Catering Business Start-Up



There has never been a better time to invest in a catering business start-up. According to the National Restaurant Association, social caterers are one of the fastest growing segments of the food industry.

Catering is a highly competitive field in most areas of the country. However, if you understand your market and provide clients with the types of food and service they desire, you can develop a loyal customer base.

A catering business start-up requires both money and time. The first thing you’ll want to check into is determining what types of credentials are required by your state, city, and county. At minimum you will need to obtain certification in food handling and safety. This is typically provided through the Board of Health. You’ll also need to obtain state and local licenses in order to sell food to the public.

Another aspect of catering business start-up is to develop a business and marketing plan. You’ll want to locate the demographics in the area to determine if there is a need for your catering services. As you develop your plan, make a list of what type of catering services you will offer. Depending on the area, you may have many options.

For instance, if you live in states where auto racing is popular, you might want to consider breaking into a catering business that caters to racing sponsors. Typically you cannot perform catering for large corporations such as Nascar, Formula One or Indy car racing due to their internal rules and regulations. However, there are all types of racing events that do allow vendors. If you offer a unique service and a fair price, chances are good you could make an excellent catering career in this field.

If there are no motorsports groups in your area, make a list of all the businesses that could use your catering services. Many organizations host company parties and picnics throughout the year. Think about all of the reasons large groups of people gather and find a way to cater to their needs.

Unless you are funding the business yourself or with the help of friends and family, you will want a professionally prepared business plan to provide to banks and potential investors. Catering business start-up costs can range between $2500 to $100,000 or more.

Perhaps the most important aspect of a catering business start-up is the location where you will be preparing the food. Regardless of whether you cook in your home or lease commercial space, you will need a professional kitchen and appliances, as well as serving equipment, dinnerware, flatware, glassware, napkins, tablecloths, folding tables and chairs.

You will also need a vehicle large enough to transport food and serving equipment. This might be accomplished by using your own personal automobile, or may require a full-size catering truck.

In order to keep your catering business start-up costs to a minimum, consider renting catering supplies and equipment from a party supply warehouse. Oftentimes, you can obtain wholesale pricing and will not be charged sales tax when you have a tax exemption certificate. Additionally, these companies oftentimes will deliver and set-up equipment at the location of your choice.

In order to keep your employee wages to a minimum when starting a catering business, consider using a temporary employment agency. Most catering businesses only employ 1 to 6 full-time employees and the rest are hired through agencies on an as-needed basis.

Last, but not least, you will need to purchase business liability insurance. The food industry is a risky business and lawsuits occur on a daily basis. Make certain you and your business is properly covered and includes protection against food poisoning claims.

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