14 Tips for Starting a Catering Business

In an era where memorable experiences hold unparalleled value, the catering industry is witnessing a significant surge in demand. From elegant cocktail receptions at upscale event venues to crucial corporate functions in bustling office spaces, contemporary gatherings are increasingly centered around exceptional culinary offerings. The emphasis on innovative and delightful dishes has never been more pronounced.

If you find yourself pondering the intricacies of how to start a catering business from home, this is an opportune moment to delve into brainstorming creative concepts and dedicating yourself to acquiring the necessary knowledge and skills. The potential for growth and success in this dynamic field is substantial, making it a worthwhile venture for aspiring entrepreneurs with a passion for food and hospitality.

How to Start a Catering Company

Toast defines catering as a niche food industry sector that provides food and beverages in large quantities for large-scale events, but there are more and more opportunities for smaller-scale catering. For example, couples hosting their weddings at an event venue will need to hire a caterer to prepare plated meals that will be presented to all guests in attendance at the reception.

By its very nature, the catering industry appeals to self-starting entrepreneurs. It lends itself to creativity, freedom, and versatility, giving those with hospitality experience the ability to create their own ideas and launch their own business.

Catering Business from Home

One of the most appealing facets of the catering industry is that entrepreneurs can often work remotely and launch their own business from home. Learning how to start a catering business from home can give you the ability to achieve a sense of work-life balance while still creating a business you can build upon and grow in the coming years. While you will likely need to attend events in person, which can require long hours during non-traditional times, you will likely be able to complete all of your administrative tasks from the comfort of home.

14 Tips for Starting a Catering Business

The possibility of starting your own business is exciting, but it can also be daunting. Knowing how to start a catering business can give you the confidence you need to fulfill your dreams. Many entrepreneurs with hospitality insight and business expertise find that catering is one of the best options available for their endeavors. Through catering, you can showcase your creativity while inventing intriguing and delicious dishes. The ability to share those edible creations with everyone in attendance at an event is particularly rewarding, especially when you get to see their reactions to the meals presented before them.

The following tips will help you learn how to start a catering company:

1. Discover Your Food Niche

Before you begin investing in equipment and developing a menu, you will want to discover your food niche. The catering industry can be a saturated market, so you will need to focus on a niche area that stands out from the competition in the local area. For instance, if you live in an area where most caterers offer standard options like mostaccioli, fried chicken, garden salad, and breadsticks, then you can get creative with cuisines from around the world and develop something truly different.

Some of the top catering trends right now include:

• Sustainable menus that focus on plant-based ingredients and vegan menu items.
• Fusion cuisines that blend together flavors and recipes from around the world.
• Food trucks that offer unique and innovative on-the-go dishes.

2. Researching Customers and Competition in the Market

Once you have identified a few niche areas that interest you most, you will want to begin to do market research to better understand the customers most likely to need your catering services. You will want to identify the following during your market research:

• Demand for your food products and catering services.
• The number of people in your market who may be interested in your services.
• The area where you plan to work and provide catering services.
• The level of market saturation of other catering services, particularly those that provide similar food options.
• The pricing that your target audience would most likely be comfortable with.

3. Learn about the Required Licensing and Permits

As you begin to formulate your business plan, you will want to know which licensing and permit requirements are in place for catering businesses in your area. In addition to following the regulatory guidelines in place for hospitality businesses, you may also have to adhere to licensing and permit requirements from your local municipality. You will want to acquire all licenses and permits before you launch your catering business.

4. Prepare a Business and Marketing Plan

Your business and marketing plan will serve as the foundation for your business. You should create a plan that identifies your customers, examines the vendors and suppliers you will need to partner with to start your business, and outlines the supplies you will need to get started.

5. Raise Funds and Investments

With a business plan in place, you can begin working with investors to raise the capital required to start your catering business. The number of investors and amount of funding you need will vary based on the size and scope of your business, so it is important to have a strong business plan in place first to plan accordingly.

One of the benefits of a catering business is it can be easier to scale over time than other food & dining businesses, making the funds to invest in your business through your own business. This means you can start with smaller events by working from home with existing equipment & resources until you are financially prepared for the next step.

6. Create Your Menu and Other Offerings

Once you have the funding required to start your catering business, the fun part begins. It’s time to create your menu and decide which offerings will be available to your customers. You can create an effective and appealing catering menu by:

• Designing menu items that can easily be created for large crowds. Consistent and timely presentation is essential in catering.
• Choosing menu items that travel well, especially if you are starting a catering business from home.
• Creating menu items that can be customized to suit the unique needs of the individual client.

7. Plan Your Location

In addition to designing your menu, you will also want to choose the location for your catering company. If you plan to operate out of a brick-and-mortar location, you will want to select an affordable facility in a central location with plenty of storage. If you are planning to start your catering business from home, you will have to determine where you are willing to travel to provide catering services.

8. Purchase or Rent Necessary Equipment

To successfully launch your catering business, you will need high-quality, reliable equipment available to cook, prepare, transport, and store food. These are some of the equipment items that you may need to purchase or rent:

• Cooking equipment, such as ranges and holding cabinets.
• Serving supplies, such as trays, stands, utensils, and food pans.
• Display items like serving platters, presentation stands, and cake trays

9. Develop a Business and Distribution Structure

Your distribution plan is an extension of your business plan, allowing you to determine how, when, and where you will offer your catering services. You need to ensure you have access to the resources needed to transport and distribute your catering menu items.

10. Decide on a Business Name and Entity Type

With your menu design and your equipment ready to be used, it’s time to decide on a business name. Your business name will play a central role in the branding process, so it’s important to select a name that offers insight into who you are and what you want your business to become. This is your chance to get creative and showcase what your catering business is all about.

11. Determine Your Pricing Plan

It is essential to determine a pricing plan that will allow you to cover the costs of your catering services without outpricing your customers. Caterers often create a tiered pricing structure that allows customers to choose from a selection of menu items based on their budget and their needs for the event. For example, you may offer a lower price point for an appetizer-only menu but a higher pricing tier for plated meals with meat, vegetables, and starches.

12. Insure Your Business

Insuring your business is a vital step, as it protects you and your customers. The proper insurance will protect you from litigation in the future and ensure that you can create a financially stable business.

13. Start to Hire and Train Staff

With everything in place, it’s time to hire and train qualified and reliable staff members. By attracting a passionate and devoted team to serving your clients, you will be able to create a strong catering business that will stand the test of time. With a new catering business, it’s best to start out small and begin hiring staff members one at a time as you need them. As your business grows, so will your staff.

14. Market and Spread the Word of Your Business

When you are ready to begin serving up fresh and flavorful meals to your clients, it’s time to spread the word about your business. You should create a dynamic marketing strategy leveraging traditional marketing materials while utilizing social media and other digital marketing channels.

Start Your Journey as a Food Entrepreneur Today

As you continue learning more about how to start a catering business, investing in your education and developing the skills required to create a lasting and successful business plan is important. At Bryant & Stratton College, we offer an on-campus and online Associate of Applied Science in Hospitality Management degree as well as an on-campus and online Associate of Applied Science in Business degree. Both programs are designed to equip you with the practical knowledge and skills required to launch an entrepreneurial endeavor like your own catering business.

Request more information about our career-driven degree programs today.