How to Start a Catering Business: Your Complete Startup Guide

Catering sits at the intersection of cooking skill and event logistics—you’re running a food business without a fixed dining room, serving clients who expect flawless execution on the most important days of their lives. It’s a different animal than restaurant work, and the learning curve is steep.

This guide walks you through the practical steps to launch a catering company, from choosing your niche and securing permits to hiring your first staff and landing clients.

What is a catering business?

A catering business prepares and serves food for events—weddings, corporate meetings, private parties—rather than running a daily restaurant service. You’re cooking for a specific guest count on a specific date, often at a venue you’ve never worked in before. The work is contract-based, which means you know exactly how many people you’re feeding weeks or months ahead of time.

That predictability changes everything about how you plan, prep, and hire. Restaurants serve whoever walks through the door. Caterers work from signed agreements with clear headcounts and menus locked in advance.

Most catering falls into a few categories:

• Wedding catering: Full-service food and beverage for ceremonies and receptions
• Corporate catering: Meetings, conferences, and office events
• Social event catering: Birthdays, anniversaries, and private parties
• Drop-off catering: Prepared food delivered without on-site service

How much does it cost to start a catering business

Startup costs depend entirely on your model. A home-based drop-off caterer can launch for a few thousand dollars. A full-service operation with a commercial kitchen runs into the tens of thousands.

Kitchen and equipment costs

Your biggest decision is where you’ll cook. Home kitchens work in some states under cottage food laws, but many jurisdictions require a licensed commercial space. Renting time in a shared kitchen typically runs a few hundred dollars monthly, while leasing your own space costs significantly more.

Equipment adds up: cooking gear, food storage, transport containers, chafing dishes, serving platters. Many caterers start by renting what they don’t own.

Licensing and permit fees

Every jurisdiction has different requirements. Common permits include a business license, food handler certification, and a health department permit. Fees range from under $100 to several hundred dollars, depending on your location. Check with your city, county, and state health department before spending money on anything else.

Insurance and legal costs

Liability insurance isn’t optional—most venues won’t let you work without it. General liability and product liability coverage protect you if someone gets sick or injured at an event.

Marketing and branding budget

You can start lean here. A basic website, logo, business cards, and some food photography cover the essentials. Many caterers handle marketing themselves initially and invest more as revenue grows.

Initial inventory and supplies

Your first events require food costs, disposable or reusable serving ware, and possibly linens or decor items. Budget for at least a few events’ worth of supplies before you see any revenue.

How to start a catering business in 10 steps

1. Research your local catering market

Before you commit, understand who’s already serving your area. Check competitor websites, read reviews, and attend local events to see what’s working. Look for gaps—maybe corporate lunch catering is saturated, but weekend wedding caterers are scarce.

Talk to event planners and venue managers. They know which caterers are booked solid and which niches are underserved.

2. Choose your catering niche

Specializing helps you stand out and simplifies your operations. A caterer known for authentic BBQ builds a different reputation than one offering vegan fine dining. Your niche often comes from your strengths—what do you cook better than anyone else?

Consider specializing in:

• Cuisine type (BBQ, Mediterranean, vegan, Southern comfort)
• Event type (weddings only, corporate lunch specialist)
• Dietary focus (gluten-free, kosher, allergen-friendly)
• Price point (budget-friendly vs. high-end)

3. Decide between on-site and off-site catering

On-site catering means cooking at the event venue. Off-site means preparing food in your kitchen and transporting it. Each model has tradeoffs.

Factor	On-site catering	Off-site catering
Equipment needed	More extensive (portable cooking gear)	Basic transport and holding equipment
Flexibility	Cook to order, adjust portions	Prep in a controlled environment
Venue requirements	Kitchen access or power source	Less dependent on venue facilities
Staffing	Usually more staff on-site	Can work with a smaller event team

Many caterers start with off-site and add on-site capabilities as they grow.

4. Write your catering business plan

A business plan forces you to think through the details before you’re in the middle of a 200-person wedding. It’s also essential if you’re seeking funding.

Cover the following sections:

• Executive summary: Your concept in one paragraph
• Market analysis: Who you’re competing with and serving
• Menu and services: What you’ll offer and at what price points
• Operations plan: How you’ll prepare, transport, and serve food
• Financial projections: Startup costs and revenue goals

We also break down everything you need to know about restaurant business plans in our video below:

5. Choose a business structure

Most caterers operate as sole proprietorships or LLCs. An LLC (limited liability company) provides liability protection—if something goes wrong, your personal assets are typically protected. Consult an accountant or attorney to determine what’s right for your situation.

6. Get your licenses and permits

Requirements vary significantly by location. Common permits include:

• Business license from your city or county
• Food handler’s permit or food safety certification
• Health department permit for food preparation
• Catering-specific license (required in some states)
• Liquor license (if serving alcohol)

Check with your state and local health department for specific rules before you start.

7. Secure a commercial kitchen

If you can’t cook from home legally, you’ll need commercial kitchen access. A kitchen incubator is a shared commercial space that is rented by the hour, often with equipment included. Some restaurants also rent their kitchens during off-hours.

Shared kitchens offer networking opportunities with other food business owners, which can lead to referrals and partnerships.

8. Purchase equipment and find suppliers

Start with essentials and rent what you don’t own yet.

• Cooking: Portable burners, chafing dishes, sheet pans
• Transport: Insulated carriers, food transport boxes, coolers
• Serving: Platters, utensils, linens (or rental sources)
• Storage: Food-safe containers, labeling supplies

Build relationships with reliable food suppliers. Consistent quality and dependable delivery matter more than the lowest price.

9. Design and price your catering menu

Your menu determines your profitability. Design dishes that travel well, hold temperature, and scale efficiently. A beautiful plate that falls apart in transport won’t build your reputation.

Price to cover food costs, labor, transport, equipment, and overhead—plus profit. Many caterers offer packages (per-person pricing) alongside à la carte options.

10. Get business insurance

Insurance protects your business and opens doors. Many venues require proof of coverage before they’ll let you work there.

• General liability: Covers accidents at events
• Product liability: Covers foodborne illness claims
• Commercial auto: If using vehicles for transport
• Workers’ compensation: Required if you have employees

How to start a catering business from home

Home-based catering can work, but regulations are strict in most places.

Home-based catering requirements

Most states require home kitchens to meet specific standards for commercial food production. Some allow home catering under cottage food laws; others require a separate licensed kitchen space even if it’s on your property.

Cottage food laws by state

Cottage food laws allow small-scale food production from home kitchens with restrictions. The laws vary widely—and catering typically isn’t covered. Restrictions often include limits on annual revenue, types of food allowed, and where you can sell. Check your state’s department of agriculture or health website for current rules.

When to move to a commercial kitchen

Signs you’ve outgrown home catering include hitting revenue limits, clients requesting proof of commercial kitchen prep, and venues requiring it for insurance purposes.

How to start a catering business with limited capital

You don’t need deep pockets to start. Many successful caterers bootstrapped their way up.

Use a shared commercial kitchen or incubator

Kitchen incubators dramatically reduce overhead. You get access to professional equipment without the capital investment. Many also offer business support and networking.

Apply for small business loans or grants

SBA loans, local small business grants, and restaurant-specific funding programs exist for food entrepreneurs. A solid business plan is typically required for any funding application.

Start with drop-off catering services

Drop-off catering requires less equipment, fewer staff, and lower startup costs than full-service operations. You prepare food, deliver it, and leave. It’s a lower-margin model but an easier entry point.

Rent equipment instead of buying

Renting serving equipment, linens, and even cooking gear keeps startup costs down. Build purchases into your growth plan as revenue allows.

How to hire and schedule your catering team

Staffing a catering business differs from staffing a restaurant. Your labor fluctuates based on your event calendar, not daily foot traffic.

When to hire your first employee

Signs you’re ready: turning down events because you can’t handle the volume, quality suffering because you’re stretched thin, or burning out from doing everything yourself.

Finding reliable part-time catering staff

Build a roster of reliable people you can call on. Good sources include culinary schools, hospitality programs, staffing agencies, and referrals from other caterers. Many catering staff work multiple gigs, so reliability matters more than exclusivity.

Managing schedules for event-based work

Catering schedules are irregular and event-driven—not weekly shifts. You might have three events one weekend and nothing the next. Communicating schedules, confirming availability, and avoiding last-minute scrambles become a constant challenge.

The manual approach—group texts, spreadsheets, phone calls—works until it doesn’t. Scheduling tools like 7shifts help catering businesses manage irregular event schedules and communicate with on-call staff through a single app.

How to market your catering company

Most catering business comes through referrals and relationships, not advertising.

Build a portfolio and online presence

Food photography matters. Invest in quality images of your dishes and event setups. Create a Google Business Profile, claim your Yelp listing, and build a simple website with your menu and contact information.

Network with event planners and venues

Event planners and venue managers are your best referral sources. Introduce yourself, offer tastings, and make it easy for them to recommend you. One strong relationship with a busy wedding planner can fill your calendar.

Use social media to showcase your food

Instagram and Facebook work well for caterers. Post behind-the-scenes prep, finished dishes, and event setups. Consistency matters more than perfection—show up regularly.

Common mistakes new caterers make

• Underpricing services: Not accounting for labor, transport, and setup time
• Taking on events too large for your capacity: Saying yes before you have the staff and equipment to deliver
• Ignoring food safety protocols: Cutting corners on temperature control and handling
• Skipping contracts: Working without written agreements on scope, payment terms, and cancellation policies
• Underestimating prep time: Not building in enough time for shopping, prep, transport, and setup

Turn your catering business into a thriving operation

Starting a catering business takes planning, persistence, and a willingness to learn as you go. The caterers who succeed focus on a niche, build reliable systems, and treat their team well. As your operation grows, managing staff becomes increasingly complex—event-based scheduling, last-minute changes, and coordinating part-time workers can eat up hours every week.

Ready to simplify scheduling for your catering team? Start a free trial of 7shifts and see how easy it is to manage event-based staff.

FAQs about starting a catering business

Is owning a catering business profitable?

Catering can be profitable, but margins depend on your pricing, food costs, and how efficiently you manage labor and overhead. Many successful caterers focus on a specific niche to maximize profitability.

Do I need culinary training to become a caterer?

Formal culinary training isn’t required, but you do need strong cooking skills, food safety knowledge (often a required certification), and the ability to prepare large quantities consistently.

What are the four types of catering services?

There are many different types of catering. Four common types include off-premise or delivery catering (preparing food elsewhere and transporting it), corporate catering (business events and meetings), concession catering (venues like stadiums, festivals, and fairs), as well as social catering (weddings, parties, and private events).

How long does it typically take to launch a catering business?

Most new caterers spend several months on planning, licensing, and setup before taking their first paying event. The timeline depends on your local permit requirements and whether you need to secure kitchen space.

Can I run a catering business as a side hustle?

Many caterers start part-time while keeping other income, which works well for weekend events like weddings or occasional corporate gigs. Just make sure you can meet licensing requirements and client expectations even with limited availability.