My plan

How to Start a Catering Business

Catering lets you cook for events without running a dining room every night. Most of your work happens in a kitchen that meets health code, followed by transport and service on site. Food safety, accurate quotes and a clear event contract decide whether a job makes money.

Reviewed November 5, 2026 · Sources linked inline

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a catering cost worksheet →

SBA 7(a) loans in this industry

Caterers (NAICS 722320): 555 loans approved in FY2024–FY2026. Median loan $141,000; middle half $50,000–$440,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How much competition is there?

Census industry: Caterers (NAICS 722320)

Nationwide: 13,222 employer establishments (2023) and 406,608 businesses without employees (2024).

The count of businesses without employees is for the broader Census group “Special Food Services” (NAICS 7223), so it includes related businesses, not only this one.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Access to a licensed commercial kitchen
  • Insulated food carriers and hot/cold holding equipment
  • Chafing dishes, serving utensils and platters
  • Food thermometers and temperature logs
  • Vehicle that can carry food safely
  • Folding tables, linens and service ware (or a rental partner)

Licenses and registration

  • Food sold to the public generally must be prepared in a kitchen approved by your local health department; ask your county or city health department about catering permits and plan review.
  • Home kitchens usually can't be used for catering; your state's cottage food law, if it has one, typically covers only certain foods sold directly to customers.
  • Food manager or food handler certification is commonly required.
  • If your state taxes prepared food or event services, register to collect sales tax; register an LLC or trade name if you use one.
  • Serving alcohol usually needs a separate license or a licensed bartending partner — check your state's liquor agency.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

Insurance to consider

  • General liability with product liability
  • Liquor liability if alcohol is served
  • Commercial auto
  • Workers' compensation once you hire
  • Equipment coverage

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Food costs
  • Kitchen rental
  • Staff wages
  • Rentals (tables, linens)
  • Fuel
  • Insurance
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them, and the employee cost calculator for staffing.

Common mistakes

  • Quoting per person without counting labor and rentals
  • No deposit or cancellation terms
  • Cooking in an unapproved kitchen
  • Losing temperature control during transport
  • Accepting more events than your kitchen and staff can handle

Finding customers

  • Event venues' preferred-vendor lists
  • Corporate lunch accounts
  • Wedding and event planners
  • Tastings for planners and offices

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources