How to Start a Catering Business in 2025: Step by Step Guide

Q: What are the three types of catering?

The main types of catering are: On-site catering, Off-site (drop-off) catering, and Full-service catering.

Publishing Date: June 21, 2025

Key Takeaways: How to Start a Catering Business

- Research local demand to find catering gaps and understand what services are already offered.
- Pick a clear catering niche based on your strengths and market needs to stand out from competitors.
- Create a focused, scalable menu that balances quality, transportability, and profit margins.
- Register your business legally and secure all required licenses, permits, and a compliant kitchen space.
- Promote your business online with a strong brand, website, and local SEO to attract and convert clients.

Catering is a great business for people who have a passion for food, enjoy organizing events, and want the freedom to work on their own terms. Whether you love crafting custom menus or creating memorable experiences for weddings and corporate events, catering gives you the chance to turn your skills into a profitable business.

If you’re wondering how to start a catering business, this guide walks you through every step, from choosing your niche and writing a business plan to handling permits, and marketing. Let’s break it down and get your catering business off the ground.

How to Start a Catering Business

Step 1: Research the Market Before You Launch

As with most businesses, success comes from your ability to understand what people actually want, and where there’s room for you to stand out. Before you spend money on licenses, equipment, or marketing, take time to study the market.

A good way to do this is to start with local research. Look up catering companies in your area and make a list of what they offer, how they price their services, and what types of events they handle. Pay attention to their reviews, what do people consistently praise or complain about? If customers often mention late deliveries or bland menus, that’s a signal you could do things better.

Another good place to look for more information is the U.S. Census Bureau. Their data can help you understand population trends, income levels, and business activity in your area, all of which can shape your catering strategy. For example, if your city has a high number of young professionals, you might focus on corporate lunches or event platters. If you’re in a growing suburban area, wedding and family event catering might make more sense.

You can also check small business reports, industry forecasts, and local chamber of commerce publications. These sources can give you insight into which types of catering services are in demand and which are oversaturated.

This early research helps you avoid guessing. Instead, you’ll base your decisions on real data, so when it’s time to build your menu or set prices, you’re doing it with confidence.

Step 2: Choose Your Catering Niche

Choosing your catering niche is one of the most important decisions you’ll make when starting your business. It defines who you serve, what types of events you focus on, and how you position yourself in a crowded market.

Instead of trying to cater every type of event, focus on the ones that match your strengths and local demand. Are you great at creating elegant multi-course meals for weddings? Do you prefer high-volume, fast-turnaround services like office lunches or school events? Do you want to specialize in a specific cuisine, vegan, barbecue, Mexican, or fusion?

Here are a few catering niches to consider:

- Wedding catering: Formal events with plated meals or buffets
- Corporate catering: Office lunches, conferences, or happy hours
- Event catering: Birthdays, anniversaries, graduations, and private parties
- Meal prep or delivery: Weekly healthy meals for busy families
- Specialty cuisine: Focus on one style of food or dietary need (e.g., vegan, gluten-free, or regional cuisines)

The niche you choose should align with both your passion and market research. Look for opportunities where you can offer better service, higher quality, or a more personal touch than your competitors.

Once you’re clear on your niche, everything else becomes easier. Your menu, pricing, and marketing will all flow from this decision. To narrow down your options, think about where your experience and interests overlap with what people in your area actually need. Ask yourself:

- What type of events do I enjoy being part of?
- What kind of food do I love to cook, and do well?
- What feedback have I gotten from past clients, friends, or colleagues?
- Are there local competitors dominating certain niches, or gaps you could fill?

You don’t need to lock yourself into one category forever, but starting with a focused niche helps you build momentum.

Pro Tip: Remember, people don’t just hire you for food.

It’s about solving a problem, not just serving a meal.

Whether it’s making a wedding stress-free or delivering consistent office lunches, the more specific your niche, the easier it is for customers to choose you.

Step 3: Build a Scalable and Profitable Menu

Depending on your niche and catering style, the way you build your menu will change. For example, if you’re catering weddings, you’ll likely offer plated meals, multiple courses, and tastings. If you focus on corporate events or drop-off services, your menu will need to travel well, be easy to serve, and stay fresh for longer periods.

So to build your menu, start with the type of events you plan to serve and work backward. Think about what your clients expect at those events, what kind of food fits the setting, and how much time and labor you’ll realistically have for prep and service.

Ask yourself:

- Can I prepare this dish consistently at high quality?
- Will it hold up during transport and still taste great?
- Does it require special equipment or extra staff?
- How much does each serving cost me, and what can I charge?

To help you create a menu that’s both practical and profitable, here are a few tips to keep in mind:

- Start small. Focus on 8–12 dishes that reflect your cooking style, fit your niche, and are easy to prepare in batches. A focused menu helps you stay consistent and efficient, especially when you’re just starting out.
- Use ingredients that overlap. Build your menu with items that share common ingredients. For example, if you use grilled vegetables in a wrap, salad, and side dish, you can buy in bulk and cut down on prep time and food waste.
- Design for transport. If you’re offering drop-off or on-site delivery, choose meals that maintain their texture and flavor during travel. Avoid dishes that get soggy or separate easily. Use sturdy containers that keep food at the right temperature.
- Include dietary options. Make sure your menu has at least one or two vegetarian, vegan, or gluten-free options. Even if most of your clients don’t ask for them, having these choices shows that you’re professional and prepared for a variety of needs.
- Test your portions and costs. Don’t guess when it comes to pricing. Weigh your portions, calculate the cost of each ingredient, and factor in prep time, packaging, and labor. Then, set your prices high enough to cover costs and leave room for profit.

Your menu isn’t just about food, it’s about how smoothly your catering operation runs.

Step 4: Develop Your Brand and Business Identity

To build a brand that connects, start by thinking about who you want to serve and what kind of catering you offer.

For example if you’re going after weddings, your brand should feel personal, elegant, and emotional. Think soft colors, beautiful food photos, and messaging that focuses on making someone’s big day stress-free and unforgettable.On the other hand, if you’re catering for offices, your brand needs to feel sharp, reliable, and fast. Clear fonts, a clean layout, and a message like “on time, every time” will go further than fancy script or poetic taglines.

So to start building your brand answer this questions:

- Who am I trying to attract?
- What values or qualities matter most to them?
- How do I want people to feel when they see my business name or website?

Once you’re clear on your audience and what they value, it’s time to turn that insight into a brand people recognize and trust. Here’s how to build your brand step by step:

- Pick a name that’s simple, relevant to your niche, and easy to remember. Make sure the domain name and social media handles are available so you can build a consistent online presence.
- Design a logo that looks great both online and in print—whether it’s on your website, business cards, uniforms, or delivery bags. A clean, readable design will carry your brand further.
- Choose your colors and fonts—and stick to them. Using the same design elements across your marketing materials makes your business feel more polished and professional.
- Define your voice. Will your tone be casual and warm, or formal and refined? The way you write your website copy, menus, emails, and even social posts should all feel like they come from the same person or team.
- Use real photos. Show your actual dishes, events, and happy customers. Stock images can feel generic, your real work is what sells your service.

Your brand should tell people what kind of experience they can expect when they hire you.

Step 5: Write Your Business Plan

Start by writing down your goals. Do you want to book five events a month? Replace your full-time income within a year? Build a team and expand to multiple cities? When you define what success looks like for you, it’s easier to make smart, focused decisions.

For example, let’s say your goal is to replace your current income of $60,000 per year. The average profit margin for a catering business earning under $500,000 is between 7% and 15%. At a 10% margin, you’d need about $600,000 in revenue to reach that income goal.

That might sound like a lot, but when you break it down, it becomes manageable. Ask yourself:

- How many events do I need to book each month?
- What’s my average order size per event?
- Can I raise my prices or book larger events to reach my target faster?

Setting goals based on real numbers helps you decide whether you want to focus on frequent, lower-cost events or fewer, high-ticket clients. It also gives you a realistic view of what kind of pricing, capacity, and marketing efforts you’ll need.

Once your goals are set, look at your startup costs. Think through the basics:

- Equipment and kitchen tools
- Rental space or commissary kitchen fees
- Licenses, permits, and insurance
- Branding, website, and logo design
- First food orders and packaging
- Advertising or promotional materials

From there, describe your offering. What’s your menu? Who are you serving? What types of events are you targeting, and why would someone choose you over another caterer? Be specific. This is also the time to set your pricing strategy and make sure your prices cover your costs and deliver a profit.

Finally, write down how you’ll run day to day. Who will prep the food? Who handles client calls, invoices, and deliveries? Will you use software to manage bookings or track expenses? You don’t need to figure out everything now, but this step helps you see where to start and what you’ll need to run smoothly.

Need Help Writing Your Mission or Vision?

Let our free AI agent draft a clear, professional mission statement for your cleaning business in seconds.

Generate Your Mission Statement

Step 6: Legally Register Your Catering Business

Now that you’ve planned out your catering business, it’s time to make it official. Registering your business gives you legal protection, builds trust with clients, and opens the door to things like insurance, permits, and business banking.

Start by choosing a legal structure. The most common options for small catering businesses are:

- Sole proprietorship – Easy to set up, but your personal assets aren’t protected if something goes wrong
- Limited Liability Company (LLC) – Offers legal protection and is simple to manage for solo owners or small teams
- Corporation – More complex, but may offer tax benefits and stronger liability protection for larger businesses

Most catering businesses go with an LLC because it offers a balance of protection and flexibility, but choose what fits your long-term goals. If you’re unsure, talk to a tax professional or legal advisor.

Next, register your business name with your state. If you’re using a name other than your own, you’ll likely need a DBA (“Doing Business As”) as well.

Then apply for an Employer Identification Number (EIN) from the IRS. It’s free and gives you a business tax ID you can use to open a bank account, file taxes, and hire employees later on.

Finally, check with your city, county, and state to find out which business licenses or permits you need..

Step 7: Choose Your Kitchen Location

Where you prepare your food matters—not just for quality, but for legality and scalability. Choosing the right kitchen setup depends on your budget, local health regulations, and the type of catering services you offer.

If you’re just starting out, you might consider using a commercial kitchen rental. These are fully licensed spaces you can rent by the hour or day. They’re ideal if you don’t want to invest in your own facility and need to meet health department requirements from day one.

Another option is a commissary kitchen, often shared with other food businesses. These spaces come equipped with the tools you need and may include storage and dishwashing stations. They’re a smart choice if you’re offering high-volume or recurring services like corporate lunches or meal prep.

In some states, home-based catering is allowed—but with restrictions. You’ll need to check your local zoning laws and health codes. Even if it’s permitted, your kitchen will likely need to pass an inspection, and certain foods may not be allowed under cottage food laws.

Here are a few things to consider when choosing your kitchen:

- Does the space meet health code requirements for catering?
- Is it affordable based on your budget and event volume?
- Is it located near your delivery area or clients?
- Does it have the equipment and storage you need?

Choosing the right kitchen location it’s one of the most practical decisions you’ll make, and one that sets the tone for how smoothly your day-to-day operations will run.

Pro Tip: When choosing a kitchen location, think beyond just rent

A well-located kitchen saves time, reduces stress, and keeps you compliant.

Look for a space that’s close to your delivery area, easy to work in, and already meets health department standards.

Step 8: Apply for Licenses, and Permits

Before you cater your first event, you need to make sure your business is fully licensed and insured. In the U.S., catering businesses are required to meet health and safety regulations, carry proper documentation, and protect themselves from potential risks.

The specific licenses and permits you need will vary depending on your state and county, but most catering businesses need:

- Business license – This legally allows you to operate your business within your city or county.
- Food service permit – Often issued by the local health department after a kitchen inspection.
- Food handler’s permit – Required for anyone preparing or serving food, including you and your staff.
- Caterer’s permit – Some states or cities require a special license if you’re transporting and serving food off-site.
- Sales tax permit – If your state collects sales tax on food, you’ll need to register for this.

Check with your local health department and small business office to get a full list of requirements in your area. It’s better to double-check now than run into problems later.

Step 9: Purchase Equipment and Supplies

Once your catering business is registered and licensed, it’s time to get the tools that will help you deliver high-quality food and reliable service. The equipment and supplies you choose should match your menu, your kitchen setup, and the scale of events you plan to handle.

Start with the essentials for your business. This includes:

- Commercial-grade cookware and utensils
- Cutting boards, knives, mixing bowls, and food processors
- Refrigerators and freezers (or cold storage access if you’re renting a kitchen)
- Food-safe containers for storage and transport

- Chafing dishes, trays, and insulated food carriers
- Serving utensils, disposable cutlery, and napkins
- Drink dispensers, coffee urns, or coolers
- Uniforms or aprons for staff:

- Sanitizers and disinfectants
- Gloves, hairnets, and cleaning cloths
- Thermometers for food safety checks

Buy what you need to operate efficiently, but avoid overloading yourself with tools you won’t use right away.

Step 10: Hire and Train Your Staff (Optional)

If you’re planning to handle every event on your own, you can skip this step for now. But as your catering business grows, bringing in help can make a big difference, especially when you’re juggling multiple clients, deliveries, and prep work.

If you’re hiring, start small. Bring on one or two part-time staff members who can assist with food prep, serving, or deliveries. Look for people who are reliable, professional, and comfortable working in fast-paced environments.

Before your first event, take time to train your team, not just on the food, but on your standards. Show them how you want things plated, how to talk to guests, and what professionalism looks like at an event. Even if you’re hiring experienced people, they still need to understand your style and expectations.

Depending on your setup, you may need roles like:

- Prep cook or kitchen assistant: Helps with chopping, cooking, or assembling meals
- Server or event staff : Handles setup, food service, and cleanup
- Driver: Manages safe food transport and punctual deliveries

Good staff can help you take on bigger jobs, create better experiences for your clients, and give you room to grow without burning out.

Step 11: Build Your Online Presence and Promote Your Business

If people can’t find you online, they probably won’t hire you. Whether someone is planning a wedding, a corporate lunch, or a backyard party, the first thing they’ll do is search for caterers in their area. That’s why building your online presence is one of the smartest things you can do to grow your catering business.

Start with a simple, professional website. It doesn’t need to be complicated, it just needs to make it easy for people to see what you offer and how to get in touch. Make sure your site includes:

- What types of catering you provide
- Sample menus with pricing or starting rates
- Clear, high-quality photos of your food and events
- A contact form or booking request option
- Details about your service area and availability

Once your website is up, create a Google Business Profile. This free tool helps your business show up when someone searches for terms like “catering near me” or “event catering in [your city].” Add your business hours, location, photos, and a short description of your services.

Social media is another great way to stay visible and connect with your audience. Use Instagram and Facebook to:

- Share photos from recent events
- Post short behind-the-scenes videos from the kitchen or setup
- Repost client testimonials and reviews
- Promote holiday specials, seasonal dishes, or limited-time offers

And always ask happy clients to leave a review. A few positive comments on Google, Yelp, or your social media can go a long way in convincing new customers to reach out.

You don’t have to be active on every platform, just focus on the ones where your ideal clients are already spending time.

Pro Tip: Partner with venues, event planners, and local organizations

It’s a smart way to stay top of mind without spending extra.

These connections often lead to repeat business and word-of-mouth bookings that grow your catering brand faster.

Step 12: Deliver Amazing Service and Scale Over Time

Once you’ve got your first events under your belt, the real key to growing your catering business is simple: do a great job every single time. People remember more than just the food, they remember how smooth everything felt, how easy you were to work with, and how their guests responded.

Start by making sure every event runs as promised. Show up on time, deliver what was ordered, and keep the experience stress-free for your client. Whether you’re serving lunch to 20 office workers or catering a wedding for 150 guests, your professionalism matters just as much as the menu.

After each event, ask for feedback. Reach out to your clients and ask them how everything went. Get their honest thoughts on:

- How the food tasted and looked
- How your team handled setup and service
- How easy it was to work with you from start to finish

This feedback is gold. It shows you where to improve and gives you quotes and reviews you can use to build trust with future clients.

And while you’re following up, don’t forget to ask for referrals. Happy clients are often more than willing to recommend you, but they may not think to do it unless you ask. A simple line like, “If you know anyone planning an event, I’d love an introduction,” can open the door to new business.

You can also offer incentives like a discount on their next order or a free dessert tray if they refer a new client. It’s a low-cost way to turn great service into steady growth.

Common Complications That New Catering Businesses Face

No matter how well you plan, running a catering business comes with challenges. Knowing what to expect can help you avoid costly mistakes and stay calm when things don’t go exactly as planned.

Here are some common complications new catering businesses often run into:

- Underestimating prep time: Cooking for a crowd takes longer than cooking for a family. Give yourself more time than you think you need, especially for your first few events.
- Running out of supplies: Forgetting small items like serving spoons, napkins, or backups of key ingredients can create last-minute stress. Create detailed checklists for each event.
- Last-minute client changes: Guest counts, menus, or event locations can shift quickly. Always confirm the final details 48 hours in advance and build flexibility into your workflow.
- Food transport issues: Dishes that taste great in your kitchen may not travel well. Test your menu items under real delivery conditions and invest in insulated carriers.
- Inconsistent help: Relying on friends or temporary staff without proper training can hurt your service. Build a reliable team and train them on your standards.
- Pricing mistakes: Many new caterers undercharge in the beginning. Track your costs carefully and review your pricing regularly to protect your profit margin.
- Health code surprises: Even if your food is excellent, one missed rule can shut you down. Stay on top of local regulations and renew all required permits on time.

These issues don’t mean you’re doing anything wrong, they’re just part of the learning curve. The key is to plan ahead, stay flexible, and treat every event as a chance to improve.

Want a free real estate business checklist?

Subscribe to get tools, templates, and tips delivered straight to your inbox.

Final Thoughts on How to Start a Catering Business

Starting a catering business is more than just cooking great food, it’s about creating a smooth, professional experience that people can count on. From choosing your niche and building a profitable menu to setting up your kitchen and marketing your services, every step you take lays the groundwork for long-term success.

Yes, there will be challenges. You’ll make adjustments, learn from feedback, and fine-tune your systems as you go. But if you stay focused on quality, consistency, and taking care of your clients, your business will grow naturally, event by event.

Whether you’re starting small or aiming for a full-time operation, the most important thing is to get started. Take action, stay organized, and don’t be afraid to learn along the way. Your first clients are out there, and they’re hungry for exactly what you have to offer.

Frequently Asked Questions About Starting a Catering Business

How much do caterers make per event?

The amount a caterer makes per event depends on the size of the event, the services included, and the pricing structure. Most catering events serve anywhere from 50 to 250 guests, with pricing based on a per-person rate or a flat package.

Caterers typically earn between $8.72 and $25 per hour, but the overall event revenue is often calculated by multiplying the number of guests by the per-head rate. For example:

- A corporate lunch for 75 people at $25 per person = $1,875
- A wedding for 150 guests at $65 per person = $9,750

While not all of that is profit (you still have to cover food, labor, and equipment costs), many caterers aim for a 10–15% profit margin after expenses. The more efficient your operations and pricing, the more you can earn per event.

How much profit does a catering business make?

The average profit margin for a catering business making under $500,000 in annual revenue is typically between 7% and 15%. Profit depends on your pricing, food costs, labor, and how efficiently you manage operations. High-end, specialized catering services tend to have higher margins.

How much does it cost to start a catering business?

Startup costs vary widely, but most small catering businesses in the U.S. can expect to invest $10,000 to $50,000 depending on:

- Kitchen rental or equipment purchases
- Licensing and permits
- Website and branding
- Initial food inventory and packaging
- Marketing and insurance

Starting from home (if allowed) can reduce costs, while commercial kitchen rentals or mobile catering setups will increase your investment.

What are the three types of catering?

The main types of catering are:

- On-site catering – Food is prepared and served at the event location
- Off-site (drop-off) catering – Food is prepared elsewhere and delivered ready to eat
- Full-service catering – Includes food, setup, service, and cleanup—ideal for weddings and formal events

What licenses do I need to start a catering business?

To legally operate a catering business in the U.S., you’ll likely need the following:

- Business License – Allows you to legally run your business within your city or county
- Food Service Permit – Required to ensure your kitchen meets local health standards
- Food Handler’s Permit – Certifies that you (and your staff) know how to handle food safely
- Catering Permit – Some local governments require an additional permit specific to catering
- Home Occupation Permit – Needed if you plan to run your catering business from home
- Liquor License – Required if you serve or provide alcohol at events
- Employer Identification Number (EIN) – Needed if you plan to hire employees or open a business bank account
- Sales Tax Permit – Required to charge and collect sales tax in most states
- Catering Business Insurance – While not a license, general liability insurance is essential to protect your business from lawsuits or unexpected losses

Edgardo Ocampo

Edgardo is a digital marketing strategist with over 15 years of experience in SEO, paid advertising, and content writing. He helps entrepreneurs grow service-based businesses through smart, practical marketing strategies that get results.