How to start a catering business: 9 steps from first event to full calendar

Catering is one of the food industry's most accessible entry points — you don't need a restaurant lease or massive startup capital. But it does require navigating licensing, finding commissary space, and building a client base. Here are the 9 steps to build a real catering business.

Step 1: Know which type of catering you're building

• Corporate catering — recurring lunch and meeting service for offices. Steady, predictable, less glamorous.
• Event catering — weddings, parties, galas. Higher per-event revenue, seasonal, relationship-driven.
• Specialty catering — barbecue, ethnic cuisine, vegan/allergen-free, themed menus. Differentiates you in a crowded market.
• Drop-off catering — lowest overhead (no servers), fastest to scale. Food delivered, no service staff needed.

Step 2: Get all the permits — in the right order

1. Business registration (LLC + EIN)
2. Food handler certification for yourself and all staff
3. County health department permit (requires inspection)
4. Commissary kitchen agreement (health departments require this in most states)
5. Catering or mobile food service permit
6. ServSafe certification (strongly recommended, required by many commercial contracts)

Step 3: Secure your commissary kitchen

Most states require commercial caterers to prep food in a licensed commercial kitchen. Options:

• Rent by the hour at a shared commissary kitchen ($15–$35/hour)
• Partner with a restaurant that allows off-hours use
• Join a culinary incubator (often include commissary access)
• Eventually build or own your own licensed kitchen

Step 4: Build your signature menu

The most successful catering menus have 3 things in common:

1. A clear cuisine identity (Italian, Southern BBQ, farm-to-table, Latin) rather than trying to be everything
2. High-margin anchor items (proteins with lower cost ingredients dominating the plate)
3. Scalable preparation (dishes that can be made in large quantities without quality decline)

Step 5: Get insured before your first event

Events require a COI. Your first client may ask for it before signing a contract. Have it ready.

Step 6: Price correctly from day one

The 4-part catering pricing formula:

1. Food cost — target 28–35% of total price
2. Labor — prep time, service staff, cleanup at your hourly rate
3. Overhead — equipment rental, commissary fees, fuel, supplies, insurance
4. Profit margin — 20–30% on top of all costs

Always set a minimum event fee. Catering a small gathering of 15 people should never cost you more than it pays.

Step 7: Get your first clients — 6 channels that work

1. Personal network — cater a friend's party or family event for cost + a review and photos
2. GigSalad and The Bash — event professional directories with high-intent buyers
3. Event planners and venues — build referral relationships. A planner who loves your food sends you 10–20 events/year
4. Corporate outreach — call office managers at companies near your commissary. Offer a free lunch sample for a group of 5
5. Instagram — food photography performs extremely well. Show your setups and plating
6. Google Business Profile — free, shows up in "catering near me" searches

Step 8: Systematize food safety and documentation

Food safety documentation protects you legally and operationally:

• Temperature logs for all food transport (document hold temperatures)
• Allergen ingredient list for every dish you serve
• Incident reports for any complaint within 24 hours of an event
• Signed catering contracts with clear scope, payment terms, and liability language

Step 9: Build recurring corporate clients for predictable revenue

A corporate client who orders weekly lunch service for 30 employees at $25/person generates $3,000–$3,500/week in recurring revenue. One corporate contract can fund the rest of your calendar. Target this market as soon as you have the licensing and capacity to serve it reliably.

Disclaimer: This guide is for informational purposes only and is not legal, tax, or insurance advice. Coverage availability and pricing vary by state and applicant. Always verify requirements with your state licensing board and confirm policy terms directly with your carrier before relying on this information.