How To Start A Catering Business

Catering Business Background Info:

As a caterer your day may start very early preparing meals and organizing equipment and vans to drive to party locations.

These parties may be weddings, bar mitzvahs, birthdays, retirements and so on. After cooking the meals, you will have to transport it and your staff to the location and begin your set up.

After set up is complete, you must serve the food set to the timing of the event. Finally, everything must be cleaned up and packed up before you leave the party.

Catering Business Considerations:

There are several things to consider as you start a catering business. First, decide if you want to start out of your home or something larger. There are obvious benefits to starting at home such as no rent and low overhead. However, there are some down sides like little space and government restrictions.
Also, consider the type of catering you want to perform. Some caterers specialize only in weddings. Others may only do vegan cooking. Some caterers may also run a restaurant in conjunction with their catering. There are even catering franchises such as City Caterers® and Café Ala Carte®

Tasks, Skills, and Issues, Needed:

Business Specific Tasks:

Marketing, advertising, networking, sales

Employee management

Scheduling

Staying current with business matters such as licenses, insurance, and permits

Website maintenance and marketing

Money management

Accounting

Invoicing

Industry Specific Tasks:

Staying informed on changing health and work regulations
This task is Performed Monthly/Yearly

Order food ingredients
This task is performed weekly/monthly

Order supplies and equipment
This task is performed weekly/monthly

Coordinate with event planner/customer
This task is performed as needed

Plan Menus
This task is performed as needed

Prepare and cook meals
This task is performed as needed

Pack Equipment
This task is performed as needed

Set up at party location
This task is performed as needed

Serve Meals
This task is performed as needed

Clean and Pack Up
This task is performed as needed

Approximate Daily Hours Needed:

General Hours of Operation:

Catering companies may be open for inquiries from 9 am to 5 pm. However, actual events may occur during morning, afternoon, and evening hours.

Hours Needed to Prepare

It may take a full day, week or month, to prepare for a full-course event. Some catering events may consist of primarily finger foods that may only take a few hours to prepare and set up.

Employee Required:

During the start up phase, talented caterers can run this business single-handedly. Once Your Business is up and running successfully, you may need to hire the following:

Cooks

Servers

Inventory Mangers

Accountants

Receptionist

Delivery People

Catering Licenses:

In addition, to a Business License, you will need a food handler's permit for both you and your employees. If you plan to serve alcoholic beverages, you will also need a liquor license.

Approximate Start up Cost:

If you start out of your home, you may be able to start this business for around $2,000 USD. However, Entrepreneur Magazine estimates that startup costs for a catering business can range between $10,000 USD to $50,000 USD

Necessary Equipment:

a couple having lunch

Necessary Start-Up Equipment:

Kitchen equipment and utensils

Serving equipment, dishes and silverware

Mixers, juicers, food blenders

Skillets, pots, pans

Silverware/Cutlery

Tables and linens

Condiment trays with salt, pepper, sugar, cream, etc.

Cell phone

Computer

Means of Transportation

Supplementary Equipment: - Equipment that you can acquire once your business is off and running:

Answering machine/service

Refrigeration unit(s)

Specialty equipment such as Panini grills and chocolate fountains

Van or Box Truck

Monthly Expenses To Consider:

Ingredient supplies
Disposable Equipment supplies (Sterno cans, possibly plastic ware)
Cell phone service
Answering service
Fuel
Vehicle and business insurance
Advertising
Wages
Rent
Utilities
Possible health lab testing

Special Requirements:

Regular checks will be conducted by health officials
Food temperature monitoring at all times
Conformance to all applicable food service laws
A background in the culinary arts
Passion for cooking
Party-planning
Dining etiquette
Decorating
Time management
People Skills

Pros And Cons:

The Pros of Owning a Catering Business:

There is an opportunity for high revenue

You are an important part of major celebrations

Freedom of being your own boss

Wide variety of creativity in menu planning

The Cons of Owning a Catering Business:

You may encounter considerable competition

Working long hours, including holidays

Dealing people under sometimes stressful conditions (weddings)

Staying current with all food service rules and regulations

Type of Customers You Need to Attract:

The types of customers vary greatly. Caterers serve weddings, fundraiser, parties, religious ceremonies like Christmas and bar mitzvahs and many other events. Smaller caterers may serve breakfast or lunches at offices.

Statistics:

According to Inc.com, the catering industry is a $7 billion USD business annually.
A survey, done by the National Association of Catering Executives (NACE), reports that in 2010 44% of their members noticed an increase in business party clients.

For more statistical information, please refer to Valuation Resources and First Research.

Catering Revenue:

The amount of money you can make is dependent on your clientele, location and their food-catering needs. Another important aspect is advertising. According to an Inc.com article, Frederick De Pue owner of 42° Catering said that after being in business for two years he had his website redone. After the website re-launched his "business exploded".

Catering Resources:

Industry-Specific Websites:

Food Catering Business

Courses:

Education Portal

Expert Rating Catering Course

Equipment:

A Kitchen

Supplies:

Gala Source

Food Service Warehouse

Forums:

Chef Talk

Associations:

The Sustainable Catering Association

National Association of Catering Executives

Other:

How To Start a Home Catering Business (book)

Starting Catering (kit)

Business Plan For A Catering Business

Related Businesses:

Teaching gourmet cooking
Write recipe books
Meal planning and menu consulting