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Catering is a $7 million industry. Business owners can operate in a variety of specialized areas and there is plenty of room for business growth. While starting a catering business is less expensive than opening a restaurant, it shouldn’t be taken lightly. Not only will you need a passion for cooking, you will also need a strong business sense.
Business Needs
Detail-Oriented Personality with Strong Managerial Skills
Local Licensing, Inspections and Insurance – Do not go into the catering industry under the impression you can simply use your existing home kitchen equipment. In many states this is illegal. Contact your Department of Health for local regulations on food preparation, necessary licensing and minimum insurance needs.
Commercial Kitchen Equipment can be rented if the price is out of reach initially. Depending on your catering niche, you may need to decide if you will buy or rent table settings, glassware, linens, etc. If your business brings food to your client, you will likely need to invest in portable food storage.
A separate Business Entity is a must. Food prep can be a risky business. You don’t want your family’s assets and future put at risk in the event of a customer complaint. Consult an attorney and/or tax professional for advice on the recommended business structure for your new catering business.
Marketing Your Catering Business
Get Your Niche. Cooks can cater to a wide variety of customers. You may choose to specialize in weddings, small parties, bag lunches to businesses, professional luncheons, household meal delivery, or another area entirely. Once you choose your niche, your preferred methods of marketing will be a lot easier to nail down. A few avenues to be utilized regardless of your niche:
- Customer Referrals
- Business Referrals
- Social Media
- Local Listings
- Professional Organizations like NACE
Words of Wisdom
Get Some Experience by working with another local caterer or taking a few culinary courses at your local community college.
Start Small with three to seven menu items. This allows you to get accustomed to your new business and streamlines the ordering process for your customers. Sometimes having too many options is not a good thing.
Catering can be an extremely lucrative career. Just don’t underestimate the work involved. You will need to keep up with the physical and mental demands of this busy business.
Do you or someone you know own a catering business? Do you have any advice or personal insight into this career choice?













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