital and should cover the logistics of your catering operations. This includes the location of your kitchen, the layout for food preparation and storage, supplier relationships for ingredients, and the logistics of transporting food to event venues.

Quality control is paramount in catering. Your plan should highlight your commitment to food quality, preparation standards, and adherence to health and safety regulations.

Marketing and sales strategies must be addressed. How will you build a client base and foster repeat business? Discuss promotional tactics, networking strategies, and customer service excellence.

Incorporating digital marketing efforts, such as a professional website and active social media engagement, is crucial for modern businesses.

The financial section is a cornerstone of your business plan. It should outline your startup costs, projected revenue, operating expenses, and the point at which you expect to turn a profit.

Catering businesses often deal with fluctuating costs and varying client demands, making financial planning especially important. To assist with this, consider using our financial forecast for a catering business .

Compared to other business plans, a catering business plan must address specific factors such as menu diversity, event-specific logistics, staffing for different types of events, and the scalability of services.

A comprehensive business plan is a tool for clarifying your strategy and attracting investment or loans.

Investors and lenders will look for a thorough market analysis, sound financial projections, and a clear plan for managing the complexities of catering operations.

By presenting a detailed and substantiated business plan, you showcase your professionalism and dedication to the success of your catering enterprise.

To streamline the planning process and ensure you cover all necessary elements, you can start with our catering business plan template .

A free example of business plan for a catering company

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a catering .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market overview and potential.

The catering industry is an essential segment of the food services market, offering vast opportunities for growth and innovation.

As of recent estimates, the global catering market size is valued at several billion dollars, with expectations for continued expansion. This growth is driven by an increase in corporate events, social gatherings, and a general preference for professionally prepared meals for various occasions.

In the United States, the catering industry contributes significantly to the economy, with thousands of catering companies operating across the country, generating substantial revenue annually.

This data underscores the pivotal role that catering services play in the food industry and highlights the potential for new entrants to make their mark.

Industry Trends

The catering industry is experiencing a shift towards more personalized and health-conscious dining experiences.

There is a rising demand for organic, non-GMO, and locally sourced ingredients, as clients are more aware of the health and environmental impacts of their food choices.

Customization is becoming increasingly important, with clients seeking unique and tailored menus to suit dietary restrictions and personal preferences, such as gluten-free, keto, or vegan diets.

Technology is also playing a role in transforming the catering business, with online ordering systems and event management software streamlining operations and enhancing customer engagement.

Sustainability practices are being integrated into catering operations, from reducing food waste to using eco-friendly packaging and utensils.

These trends are shaping the future of catering, as providers adapt to the evolving demands of modern consumers and event planners.

Key Success Factors

Several factors contribute to the success of a catering business.

High-quality food that is both delicious and presented elegantly is fundamental to a caterer's reputation and client satisfaction.

Versatility in menu offerings allows a catering service to accommodate a wide range of events and dietary needs, enhancing its marketability.

Strategic partnerships with event planners, venues, and suppliers can lead to a steady stream of business and opportunities for growth.

Exceptional customer service, including clear communication and the ability to execute events flawlessly, is critical for building trust and repeat business.

Efficient operations, including cost control, inventory management, and staff training, ensure that the business runs smoothly and profitably.

Adapting to industry trends, such as incorporating sustainable practices and leveraging technology, will position a catering company as a forward-thinking and competitive player in the market.

The Project

Project presentation.

Our gluten-free catering service is designed to cater to the increasing number of individuals with gluten sensitivities, celiac disease, or those who prefer a gluten-free lifestyle. Strategically positioned to serve both private events and corporate functions, our catering service will provide a diverse menu of gluten-free options, including appetizers, main courses, sides, and desserts, all crafted with premium, certified gluten-free ingredients.

We emphasize the flavor, presentation, and nutritional value of our dishes to ensure a delightful and satisfying dining experience for all our clients.

Our catering business is poised to set the standard for gluten-free dining experiences, enhancing the lives of our clients by accommodating their dietary needs without compromising on taste or quality.

Value Proposition

The value proposition of our gluten-free catering service lies in our dedication to delivering a gourmet dining experience tailored to the gluten-free community. We understand the challenges faced by those with dietary restrictions and are committed to providing a diverse menu that is both safe and delectable.

Our pledge to culinary excellence and dietary safety offers peace of mind and enjoyment to our clients, contributing to their health and satisfaction.

We strive to create a welcoming atmosphere for all guests, regardless of their dietary preferences, and are dedicated to educating our clientele about the advantages of gluten-free dining.

As a leader in gluten-free catering, we aim to be a cornerstone in the community, presenting a viable and appetizing alternative to traditional catering options and enhancing the well-being of our clients.

Project Owner

The project owner is a seasoned professional with a passion for catering and a comprehensive understanding of gluten-free dietary requirements.

Armed with experience in event planning and a background in nutrition, the owner is driven to establish a gluten-free catering service that excels in quality, creativity, and customer service.

With a commitment to education and dietary awareness, the owner is dedicated to offering exquisite gluten-free meals that contribute to the health of clients and the success of their events.

Their dedication to culinary artistry and their zeal for exceptional service are the cornerstones of this venture, aiming to enrich the dining experiences of those in need of reliable and delicious gluten-free options.

The Market Study

Market segments.

The market segments for this gluten-free catering service are diverse and multifaceted.

Primary clients include individuals with gluten intolerance or celiac disease who require strict gluten-free diets for their health and well-being.

Additionally, there is a growing demographic of health-conscious individuals who opt for gluten-free meals as part of a lifestyle choice or dietary preference.

Corporate clients seeking to accommodate the dietary needs of their employees or guests during events also represent a significant market segment.

Lastly, event planners and hosts who aim to provide inclusive menu options for weddings, parties, and other social gatherings are potential customers for our services.

SWOT Analysis

Conducting a SWOT analysis for the gluten-free catering business highlights several factors.

Strengths include specialized knowledge in gluten-free meal preparation, a commitment to high-quality ingredients, and the ability to offer a diverse menu catering to various dietary needs.

Weaknesses may involve the higher costs associated with sourcing premium gluten-free ingredients and the complexity of ensuring cross-contamination is avoided.

Opportunities can be found in the increasing awareness and demand for gluten-free options, as well as the potential to partner with health professionals who can refer clients with dietary restrictions.

Threats include the growing number of competitors in the gluten-free catering space and the volatility of prices for gluten-free ingredients.

Competitor Analysis

An analysis of competitors within the gluten-free catering industry shows a competitive landscape.

Direct competitors include other catering services that offer gluten-free menus and restaurants with gluten-free takeout options.

These businesses compete on the basis of menu diversity, ingredient quality, price points, and service excellence.

Identifying competitive advantages such as unique menu offerings, exceptional customer service, and strong partnerships with suppliers can help in carving out a niche in the market.

Understanding the strengths and weaknesses of these competitors is crucial for developing strategies to differentiate and build customer loyalty.

Competitive Advantages

Our gluten-free catering service's competitive advantages lie in our unwavering dedication to quality and customer satisfaction.

We offer a wide array of appetizing and nutritious gluten-free dishes, crafted to meet the needs of our diverse clientele without compromising on flavor or presentation.

Our commitment to educating our clients and their guests about the benefits of gluten-free dining, along with our transparent ingredient sourcing, helps to establish trust and loyalty within our customer base.

Moreover, our adaptability to cater to various event sizes and settings gives us the flexibility to provide personalized and memorable experiences for every occasion.

You can also read our articles about: - how to start a catering company: a complete guide - the customer segments of a catering company - the competition study for a catering company

The Strategy

Development plan.

Our three-year development plan for the gluten-free catering service is designed to establish us as a leader in the industry.

In the first year, we aim to build a strong reputation for our unique gluten-free menus and exceptional service, focusing on corporate events, weddings, and private parties.

The second year will be about expanding our reach by partnering with event planners and venues, and offering our services to a wider array of events and clients.

In the third year, we plan to diversify our offerings with seasonal and culturally diverse gluten-free menus, and to start offering cooking classes and workshops to engage with our community.

We will consistently prioritize the quality of our ingredients, customer service excellence, and innovative menu design to cater to the evolving tastes and dietary needs of our clients.

Business Model Canvas

The Business Model Canvas for our gluten-free catering service targets individuals and organizations looking for high-quality, gluten-free food options for their events.

Our value proposition is delivering a memorable dining experience with a diverse range of gluten-free dishes that do not compromise on taste or presentation.

We offer our catering services through direct engagement with clients, as well as through our website and social media platforms, utilizing our skilled chefs and event coordinators as key resources.

Key activities include menu development, event planning, and client consultations.

Our revenue streams are generated from catering events, while our costs are associated with high-quality ingredient procurement, labor, and marketing efforts.

Access a detailed and customizable Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on showcasing the quality and creativity of our gluten-free catering menus.

We plan to engage with our target market through food tasting events, partnerships with gluten-free influencers, and by providing educational content on the benefits of gluten-free diets.

Collaborations with nutritionists and dietitians will help validate our offerings and build trust with potential clients.

We will leverage social media platforms and targeted advertising to increase visibility and attract a diverse clientele interested in healthy, gluten-free options for their events.

Risk Policy

Our risk policy for the gluten-free catering service focuses on mitigating risks associated with food preparation, ingredient sourcing, and event execution.

We will adhere to strict gluten-free protocols and cross-contamination prevention measures to ensure the safety of our clients with gluten sensitivities.

Regular staff training and quality control checks will be implemented to maintain high standards. We will also manage costs effectively to ensure financial stability.

Comprehensive liability insurance will be in place to protect against any unforeseen incidents related to our catering services.

Why Our Project is Viable

We are committed to filling a gap in the market with our gluten-free catering service, addressing the needs of a growing demographic that values health and dietary inclusivity.

With our dedication to culinary excellence and customer satisfaction, we believe our business is well-positioned for success in the competitive catering landscape.

We are enthusiastic about the positive impact our service can have on the well-being of our clients and are ready to adapt to the industry's demands to achieve our vision.

We look forward to the exciting opportunities ahead and the chance to become a trusted name in gluten-free catering.

You can also read our articles about: - the Business Model Canvas of a catering company - the marketing strategy for a catering company

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a catering and our financial plan for a catering .

Initial expenses for our gluten-free catering business include acquiring commercial kitchen equipment designed for gluten-free meal preparation, adapting the kitchen space to comply with food safety regulations, sourcing certified gluten-free ingredients, specialized staff training for proper handling of gluten-free products, as well as costs associated with branding and initiating targeted marketing campaigns to reach our niche market.

Our revenue projections are based on a thorough market analysis of the demand for gluten-free catering services, taking into account the increasing awareness of dietary restrictions and the preference for high-quality, specialized catering options.

We expect a gradual increase in sales, beginning with conservative estimates and expanding as recognition of our gluten-free catering services grows within the community and beyond.

The projected income statement outlines anticipated revenues from our gluten-free catering events, production costs (ingredients, labor, utilities), and operating expenses (facility lease, marketing, staff wages, etc.).

This leads to a forecasted net profit that is essential for assessing the long-term viability of our catering venture.

The projected balance sheet presents assets unique to our business, such as kitchen equipment, ingredient inventories, and liabilities including loans and projected operational costs.

It provides a snapshot of the financial standing of our gluten-free catering service at the conclusion of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to predict our financial requirements at any point in time. This will be crucial for maintaining financial stability and preventing cash flow issues.

The projected financing strategy identifies the specific sources of funding we intend to utilize to cover our initial costs.

The working capital requirement for our gluten-free catering business will be diligently tracked to ensure we have sufficient liquidity to support our day-to-day operations, which includes ingredient purchases, inventory control, and payroll.

The break-even analysis for our venture will determine the volume of catering events needed to offset all our costs, including the initial investments, and to begin generating profits.

It will signal the point at which our business becomes financially sustainable.

Key performance indicators we will monitor include the profit margin on our gluten-free catering services, the current ratio to evaluate our ability to meet short-term liabilities, and the return on investment to gauge the efficiency of the capital we have deployed into the business.

These metrics will assist us in assessing the financial health and overall success of our gluten-free catering enterprise.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a catering company .

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Catering Business Plan: How to Write Catering Business Plan

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

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

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

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

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

How to Write a Catering Business Plan

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

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

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

Executive Summary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fixed costs include the following:

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

Variable costs include the following:

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

6 Action Plan for Catering Business

• Choose a Format

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

Here’s a format you can use:

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

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

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

• Decide on Your Brand

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

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

• Be Aggressive With Marketing

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

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

• Create Your Menu

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

• Try Software Automation

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

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

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

Frequently Asked Questions About Catering Business Plan

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

What Skills are Needed for Catering?

A caterer needs the following skills:

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

Do Caterers Set Up Tables?

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

What Questions Should a Caterer Ask a Client?

A caterer should ask a client the following questions:

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

Serve in Style

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

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

How to Create a Catering Business Plan (Plus Free Template)

Elizabeth started her career at a small local restaurant close to her home. She had big dreams of owning a large catering business. 

Three years later, she learned the ropes, worked hard enough to save money and was ready to launch Chefdini Catering.

Hers is a tale of overcoming all odds.

Within five years, Elizabeth expanded her operations. She employed some staff and was raking in around $5 million in revenue annually.

In an era where 20% of new businesses fail within the first two years, according to the US Bureau of Labor Statistics, how did Elizabeth pull this off?

Well, it may have taken five years, but one thing that helped her navigate her journey smoothly was: 

…a Catering Business Plan.

And she’s not alone. About 70% of new businesses that manage to survive for five years follow a strategic business plan in the US.

So while several factors contribute to businesses failing within the first couple of years, there’s no doubt lack of a business plan is a major reason.

And this isn’t far-fetched.

Imagine building a house without floor plans. How long do you think it’s going to stand? Not long enough.

That’s precisely what happens when you operate your drop-off catering business without a solid plan. And this has nothing to do with how passionate you are.

Think of a business plan as a roadmap or a guide that outlines your goals and details how you intend to achieve them. It’s central to how you start and grow your business. Also, it turns your visions into a concrete action plan for success.

Having a plan is essential for drop-off caterers hoping to thrive in the current, highly competitive catering industry. 

As you read this, over 12,000 establishments are vying for the same customer as you. So running a catering business without a solid plan will only give an opening for your competitors to be many steps ahead of you.

Take Abbey Duke, CEO of SugarSnap Catering, for instance.

From the get-go, part of her strategy was to always stay competitive by serving her customers how they prefer. 

So when the pandemic hit and online ordering became the norm, she quickly leaned on HoneyCart’s order automation software to give customers the convenience they desired. And at the same time, to ensure she wasn’t losing sales to her competitors.

In her words:

“But I knew if we didn’t offer online ordering, we’d be losing sales to companies like Panera that make it easy to order. Busy customers expect convenience and will often choose it over quality.”

Making this kind of game-changing decision at a moment’s notice is one of the perks of having a solid business plan.

Now, you may be wondering:

“How do I create an effective catering business plan?” One that gives you an edge over your competitors and sets you on the path to success like Elizabeth.

Well, I got you covered.

We’ve developed a free catering business plan template you can customize to your specific needs. I know, creating a business plan, even with a free template, is still a daunting task for drop-off caterers. 

Don’t worry.

As we progress through this article, I’ll guide you on how to create one step-by-step. 

Download the free template to follow along with me:

Before we dive in, let’s take a look at some reasons why you must have a catering business plan.

Five Reasons Why You Need a Catering Business Plan

1. it shows you mean business.

Today, technology has made it easy for anyone to start a catering business. Even amateurs can create an Instagram account, post some mouthwatering dishes and wait for orders to flood in.

But is this strategy going to cut it in the long run? 

Absolutely not!

If you intend to scale your business, then it starts with a foolproof business plan. One that gives you insight into where your business is headed in the next five to ten years.

Having a business plan also emphasizes the commitment of you and everyone involved. It guides you in making smart decisions that will help scale your operations.

However, a catering business plan isn’t set in stone. This means you can change the plan as you progress. But the overall goals remain the same.

2. It Increases Your Chances of Securing Investments

Take Elizabeth, the fictional character I used at the start of this article. 

One reason she could expand her business within five years is that she secured investment and raised funds.

And what’s one crucial thing potential investors will ask before giving you funds? 

Yep, that’s right – a well-detailed business plan.

Imagine she didn’t have one. She wouldn’t have been able to raise the funds needed to expand her operations.

Here’s why:

Investors like to see your plans for scaling the business, its financial projections, industry analysis, level of risk involved, and so on.

Not having a business plan shows you are not intentional about scaling. And this significantly reduces the chances of securing funds needed to expand.

To drive home my point, Tim Berry, founder of Palo Alto Software , did a survey asking his customers questions about their businesses, goals, and business planning.

The result?

From the above report, you’ll see that those who had business plans were almost twice more likely to grow their businesses by securing capital than those who didn’t write a plan.

This emphasizes the importance of having a business plan.

3. It Helps You Understand Your Competitors

A business plan isn’t complete without researching and analyzing your competitors.

Because it helps you understand what they are doing, their offerings, pricing, and how you can improve on them.

Michele Levy , an independent brand strategy consultant agrees:

“Keeping track of who your competitors are, what people are saying about them, and what they are saying themselves can help you differentiate your business and stay ahead of trends that could impact your business.” 

Furthermore, it’s a way to:

• Learn more about the latest market trends
• Recognize opportunities your competitors don’t offer
• Get an idea of your ideal customer persona
• Threats to your business
• Understand the catering industry better.

As a result, you can create a strategic plan that will improve your business.

4. Discover New Opportunities

Another benefit of creating a catering business plan is discovering new opportunities to boost your business in ways you never imagined.

Through research and competitive analysis, you may realize there are one or more niches that are underserved in your area.

So, instead of doing what every other drop-off caterer does, you can carve out a niche for yourself by doing something different.

For example, during the global pandemic that crippled catering activities, Chef Jolie of Low Country Quisine needed another source of revenue.

So she went back to the drawing board. 

The result? She launched a Gourmet Takeaway Service.

By making it a habit to spot opportunities in market trends, she realized the need for an online ordering platform.

According to her:

“We needed to find new ways to generate revenue during the pandemic. We launched our Gourmet Takeaway Service and needed an online platform for customers to order.”

And if she didn’t do this, here’s what would have happened:

“We would not have been able to reach as many customers without the ability to accept orders and payments online.”

5. Measure the Success of Your Business

One of the goals of running a business is to hit milestones and achieve major goals.

And the only way to measure your success is to compare results with the actual plan. This way, you can see whether you’ve achieved your operational and financial goals within a specific timeframe.

For example, you set a goal of getting at least 150 customers within six months, expanding to at least four locations within 12 months, or like Elizabeth, hit $5 million annually.

By documenting these goals, not only does it make you committed to achieving them, but it also ensures you have something to measure your success against. 

And it will give you a sense of fulfillment when you finally accomplish your goals. Without a doubt, a well-documented business plan fast-tracks achieving your goals.

Now that you know the importance of a catering business plan, let’s look at the essential elements of an ideal business plan.

Essential Elements of a Catering Business Plan

Creating a catering business plan may sound like a daunting task. But in reality, it isn’t. It’s not much different from the usual business plan. 

However, it focuses on elements specific to the food and catering industry.

So what are these elements?

• Confidentiality Agreement
• Executive Summary
• Business Focus
• Market Research
• Marketing Plan
• Financial Plan

Let’s take a brief look at what each of these elements should contain.

Want to create yours as you go through this guide? 

Don’t forget to download (and make a copy) of the template here . 

1. Confidentiality Agreement

How do you ensure anyone reading your business plan doesn’t disclose the content to other people? 

That’s where a confidentiality agreement comes in.

It’s an agreement between you and anyone reading your business plan not to reveal the content to any other person without your permission. 

And to be on the safe side, you should have a proper legal counsel review any agreement you use in your business.

So if they do reveal the content, you will have the right protections in place.

Here’s an example of a confidentiality agreement:

The undersigned reader of [Company’s Name] Business Plan acknowledges that the information provided is completely confidential. Therefore, the reader agrees not to disclose anything found in the business plan without the express written consent of [Business Owner’s Name].

It is also acknowledged by the reader that the information to be furnished in this business plan is in all aspects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of the same by the reader may cause serious harm and or damage to [Company Name].

Upon request, this business plan document will be immediately returned to [Business Owner’s Name].

This is a business plan. It does not imply an offer of any securities.

Applicable Law

This contract shall be governed by the laws of the County of ________ in the State of _______ and any applicable Federal law.

________________________________

Printed Name

2. Executive Summary

They say you only get one chance at a first impression. An executive summary is an opportunity to show anyone reading it what your catering business is about.

Chances are, if it lacks specific information or doesn’t capture the reader’s attention, they may not read further.

The executive summary should include a brief introduction to your catering business, your services, and who you cater to.

Here’s an example of an executive summary of Elizabeth’s fictional catering business.

Chefdini is a small catering business located in Georgia. It was founded by Elizabeth White six years ago. We specialize in Asian cuisine but also cater to Mexican and Italian dishes. Chefdini operates off-premise and on-premise catering with a focus on events, retreats, and social gatherings. 

At a glance, this brief introduction shows what Chefdini is about, the kind of cuisines they specialize in, and who their audience is. Anyone who reads it can immediately get an idea of what to expect.

3. Business Focus

The business focus details how you’ll run your business, so anyone reading it will have a clear understanding of plans, goals, and priorities.

Information to include in your business focus are:

• Mission statement: an action-based statement that declares the purpose of your business, what you want to achieve, and how you intend to do it.
• Business details: a summary of your business, the founders, business location, services, and ethos. 
• Professional support: details of any professional help you have received from an individual, an organization, or the government.
• Founders: history and background of anyone involved in starting the business
• Team members: details of those involved in the operations of the business and their roles.
• Aims & Objectives: as the name implies, here you include the details of what you hope to achieve with your business and the steps you’ll take to achieve it. Your aims and objectives can be short, medium, or long-term.

4. Market Research

Dan Zarrella , an analytical marketing leader and author of four books on marketing once said:

“Marketing without data is like driving with your eyes closed.”

And how do you get this data? Through Market Research.

Market research is the process of gathering information to understand your target market better. As such, it’s a fundamental part of a business plan.

Under market research, you’ll find:

Client Research

Your clients are the set of people who need your catering services and are most likely to pay for them. 

To have any chance of making sales, you need to understand your ideal customers, their pain points, challenges, and how you can take them from point A to their desired point B.

So, any information related to the ideal clients like age, location, gender, income, interests, pain points, or goals would add value here.

The goal is to ensure you are not targeting the wrong audience, which would result in wasted efforts.

But when you narrow down your target audience, you will be better placed to tailor your offerings to fulfill their needs.

Competitor Profiling

As I mentioned earlier, competition in the catering industry gets tougher each day, with more caterers and restaurants springing up. But this doesn’t mean there isn’t enough space in the sky for birds to fly.

However, it’s important to know how to stand out. 

And one way to do this is to research your competitors to learn more about their strengths and weaknesses. This way, you’ll discover things that will give you an edge over them.

In addition, well-detailed research about the competition will help you make a realistic assessment of your chances of success in the industry.

Some of the things to add under competitor profiling are:

• Competitor’s Name
• Products/services offered
• Target audience

SWOT Analysis

The word SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.

A SWOT analysis is used to evaluate your business’s chances of success and develop a strategic plan. Here you analyze internal and external factors that may help scale your business or throw a wrench in your growth.

5. Marketing Plan

A comprehensive catering marketing strategy will be crucial to your success. After all, people will only patronize you if they know your business exists. 

How do you plan to market your business? Where are you going to get catering clients from? Which channels do you plan to reach them? What’s your marketing budget?

All these are questions that need answers. So you must include your plans for marketing in your catering business plan. A solid marketing plan should contain:

• Unique Selling Point
• Pricing Policy
• Sales & marketing strategy

Don’t forget we have sections in our free template to fill all essential marketing points listed above. Download it here if you haven’t. 

6. Financial Plan

Without a doubt, you need money to finance your catering business. But if you don’t have adequate financing, your business will struggle. 

Because you’ll need to pay for space, pay your staff, pay for equipment and so on. All these require a sufficient amount of funds.

And if you plan to take online orders, investing in online ordering software is a no-brainer. This will help you:

• Process orders faster
• Make it convenient for your customers to order
• Save more time
• Streamline operations without the need for hiring additional staff, thereby saving cost
• And generate more revenue for your business.

So if you want to finance your catering business yourself, a financial plan helps you understand how much funds you need, where to cut expenses and what you need to do to become financially sustainable.

And if you plan to source funds through investors, it will provide them with enough information to determine whether they’ll get their return on investment.

Some of the things you need to include in your financial plan are:

• Startup costs
• Sales forecasts
• Cash Flow forecasts
• Other financials 

Want to know what to fill in these sections? We’ve got you covered. Simply download and make a copy of our free template to fill all essential financial plans listed above.

7. Appendix

This is where you add additional information that is referenced in the business plan. 

It can include things like:

• Financial charts / graphics
• CV’s / Resumes
• Images of work
• Partnership Agreements

Conclusion: Scale Your Catering Business with an Actionable Business Plan

As you’ve seen, creating a business plan is not as difficult as it sounds.

It doesn’t matter whether you’ve started your business or you are just about to start. A catering business plan is crucial to the success of your business.

It helps you understand your business, your customers, and your competitors. Also, it gives you more insight into the catering industry, market trends, threats, and opportunities.

Another advantage of a business plan is the opportunity to set a budget aside for investing in important things that will contribute to your company’s growth. 

For example, investing in commission-free catering software like HoneyCart helps you manage your catering operations without hiring more staff.

This levels the playing field for small business caterers, helps you save cost, and generate more revenue. Just as Abbey Duke, founder of SugarSnap Catering, realized when she switched to HoneyCart. 

It automates mundane tasks to allow us to use our time as efficiently as possible. HoneyCart truly enables small caterers to compete with larger companies by having a really professional and easy-to-use online ordering system.

Want to see how it works?

Start your 14-day free trial right away.

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Catering Business Plan Template [Updated 2024]

Catering Business Plan Template

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

You can download the Catering business plan template (including a full, customizable financial model) to your computer here.

The following catering business plan template gives you the key elements to include in a winning plan for your own catering company. In addition to this template, conducting market research for your local customer base will help you identify potential market trends and customer segments to better understand the viability of your catering business.

Sample Business Plan For a Catering Company

Below are links to each of the key sections of a sample business plan for a successful catering business.

I. Executive Summary – The Executive Summary provides an overview of your business opportunity and summarizes the business plan.

II. Company Overview – The company analysis includes information about your business concept, catering services and legal structure.

III. Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the catering industry.

IV. Customer Analysis – The customer analysis provides an overview of your target market.

V. Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.

VI. Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and search engine optimization plan.

VII. Operations Plan – The Operations Plan includes information on your company’s day to day operations and processes.

VIII. Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.

IX. Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.

Download the Catering business plan template (including a full, customizable financial model) to your computer here.

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Catering Business Plan Outline

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Catering Business Plan Template

Published Nov.11, 2016

Updated Apr.22, 2024

By: Brandi Marcene

Average rating 5 / 5. Vote count: 4

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Table of Content

If you are planning to start a catering company, you need to have a professional catering business plan. OGS Capital can help you with that; we have a team of professional business personnel and writers who work with us on a daily basis to ensure that clients get customized plans for their business. We strive to make sure that we deliver the final copy of the business plans for catering companies  to the customer on time, and this has so far helped us to get referrals and returning customers.

Tips for Succeeding in Writing a Mobile Catering Business Plan

The quality of your catering company business plan will determine whether you will get capital from investors and financial institutions. Hence, it is important to make sure that every detail in the plan is factual and verifiable before presenting it to the investors or banks.

Here are four tips for writing a good business plan for your catering company.

• Carry out an intensive study to understand the hospitality industry
• Convey information about the firm in a professional, cohesive, conscious language
• Layout the various sections clearly using headings and sub-headings
• Proofread the catering business plan to ensure that it is free of any grammatical errors and typos

Adhering to these four tips will help you to come up with business plans for catering companies  that you will not be afraid to present and defend when pitching the business idea to the financial institution. Let us proceed and discuss the primary benefits of having an expertly written small catering business plan.

Assist in Decision Making

Every decision that you make will have a positive or negative impact on your catering business. It is, therefore, important to make sure that you consider all the plausible direct and indirect effects that a resolution may have on the enterprise before implementing it to avert regrets.

A good catering company business plan will act as a blueprint that will guide you through the decision-making process. Our team will work hard to make sure that each recommendation made is right for your business. Without a catering company business plan , rest assured that you would be prone to making hasty decisions that could plunge your business in deep financial crisis.

Proper Management of Funds

Unknown to most people is that a catering company business plan does not aim to discuss the business idea only. It goes an extra mile to provide precise details of how the funds will be spent at every stage of the business growth. For instance, it describes the total amount of money that will be used to acquisition equipment. Hence, it will be instrumental in helping you manage your funds correctly. Note that it only takes one financial mistake to compromise the financial stability of the business.

Fosters Transparency and Management

Transparency and proper management are the two primary virtues that set professional catering companies from their counterparts. Poor or lack of transparency results in losses and unnecessary disagreements. All this information will be included in the plan to not only increase your chances of getting funding but also to help you make informed managerial decisions.

Facilitate Setting of Sales Targets

The marketing teams need to have sales goals that they want to achieve after a given duration. Without these goals, they will be operating in a void, and you will also not be able to monitor their performance.

Our marketing professionals will not only help you to come up with a marketing strategy but also provide ideas on how you should set sales targets and objectives.

If you are looking for professional business plans for catering companies that will enable you to enjoy these four benefits, get in touch with us by filling this form. One of our customer care business consultants will get in touch with you to discuss our services in details.

Catering business plan for starting your own building firm

Catering is a business in which you provide food to remote locations to serve people at parties, ceremonies, events, filming sites, and hospitals, etc. The service can sometimes also include the provision of furniture, tables, chairs, utensils, and crockery.

If you are a person who wants to start a business that holds minimum risks, takes a small team and a little investment, then catering is the right choice for you. Besides, another good thing about this business is that it starts yielding profits as soon as it is launched.

What you need to do is just ensure that you manage and market your business plans for catering companies properly. For that purpose, the first step to take is making a business plan for catering. If you need any help regarding how to start a catering business plan, you can have it from here. Here we are providing a business plan for a catering startup, Marlon Caterers.

Executive Summary

2.1 the business.

Marlon Caterers will be a registered and licensed catering business in Atlanta. The business aims to help people celebrate their memorable events with an unforgettable dinner. Moreover, the business will also take care of the needs of patients in hospitals by offering them healthy and nutritious food according to their doctors’ advice.

The business will provide several types of catering such as buffet catering, sit-down catering, hospital catering, corporate catering, and more.

2.2 Management

Management is a very important factor in the catering business. It’s only through efficient management that you can ensure

• The quality of your servings is intact
• The food prepared fulfills the dietary and hygiene requirements of your clients
• The order is delivered and served timely and perfectly

To maintain a good reputation among your customers, you must know all the difficulties and risks you can encounter. The risks may include budget disruptions due to sudden cancellation of orders, or any small/ large mistake during the business operations.

Before starting a catering business, you should study many catering business startup plans and then prepare a set up catering business plan for your business.

2.3 Customers

Our target customers belong to various niches. They will include the residential community, business organizations, film studios, government institutions, and hospitals.

2.4 Target of the Company

In this how to start a catering company sample business plans for catering companies we are enlisting the business targets set by Marlon Caterers.

• To reduce our customer acquisition cost by 20% by the end of five years
• To keep our customer churn rate below 5% throughout our service years
• To achieve a net profit margin of $22k per month by the end of the third year

Company Summary

3.1 company owner.

Marlon Redford will be the owner of Marlon Caterers. Marlon has acquired a degree in Business Administration from McDonough School of Business. Marlon has been serving on a managerial post in New York’s top luxury wedding planner company, Colin Cowie for four years. But a few months back, he decided to quit the job and start his own business.

3.2 Why the Business is being started

Marlon always wanted to have a career in which he could utilize his creative ideas to serve his community. He loved food and had an interest in cooking as well. So he decided to make a small team and start a business plans for catering companies .

3.3 How the Business will be started

The first step before starting a catering business is creating a description of catering business plan. Your catering company business plan should cover all aspects such as startup expenses, market analysis, sales strategy, personnel plan, and an extensive financial plan for your business.

In this catering company business plan example, we have listed the business strategy created by Marlon Caterers. Marlon devised his start a catering company business plan himself as he had adequate knowledge to do so. If you don’t know how to write a business plans for catering companies , you should either take help from this sample business plan for catering service. Or you should hire a professional person.

Marlon will rent a facility in Atlanta to set up his office there and keep the inventory. He will purchase luxurious crockery, flatware, tableware, chairs, tables, and sofas to host high-end events. To serve the other categories of target customers, inventory that comes in reasonable rates will also be acquired.

Besides, Marlon will hire the general staff, chefs, waiters, and some supervisors to help him run the business.

The start-up requirements, start-up expenses, total assets, funding, liabilities, planned investment, and other parameters for the successful launch of the business are given below.

Before you start a business plans for catering companies , you must identify the services you can provide under the catering domain. Including your services in your business plan about catering, can help you in acquiring the right licenses, required inventory, and relevant staff.

In this template of a catering business plan we are enlisting the services provided by Marlon Caterers.

We’ll offer on-premise and off-premise catering in the following categories.

• Plated Sit-down catering

In this catering, our waiters will lay out the food on individual tables. So, the guests will have to eat whatever is laid out on the plates for them.

• Buffet Catering

In this type of serving we will serve the dishes and food in one place. The guests will have to prepare their plates themselves according to their needs and wants.

• Cocktail Reception

Our wedding or party dinner will be preceded by a cocktail hour. Our cocktail servings will include Manhattan cocktail, Daiquiri, Margarita, Bloody Mary, Mojito, and Hurricane.

• Snacks & Drinks For Production Sets

We will supply food, snacks, and drinks to film studios, production sets, and shooting sites located near us. As the film crew works on a particular site on a weekly or monthly basis, so we’ll offer them various weekly and monthly packages.

• Hospital Catering

We’ll offer fresh, healthy, and nutritious foods to hospitals for patients. Our nutrient-rich meals will help them recover fast.

Marketing Analysis of Catering Business

If you are starting a business plan for catering companies , you should focus on doing accurate marketing analysis. Through market research, you can identify local trends and expectations. Besides, you can also select the most suitable location to launch your startup.

Marketing analysis should be completed before you create a business plans for catering companies. Because it will help you in recognizing your customers and setting your prices accordingly while also making sure that you are not running at a loss.

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

5.1 Market Trends

The demand for the catering business has been high in the last few years. Due to a boost in average household income, more people had started utilizing private catering services to hold events. However, there is a slight problem these days. Due to the coronavirus pandemic mass gatherings aren’t allowed. So, your business might suffer a loss in the initial phases if you only provide catering for wedding ceremonies and parties. Marlon found the solution to this problem as he decided to offer hospital and film catering too.

Overall, business is surely profitable. According to First Research, catering industries in the U.S. make up above $11 billion in revenue on annual basis. More than 12000 catering industries are running in the U.S. Moreover, Statista also reports that the market size of this business has reached $12 billion in 2020.

5.2 Marketing Segmentation

Before you think how to write a business plan for a catering business, you should consider who will be your customers. Knowing your customers will enable you to devise customer-oriented pricing and sales strategy.

In this sample of business plans for catering companies , we have listed the market segmentation done by Marlon Caterers.

The detailed marketing segmentation of our target audience is as follows:

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5.1.1 residential community.

The biggest consumer of our services will be the residents of Atlanta. They are expected to avail of our catering services whenever they host birthday or anniversary parties, gatherings, wedding ceremonies, etc.

5.1.2 Corporates & Film Producers

The second category includes business organizations that will need our catering for their business meetups, events, and parties. They are also expected to contact us for arranging just a cocktail party as that contains light refreshments and drinks to boost the energy level of workers.

Moreover, film studios that happen to shoot in Atlanta will also be needing our services. This group usually spent weeks and months on a particular site and thus need catering service continuously for days. So to compel them to hire us, we’ll offer them various weekly and monthly packages.

5.1.3 Hospitals

The last category of our target customers include hospitals based in Atlanta. They are expected to contact us for making nutritious and healthy plated foods for patients.

5.3 Business Target

Our business plans for catering companies targets to be achieved within a specified time are listed below

• To maintain an average rating above 4.75 on our website

5.4 Product Pricing

Our prices are almost within the same range as that of our competitors. However, we’ll be offering several discounts on our initial stage to attract as many customers as possible.

Marketing Strategy

Sales strategy is also an important component of a catering business plan proposal. Through this, you can reach your qualified customers and make them comprehend that you are better than all your competitors. To give you an idea of what to include in sales strategy, we are providing the sales strategy of Marlon Caterers in this example of marketing plan for a catering business.

6.1 Competitive Analysis

Our biggest competitive advantage lies in our customer service. We are highly customer-oriented and are always willing to go the extra mile to satisfy our customers. Secondly, we have developed a user-friendly mobile app that will allow our customers to

• Make online bookings
• Choose venue
• Select dishes from our menu

Third, we provide on-premise catering in which we prepare the food on site. This will be a competitive edge for us as just two to three competitors are offering it.

6.2 Sales Strategy

• We will offer a 35% discount on our services for the first month of the launch
• We will develop an SEO website to show our business in the top results on searches
• We will establish a strong social media presence
• We will advertise ourselves through Google Local ads service, local magazines, and newspapers

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

While writing business plans for catering companies you should also create a list of your required employees along with their job responsibilities.

7.1 Company Staff

Marlon will manage the business himself. However, he will hire the following people

• 1 Quality Manager to ensure the quality of service by active supervision
• 1 Inventory Manager to manage and maintain the merchandise
• 1 Accountant to maintain financial records
• 2 Sales Executives to market and to discover new ventures
• 5 Catering Assistants/ Catering Chefs to prepare the food
• 4 Waiters to serve the guests
• 2 General Assistants to bring ingredients daily
• 1 Web Developer
• 2 Drivers to provide transport
• 1 Front Desk Officer to act as a receptionist

7.2 Average Salary of Employees

Financial Plan

As you make a catering business plan, you should also start analyzing your finances. Crafting a financial plan is an absolute need for a business as it maps the ways to minimize or even avoid loss. A good financial plan comprises a strategy to cover startup expenses with earned profits. Moreover, it also proposes a systematic approach to managing employees’ salaries, cost of business operations, and costs to cater for unexpected events.

To give you an idea of how a financial plan should look like, we are giving here the financial plan of Marlon Caterers.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Catering Company Business Plan Sample in pdf

OGScapital also specializes in writing business plans such as starting coffee roasting business plan , brewery startup business plan , confectionery shop business plan , bakery business idea , cookie business plan , bed and breakfast business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Start a Business in Ohio: Your Guide to Being a Buckeye Entrepreneur

By Homebase Team

If you’re dreaming of starting a new business, Ohio might be the perfect place for you to make that dream come true. Ranked by Finfare as the best place to start a business, Ohio is only one of six states with a 0% corporate tax rate (however, you still need to pay payroll taxes ). That’s one reason why the state boasts a 78% first year survival rate and a 53% five year survival rate for new businesses. Business insurance is crucial in protecting a company’s assets and ensuring financial stability.

Ranked seventh among US states in terms of size of economy, Ohio has the third largest manufacturing sector in the nation and nearly $1 billion in state investments in small businesses .

Given its business-friendly policies, diverse workforce, and strong economy, Ohio is a prime location to start a small business. As a business owner, it is essential to ensure compliance with Ohio’s business regulations, including name uniqueness, registered agent designation, and fictitious name registration.

But what goes into starting a business in Ohio? If you’ve got questions, we’ve got answers! Here’s our guide to starting a business in the Buckeye State!

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6 steps for starting a small business in Ohio

If you’ve got a burning desire to start a new business, but you’re not sure where to start, then follow these six steps for starting a small business in Ohio. As a business owner, it is crucial to ensure the uniqueness of your business name, designate a registered agent, and file necessary registrations with the state authorities. Additionally, understanding and complying with business taxes in Ohio is essential for choosing the right legal business structure and staying on top of filing requirements and tax obligations.

Step 1: Solidify your business idea.

If you’re unsure about the kind of small business you want to start, think about the type of activities you find enjoyable, what you excel at, and what you enjoy doing. Consider what your business will do and who you’ll serve. Ideally, your business idea will resonate with your own interests, fulfill a market demand, and have the potential to be profitable.

For example, if you’re an avid home cook but lack the skills to do it professionally, a restaurant might not be the best fit for you. Instead, you could consider establishing a cookware store that caters to other home cooks.

Step 2:  Do your research!

Conducting market research is an essential step when starting any business. Market research will give you valuable insights into the feasibility and profitability of your business.

There are two types of research you can do: primary and secondary. Primary research is collected directly from prospective customers using focus groups, surveys, and/or interviews. Secondary research, on the other hand, gathers key data from external sources such as government census, research reports, and studies conducted by other businesses in your field.

While market research might seem time-consuming and potentially costly, the information it turns up will likely justify the time and expense. Research can validate your business idea in terms of demand and profitability, and it can help you understand your potential customers. 

A rmed with the right insights, you’ll be able to market your business and close sales faster and easier when you understand your customers and how your business can meet their needs.

When starting a business in Ohio, it’s a good idea to focus your market research on your target audience. If you’re targeting a specific city, focus your research on that location. If you’re looking at the state level, compare and contrast research results across the state.

Ultimately, market research will provide a solid foundation for developing your business and help you make smarter business decisions.

Step 3:  Write a business plan.

Once you’ve validated your business idea with market research, the next step is to develop a business plan.

A good business plan outlines your business model, goals, and the steps needed to accomplish them. Despite what many people think, a business plan isn’t only for those seeking funding; refining the business concept, identifying obstacles, and developing a clear understanding of how to attract and convert customers is beneficial to any business at any stage.

A comprehensive business plan will include:

• An executive summary of the business strategy.  
• A company overview that addresses key questions about your business.  
• A market analysis summarizing your market research.  
• A section describing your company mission, goals, and objectives.  
• A description of your products or services.  
• A go-to market strategy detailing your unique selling proposition and promotional tactics.  
• A financial strategy that includes a proposed budget and projected financial statements for five years, as well as any prospective funding needs. 

Step 4:  Finance your business

With a business plan written, it’s time to put it into action. And that likely means finding a way to finance it.

Initial start-up costs can vary from a few thousand to several hundred thousand dollars, with the average cost to launch and operate a small business for the first year being around $40,000.

However, don’t let the costs discourage you! Small businesses have many financing options available to them, some of which are low- or no-cost to obtain. Self-financing or bootstrapping, which involves using personal funds, is certainly one approach. However, this puts all the financial risk on you, which can be challenging if your business needs a lot of capital to get started.

Although competitive, small business grants also offer funding that doesn’t need to be repaid, allowing you to progress further with fewer dollars. However, they can be difficult to obtain. Consider taking small business loans or lines of credit, but keep in mind that you’ll need a thoroughly documented business strategy and personal financial statements when applying.

Be sure to explore Small Business Administration (SBA) loan programs, which provide lower interest rates and extended terms compared to traditional loans.

Step 5:  Conduct an Ohio business entity search.

Your business name is a crucial part of your business, serving as the initial impression of your business. However, before you settle on the name, you’ll need to perform a business entity search for different types of business entities such as LLCs, corporations, and partnerships.  This will determine if a business exists already with an identical name. Visit the Ohio government website to obtain licensing requirements and access checklists for different industry categories. Remember, it’s best to choose a business name that adheres to state regulations to guarantee legal protection and public transparency.

You may also think about using a trade name, which acts as a pseudonym for your business. For instance, you might register your business under the name XYZ Parties, Inc., but your trade name is simply XYZ Parties. To make a positive first impression, you’ll want your business to have a name that’s brief and memorable—and a trade name allows you to do that.

Step 6:  Register your business.

Once you find a name, you’re almost ready to make your dream a reality. Now it’s time to choose a business structure that accurately reflects your preferred tax responsibilities, daily operations, personal risk, and legal obligations.

Here’s a list of common business structures to kickstart your exploration:

Sole Proprietorship: A sole proprietorship combines the identity of the owner and the business. This makes the owner personally liable for business debts, so exercise caution. Partnerships: Ideal for businesses with multiple owners, these require a partnership agreement and offer limited liability for business debts of the LLP.

LLCs: Owned by one or more entities, these limit personal liability for business debts and are relatively straightforward to start. A limited liability company also allows you to elect how to be taxed, potentially minimizing double taxation of income.

C ooperatives: Cooperatives function to benefit their users and span various industries such as healthcare, retail, restaurants, and agriculture.

Corporations: More common in larger companies due to their legal and tax complexities, some small businesses can also benefit from this tax structure.

S Corporations: These operate like a corporation, but the flow-through of income and losses is sent through to shareholders to help you avoid double taxation on corporate income.

Be sure to research each type of business so that you choose the one that best fits for your small business. Consider the taxes you may pay on a federal level (remember, no corporate income tax in Ohio!) and the legal risks you may want to avoid.

Keep in mind that, regardless of the structure, some businesses in Ohio may be required to collect sales tax, with the sales tax rate and oversight of sales and use taxes managed by the Ohio Department of Taxation.

For businesses with employees or specific business structures, you will need to apply for a Federal Tax ID (EIN) through the Internal Revenue Service.

Lastly, always remember to consult a lawyer or accountant to ensure your chosen business structure is optimal for your business.

How to incorporate in Ohio

Owning your own business in Ohio can be a rewarding endeavor, but it requires careful planning and adherence to state regulations. Business registration and licensing requirements can vary across states, and Ohio involves several unique steps. You might need to apply for a trade name and file Articles of Incorporation with the state, depending on your business structure.

Here are the main steps for incorporating a business in Ohio:

• Verify Business License Requirements: Check all registration and licensing requirements with the Ohio Secretary of State to ensure you are complying with all regulations. Consult with relevant local government bodies and industry associations for more specific information and guidance.
• Register Your Business: Register your business with the Ohio Secretary of State, making sure to complete the necessary paperwork and pay any fees associated with your business registration. For detailed checklists and information on different industry categories, visit the Ohio government website.
• Obtain an Employer Identification Number (EIN): Get an EIN from the IRS. This number is crucial for federal tax purposes and is typically required to open a business bank account. Additionally, you’ll need to register your business with the Ohio Department of Taxation to obtain any necessary state tax IDs.
• Acquire Relevant Licenses and Permits: Depending on your business type, you may need to obtain specific licenses and permits from both state and local governments.
• Obtain the Appropriate Insurance: Ohio law requires the purchase of workers’ compensation insurance if you plan to hire employees. Other types of insurance, such as general liability insurance, should also be considered. If you’re unsure about your insurance needs, it’s advisable to consult with a legal expert.

How Homebase can help you start a small business in Ohio

Starting a new small business is no easy feat. If you want to start your business off on the right foot, you need the best small business tools available.

That’s why Homebase provides a comprehensive suite of tools designed to support your business at every phase. As your team grows, enjoy the convenience of effortless scheduling and time tracking. When it’s time to compensate your team, Homebase manages your payroll with just a few clicks, calculating PTO and ensuring you stay compliant and up-to-date with Ohio’s requirements.

Best of all, Homebase integrates with many of the most popular business software, streamlining business operations. Homebase delivers everything a new small business needs and will scale up as your business grows. Give Homebase a try for free!

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

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How to Start a Catering Business

Tony Sekulich

20 min. read

Updated July 3, 2024

Free Download:  Sample Catering Business Plan Template

Do you find the process of shopping and chopping, sautéing and flambéing for large groups of people rewarding and fulfilling? Would you rather die than serve a salad that is topped with anything other your homemade vinaigrette dressing? Are people constantly asking you to cook for their next gathering?

If any of this sounds familiar, you’ve probably at least toyed with the idea of starting a catering business. It’s a thriving industry which can be scaled and tailored to whatever best suits your skills and situation. This article is intended to serve as a step-by-step guide to show you how to get started.

To supplement this guide, I interviewed two seasoned veterans of the catering business:

Jean-Marc Fontaine is a French-trained chef, event planner, and sommelier who now serves as the Catering Sales and Events Consultant for Urban Source Creative Catering in the heart of downtown Toronto, Canada. Warren Dietel is the Owner and President of Puff ‘N Stuff , a full-service wedding, corporate, and holiday event caterer and planner serving the greater Orlando area and all of central Florida.

• 1. Understand the state of the catering industry in the U.S.

In the United States alone, the catering industry is an $11 billion juggernaut and growing every year—more than 4.5 percent between 2014 and 2019. 

An industry report shows that in 2012, the average costs for the foodservice at a wedding reception in the United States was to $3,579 U.S.; wedding planning website The Knot surveyed  their users and found that in 2017, the average cost was $6,528, or $70 per guest. Wedding Wire says the average cost is about $4,000, but most couples spend between $1,800 and $7,000. Not surprisingly, the largest market segment that supports the catering business is households earning at least six figures.  In 2015, of households with a combined income of 100,000 U.S. dollars or more, 5.4 percent spent $500 to $999 U.S. on catered events outside the home.

Though there are major players in the catering industry, there are a lot of reasons why it’s appealing to entrepreneurs: Unlike most other sectors, the industry is highly fragmented, meaning there is no single corporate entity dominating the market share. 

This means there’s room for everyone who has some skill and hustle. Large companies can leverage their ability to scale to any size event and cover multiple events at the same time; smaller outfits can push their personal touch for a competitive edge.

2. Figure out if you’re ready to start a catering company

There’s no shortcut to determining if you are just a “weekend warrior” dazzling your friends and colleagues in your own home or someone who is a great candidate to branch out and start their own catering business. Jean-Marc Fontaine says to find success, people need to spark that burning desire from within.

“I really have a passion for food and entertaining and the reason I’m still doing this job today is because I am passionate about the food industry,” he says. “It’s a very special area, it’s not like an office job, it’s more like art—you have to really love it.”

Jean-Marc believes this passion is necessary because almost everyone who enters the foodservice industry greatly underestimates the amount of time, effort, and expense it requires to be successful. This is a lesson he has learned personally.

“Many years ago when I was in France, my brother (also a chef) and I opened a small restaurant together—30 seats so not a big operation. It was just his wife serving and we had someone helping in the kitchen. We knew it would be a lot of work; we didn’t know we’d be working literally 18 hours a day, seven days a week. So many things to think about, not just food prep but cleaning and overhead, you need equipment, you need a vehicle which means expenses for gas and parking. If you don’t anticipate all the expenses and overhead charges, it can be overwhelming,” he says.

Warren Dietel also cautions anyone thinking of entering the business against getting swept up in the glamorous portrayal they may have seen on television, as the reality of the industry is altogether different.

“Catering is not for the faint of heart, this is a hard business,” he explains. “You can’t get into this thinking this is what you see on the Food Network. I think the cooking networks have done a fabulous job of showcasing the glamorous side of what the foodservice and special event industry is, but at the end of the day, it takes hard work, grit, and determination to be successful.”

If you are driven by that burning desire to start a catering business and are prepared for the work and accompanying expenses, the catering industry will offer some distinct advantages over starting a traditional sit-down restaurant. Before you get started, take this quiz to help you think about what it takes to start your own business. 

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Advantages of starting a catering business

Food production costs.

Caterers know exactly how many people they are expected to serve. That means you can buy only what is absolutely necessary and reduce the expense of food waste. A traditional restaurant may be prepared to serve 150 people on any given night, even if only 30 walk through the door.

Equipment costs

Since most small catering operations only need their equipment for a few days each week, it makes more sense to rent it for only the times they will be in use. This expense is factored into the overall job quote. That means, unlike the new restaurateur, the caterer does not have to deal with a staggering amount of overhead right out of the gate.

Serving staff

Most catered events are buffet style, which means the catering company can get by with two or three servers for a party of over one hundred guests, whereas that same guest list in a restaurant would require at least eight to ten paid serving staff.

• 3. Test the waters by working in the industry

You’ve seen the advantages, you know what’s in store, and you’ve decided you will forge ahead and start a catering business.

Before you lease space and start advertising, there are some “test drives” you should do first. These are things that can give you a better sense of the professional landscape and either confirm or challenge your commitment to moving ahead.

Work for a local caterer

As obvious as it may seem, there is no better way to prepare yourself for the realities of making it on your own. You will get a master class in everything that goes into running a successful (or not so successful) catering business. 

It will also show if you have the one trait Jean-Marc believes any caterer must have to make it in the business:

“I know it sounds a little cliché, but you always have to keep a positive approach because there are so many factors that can be stressful,” he says. “A lot of things can go wrong from the get-go. It could be accidental food poisoning or the delivery van could have an accident on the way to an event. No matter what happens, you always have to have a positive approach.”

Volunteer as an event planner

For any prospective caterer, the ability to multi-task is just as important as the ability to prepare mouth-watering dishes. The most delicious food in the world will not save an event that is an organizational train wreck. 

The experience you gain from helping to plan fundraising events for your favorite charities or church functions could reap huge benefits further down the line.

Work as a personal chef

This is a very common training ground for many eventual caterers.

By working as a personal chef, you not only hone your skills in the kitchen, but you can also develop a client base and begin networking, which will be very beneficial when you transition to catering.

• 4. Do your research and write your business plan

When you’re finally ready to make a go of it and launch your catering business, the first thing you have to do is determine what makes your business unique. One way to describe this is your unique value proposition , or UVP. In a nutshell, your UVP covers: how your catering service works, what makes it valuable and unique, and why it’s better than the rest.

When you’re first starting out, you will likely be a very small operation and that makes it especially important to establish your niche in the marketplace. Large corporate events like Jean-Marc’s Urban Source Creative Catering can scale up or down depending on the order. They can be a large one size fits all operation that can be, in many ways, everything to everyone.

“A couple of weeks ago I was planning a corporate lunch for executives for one day and the next day, it was a birthday party for a five-year-old girl,” he says. “We’re flexible enough to adapt the menu to the needs and preferences of the client.”

Identify your target market

With that in mind, it’s very unlikely you will have the same capability. Most businesses benefit from identifying their target market —and it probably won’t be everyone who needs to eat, from five-year-olds to corporate executives. 

So here are some things you can do to narrow the focus of what your catering business is all about.

Identify your concept—who and what you serve

This is essentially determining what the DNA of your catering business will be.

What’s your most identifiable and unique business trait? Are you a target-based caterer, meaning you specialize in certain events like weddings, corporate lunches, or social fundraising events? Or are you a cuisine-based company that specializes in vegan and vegetarian dishes, Southeast Asian food, or catering for some of the more common food allergies and restrictions?

Find out who your competitors are

Maybe you decided that you are going to be the premier vegan and vegetarian caterer in your city. You’re going to want to find out how many other businesses out there are trying to service that same market. You need to know who else is serving your same target customers in your area. Putting together a simple competitive matrix can help you see where you and your competitors overlap, and where you stand out. 

Practically every business has competition . If there aren’t any other caterers serving your style of food in your area, don’t make the mistake of thinking that you don’t have competition. Find out how your target customers are getting their needs met already. What do they do when they want to serve 30 of their friends a huge meal? How do they make it happen? Make it your business to find out. 

You may be in trouble before you begin if your chosen niche is already oversaturated in the market. So, find out who has been successful locally and why. What are people saying about them? Why do they get repeat business? The answers to these questions will help you guide and shape you’re growing catering business.

Write your business plan

If you’ve done some market research and thought about competition, it’s time to start thinking about putting together your business plan . You’ll need a formal business plan if you plan to seek a bank loan or investor funding. Check out a  free sample catering business plan in the Bplans sample business plan library to give you some insight on what to include.

If you’re not planning on seeking funding, consider putting together a Lean Business Plan instead. It’s shorter by design, and it will help you make sure you’ve thought through all the critical aspects of your business. 

• 5. Build your catering menu

A caterer does many things and must wear many hats, all at the same time. But, nothing is more central to the core identity of the business than the menu .

Your service and presentation must be impeccable, but it is the food that will keep customers coming back and offering referrals to their friends and associates. For many, it is the single defining aspect of a catering business.

Here are some things to consider when putting together your catering menu.

Have an area of expertise

The larger corporate catering firms which often target large and expensive executive lunches can scale their operation up or down to meet any food request presented to them. Starting out, your focus will have to be more narrow, partly because for budgetary reasons and partly because that will help you create an identity.

By targeting your menu to what you do best, you put yourself in a better position to deliver a top-quality product to your client. This is something Warren Dietel believes is crucially important for new caterers.

“Know your limitations and always try to undersell and over-deliver,” he advises. “You don’t want to promise something that you can’t deliver upon.”

Stay on top of current food trends

Food is no different from fashion, architecture, or technology in that it is nearly impossible to stay on top of all the current trends.

The advent of food and cooking television networks over the past 10 years has given rise to self-proclaimed “foodies” who are very specific about what they consume, and this is the biggest change Jean-Marc has seen in the industry in the last five years.

“We are seeing a big demand for gluten-free items these days, but it’s always changing,” he says. “Up to a couple of years ago, it was all about cupcakes, everybody had to have cupcakes. You would see cupcake shops spring up all over the place, but now that’s fading away and now we’re in the macaron phase. Everyone now wants macarons for their parties.”

It would seem keeping current has never been more important in the foodservice industry. Consider joining a food service organization or other professional group with a mission of helping food businesses succeed to help you keep your ear to the ground. 

Determine your price point

Like most other goods or services, catering businesses range from the very affordable to quite expensive. You’ll need to determine where in that spectrum your business is situated.

If you are going for high-end clients like corporate lunches or expensive wedding parties, you will need to price your meals and services accordingly. Or perhaps you’ve decided to make catering affordable to those who would normally not consider it, and so you’re going to offer delicious catered meals at a lower price.

In either case, how successful you are in your targeted market is going to depend in large part on determining the right price point.

The other side of this is putting together a sales forecast. Once you have a sense of what your price point will be, and what your materials and other overhead costs will be, put together a simple sales forecast to help you model different scenarios. 

Make sure your menu is cost-efficient

This may seem self-explanatory, but there is no faster way to put yourself out of business than by delivering amazing dishes that cost more to produce than what you are receiving from the client. Be sure to factor in all food preparation costs when deciding what you will put on your menu.

• 6. Choose your location and handle logistics

Before you can place that first order and take that first piping hot tray out of the oven, you will have to clear some logistical hurdles to get your business operational. To work through this next step, you will have to wear the hat of a shrewd CEO and CFO.

Choose a business location

Perhaps the biggest difference between the catering and restaurant industries is that the restaurant mantra “location, location, location” does not really apply as much when it comes to starting a catering business.

Jean-Marc believes what is most important in choosing a location is what amenities are available rather than what part of the city you are situated in.

“I don’t think it really matters where you are located,” he says. “What is important is to have plenty of preparation and storage space. We have office space plus a basement for storage with walk-in fridges and walk-in freezers.”

Decide on transportation

Setting up shop anywhere you’d like is a positive, but having reliable and sizable transportation is an absolute necessity. You will have to determine if it makes sense to buy a company van or simply rent one on an as-needed basis.

Of course, there’s more to transporting food than simply loading it into the back of a van. You will need special units to keep the food properly preserved from your location to the function.

This might include: 

• Food carriers
• Beverage carriers
• Insulated food carts
• Banquet carts
• Thermal insulators

Make sure you have insurance

Anyone entering the foodservice industry absolutely must protect themselves with adequate business insurance coverage .

Even with the most careful attention to detail, accidental food poisoning or other mishaps can happen and you must be prepared for all eventualities. Your serving staff will also require workers’ compensation insurance.

Reduce risk wherever possible

Pay attention to workplace safety . Catering disasters aren’t unheard of. Plan for the unexpected . Think about what can go wrong and come up with a few ideas for how you might deal with it. You can reduce your risk if you plan ahead. You’ll encounter challenges that it never occurred to you to think through. Do yourself a favor and check a few of those off the list, well before go-time. 

• 7. Develop your marketing strategy

You’re already the culinary master, you’ve taken on the role of CEO and CFO, and now it’s time to put on yet another hat: marketing specialist.

No matter how great your food is, your business won’t survive without the clientele. Here are some things to consider when it comes time to start marketing your catering business.

Think twice about brochures and flyers

Not long ago, this was one of the go-to methods for getting exposure for a catering business. Handing them out a wedding or trade shows was considered a no-brainer for any enterprising caterer.

“We used to do brochures and flyers but that doesn’t really work these days,” Jean-Marc says. Instead, they now use a targeted cold-call method when they have on-site office jobs. “Let’s say we have a job in the building at 110 King Street. What we do is take business cards to the neighboring businesses and let them know who we are and what we have to offer. That has worked well for us in the past.”

Establish a website and social media presence

Your website is the first place most people will go to see what your business has to offer and determine if it’s a good fit for them. This is by far the most effective marketing tool you will use.

Having a strong web presence is an absolute must. Make it easy for clients to reach you and understand what you’re about. Should you  run your entire catering business on a Facebook page? Probably not. There are some risks associated with running your business from a platform that you don’t own and don’t have much say over. Think of social media as one arm of your marketing strategy, but not the entire thing. Especially as Facebook and other platforms have evolved to deprioritize business-related content, remember that you get what you pay for. Instagram might be a great way to generate some buzz around your food, but don’t put all your eggs in one basket. 

Volunteer your services at a charitable event

This is a tactic that Jean-Marc has found to be very effective during his years in the business. Find a great cause you want to support, and offer to cater the event as your contribution in exchange for the organizers using your company name and logo on all promotional materials and at the event itself. 

You will be incurring a significant expense at the outset, but it is a great way to penetrate a target-rich environment.

Partner with event planners and venue owners

Look to develop long-term, mutually beneficial relationships with other organizations that frequently use caterers. Establishing a great working relationship with the top two or three event planners in your area is a great way to keep your business going strong.

Below you’ll find a list of different resources that can help you find out more about what goes into getting your catering business off the ground.

• The Catering Institute : An excellent online resources which offers downloads, essays, videos, and webinars on topics such as leadership, operations, sales and marketing, and delivery. Past webinars include “Catering Menu Optimization,” “How to Market Your Holiday Catering Program,” and “Building Loyalty and Order Frequency with Rewards and Incentives.”
• NACE : The National Association of Catering and Events offers online learning opportunities through what they call NACE University. Their courses fall under two umbrella headings: The Business Academy, and Food Safety. They also offer Certified Professional in Catering and Events (CPCE) Designation.
• Vegetarian Society : An excellent resource to help caterers navigate the often choppy waters of providing excellent meals to a strict vegetarian clientele.
• TES : An online educational resource hub that is home to the world’s largest online community of teachers, with 7.3 million registered users. It has numerous resources for caterers including information on cooking skills, health and safety, managing an event, customer service, world foods, and preparing food—just to name a few.

Books and magazines:

One visit to Amazon will give you numerous options for published guides on starting a catering business.

Some of the titles you’ll find include:

• How to Start a Catering Business: The Catering Business Plan—An Essential Guide for Starting a Catering Business by Sierra Young
• Good Food Good Business: Starting and Running a Successful Catering Business by Culina Salus
• The Everything Guide to Starting and Running a Catering Business: Insider’s Advice on Turning Your Talent into a Career by Joyce Weinberg
• Starting and Running a Catering Business by Carol Godsmark
• Taking those first steps

Both Jean-Marc and Warren stress the importance of patience and determination in those early days. It will be harder and more labor-intensive than you can possibly imagine, but it will also be unbelievably rewarding.

Warren said anyone new to the field must anticipate seasonal ups and downs—there will be natural ebbs and flows and it is important to be both psychologically and financially prepared.

“This is a very seasonal business . It seems we work really, really hard for eight months out of the year and for four months out of the year we get to regroup, recalibrate, reorganize,” he says. “That’s a good thing, but you just have to be sure you prepare for that from a cash flow perspective.”

So, the next time you amaze your social circle with your culinary mastery and someone says “you should really start your own catering company,” ask yourself one question—are you ready to flip the switch?

Tony has returned to his early love of journalistic writing by freelancing long form articles and blog posts. He is currently turning his TV series pilot for The New Twenty into his first novel. Tony lives in Toronto where he continues to be tormented by his beloved Maple Leafs.

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• 2. Figure out if you’re ready to start a catering company

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Table of Contents

Ai growth and adoption in the uk, impact on economy and jobs, ai language models, self-driving vehicles, ai research & development, trends, outlook and concerns.

The rapidly growing field of artificial intelligence (AI) has the potential to revolutionise our lives. 

Apple is the latest major tech player to announce a deepening of its involvement in this area, signalling a link-up with provider OpenAI that will see its ChatGPT functionality integrated into the Apple operating system later in 2024.

The move is intended to improve the performance of the Siri voice assistant and facilitate the generation of text and other content.

With AI already powering everything from self-driving cars to medical diagnosis tools, we look at how uptake of the technology is changing the UK.

• The UK AI market is worth more than £16.8 billion, according to the US International Trade Administration, and is expected to grow to £801.6 billion by 2035. 1
• The number of UK AI companies has increased by over 600% over the last 10 years. 2
• Around one in six UK organisations, totaling 432,000, have embraced at least one AI technology – according to government research. 3
• 68% of large companies, 33% of medium-sized companies, and 15% of small companies have incorporated at least one AI technology. 4
• Following a 10-week trial of computer vision technology, Marks & Spencer reported an 80% reduction in warehouse accidents. 5
• Government data 4 shows the most commonly adopted AI solutions in the UK focus on:

– data management and analysis (9%)

– natural language processing and generation (8%)

– machine learning (7%) 

– AI hardware (5%)

– computer vision and image processing and generation (5%).

• The IT and telecommunications sector has the highest AI adoption rate at 29.5%, closely followed by the legal sector at 29.2% The hospitality, health, and retail sectors have the lowest adoption rates, at around 11.5%.

• The UK has an AI workforce of over 360,000. 6
• AI contributed £3.7 billion to the economy in 2022. 7
• Britain has twice the number of AI-based companies than any European nation. 7
• The largest estimated net job gains from AI over the next 20 years are predicted to be in the UK’s health and social care sector. 8
• Of the UK’s main regions, Greater London leads way in AI-focused companies, being home to 1,387 AI businesses as of June 2023. 9
• London serves as the primary hub for AI startups in the UK, hosting companies including: DeepMind, Adbrain, and BenevolentAI, alongside prominent machine learning research groups at UCL, Kings, and Imperial College.

• Job listings across all sectors which mention AI advertise salaries 20% higher than those which don’t.

• The government estimates around 7% of existing UK jobs could be displaced over the next five years, rising to around 18% after 10 years and nearly 30% after 20 years – equivalent to around 2.2 million jobs. 8
• A Forbes Advisor poll found that 85% of Brits are aware of AI language models such as Chat GPT, Google Bard and Bing Chat.
• Since its introduction in November 2022, eight out of the 24 Russell Group universities have formally banned the use of ChatGPT and other AI language models.
• Self-driving vehicles are projected to be on UK roads by 2025, with £100 million worth of government funding committed to the goal to date.
• Forbes Advisor research found 85% of those polled had reservations about AI technology in cars.
• The UK government was ranked third in the 2023 global AI Readiness Index, and first in Western Europe.  10
• Since 2014, the government has allocated over £2.3 billion to various initiatives in the field of Artificial Intelligence (AI). 11
• In the 2023 spring budget , the UK government committed almost £1 billion of government funding towards AI research. 12
• The UK plans to invest £900m in a cutting-edge supercomputer as part of an artificial intelligence strategy that includes ensuring the country can build its own ‘BritGPT’. 13
• Forbes Advisor research found 59% of Brits have concerns about the use of artificial intelligence. 
• The main concerns were as follows:

Primary data from Forbes Advisor was taken from a sample of 2,000 adults, representative of the UK population. It was commissioned by Forbes Advisor and conducted by market research company Opinium. Data was collected in May 2023.

• https://www.trade.gov/market-intelligence/united-kingdom-artificial-intelligence-market-2023
• https://www.great.gov.uk/campaign-site/uk-na-innovation/sectors/artificial-intelligence/
• https://www.ons.gov.uk/businessindustryandtrade/itandinternetindustry/articles/understandingaiuptakeandsentimentamongpeopleandbusinessesintheuk/june2023
• https://www.gov.uk/government/publications/ai-activity-in-uk-businesses/ai-activity-in-uk-businesses-executive-summary
• https://www.protex.ai/post/marks-and-spencer-reduced-incidents-by-80-in-their-first-10-weeks-of-deployment#:~:text=This%20momentum%20led%20to%20an,incidents%20across%20the%20warehouse%20floor
• https://thedatacity.com/rtics/artificial-intelligence-rtic0004/
• https://www.gov.uk/government/news/uk-unveils-world-leading-approach-to-innovation-in-first-artificial-intelligence-white-paper-to-turbocharge-growth
• https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1023590/impact-of-ai-on-jobs.pdf
• https://thedatacity.com/blog/the-uks-top-artificial-intelligence-ai-hotspots/
• https://oxfordinsights.com/ai-readiness/ai-readiness-index/
• https://www.gov.uk/government/publications/national-ai-strategy/national-ai-strategy-html-version
• https://www.gov.uk/government/news/government-commits-up-to-35-billion-to-future-of-tech-and-science
• https://www.theguardian.com/technology/2023/mar/15/uk-to-invest-900m-in-supercomputer-in-bid-to-build-own-britgpt
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Staff writer Mark Hooson has been a journalist within the personal finance, consumer affairs and fraud sectors for more than 10 years. He is also Forbes Advisor UK’s resident tech expert. Mark says he thrives on making ‘complicated and dry topics easier to digest’.

I am the UK editor for Forbes Advisor. I have been writing about all aspects of household finance for over 30 years, aiming to provide information that will help readers make good choices with their money. The financial world can be complex and challenging, so I'm always striving to make it as accessible, manageable and rewarding as possible.

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Reporting by Sneha S K in Bengaluru; Editing by Shilpi Majumdar

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