Starting a Catering Business

Thinking about starting a catering business? Might be a good idea to find out what a Caterer does!

Typical Services

Quite a few catering businesses begin as home based businesses, and then move into a commercial kitchen as the business grows.

The services offered can be quite varied, from supplying pre-packaged meals, to cooking for parties and celebrations, or serving as the executive chef in a corporate dining room.

Some caterers specialize in a particular area, like wedding cakes, or gluten free meals.

Typical tasks in this type of business include the preparation, seasoning, and cooking of salads, soups, fish, meats, vegetables, desserts, or other foods. Planning and pricing menu items, ordering supplies, and keeping records and accounts.

Qualifications?

You do not necessarily need qualifications for starting a catering business, but it wouldn't hurt.

Most chef's undergo at least four years of work based training (an apprenticeship), and would learn many of the skills necessary for success with a catering business.

Those skills include cooking (obviously!) and menu planning.

You will also need to have, or develop, a sound knowledge and understanding of health and food safety regulations as they apply in your jurisdiction.

People skills are a must, and some knowledge of record-keeping would also come in handy.

Equipment?

The amount of equipment required to set up your business will vary depending on the type of service you are offering.

If you are working from your home, you will need to spend anywhere from $500 - $1,000 on minor items of equipment (i.e., pots, pans, utensils, electrical appliances).

Depending on the age and condition of your major electrical or gas appliance you may need to upgrade to meet the requirements of the health and food safety legislation in your jurisdiction.

You may also need additional refrigeration units, and a commercial dishwasher may be necessary. All of this will set you back between $2,000 - $4,000.

Leasing space in a commercial kitchen can cost you anywhere between $8,000 - $12,000. If you intend to deliver your products to your clients, a delivery van or other vehicle will also be on your shopping list.

Startup Costs?

Your startup costs (other than the equipment mentioned above) would include promotional materials, and advertising. You will need to stock up on basic food stuffs, and other supplies (consumables, packaging etc.)

Before you start trading you should investigate the various types of business insurance, public liability, business continuity, personal income insurance etc, and you will also need to organise any relevant permits. You will also probably need to pay to have your kitchen assessed for compliance with food safety regulations.

Your startup costs should include the costs of providing 'tastings' to prospective clients.

Potential Earnings?

It is possible to make a good living from starting a catering business, particularly when you have established a reputation and your services become more sought after. As a general guide, you could anticipate earning anywhere between $30,000 - $80,000 per year, depending on the product you are offering and how much work you take on.

Additional Resources

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