ProfitDrawer's catering business guide gives an example budget of about $750 to $6,100 for a small caterer who rents kitchen time. Insurance ($200 to $1,200), equipment such as hotel pans, chafing dishes and carriers ($200 to $1,500), health permits and a food safety course ($100 to $800) and a commercial kitchen deposit (up to $800) are the main lines. Permits, insurance and kitchen rental are the costs to check first. These are example ranges; your costs will differ.
Example budget (your costs will differ):
| Item | Low | High |
|---|---|---|
| Health permits and food safety course | $100 | $800 |
| Business registration and local license | $50 | $300 |
| Insurance (first months) | $200 | $1,200 |
| Commercial kitchen deposit and first hours | $0 | $800 |
| Equipment (hotel pans, chafing dishes, carriers, coolers, thermometers) | $200 | $1,500 |
| Serving ware and linens | $50 | $600 |
| Food for tastings and test runs | $100 | $400 |
| Menus, website and marketing | $50 | $500 |
| Total | $750 | $6,100 |
Call your local health department before you buy anything. It decides whether you may cook at home or need a licensed commercial kitchen, which changes the kitchen line a lot.
Ways to keep costs down: start with drop-off events, rent kitchen time by the hour, rent tables, tents and extra chafing dishes per event, and take a deposit before buying food. In the guide's worked example, a 50 guest buffet prices at $31 per person, or $1,550 for the event. Total your own list in the free startup cost calculator.
Source: How to Start a Catering Business (ProfitDrawer guide) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.