# How much does it cost to start a catering business?

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)](https://profitdrawer.com/guides/how-to-start-a-catering-business.html)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Start a business
- Canonical: https://profitdrawer.com/answers/how-much-does-it-cost-to-start-a-catering-business.html
- Publisher: ProfitDrawer (https://profitdrawer.com)