How to Open a Catering Business: Step-by-Step Guide, Costs, & Equipment Checklist
Opening a catering business requires a clear menu, an understanding of expected event volume, suitable space and utilities, and the equipment needed to prepare, store, transport, and serve food. Let your menu, volume, space, and utility requirements guide equipment decisions so your operation can handle each event efficiently.
Ready to start your catering business?
Talk to a KaTom Foodservice Equipment Specialist about product selection, sizing, utilities, and layout.
Contact UsKey Takeaways
- Define your catering concept, services, target market, and event types
- Budget carefully because startup costs can vary based on the type and scale of the catering operation
- Consider food safety, licensing, permits, and local regulations before serving customers
- Plan preparation, transportation, setup, service, and cleanup for efficient operation
- Strong planning, consistent food quality, and reliable customer service can help build a profitable and sustainable catering business
Catering Business Planning at a Glance
Table of Contents
- Decide What Type of Catering Operation to Open
- Research Your Market & Evaluate Locations
- Create a Business Plan
- Estimate Catering Startup Costs
- Fund Your Catering Operation
- Register the Business & Secure Licenses
- Finalize the Menu & Supplier Plan
- Design the Catering Operation for Efficient Workflow
- Build Your Catering Equipment List
- Set Up Inventory, Technology, & Operating Systems
- Hire & Train Staff
- Market Your Catering Business & Prepare for Opening
Learn more about starting a catering business
Use our checklist to organize the key steps involved in planning, equipping, and preparing your catering business.
1. Decide What Type of Catering Operation to Open
Choosing a catering concept is one of the first decisions to make when starting a catering business. The type of service you offer will influence your target customers, menu, kitchen setup, equipment needs, staffing, and operating costs. Consider the following concepts to determine which one suits your business goals and resources.
Before investing in equipment or establishing your operation, define how your catering business will function by considering the following questions:
- What types of catering services and events will be offered?
- Who is the target customer, and what types of orders are expected?
- Where will the food be prepared, and what kitchen equipment will be needed?
- How will food be prepared, packaged, transported, and served?
- How many employees will be needed, and what responsibilities will each role have?
- How will services be priced, and what costs should be included?
- How will customers place orders, and what's the process from inquiry to completed event?
Not sure what your concept requires?
Talk to a KaTom specialist before finalizing the supplies and equipment list.
2. Research Your Market & Evaluate Locations
Research the local catering market to understand who your potential customers are, what types of events they host, and how existing businesses serve those needs. Reviewing competitors, pricing, services, and customer demand can help you identify opportunities for your catering business.
Once you understand the market, evaluate potential locations based on how well they can accommodate your operation. Consider zoning, utilities, food prep areas, storage, deliveries, waste management, and access to make sure the space can meet your business needs.
Evaluating a new space?
Contact the KaTom Design + Build team to plan an efficient catering space and identify the equipment your operation needs.
3. Create a Business Plan
A detailed business plan gives your catering operation clear direction and helps turn your concept into a workable business. Use it to define your goals, understand your market, plan daily operations, estimate financial needs, request funding, and prepare for potential challenges before opening.
4. Estimate Catering Startup Costs
The cost of opening a catering business can vary significantly depending on your concept, location, kitchen setup, and service model. Create a detailed startup budget that accounts for both one-time expenses and the ongoing operation costs. The following categories can help you identify major expenses to include.
5. Fund Your Catering Operation
Once you've estimated the startup and operating costs, decide how you will fund your catering business. Determine how much capital you can contribute and which financing options may be appropriate for any remaining expenses.
Funds typically come from:
- Existing capital
- Business partners
- Commercial loans
- Investors
- Equipment financing, when appropriate
6. Register the Business & Secure Licenses
Before accepting catering orders, establish the business structure and determine which licenses, permits, and foodservice approvals are required. Catering regulations depend on the location, the type of food prepared, and where preparation takes place. Check with the appropriate local and state agencies to identify applicable requirements, costs, and deadlines. Common catering business legal requirements include:
- Business registration
- Federal tax identification
- Foodservice permits
- Health department approval
- Certificate of occupancy
- Fire inspection
- Building permits
- Sign permits
- Sales tax registration
- Commercial insurance
- Alcohol-service requirements, if applicable
7. Finalize the Menu & Supplier Plan
The menus should reflect the type of catering services you plan to offer while remaining practical to prepare, transport, and serve in various venues. Consider the ingredients, equipment, packaging, and serving supplies required for each menu item, then identify suppliers that can provide consistent quality and reliable availability. Plan each detail to help control food costs and ensure you have what you need to fulfill orders.
Browse All Catering Equipment
KaTom offers reliable catering equipment designed to improve presentation and consistency throughout service.
Shop Now8. Design the Catering Operation for Efficient Workflow
An efficient catering operation should be organized around the way food, equipment, and orders move through the business. Arrange work areas and storage so employees can complete each step without unnecessary movement while keeping food safe and accessible. The stations needed will depend on your menu, service model, and available space. Depending on the catering model, the operation may include dedicated areas for:
- Receiving and inventory intake
- Cold food storage
- Food preparation
- Cooking
- Hot food holding
- Plating and portioning
- Packaging and order assembly
- Equipment and supply storage
- Event setup
- Dishwashing and sanitation
- Waste disposal
- Restocking
9. Build Your Catering Equipment List
Use your menu, service format, expected guest counts, and production needs to build a complete catering equipment list. Include equipment for food prep, cooking, cold and dry storage, transportation, hot holding, serving, and cleanup. Before purchasing each item, check its capacity, dimensions, utility requirements, portability, and storage needs to make sure it fits your operation from prep to event service.
Refrigeration – Balance Storage with Mobility
Catering businesses depend on bulk cold storage since staff may need to prepare several hundred meals at a time. Walk-in and reach-in coolers simplify organization and accommodate large storage needs, while undercounter units, worktops, and chef bases keep frequently used ingredients close to prep areas.
When purchasing refrigeration, consider:
- Peak ingredient inventory
- Unit capacity
- Available space
- Temperature requirements
- Voltage
- Door or drawer configuration
- Compressor location
- Ventilation clearances
- Access to refrigeration during event prep
Cooking Equipment – Match Equipment to Your Menu
Catering businesses operating out of a commissary or commercial kitchen may rely on stationary equipment, including commercial ranges, ovens, griddles, fryers, and other cooking equipment based on menu, service style, and prep needs. Operations that prepare food on site may need portable cooking equipment, such as butane burners or small induction ranges.
When purchasing cooking equipment, consider:
- Menu requirements
- Expected production volume
- Cooking capacity
- Fuel type
- Available utilities
- Equipment footprint
- Portability
- Ventilation requirements
- Cooking speed
Food Prep Equipment – Build an Efficient Prep Area
Food prep equipment helps caterers wash, cut, mix, portion, and organize ingredients before service. Depending on the menu, this may include food processors, mixers, slicers, cutting boards, prep tables, and other smallwares.
When choosing food prep equipment, consider:
- Menu complexity
- Ingredient volume
- Prep time
- Equipment capacity
- Available workspace
- Ease of cleaning
- Storage requirements
Food Transport – Protect Food During Delivery
Catering often requires transporting prepared food, ingredients, and serving supplies to an off-site location. Insulated food carriers, transport carts, and storage containers help keep menu items organized and maintain appropriate temperatures during transit.
When purchasing food transport equipment, consider:
- Travel distance
- Food volume
- Hot and cold food requirements
- Container capacity
- Insulation
- Portability
- Vehicle storage space
- Ease of loading and unloading
Hot Holding – Maintain Serving Temperatures
Hot holding equipment keeps prepared foods at serving temperature between cooking and service. Caterers may use holding cabinets, heated food carriers, and countertop warmers depending on the event and service setup.
When purchasing hot holding equipment, consider:
- Food volume
- Holding capacity
- Expected holding time
- Temperature requirements
- Power availability
- Portability
- Available storage space
Serving Equipment – Prepare for Different Events
Serving equipment can include chafers, serving utensils, beverage dispensers, trays, bowls, plates, and other supplies used to present and distribute food. The equipment needed depends on whether the caterer offers buffet, plated, drop-off, or other service styles.
When choosing service equipment, consider:
- Service style
- Guest count
- Menu items
- Portion sizes
- Material
- Storage requirements
- Washing needs
Beverage Equipment – Expand Your Drink Service
Beverage equipment lets caterers serve coffee, tea, water, juices, and other drinks alongside meals. Depending on the menu and event, equipment may include coffee brewers, beverage dispensers, insulated servers, ice machines, and drinkware.
Before purchasing beverage equipment, consider:
- Beverage menu
- Expected volume
- Service speed
- Hot and cold beverage requirements
- Ice production and storage needs
- Water requirements
- Beverage transportation
Warewashing – Plan for Cleanup
Caterers need a way to clean cookware, serving equipment, utensils, and reusable dishware. Depending on the operation, cleaning may take place in a commercial kitchen or at an event venue.
When purchasing warewashing equipment and supplies, consider:
- Volume of dishes
- Available water and drainage
- Event location
- Storage space
- Cleaning requirements
- Local health requirements
Storage Supplies – Organize Ingredients and Equipment
Shelving, ingredient bins, food storage containers, and other storage supplies help caterers organize ingredients and equipment between events. An effective storage system can also make it easier to track inventory and prepare orders.
When purchasing storage equipment, consider:
- Dry vs. cold storage needs
- Inventory volume
- Container sizes
- Shelving capacity
- Stackability
- Labeling systems
- Ease of access
- Available footprint
- Food safety requirements
Where to Spend vs. Where to Save on Catering Equipment
Not every piece of catering equipment needs to be a major investment. Prioritize spending on equipment that will be used frequently, directly affects food quality or safety, or needs to withstand demanding use. For less frequently used items and nonessential features, choosing economical options can help reduce startup costs without compromising the operation.
Don’t Order Until You Know
Before purchasing equipment, confirm the following details, as applicable:
- Equipment dimensions
- Maximum capacity
- Doorway and hallway clearance
- Equipment door swing
- Required operating clearances
- Voltage, amperage, and phase
- Plug type
- Water connection
- Drain requirements
- Ventilation
- Ambient operating conditions
- Production or capacity requirements
- Installation requirements
- Local code requirements
- Service access
- Cleaning schedule
Not sure whether a unit will work in your space?
Ask a KaTom Foodservice Equipment Specialist before you order.
Contact Us10. Set Up Inventory, Technology, & Operating Systems
Establish the day-to-day processes your catering business will use to keep operations organized. Consistent procedures make it simpler to manage supplies, coordinate staff, track business activity, and prepare for each event.
11. Hire & Train Staff
Your staff should be able to adapt to the changing needs associated with the catering business. Find employees with experience in fast-paced settings to support high-volume service.
Catering staff training should cover:
- Cooking equipment operation
- Food safety and sanitation
- Personal hygiene
- Allergen awareness
- Food prep
- Safe transportation
- Serving and presentation
- Customer service
- Event procedures
12. Market Your Catering Business & Prepare for Opening
Promoting your catering business involves both digital and in-person marketing. A digital marketing strategy can include social media, online business listings, menu photos, and a website. Physical marketing can include promotional signage, local advertisements, and menu tastings.
Host a Soft Opening
Depending on the concept, your catering business may conduct discounted trial events or a soft opening to test operations and streamline workflow. Use a trial opening to confirm details such as:
- Portion size
- Food temperature
- Prep times
- Staffing
- Equipment
- Transportation, if applicable
- Setup
- Service
- Customer experience
- Cleanup
- Costs
- Scheduling
- Procedures
Catering Business Opening Checklist
Download Checklist as PDFUse this checklist to track planning, setup, staffing, compliance, and launch tasks when opening a catering operation.
| Task | Complete |
|---|---|
| 1. Define a catering concept | |
| 2. Identify target market | |
| 3. Research local competitors | |
| 4. Create a business plan | |
| 5. Develop menus | |
| 6. Set menu pricing | |
| 7. Create startup budget | |
| 8. Register the business | |
| 9. Obtain required business licenses | |
| 10. Obtain required foodservice permits | |
| 11. Complete required food safety certifications | |
| 12. Obtain business insurance | |
| 13. Finalize menu and suppliers | |
| 14. Determine where food will be prepared | |
| 15. Create equipment list | |
| 16. Plan the kitchen layout | |
| 17. Confirm utility requirements | |
| 18. Purchase cooking equipment | |
| 19. Purchase refrigeration and storage equipment | |
| 20. Purchase food prep equipment | |
| 21. Purchase food transport and holding equipment | |
| 22. Purchase serving equipment and smallwares | |
| 23. Purchase beverage equipment | |
| 24. Purchase cleaning and sanitation supplies | |
| 25. Establish food safety procedures | |
| 26. Create food storage and temperature-control procedures | |
| 27. Establish food prep and sanitation procedures | |
| 28. Plan food transportation and event setup | |
| 29. Determine staffing needs | |
| 30. Train employees | |
| 31. Establish supplier relationships | |
| 32. Create a marketing plan | |
| 33. Conduct a soft opening or test event | |
| 34. Review operations before first event |
Frequently Asked Questions About Opening a Catering Operation
How much does it cost to start a catering business?
Startup costs vary depending on your menu, kitchen setup, equipment needs, staffing, and service area. Creating a detailed budget can help you estimate expenses before opening.
What permits do I need to start a catering business?
Requirements vary by location, but caterers may need business licenses, foodservice permits, food safety certifications, and other local approvals. Check with your local health department and regulatory agencies before operating.
What equipment do I need to start a catering business?
Equipment needs depend on your menu and service style but may include cooking equipment, refrigeration, food prep equipment, storage supplies, transport equipment, hot holding equipment, serving pieces, and smallwares.
Do I need a commercial kitchen to start a catering business?
Catering businesses generally need to prepare food in a facility that meets local health and food safety requirements. Depending on your location, this may be your own commercial kitchen, a shared kitchen, or another approved foodservice facility.
How do I price catering services?
Consider ingredient costs, labor, equipment, transportation, overhead, and profit when setting your prices. Your pricing should also reflect your menu, service type, guest count, and local market.
How can I prepare for my first catering event?
Create a detailed event plan covering the menu, guest count, staffing, equipment, food prep, transportation, setup, service, and cleanup. A test event or soft opening can help identify problems before your first large event.
