business plan for a small catering company

Catering Business Plan Template

Catering business plan.

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

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

How to Write a Business Plan for a Catering Company

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

Next Section: Executive Summary >

Catering Company Business Plan FAQs

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

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

Where Can I Download a Catering Business Plan PDF?

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

What Is a Catering Business Plan?

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

Why Do You Need a Business Plan for a Catering Company?

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

How Do I Write a Successful Catering Business Plan?

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

What Are the Sources of Funding for a Catering Business?

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

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

What Are the 3 Types of Catering Service Businesses?

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

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

What Are The 5 Steps to Starting a Catering Business?

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

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

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

What are the Benefits of Starting a Catering Business?

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

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

What are the Pitfalls of Starting a Catering Business?

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

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

CATERING BUSINESS PLAN OUTLINE

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

Other Helpful Business Plan Articles & Templates

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 Winning Catering Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for catering businesses that want to improve their strategy and/or raise funding. This begs a question: what elements appropriately belong in your catering business plan.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every catering business owner should include in his or her business plan.

Download the Ultimate Catering Business Plan Template

What is a Catering Business Plan?

A catering business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Catering Business Plan?

A catering business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Catering Business Plan

The following are the key components of a successful catering business plan:

Executive Summary

The executive summary of a catering business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Follow these tips:

• Start with a one-line description of your catering company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.
• Form a line-up of evaluators to whom you will give your catering business plan and have them be heartless in their criticism.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your catering business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your catering firm, mention this.

You will also include information about your chosen catering business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a catering business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer in the catering business plan  include:

• What part of the catering industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a catering business’ customers may include:

• Wedding receptions
• Corporate luncheons and events
• Private parties
• Cocktail parties

This information will help you determine your marketing strategy later on. It is important to remember that your target market may not always be the same as your actual customer base. In other words, you may have to market to a different audience in your catering business plan than the one you eventually want to sell your services to.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or catering services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing strategy. Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your catering business via word-of-mouth.

Operations Plan

This part of your catering business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next three-to-five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a catering business include reaching $X in sales. Other examples include:

Hiring a certain number of new employees

Opening a second location

Rolling out a new product or service line

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific catering industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss

Sample Income Statement for a Startup Catering Business

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Catering Business

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup catering business.

Sample Cash Flow Statement for a Startup Catering Business

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your catering company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is critical for any catering business looking to start or grow. In addition, be sure to include a detailed financial plan and supporting documentation in your appendix. This will give investors and lenders the confidence they need to believe in your company’s long-term success.  

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How to Start a Catering Business in 9 Steps

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

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

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

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

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

How to start a catering business in 9 steps

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

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

Step 1: Choose your business name and business entity type

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

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

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

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

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

Step 2: Write a business plan

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

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

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

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

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

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

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

Step 3: Register your catering business and get an EIN

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

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

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

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

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

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

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

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

Step 5: Determine your pricing

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

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

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

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

Step 6: Hire, train, and outfit your staff

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

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

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

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

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

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

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

Step 7: Market during your own events

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

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

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

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

Step 8: Get funding

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

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

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

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

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

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

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

Step 9: Plan for emergencies — both financial and others

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

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

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

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

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

Start Your Dream Business

How to start a catering business: The bottom line

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

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

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

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

On a similar note...

Restaurants | How To

How to Start a Catering Business in 10 Steps

Updated April 2, 2024

Updated Apr 2, 2024

Published August 30, 2023

Published Aug 30, 2023

WRITTEN BY: Mary King

This article is part of a larger series on Restaurant .

1. Learn About the Catering Industry

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

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

9. Hire Staff

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

• Tips for Catering Success

Bottom Line

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

Key takeaways:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5. Write Business Plan & Raise Funds

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

Your business plan should include the following sections:

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

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

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

6. Secure Permits, Licenses & Insurance

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

Catering companies typically need the following permits and licenses:

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

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

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

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

7. Purchase Equipment & Supplies

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

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

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

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

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

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

8. Draft Your Basic Contract & Terms

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

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

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

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

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

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

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

Typical catering employees include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Challenges of Starting a Catering Business

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

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

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

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

Key Tips for Catering Success

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

Respond Quickly

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

Network With Other Caterers

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

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

Incentivize Referrals

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

Use Software to Save Time

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

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

About the Author

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

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How To 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.

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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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Catering Business Plan: How to Make a Catering Business Plan

Starting a catering business can be an incredibly rewarding venture, but it also requires careful planning and organization to ensure success. The key to a thriving catering company is a well-constructed catering business plan, outlining everything from your financial goals to your unique selling points. This comprehensive document serves as a roadmap to guide you through the process of starting and running your catering business, providing clarity and direction every step of the way.

In this blog post, we will walk you through the essential steps for creating a catering business plan, ensuring you have a solid foundation for your catering enterprise. From developing a menu that sets you apart from the competition to crafting a marketing strategy that gets your name in front of the right audience, our guide will help you turn your passion for food and service into a successful catering business. So, let's dive in and start building the blueprint for your catering success!

Catering Business Plan

A catering business plan is a comprehensive document that outlines an upcoming catering venture's operational, financial, and marketing goals. It includes detailed plans for managing sales and expenses, a marketing strategy, customer service policies, and other important business components. The plan serves as a roadmap for starting and running a successful catering business.

How to Make a Catering Business Plan

A catering business plan should be comprehensive and cover all the key aspects of your business, from your target market and competition to your financial projections and marketing strategy. Here are the steps to help you create a catering business plan:

1. Write an Executive Summary

The executive summary should be a brief introduction to your catering business plan. It should summarize your company's goals, target market, financial projections, and unique selling points of your services. Keep it concise and compelling, as this section is often the first part investors or lenders will read.

2. Create a Company Overview

In the company overview section, describe your catering business in detail. Include your company name, restaurant mission statement , business structure, legal status, and ownership. This section should also provide a high-level view of your catering services and target market.

3. Develop Services and Menu Offerings

Provide a detailed description of the services you offer, including catering for weddings, corporate events, or private parties. Outline the types of cuisine you specialize in and provide a sample menu. Include any additional services your business provides, such as event planning, restaurant equipment rental, or wait staff . Discuss your pricing strategy and outline any special packages offered.

4. Design Branded Graphics

Create a consistent and professional visual identity for your catering business by designing branded graphics tailored for restaurant branding . This includes designing a logo, choosing color schemes, and selecting typography that reflects your brand's personality. These visual elements will be used on your website, social media, promotional materials, and other marketing channels to create a cohesive brand image specifically designed for the restaurant catering industry.

5. Conduct an Industry Analysis

Research the catering industry and identify trends, challenges, and opportunities. Analyze your target market and industry competition to understand your business's unique value proposition for restaurants . This analysis should also help you determine the most profitable catering services and event types.

6. Conduct a Customer Analysis

Understand your target customer base, including their demographics, preferences, and needs. This information will help you tailor your catering services and marketing strategy to effectively meet your customers' needs.

7. Analyze Your Competition

Identify your direct and indirect competitors and evaluate their strengths and weaknesses. Analyze how your business can differentiate itself and establish a competitive advantage in the market.

8. Develop a Marketing Plan

Outline your marketing strategy, including advertising, social media, website, public relations, and partnerships. Describe your target audience, key messages, and tactics you will use to reach your customers and achieve your business objectives.

9. Create a Business Operations/Operations Plan

Outline how you will manage your catering business's day-to-day operations. Include information on your equipment, kitchen facilities, staff, inventory management , and food safety practices.

10. Build Your Team and Management Structure

Introduce your management team, their roles, and their relevant experience. Include any advisory board members or mentors. Describe your company's organizational structure and how it supports the execution of your business plan.

11. Forecast Your Sales and Operating Expenses

Provide sales projections for your catering business, including a breakdown of revenue streams and potential growth areas. Estimate your operating expenses , such as rent, utilities, labor, marketing, and supplies.

12. Create a Financial Plan

Include financial statements such as profit and loss, cash flow, and balance sheets. Develop a break even analysis to show when your business is expected to become profitable. Include any funding requirements and a plan for how you will secure capital.

13. Prepare an Appendix

Include any relevant supporting documents or additional information, such as licenses, permits, contracts, or legal documents that may be helpful to readers. Use this section to offer context and support for the data and claims presented in your business plan.

By following these steps, you can create a comprehensive and effective catering business plan that sets you up for success. Remember to review and update your plan regularly to adapt to changes in the market and your business's growth.

Catering Business Plan Example

Here is an example of how a catering business plan might look like:

I. Executive Summary

Our catering business, 123xyz Catering, aims to provide exceptional culinary experiences for events ranging from intimate gatherings to large corporate functions. With our talented culinary team, diverse menu offerings, and focus on local and sustainable ingredients, we will quickly establish ourselves as a premier catering service in the industry. Our comprehensive business plan outlines our goals and strategies for success, highlighting our dedication to quality, customer satisfaction , and sustainability.

II. Company Overview

123xyz Catering is a full-service catering company based in [City, State]. Our mission is to create unforgettable events by exceeding our client’s expectations with innovative cuisine, exceptional service, and creative presentation. Our team of experienced chefs, event planners, and service staff work together to ensure a seamless and memorable experience for our clients and their guests.

III. Services and Menu

Our services include event planning, custom menu creation, and on-site food preparation and service for various events, such as weddings, corporate functions, and private parties. We offer diverse menu options, including appetizers, entrées, desserts , and beverages. Our cuisine ranges from traditional to exotic, focusing on incorporating fresh, locally-sourced ingredients whenever possible. We also accommodate special dietary needs and preferences, including vegetarian, vegan, and gluten-free options.

IV. Branded Graphics

Our branding strategy emphasizes clean, modern design elements that convey our commitment to quality and innovation. We will invest in professional graphic design services to create a logo, website, and marketing materials that reflect our brand's values and style. Our visual identity will be consistent across all platforms, reinforcing our reputation as a reliable and sophisticated catering service.

V. Industry Analysis

The catering industry is expected to grow steadily, driven by increasing demand for high-quality food services at events and a growing emphasis on unique, memorable experiences. Our market research has identified several trends shaping the industry, such as increasing demand for sustainable and locally-sourced ingredients, as well as a growing interest in diverse and international cuisines. 123xyz Catering is well-positioned to capitalize on these trends and differentiate ourselves from competitors.

VI. Customer Analysis

Our target customers include corporate clients, private individuals, and non-profit organizations hosting events that require catering services. We will focus on serving clients in [City, State] and surrounding areas, with the potential to expand our reach as we grow. We will target customers who value high-quality, unique culinary experiences and are willing to pay a premium for our services.

VII. Competitive Analysis

We have identified several local catering companies as our primary competitors. Through our research, we have determined that we can differentiate ourselves by offering a more diverse and innovative menu, emphasizing sustainable and locally-sourced ingredients, and providing exceptional customer service. Our competitive analysis will guide our marketing strategies and help us position ourselves as a top choice for event catering services.

VIII. Marketing Plan

Our marketing strategy includes online and offline initiatives to generate brand awareness and attract new clients. Key components of our marketing plan include:

• A user-friendly, professionally-designed website that showcases our menu and services
• Active engagement on social media platforms, sharing photos and stories from our events
• Networking within the local event planning community, establishing Attending local food and business expos to showcase our offerings and generate leads
• Offering special promotions and incentives to attract first-time clients and encourage repeat business

IX. Business Operations/Operations Plan

Our operations plan outlines the infrastructure and resources necessary to support our catering services. Key elements of our operations plan include:

• Securing a commercial kitchen space equipped with the necessary tools and equipment
• Developing relationships with local suppliers to ensure a consistent supply of fresh, high-quality ingredients
• Implementing a streamlined booking and event management system to handle client inquiries and scheduling efficiently
• Establishing standard operating procedures (SOPs) for food preparation, presentation, and service to ensure consistency and quality across all events
• Implementing robust food safety and sanitation protocols to maintain the highest standards of cleanliness and compliance with local health regulations

X. Team and Management

Our team consists of passionate and experienced professionals, each bringing unique skills and expertise to the company. Key team members include:

• Founder and CEO: A seasoned entrepreneur with extensive experience in the catering and hospitality industry
• Executive Chef : A talented culinary expert with a diverse background in various cuisines and a commitment to innovation and sustainability
• Event Planner: A detail-oriented professional with experience in coordinating and executing events of various sizes and styles
• Service Staff: A team of dedicated servers and bartenders trained in providing exceptional customer service and ensuring a seamless event experience

XI. Sales Forecasts and Operating Expenses

Our sales forecast projects steady revenue growth as we establish our reputation and expand our client base. We expect to reach profitability within the first two years of operation. Operating expenses will include costs for food and beverage supplies, kitchen equipment and maintenance, labor, marketing, and general administrative expenses. We will continually monitor and adjust our financial projections as needed to ensure the business's long-term success.

XII. Financial Plan

Our financial plan outlines the necessary investments and financial management strategies to support our business operations and growth. Key elements of our financial plan include:

• Startup costs, including kitchen equipment, initial inventory, and marketing expenses
• A comprehensive pricing strategy that takes into account food and labor cost s, as well as competitive market rates
• Detailed financial projections, including income statements, cash flow statements, and balance sheets
• A break-even analysis to determine when our business will become profitable
• Contingency plans for managing potential financial risks and challenges

XIII. Appendix

The appendix contains additional information and resources to support the main sections of our business plan. This may include:

• Resumes and biographies of key team members
• Sample menus and photographs of our culinary creations
• Testimonials and case studies from previous clients
• Copies of relevant licenses, certifications, and insurance policies
• Market research data and industry reports
• Detailed financial projections and assumptions

In conclusion, 123xyz Catering is poised to make a lasting impact in the catering industry. With our commitment to quality, innovation, and sustainability, we will provide an exceptional culinary experience for our clients and their guests, setting the stage for long-term success and growth.

Frequently Asked Questions About Catering Business Plan

Starting a catering business requires careful planning and preparation. To ensure success, it is important to create a comprehensive business plan that outlines the goals and objectives of your venture, as well as how you intend to reach them. This section will answer frequently asked questions about creating a catering business plan, from what should be included to how profitable the industry can be.

What Is Included In a Catering Business?

A catering business typically includes event planning, menu creation, and food preparation. Depending on the size of the catering service, these services can also include staffing, equipment rental, and event coordination. Some catering businesses may also offer beverage services and party rentals.

How Profitable Is a Catering Business?

A catering business's profitability heavily depends on several factors, including the quality of food, efficient marketing strategies, and operational costs. Catering businesses can enjoy generous profit margins, depending on how well they manage their operations. 

To maximize profits, caterers must ensure that their food is of high quality, that they have an effective marketing strategy to reach potential customers and keep existing customers coming back, and that their operational costs are kept as low as possible. By doing these things, catering businesses can enjoy lucrative profits and remain competitive in the market.

Why Do You Need a Business Plan?

Writing a business plan is essential for any business. It provides direction and clarity, helps to focus resources and efforts, and provides a framework for decision-making. A business plan helps you determine a business idea's viability, set goals and objectives, identify potential risks and opportunities, and manage the resources you have available. It is also essential for securing financing, as it provides potential investors and lenders with an understanding of your business.

Start Your Catering Plan Today

Creating a catering business plan is an essential step towards starting a successful catering business. It is a detailed roadmap that outlines your business objectives, marketing strategies, financial projections, and operational plans.

By following the steps outlined above, you can create a comprehensive and effective plan that sets you up for success. Remember, your catering business plan is a living document that should be reviewed and updated regularly to adapt to changes in the market and your business's growth. Start your catering plan today and take the first step towards making your catering dream a reality.

How to Start a Catering Business (12 Steps)

Bryce Warnes

Reviewed by

April 8, 2021

This article is Tax Professional approved

If you’ve got a flair for fine cooking and entertaining, and you’re ready to start working for yourself, then maybe it’s time to start your own catering business.

Catering companies in the US raked in a total of $11 billion revenue in 2019. And if you run a catering business, you can expect to make $30,000 – $80,000 annually .

I am the text that will be copied.

But what are the ingredients to a successful catering business? And how can you make sure yours succeeds? Here’s how to start your own catering company in 12 not-too-complicated steps.

1. Find your speciality

When your catering business fits in a specific niche, for face less competition from the big, one-size-fits-all caterers on the block. And it becomes easier to build up a solid base of repeat clients through word of mouth marketing.

Ask yourself:

• What type of food will you serve? Will you serve everyone? Or go deep on a niche market, like vegan or gluten-free cuisine.
• What types of functions will you serve? When you’re just starting out, smaller functions like cocktail parties, staff lunches, and wedding showers may be easiest. As your business grows, you can expand your catering services to include larger events.
• What’s your capacity? If you’re jumping into this full time, maybe you’re ready to serve multiple functions per week. But if catering is a side hustle, you may need to limit your business activities to the weekends.
• Who’s going to do the work? Sketch out a hiring plan, factoring in who’s going to do food preparation, sales, accounting work, etc.

Next, it’s time to see who you’ll be competing with, and who you’ll be working for.

Researching customers and the competition

It’s best to research the lay of the land before you put together your menu and start buying equipment. For instance, if you live in a small city and there are six other caterers specializing in Sikh weddings, you’ll face a lot of competition in that niche. You may want to focus on something no one else is trying, like vegan pub fare.

A search for local caterers should be your first step. See what menus are being offered, and what size functions your competitors serve. If they don’t have approximate prices on their websites, consider calling to get quotes.

After that, the best way to learn about local caterers is to talk to their customers. Not only do you get the scoop on what your competitors are doing, right or wrong, but you’ll be conducting customer research. That will help you plan how to market your business later.

A few ideas to get you started:

• Talk to friends and family. Baptisms, weddings, wakes—chances are, you know someone who has had to plan one. Ask who they chose as a caterer, why, and what the experience was like. It may give you an idea of what types of services your business should offer.
• Call up the people who use caterers the most. These are your potential customers, and they’re a gold mine. Wedding planners, office managers, event coordinators—they all have their own favorite caterers. Who’s the most popular caterer in town? Who has a bad reputation? What do they look for in a caterer?
• Read the reviews. This may seem like a no-brainer, but in the rush to get your business off the ground, you may forget to investigate what customers think. Google, Yelp, and Facebook reviews for local catering companies will give you some insight into what customers like and what they don’t.
• Look at the big picture. Reports and statistics on catering businesses nationwide can give you a bigger picture of how the industry operates, as well as recent trends. Get started by checking out Catersource’s state of the catering industry report .

2. Investigate local licensing and permits

Licensing and permits for catering companies vary state by state. Depending on your state, you may or may not be allowed to prepare meals in your own kitchen with equipment you also use for personal meal prep. And liquor licenses will have different requirements according to state.

Despite state-to-state variations, there are a few licenses and permits common across all states, some of which you’ll likely need to start your business:

• A general business license , issued by your state, municipality, city, or county.
• A zoning permit , depending on where you’ll locate your cooking facilities.
• Health permits, depending on where you’ll be preparing food and whether you’ll be transporting it.

Get in touch with your local health department, as well as your Secretary of State, to learn about licenses and permits that pertain to you.

3. Create your menu

If you love food and you’re already thinking about starting your own catering business, no doubt you’ve stayed up late at night dreaming of the magnificent meals you’ll serve.

Now that you’ve done some research, answered some important questions about your business, and investigated local licensing, it’s time to write a rough draft of your menu.

While you may customize later, it’s best to start of with a set list of options. That way, you can perfect well in advance the supply orders and preparation processes for each dish you serve. Once customers choose their items, it’s just a matter of mixing and matching factors you’ve already planned out.

Your menu will be shaped by your capacity and your cooking facilities. Less tangibly, it will also be affected by what types of food you’re comfortable serving, and the niche you’re marketing to. For instance, if you only serve food with local, seasonal ingredients, your winter menu won’t offer freshly squeezed orange juice.

4. Plan your location

The location of your business will depend on local laws pertaining to catering businesses, as well as zoning regulations.

Some states may not allow you to prepare meals in your home. In that case, you have one of two choices: Rent a commercial kitchen, or prepare food on-site.

Renting a commercial kitchen increases your operating costs, but it also gives you flexibility; you’re always able to prepare meals for your customers, regardless of their location. And you’ll be able to do it in a larger capacity than you would be able at home. However, you’ll also be responsible for delivering food, so you’ll need vehicles and equipment that are up to the job.

Preparing food on-site means you’ll be relying on customers’ facilities for meal prep. That limits you to serving customers who rent or own places with kitchens—churches, community centers, and homes. You’ll save on operating costs, but pay in other ways: It’s up to you to adapt to whatever kitchen you’re using. Also, you won’t be able to serve some events—like gallery openings, work lunches, or some outdoor events.

The best plan is to decide what you’re going to serve, and to whom, and then choose the location and plan the budget that fits.

5. Get ready to buy equipment

Your equipment needs could range from a new egg whisk to an industrial mixer, from a couple of Yeti coolers to half a dozen chest freezers. It depends on the scale of your business, and your customers.

Prepare a list of all items you’ll need to get up and running. Then get in touch with a restaurant supply company, and get a quote for your shopping list. You’ll use that to help you put together the budget in your business plan.

If you’re considering financing equipment, take a look at all your options first. A small business loan or line of credit may be cheaper, in terms of interest payments, than a finance plan. And paying cash upfront may give you the option to buy used equipment, which could cost you less in the long run.

7. Prepare a business plan

“Cook it and they’ll come” is a recipe for a failed catering company. You’ll need clear plans for every part of your business in order to succeed.

On top of including research you do into customers and competitors, a startup budget, and financial projections, your business plan should cover:

• The problems you solve for clients and customers
• What sets you apart from the competition
• The resources your business depends on
• Your mission statement and vision for the future
• What inspired you to go into business

This is just a brief overview. See our guide on how to write a business plan to put everything together one step at a time. And don’t forget to include a cover page that catches people’s attention.

A word on catering company startup costs

According to the pros , you should be prepared to budget $10,000 to $50,000 in startup costs for your catering company. Naturally, startup costs vary business to business. You’ll need to take into account your equipment, transportation, and marketing needs. Whatever your startup costs, your initial budget should be able to cover the operating costs of your business for 12 months, without taking into account revenue.

8. Create an affordable marketing strategy for your catering company

Luckily, you don’t need to buy a Super Bowl ad to get the word out about your catering business. A few inexpensive techniques can do the trick.

Keep menus and prices fresh

If customers are looking up your business, chances are they’re already thinking about having an event catered. That means they want to know what kind of menu you offer, what kind of events you cater, and how much it will cost.

Keeping menus and price lists up to date on your website helps your customers start planning before they even contact you. A couple planning their wedding would rather know if your services are in their budget before they contact you; offering price ranges up front could mean they choose you over the competitor whose website still says “under construction.”

Curate your reviews on social media

A social media profile with recent reviews proves the lights are on—you’re an active, popular business. Encourage customers to leave reviews, and be sure to address any negative ones; it’s often better to offer a refund to a customer with unrealistic expectations than to suffer the damage to your reputation caused by a one-star review.

Post sexy food pics

Pictures of the dishes you’re most proud of can get social media followers’ mouths watering, and show them you know what you’re doing when it comes to presentation. Occasional food photos are a great, low-investment way to keep your social media up to date.

Be warned, though: An unattractive photo of your cooking is worse than no photo at all. If every photo you take looks like a public warning poster about food poisoning, you may want to enlist the help of a professional.

Word of mouth marketing is your best friend

Good, bad, forgettable—whatever kind of experience a customer has with catering, they’re only too happy to share it by word of mouth. The best thing you can do is make sure your customers have good things to say about you.

One way to do that is by providing exceptional service, every time. The other way is to offer referral deals. Maybe if a customer refers someone, they get 15% off their next order—or fresh-baked breakfast muffins and coffee for their office, as a way of saying thank you. Building and maintaining good relationships, as well as incentivizing referrals, will grow your clientele faster than any print ad or flyer.

9. Choose a business structure

Your business structure determines how your catering company will be taxed, and also your level of personal liability when it comes to debts and legal proceedings.

As soon as you go into business for yourself, the IRS automatically considers you a sole proprietorship . That’s great in terms of ease—no forms to fill out, no business structure to elect. But it’s not so great if you can’t pay your debts, or someone decides to sue you.

The next step up from a sole proprietorship is a single member limited liability company (LLC) . An LLC functions a lot like a sole prop, except it sets up your business as a separate legal entity from your individual person. Meaning, you get more liability protection than you would with a sole prop.

To see all the business entity types you have to choose from, and how to elect each one, check out our guide to business structures .

10. Name your business

If you’re a sole proprietorship and you’re operating under your own name—say, Monica Geller—there’s no need to register a business name. But the minute you choose to operate under a different name—Monica’s Catering with a Smile—you’ll need to register it.

And if your business elects and structure other than a sole proprietorship, you’ll need to register your business name, regardless of whether it’s the same as your personal given name.

In either of these instances, you register your business name by filing a doing business as (DBA) form with your state and county. Our guide to DBAs gives you the full step-by-step.

11. Get insured

Business insurance protects your catering company in case the untoward happens. Even if your particular state doesn’t require you to get insurance, you should buy as many types of insurance as you need to protect your assets and shield you from being sued.

The most essential type of insurance for a catering business is general liability insurance. Chocolate fountain overflowed and permanently damage your client’s rare Persian rug? Bad batch of oysters from your supplier got some wedding guests sick? Over enthusiastic flambé took out someone’s eyebrows? General insurance has you covered.

After that, you might want to consider the following:

• Commercial automotive insurance , for your catering van.
• Commercial property insurance , protecting you in case your equipment or kitchen are damaged.
• Unemployment insurance , often legally required if you have employees. It also protects you from being sued for damages if an employee loses their job.
• Wrongful termination insurance , protecting you from being sued if an employee believes you mistreated them.
• Key person insurance , in case your star chef is put out of commission and it costs you business.

Take a deeper dive with our complete guide to small business insurance .

12. Start bookkeeping ASAP

Doing your books may seem a far cry from sights, smells, and tastes of the kitchen. But it’s a key ingredient when you start your own business. When your bookkeeping is disorganized, so is everything else.

Good bookkeeping helps you make sure you’re getting paid by customers, make certain you’ve paid suppliers, and keep track of how much cash you have to work with. It can help you plan how to expand your business, or make it more profitable if you’re having trouble paying the bills. And when you have a complete record of expenses on the books, you can take advantage of every possible tax deduction at the end of the year.

Before you cater your first event, make sure you’ve got bookkeeping set up. There are a few ways to do that, but naturally, we recommend Bench (that’s us). You’ll get a complete team of bookkeepers who do your bookkeeping for you, plus an intuitive app to track finances—all for a flat monthly fee.

Not sure Bench is right for you? Try an appetizer first. When you sign up for a trial , we do one month of your bookkeeping free.

Join over 140,000 fellow entrepreneurs who receive expert advice for their small business finances

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How to start a catering business in 7 steps

Editorial team.

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

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

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

1. Build a catering business plan

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

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

2. Choose your business format

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

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

3. Create a pricing strategy

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

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

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

4. Design your menu 

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

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

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

5. Get the right licenses

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

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

6. Package like a pro

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

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

7. Figure out how to accept payments 

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

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

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

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

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

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How to start a catering business: your guide to success.

If you’ve ever dreamed of starting your own catering business but where to begin, you’re in the right place. This comprehensive guide designed to help you navigate the intricate process of launching a successful catering business. From the benefits of entering this industry to the essential steps for getting started, our guide on how to start a catering business aims to be a one-stop resource for aspiring entrepreneurs.

Why Start a Catering Business?

The catering industry offers a plethora of opportunities for aspiring entrepreneurs. It’s a sector that combines the joy of cooking with the thrill of running your own business.

Why start a catering business? Consider the following benefits:

• Flexible Hours : The catering industry allows entrepreneurs to set their own schedules, offering a work-life balance that many other industries cannot provide.
• Creative Freedom : In a catering business, you have the liberty to experiment with menus and themes, making each event a unique culinary experience.
• Earning Potential : According to the Bureau of Labor Statistics, the median annual wage for food service managers was $63,310 in 2022, offering a lucrative career path.
• Networking Opportunities : Catering events often put you in contact with professionals from various sectors, providing a platform for business networking.
• Low Startup Costs : Unlike traditional restaurants, catering businesses often require less capital for startup, making it an accessible option for many.

The Essentials of Starting a Catering Business

Embarking on a catering venture demands more than culinary skills; it requires a strategic approach from the start. Keep reading as we guide you through the key steps for how to start a business in the catering industry.

Research and Market Analysis

Understanding your market is crucial for the success of your catering business. Comprehensive market research serves as the bedrock upon which you can build a resilient and profitable venture.

Such research can reveal gaps in the market, offering you the opportunity to fill a niche that competitors may have overlooked. Further, identifying your target audience is essential for tailoring your marketing strategies and menu offerings.

Market research also assists in setting competitive pricing. By analyzing what competitors charge for similar services, you can position your business in a way that offers value without compromising profitability.

Likewise, understanding market trends can help you anticipate customer needs, allowing you to adapt your services and stay ahead of the curve.

Catering Company Business Plan

A well-crafted business plan serves as the backbone of your catering company, guiding you through each stage of business development.

When developing an effective catering business plan, be sure to include the following elements:

• Executive Summary : The section provides a snapshot of your business goals and plans, offering a quick overview for potential investors.
• Market Analysis : This part of the business plan offers insights into your target market and competition, helping you position your business effectively.
• Financial Projections : Financial projections include your estimated revenue, costs, and profitability, providing a financial roadmap for your business.
• Marketing Strategy : This business plan section outlines how you plan to attract and retain customers, from advertising to customer engagement.
• Operational Plan : The operational plan details the logistics of your business, from sourcing ingredients to delivery, ensuring smooth operations.

Business Licenses

Securing a business license is a crucial step in legitimizing your catering company. Operating without a license exposes you to a range of legal repercussions, including hefty fines and the potential closure of your business.

Consulting local and state regulations is imperative to ensure you’re operating within the confines of the law. The process of obtaining a business license often involves submitting an application, paying a fee, and sometimes undergoing an inspection.

Not renewing your license is also among the top things that cause small business failure . Therefore, diligently understanding and following the licensing process is not just a legal requirement but a critical factor in establishing and maintaining your business’s credibility and operational status.

Legal Requirements and Permits for Catering Companies

Navigating the legal landscape is a critical aspect of establishing your catering business.

Compliance with laws and regulations will legitimize your business and build trust among clients.

To ensure your catering business remains legally compliant, don’t forget to research requirements such as:

• Business License : Obtaining a business license is mandatory for operating a catering business legally.
• Health Permits : Health inspections and permits are essential for ensuring the safety of the food you serve.
• Liquor License : If you plan to serve alcohol, a liquor license will be required.
• Fire Safety Inspection : A fire safety inspection is necessary for ensuring the safety of your cooking and serving areas.
• Insurance : Liability and property insurance are crucial for protecting your business against potential legal claims.

Startup Costs to Consider as a Catering Business Owner

Launching a catering business involves various financial commitments. However, identifying these costs is

essential for effective budgeting and planning. Each expense plays a role in your venture’s success, from kitchen equipment to permits and marketing.

Commercial Kitchen Equipment

High-quality commercial kitchen equipment is essential. Industrial ovens, refrigerators, and specialized utensils are long-term investments. The quality of your equipment directly impacts the quality of your food.

Catering Permits

Various permits are mandatory for operating a catering business. These range from business licenses to food handler’s permits. Failure to obtain these can result in fines or even business closure.

Catering Business Marketing

Marketing is a vital component for business growth. Costs can include website development, social media advertising, and traditional marketing methods. Effective marketing is crucial for long-term success.

Vehicle and Transportation Costs

Transportation is key for off-site catering services. Costs include the purchase or lease of a vehicle, fuel, and maintenance. These expenses must be factored into your budget.

Staffing Costs

Human resources are another significant expense. Salaries and benefits for chefs, servers, or administrative staff can add up quickly. Budgeting for this is essential for your pricing strategy and profitability.

How to Start a Catering Business from Home

Starting a home-based catering business presents unique challenges and legal considerations.

Laws often specify that food for commercial consumption must be prepared in a certified commercial kitchen. Therefore, your home kitchen may require upgrades and certifications to comply with local health department regulations.

Compliance with local health department regulations is not just a legal necessity but also a crucial factor for the success of home-based catering businesses.

Inspections are frequent, and failure to meet health standards can result in fines or closure. Thus, home-based caterers must pay meticulous attention to hygiene and food safety.

Types of Catering Businesses

The catering industry offers various niches, each with its own set of demands and rewards. From corporate events to weddings, the scope for specialization is vast.

Corporate Events Catering

Corporate event catering often involves large-scale operations. The focus is usually on professionalism and efficiency, as these events are formal and time-sensitive. Menu options often need to cater to a diverse audience.

Wedding Catering

Wedding catering is all about creating a memorable experience. Menus are often elaborate, and presentation is key. The ability to handle the stress of a once-in-a-lifetime event is crucial for success in this niche.

Special Events Catering

Special events catering can range from birthday parties to anniversary celebrations. These events often allow for more creativity in menu and presentation. However, they also require adaptability to meet diverse client needs.

Outdoor Catering

Outdoor catering involves unique logistical challenges. From ensuring food safety in varying weather conditions to setting up mobile kitchens, this niche demands specialized skills and equipment.

Buffet Catering

Buffet catering offers a more casual dining experience. It requires less staffing but more focus on food quantity and variety. Effective planning is essential to avoid waste while ensuring customer satisfaction.

The Steps to Launch Your Catering Business

Establishing a catering business involves a series of well-calculated steps, each playing a pivotal role in the trajectory of your business.

The section aims to guide you through these essential steps to help you launch a successful catering venture.

Finance Your Catering Business

Securing adequate financing is the cornerstone of any successful business venture. A variety of options are available, from bank loans to angel investors. A well-crafted business plan can be instrumental in securing the funds you need.

Find Catering Suppliers

Choosing the right suppliers is crucial for maintaining quality and consistency in your catering services. Whether it’s fresh produce or kitchenware, the quality of your supplies directly impacts your final product. Establishing good relationships with reliable suppliers also can lead to cost savings in the long run.

Market and Brand Your Catering Company

A strong marketing and branding strategy can set you apart in a crowded marketplace. Each effort contributes to building your brand’s identity, from creating a compelling website to engaging in social media marketing. Consistent branding across all platforms can significantly enhance your market presence.

Create a Menu

A well-thought-out menu can be your biggest selling point. It should reflect your culinary skills and cater to your target market’s tastes and preferences. Offering a range of options can make your catering service more appealing to a broader audience.

Train Staff

Well-trained staff can make or break your catering business. Each employee should be trained to meet the highest standards of professionalism and customer service from chefs to servers. Regular training sessions ensure your team stays updated on industry best practices.

Monitor Customer Service and Feedback

Exceptional customer service can turn one-time customers into loyal clients. Prompt response to inquiries and handling complaints professionally can significantly impact your business reputation. Encouraging customer feedback can also provide valuable insights for continuous improvement.

How to Run a Successful Catering Business

Once your catering business is up and running, the focus shifts from launching to sustaining and growing your venture. Fortunately, we’ve compiled valuable tips and best practices designed to help you maintain a successful catering business over the long term.

Quality Control

Maintaining consistent quality is paramount for the success of your catering business. Doing so involves not just the quality of the food but also the service and overall customer experience. Regular quality checks, from ingredient sourcing to food preparation and presentation, can help you uphold high standards.

Customer Service

Exceptional customer service is often what sets a great catering business apart from a good one. Quick response times, flexibility, and attention to detail can significantly enhance customer satisfaction. Training your staff in customer service skills can go a long way in building a loyal client base.

As your business grows, scaling becomes a critical consideration. Growth involves expanding your services, possibly into new markets or niches, without compromising on quality. A well-thought-out scaling strategy can help you manage growth effectively while maintaining profitability.

Time Management

Effective time management is crucial in the fast-paced catering industry. From pre-event preparation to on-site execution, every minute counts. Utilizing project management tools and software can help you keep track of tasks and deadlines, ensuring smooth operations.

Financial Management

Sound financial management is key to sustaining any business. It involves budgeting, tracking expenses, and monitoring cash flow. Regular financial audits can help you identify areas for cost-saving and investment, contributing to long-term profitability.

Expanding Your Catering Services

As your catering business gains traction, you may start considering avenues for expansion.

Whether it’s forming strategic partnerships or diversifying your services, expansion can open up new revenue streams and broaden your customer base.

Collaborations and Partnerships

Collaborations and partnerships can be a powerful way to expand your catering business. For example, partnering with event planners or wedding coordinators can provide a steady stream of clients. Such partnerships can also enhance your brand’s credibility and reach.

Diversified Menu Offerings

Diversifying your menu can attract a broader range of clients. Whether it’s adding vegan options or ethnic cuisines, a varied menu can make your catering service more appealing. This strategy attracts a diverse clientele and keeps your regular customers interested.

Online Catering Services

In the digital age, offering online catering services can significantly broaden your reach. An easy-to-navigate website with an online ordering system can attract clients who prefer the convenience of online booking. It also can streamline your operations and improve efficiency.

Seasonal Catering

Offering seasonal catering services can be a lucrative expansion strategy. From holiday parties to summer picnics, seasonal events provide opportunities to showcase specialized menus. These can attract clients looking for themed or seasonal catering options.

Corporate Meal Plans

Another avenue for expansion is offering corporate meal plans. These are long-term contracts that provide a consistent revenue stream. By offering daily or weekly meal options to corporations, you can secure a steady business flow while also benefiting from bulk orders.

FAQs: How to Start a Catering Business

How profitable is a catering business.

The profitability of a catering business can vary widely based on factors such as location, niche, and operational efficiency.

According to the Bureau of Labor Statistics, the median annual wage for food service managers, which includes catering managers, was $61,310 in 2022.

With a well-executed business plan and effective one page marketing plan , a catering business has the potential for high profitability, especially given the often lower overhead compared to restaurants.

Do you need a catering license in every state?

The requirement for a catering license varies by state and sometimes even by local jurisdictions within a state. However, most states do require some form of business license and additional permits related to food safety and handling.

Failure to obtain the necessary licenses and permits can result in fines or the closure of your business. It’s crucial to consult local and state regulations to ensure compliance.

Is catering a good business idea?

Catering can be a lucrative business opportunity for those passionate about food and service. The industry offers various niches, from corporate events to weddings, allowing for specialization.

With flexible hours, creative freedom, and the potential for high earning, catering can be a rewarding venture for those willing to invest the time and effort required for success.

What do wedding caterers do?

Wedding caterers are responsible for providing food and beverage services at wedding events. Doing so involves not just cooking and serving food but also menu planning, setup, and teardown.

Presentation is often a key focus, as the catering experience contributes to the overall ambiance of the wedding. Wedding caterers may also offer additional services like cake cutting and champagne toasts, making them a crucial part of the event’s success.

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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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How to Start a Catering Business

Tony Sekulich

20 min. read

Updated May 10, 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.

Table of Contents

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

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