You know you can cook. What you don't know is whether you have the chops to start a catering business that gets booked up months in advance.
Going from cook to business owner only takes six steps: choose between a home or commercial kitchen, figure out how much money you need, get licensed, choose your niche, set your prices, and land your first three clients. This can all be done in less than 30 days and for as little as $900.
How to start a catering business: home vs. commercial kitchen
Home-based vs. commercial catering boils down to what you can legally cook and where. Your state's Cottage Food Laws decide if you can start from home. These laws vary wildly—some states let you make $50,000 a year, while others cap you at $15,000.
Cottage Food Laws permit certain low-risk foods from home kitchens. Think baked goods, jams, and certain prepared foods.
If you plan to serve meat, dairy-heavy items, or cater large events, you'll need a commercial kitchen—a licensed facility inspected and approved by your local health department. Commercial kitchens must meet strict health codes and equipment standards that your home kitchen likely doesn't. And while they let you do higher-income catering, they cost 10-25x more to start.
Check the Farm-to-Consumer Legal Defense Fund's cottage food map to see if you qualify for home-based operations in your state, or review commercial kitchen health codes to understand what "commercial" means.
How to decide what's right for you
Start with what you want to serve.
If you're focusing on baked goods, jams, or certain prepared foods that fall under Cottage Food Laws, check your eligibility—you might be able to start from home. If you're planning meat dishes, dairy-heavy plates, or full-service events, you'll need commercial kitchen access from day one.
Want to make more than $50,000 per year? Plan for commercial from the start, even if you begin at home.
How much does it cost to start a catering business? 3 budgets
The cost to start a catering business in 2025 depends on your business model. A home-based cottage food operation can start for under $2,000, covering permits, basic equipment, and insurance. A shared commercial kitchen requires $5,000-$10,000 for kitchen rental, professional equipment, and insurance. A full commercial kitchen setup exceeds $50,000 for space, equipment, and staffing. Your state's cottage food laws determine which path you can take.
Startup costs vary wildly based on the path you chose in the previous section. These are one-time expenses required to start the business legally and operationally—not monthly operating expenses. Location significantly impacts licensing and insurance costs.
Cottage food budget (under $2,000)
- Business registration & permits: $100-$500
- Basic equipment (if not already owned): $300-$800
- Initial food inventory: $200-$400
- Liability insurance: $300-$500/year
- Professional website: $0-$300
- Total: $900-$2,500
Shared kitchen budget ($5,000-$10,000)
- LLC formation: $300-$800
- Shared kitchen membership: $200-$800/month (first 3 months: $600-$2,400)
- Professional equipment: $1,500-$3,000
- Food handler certification: $15-$50
- Business insurance (comprehensive): $800-$1,500/year
- Initial supplies: $500-$1,000
- Professional website & marketing: $300-$500
- Total: $4,015-$9,250
Full commercial kitchen budget ($50,000+)
- Lease deposit & first month: $3,000-$10,000
- Commercial equipment: $20,000-$40,000
- Permits, licenses, health inspections: $1,000-$3,000
- Commercial insurance: $2,000-$5,000/year
- Initial supplies: $2,000-$5,000
- Staff recruitment & training: $3,000-$8,000 (initial hires + onboarding)
- Marketing & website: $1,000-$2,000
- Total: $52,000-$73,000+
A Limited Liability Company (LLC) is a legal structure that protects your personal assets from business liabilities. It costs $100-$800 to form depending on state. Liability insurance covers you from financial loss if someone gets sick from your food or gets injured at your event. Costs range from $300-$5,000/year depending on coverage level.
For current equipment pricing, check commercial equipment suppliers like WebstaurantStore to get 2025 pricing that beats competitors' outdated figures. Review small business insurance requirements from the SBA to see what insurance costs.
The four phases of catering business legalization
Legal requirements feel overwhelming because they cover four separate areas. Do them in this order:
Phase 1: legalize your business entity
Timeline: 1-2 weeks | Cost: $0-$800
Choose your legal structure: Sole Proprietorship or LLC.
A Sole Proprietorship is the simplest business structure where you and the business are legally the same entity—it provides no liability protection but requires no formal registration.
An LLC protects your personal assets if someone gets sick or injured, and costs $100-$800.
Review the SBA's guide to choosing a business structure for deeper insights on whether sole proprietorship or LLC is right for you.
Then, do these 3 things:
- Register your business name with your state.
- Get your free Employer Identification Number (EIN) from the IRS (takes about 10 minutes online)—it's like a Social Security number for your business. You can apply for your free EIN directly through the IRS.
- Open a business bank account (requires EIN).
Phase 2: legalize your kitchen
Timeline: 2-8 weeks | Cost: $100-$1,000+ (depending on path)
If you're going home-based, verify your state's Cottage Food Law eligibility. You may require a home kitchen inspection.
If you're going commercial, get licensed kitchen space through shared kitchen membership or lease, then pass your health department inspection.
Obtain your food service establishment permit from your local health department (they handle food safety inspections and permits).
Phase 3: legalize your food handling
Timeline: 1 week | Cost: $15-$150
Obtain a Food Handler's Permit or ServSafe certification. Most jurisdictions require at least one person in the business to be certified, proving you understand food safety rules.
To get certified, you must do the food safety training (usually 2-4 hours online). This is where you learn important guidelines to follow in your kitchen, like the 4-hour rule for time-temperature control (more on this later).
Find your ServSafe certification program to get the direct path to required certification.
Phase 4: protect your business assets
Timeline: 1-2 weeks | Cost: $300-$5,000/year depending on coverage
- Secure General Liability Insurance (covers injury/property damage at events)
- Product Liability Insurance (covers foodborne illness claims)
- Commercial Auto Insurance if transporting food/equipment
- Workers' Compensation Insurance if you hire staff
Use the SBA's license finder tool to find your local licensing requirements and navigate location-specific regulations.
Specific requirements vary by state, county, and city. Make sure to verify yours locally.
Create your catering business plan and choose your niche
Your catering business plan doesn't need to be 40 pages. It should simply be a working document to clarify your business's direction and focus (or niche).
Essential business plan components
- Target market (who are your ideal clients?)
- Service offerings (what will you serve, tied to your kitchen choice from earlier)
- Pricing framework (detailed in the next section)
- Marketing approach (detailed later)
- Basic financial projections for your first year
You can start with a one-page plan and expand as you grow. The SBA provides free business plan templates if you want more structure.
The four main catering niches
Corporate catering: Office lunches, meetings, corporate events. Steady demand, predictable orders, professional clients.
Social event catering: Birthday parties, family gatherings, holiday events. Varied menus, personal service, emotional stakes.
Wedding catering: High-stakes, premium pricing, requires flawless execution and often commercial kitchen infrastructure.
Specialty/dietary catering: Vegan, gluten-free, ethnic cuisine. Differentiated positioning, dedicated clientele.
Your niche—your specialized focus or target market within catering—helps you stand out and market effectively. A target market is the specific group of customers you'll serve. For example: "busy professionals who need office lunch delivery" vs. "families celebrating milestone events."
If you're still exploring options beyond catering, check out these service business ideas that complement food services. Or maybe nutrition coaching is more intriguing to you than catering?
How to price your catering services
You'll spend about 30-40% of what clients pay you on ingredients. The rest covers your time, kitchen rental, gas, insurance, and equipment. After all that, you'll keep 15-30% for yourself as profit.
In your first year, plan on 10-15% profit while you figure out what works. You'll get better at buying ingredients, waste less food, and learn which menu items make you the most money.
How pricing works: If your ingredients for a meal cost $10, you'll charge the client $20-25. That extra money pays for everything else it takes to run your business.
What to cook: Pick dishes clients actually want that don't cost too much to make. A pasta dish with seasonal vegetables makes you more money than one with expensive imported cheese.
The National Restaurant Association publishes food cost research if you want to see norma, but your numbers matter more than theirs.
Catering business pricing strategies
The biggest mistake new caterers make is underpricing.
Understand your costs before setting prices. Most successful caterers achieve a 20% profit on their business. That means that for every dollar their business earns, they keep $0.20 as profit (after all expenses, taxes, and costs are paid).
Calculate your potential profit like this:
(Food Cost + Labor Cost + Business Costs) × Markup = Your Price
Break down each cost component:
- Food (typically 25-35% of your price)
- Labor (calculated as hourly rates multiplied by hours worked)
- Business costs (monthly costs—including rent, insurance, etc.—divided by the number of events you book)
Your pricing strategy—the way you set prices that cover costs and make you money—depends on choosing the right model for your niche.
3 common catering business pricing models
Model 1: per-person pricing
Best for corporate lunches and social events where you know the number of guests attending. Example: $8 food cost per person × 3.0 markup = $24/person charge. Typical range: $15-$75+ per person.
Skip if: You're doing custom high-end events where guest count fluctuates or menu is variable.
Model 2: cost-plus pricing
Best for custom events, weddings, unique requests. Example: $1,200 total costs + 25% margin = $1,500 event price.
Skip if: You want recurring corporate accounts where clients prefer predictable per-person rates or if you dread more complex sales conversations.
Model 3: tiered package pricing
Best for a simple sales process and recurring corporate clients. Example: Basic $15/person | Standard $25/person | Premium $45/person.
Skip if: Every event is custom or your niche demands personalized menus that don't fit packages.
Catering business equipment and supplies
Your equipment needs depend entirely on your kitchen choice (home vs. commercial) and your niche.
Consider renting equipment for your first few events to see if you like the work before investing. Google for "party rental [your city]" or "catering equipment rental [your city]," or contact other local caterers who could recommend rental sources in your area.
If you know you want to buy, start with essentials only. You can expand as you book larger events.
Home-based (cottage food) equipment
- Professional-grade food storage containers
- Food thermometer (for safety compliance)
- Portable coolers and insulated carriers
- Basic serving ware and linens
- Labels and packaging (as required by cottage food laws)
- Estimated investment: $300-$800
Shared or commercial kitchen equipment
- Professional cookware and utensils (if not provided by kitchen)
- Chafers and serving equipment
- Commercial-grade food transport containers
- Point-of-sale system or mobile payment processor
- Reliable vehicle for transport
- Estimated investment: $1,500-$3,000
Full commercial kitchen equipment (additional items)
- Commercial-grade cooking equipment (ranges, ovens, prep tables)
- Refrigeration and freezer units
- Commercial dishwashing system
- Food prep equipment (mixers, food processors, slicers)
- Estimated investment: $20,000-$40,000+
Catering equipment includes the tools and supplies needed to prepare, transport, and serve food safely at events. Start simple and expand based on demand to prevent overspending. Suppliers are the wholesalers, distributors, and specialty vendors who provide ingredients and materials at bulk/professional pricing.
Establishing supplier relationships saves 20-30% vs. retail costs.
How to find reliable suppliers
Food suppliers: Establish accounts with restaurant supply stores like Restaurant Depot or local wholesalers. Build relationships with local farms for fresh, seasonal ingredients.
Equipment: Check out commercial equipment suppliers like WebstaurantStore and Restaurant Depot (membership required) for new equipment. Local restaurant supply stores often sell both new and used options. Used equipment dealers often provide excellent value for startups.
Disposables and packaging: Use cash-and-carry wholesalers and bulk suppliers for significant cost savings over retail.
Specialty items: Build relationships with specialty importers for unique ingredients that differentiate your offerings.
Supplier evaluation criteria: Compare pricing, minimum orders, delivery schedules, payment terms, and reliability. Start with 2-3 suppliers in each category to ensure you're never dependent on a single source.
Critical food safety rules for catering events
The 4-hour rule for catering is a food safety regulation requiring that perishable food spend no more than 4 hours total in the "danger zone" between 41°F and 135°F.
This includes all time from final cooking or refrigeration through transport and service. After 4 hours at unsafe temperatures, bacteria can multiply to dangerous levels. So, hot food must stay hot (above 135°F), cold food must stay cold (below 41°F) throughout your event (a.k.a., "time-temperature control").
Food safety—the practices for handling, preparing, and storing food to prevent foodborne illness—is your top legal and ethical obligation. You must track time carefully from final prep to service completion. Use separate cutting boards and utensils for raw and cooked foods. Wash hands frequently and wear gloves when handling ready-to-eat food. Keep your food thermometer accessible and check temps regularly. Document temperature logs (required for commercial operations).
Review the latest FDA Food Code for guidelines on time-temperature control and general food safety standards. Further your understanding with ServSafe food handler certification training mentioned in the legalization section.
Step-by-step workflow for catering events
Day-of execution separates experienced caterers from amateurs.
Having a clear step-by-step process in place reduces stress and prevents costly mistakes like underestimating setup time, forgetting backup utensils, or poor vehicle organization.
Your first few events will be learning experiences. Build in extra time.
1. Pre-event prep (1-2 days before)
Finalize guest count with client. Complete as much food prep as possible within food safety guidelines. Pack non-perishable supplies and equipment. Confirm event details, timeline, and setup location.
Time allocation: 3-6 hours depending on event size.
2. Event day: prep & pack (morning)
Complete final food preparation. Pack all food in proper transport containers with temperature control. Load vehicle systematically (last in = first out). Check equipment list twice.
Time allocation: 2-4 hours.
3. Transport
Hot food must stay above 135°F, cold food below 41°F. Total time from cooking to serving cannot exceed 4 hours—this is the "4-hour rule" for time-temperature control. Use insulated carriers, hot boxes, and coolers with ice packs. Plan your route to minimize transport time.
Time allocation: 15 minutes to 2 hours depending on distance.
4. Setup & service
Arrive early (ideally 90-120 minutes before service time for plated events, 60 minutes for buffets). Set up serving stations and arrange food attractively. Perform final temperature checks. Execute service plan (buffet, plated, family-style).
Time allocation: 1-3 hours.
5. Cleanup
Pack up all equipment and supplies. Clean the service area—leave it better than you found it. Dispose of food waste properly. Transport dirty equipment back to kitchen.
Time allocation: 30-90 minutes.
How to get your first 3 catering clients
Getting catering clients when you're completely unknown can feel impossible.
Your first three clients serve different purposes. Each one builds a specific asset for your business.
This phased approach reduces pressure and builds credibility systematically. Execute this plan in your first 30-45 days.
Client 1: the portfolio builder (week 1-2)
Who: A friend, family member, or non-profit organization hosting a small event.
Why: Build your portfolio and gain confidence with low-stakes first execution.
What to charge: At-cost or modest markup ($10-$15/person)—yes, below your normal rates. This is an investment in your business.
How to get them: Reach out directly to 5-10 people in your network: "I'm opening my catering business and need to build my portfolio. Would you let me cater your next [event type] at cost?" Offer a small event (10-30 people) that matches your capabilities. Set clear expectations about photos and testimonials upfront.
What you gain: Professional photos of your food and setup (hire a friend with a good camera or use your smartphone strategically), your first testimonial/review, confidence in your execution workflow, and real-world timing and cost data.
Client 2: the referral partner (week 2-4)
Who: A local event planner, corporate office manager, brewery/venue owner, or real estate agent who regularly needs catering.
Why: Happy customers will hire you again or tell their friends about you. That's how you get more bookings without spending money on ads.
How to get them: Identify 10-15 potential referral partners through Google searches and LinkedIn. Send a direct, value-focused email: "Hi [Name], I'm a new catering professional in [City] specializing in [niche]. I'd love to be your go-to caterer. Can I send you a sample menu?"
Offer an introductory discount on their first referred event. Follow up with a physical food sample if possible.
What you gain: A source of qualified, warm leads, credibility through association ("recommended by [Referral Partner]"), and potential for repeat customers (corporate accounts, regular venue needs).
Client 3: the online searcher (week 3-6)
Who: Someone who finds you through online search or your website.
Why: Proves your marketing and shows your business has independent visibility.
How to get them: Launch your professional website (see next section for tools). Create a Google Business Profile listing (free, critical for local SEO, helps people find you online). Post your portfolio photos and Client 1's testimonial. Share your launch on personal social media with professional photos. Ask Clients 1 and 2 to leave reviews on Google.
What to charge: Full pricing using your models from the profit-first pricing section—this is a real client who found you based on perceived value.
What you gain: Proof that your marketing works, experience with a "normal" client who expects professional service, online reviews that improve your credibility, and confidence to increase your marketing.
After your first 3 clients
With portfolio photos, testimonials, a referral partner, online reviews, and proven execution, you're positioned to grow. Now you can invest in marketing, expand your service offerings, and eventually raise prices.
Start social media accounts for your business. Pick one platform where your ideal clients actually spend time. Wedding clients? Instagram. Local families? Facebook.
Post 2-3 times per week. Show what you're working on, share a popular dish, or explain why you chose certain ingredients. Use Durable's free AI Design Generator (called Studio) to create professional-looking graphics for your posts in seconds.
Post flyers in your city or town. Target places your ideal clients go: local gyms, coffee shops, community centers, breweries, office buildings, real estate offices. Ask permission first.
Your flyer needs five things: what you do, who it's for, why you're good, your contact info, and a photo of your food.
Use Durable's Studio—the free AI Design Generator—to create a professional flyer. This example was created using a very simple prompt: catering business service flyer, professional cooking for events, stylish text with pricing packages, and contact info.
Print 50 flyers at a local print shop (costs about $15-30).
Software for starting a catering business
Modern catering businesses run on three core technologies: website, invoicing/payment, and client management.
1. Professional website
80% of clients research caterers
online before contacting anyone. A professional website, more so than a standalone Facebook page or Instagram profile, signals legitimacy.
Your site should include portfolio photos, services/pricing, testimonials, contact method, and mobile-responsive design (so people can read your site on their phones).
Using Durable's AI website builder, you can create a catering business website in about 30 seconds instead of spending weeks building a traditional website or paying thousands for a designer to build one for you. You don’t need to know how to code or design your own logos.
You'll be able to see an entire website, ready for you to edit, in your Durable dashboard after answering 3 simple questions about your business.
2. Invoicing & payment system
Professional invoices build trust and get you paid faster. You need a paper trail for taxes and multiple payment methods (card, ACH, check). Essential features include professional templates, online payment, automatic reminders, and financial integration.
Durable's built-in invoicing connects directly to your website and client list, creating professional invoices in minutes with online payment.
3. Client relationship management (CRM)
Tracking inquiries, follow-ups, and repeat clients in spreadsheets fails as you grow. You need to remember client preferences, dietary restrictions, and past events. A good CRM includes a contact database with notes, task reminders, and communication integration.
Durable's CRM automatically captures website leads, tracks communications, and reminds you to follow up—building your relationship marketing system.
From home kitchen to fully booked caterer
Starting a small business is not for the faint of heart.
Many aspiring caterers never make it past the "cooking for friends and family events" stage. They're intimidated by upgrading their setup: spending weeks building a website, figuring out invoicing software, and managing individual bookings in spreadsheets. By the time they sort out the tech, their momentum dies.
Instead of spending weeks setting up separate tools for your website, invoicing, and client tracking, consider an integrated AI platform like Durable that handles all three.
Create your professional catering website in 30 seconds with the AI website builder. Send polished invoices with built-in payment processing. Follow up with every potential customer automatically.
You already know how to cook. Don't let scattered business tools slow you down when you could be booking your next event.
Starting a catering business FAQs
Do I need experience to start a catering business?
No formal culinary training is required, but you should be skilled at cooking in volume. Most successful caterers start by catering small events for friends to build confidence. Your food handler certification will teach essential food safety skills.
What's the best business structure—LLC or sole proprietorship?
An LLC protects your personal assets if someone gets sick or injured. While sole proprietorship is simpler, the $100-$800 LLC formation cost is worthwhile insurance. Start as a sole proprietorship for portfolio-building events, then form an LLC before accepting paid clients.
How do I come up with a catering business name?
Choose a name that's memorable, clearly indicates food service, and isn't taken in your state's registry. Check that the matching domain name is available. Consider including your location or specialty.
Can I run a catering business from home?
It depends on your state's cottage food laws. Many states allow home-based catering for low-risk foods with $15,000-$50,000 income caps. High-risk foods like meat usually require commercial kitchens.
What insurance do I need?
At minimum, general liability insurance ($300-$500/year) and product liability insurance. Add commercial auto if transporting food. Budget $1,000-$2,000/year for comprehensive coverage.
How much should I charge for catering?
Start with $15-$25 per person for basic buffets, $25-$45 for upscale service, $45-$75+ for plated events. Always calculate your costs (food + labor + business costs) and add 20-30% for your profit (use the formulas in the pricing section).
What software do I need to run a catering business?
You need a website, invoicing/payment system, and CRM. Consider an integrated platform like Durable rather than multiple subscriptions.