Entertainment, Hospitality, Mobile Businesses

How To Start A Catering Business – Become Corporate Caterers

Turn Your Talents Into Income

With today’s uncertain economic climate, many people who love to cook are considering venturing into the catering industry. The business of catering events, restaurant catering, corporate catering, breakfast catering, wedding catering, and private gatherings is profitable, but unfortunately, most people have no idea how to start. Read on as we provide you with essential tips on setting up your small catering business or your sizeable industrial catering company.

Private Events Or Corporate Catering

With today’s uncertain economic climate, many people who love to cook are considering venturing into the catering industry. One should not underestimate the catering business as a great alternative to owning a restaurant. Many restaurants, private individuals, food wholesalers, and hotels offer catering services. And the competition is intense.

If you can find an overlooked market niche, or perhaps you feel you can do a better job, if you are thinking about catering as a potential career, you might begin by catering to small groups. As you get more experience and confidence, you can, like corporate caterers, start catering for significant events like weddings and conventions. The business of catering events, restaurant catering, corporate catering, breakfast catering, wedding catering, and private gatherings is profitable, but unfortunately, most people have no idea how to start. Read on as we provide you with essential tips on setting up your small catering business or your sizeable industrial catering company.

Is A Catering Business Profitable?

Knowing your competitors, what they are offering, their prices, and their customers would be best. You can obtain most of this information by checking the competitor’s website. Remember, the public has many choices when choosing a catering company. Why should they order from you? It would help if you offered something unique to succeed in the catering business.

To succeed in the catering business, you’ll need to offer convenient, white-glove service and unique menus. And the most challenging part is that most people are looking for someone who provides all these features at a low cost.

Online Catering Courses

Outside Catering

If you have never catered events, speaking to someone who has is crucial. Today’s customer tends to be very picky about their food and can be very demanding. You’ll need to research issues that commonly occur with the catering business, the type of customers, the delivery, how to deal with complaints, what kind of supplies you will need, what cuisine you should select, and where you will open your business. See if you can’t find someone in the catering business to speak to at length about all of these issues. There are also plenty of videos online that describe in detail the catering business. It would help if you watched a few to get some idea of what you will be dealing with.

Niche Catering

After doing your research, you will have a better idea of what type of menu you’d like to create, who the customers will be, and what they will be willing to pay. For example, if you cater to college and university students, these folks will usually prefer to eat typical American food that is not too costly. However, catering to a corporate client will make the menu more elegant and expensive. You will not please everyone, so it is vital to have a niche and stick to it. Market your catering services to select customers, and then as you become established, you can reach out to a broader segment of the population.

Corporate Catering

There is a demand for incredible variety in the corporate world. Depending on what you feel comfortable with, you can narrow your catering services to the following menus:

Fast foods
Barbecue
Vegans and vegetarians
Affordable
Upscale
Healthy foods
Gluten-free

Once you decide on your niche, creating a menu is next. This will also help you figure out how much kitchen space you need, the number of appliances, ingredients, and the time to cook.

Catering Company Research

Some people are excellent cooks but have little idea of what is involved with catering to a large-sized event. Catering does not always mean providing a business lunch for a corporation or preparing a buffet for 300 people at a wedding. One can cater to many people in different settings, people living in your apartment building or local office workers. It is essential for those starting in catering to start small because there is much more to the business than making excellent food.

Mobile Caterers – Cook For Your Friends

Even though you may be a great cook, contact your colleagues, friends, family, and people in the local community before starting a catering service. Ask them if they would use your services as a caterer. At the same time, ask them what they look for in a caterer, what type of service they expect, and what foods they prefer.

Food Safety Certificate For Catering Business

You’ll need to acquire a few credentials, such as a food safety certificate

Become A Licensed Caterer

Unlike most other businesses, when you start operating a food business, you must follow many rules and regulations to ensure public safety. So your first stop should be at the local Department of Health and get a food service license. Things you should ask include:

Food storage requirements
What will you need to meet food transportation requirements?
Is there special servicing equipment needed?
In some states, you must take a course to become a certified food manager or chef.
By contacting the local Chamber of Commerce, you will find out what other licenses you will need.
Before opening your catering business, the Local Health Department will inspect your kitchen for safety and ensure that it meets the health codes. Once a kitchen has passed the inspection, you may want to upgrade it.

Who Are My Catering Clients?

If you are getting started as a caterer, some niche options for catering include:

Weddings
Adult events (bachelorette, hens parties, stag nights)
Corporate events
Children’s Parties
Boxed lunches
Birthdays
Casual dinner parties
Concession stands
Festivals and conventions
Sporting events
Schools
Hospitals
Offices
Religious gatherings
Military bases.

Other accessories that you will need include table decorations, napkins, and centerpieces. If the event is outdoors, you may also want to offer tent canopies, and lighting, especially if the weather is cold or wet.

Catering Business Identity

Once you consider opening a catering business, you need to think like a business person. Tasks that need to be completed include:

Getting a business permit
Getting the relevant licenses
EIN
Business bank account
Setting up the business as a corporation.
Buying insurance
Knowing the zoning laws
If you cater from home, know the Homeowners’ Association Rules.
Create a business card

LLC Business Incorporation

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

How Do I Fund My Catering Business?

To acquire funding, you must have a business plan. If you lack funding to start your own catering business, you may want to get a bank loan or find a private lender. Besides that, your credit rating will need to be pretty good, and you should not have many other debts tying you down.

Another option is to seek a restaurant that only operates for dinner. These restaurants may allow you to use their kitchen facilities during the off hours for a fee.

Funding A Catering Company

Here are a few of your options

Small Business Administration

The Sma ll Business Administration, SBA has a program to fund new startups, and is worth a look.

Catering Business Plan

Once you decide to start a catering business, you’ll need to make a plan which should include the following:

Where will you operate your catering business? Home or a professional kitchen?
Who is your competition?
Who are your customers?
How many orders will you accept every day?
What food will you make?
Who will deliver the food? Or will it be only a pick-up service?
Will you cater to large or small events?
What is the cost of starting a catering business?
What supplies will you need?
Who will cook if your chef is sick or not available?
Will you need to employ people? And how many?
What salaries will you offer to your employees?
Where will you get your supplies?
What appliances will you need?
What types of permits and licenses will you need?

Catering Business Plan Services

There are some handy services available online

Some business plan templates that you should consider include:

Banking For Catering Companies

Here are a few of the standard business banking options available online

Trademark Resources

LegalZoom has a free name search page here

Shopify has a Business Name Generator here

There are a few companies that specialize in Trademark Registration

The United States Trademark And Patent Office

The US government trademark website USPTO is a must see here

Apply for your trademark with the USPTO here

The Small Business Administration has a very useful site for your trademark questions here

Start-Up Cost Of Catering Business

The costs to start a catering business depends on many factors and usually include the following:

Rent for the building or kitchen
Number of employees
Need for appliances-fridge, cooker, oven, etc
Need for utensils
Insurance
Transport
License and permit
Marketing
Food supplies
Transport: Food catering does require a reliable truck. The truck needs to be a decent size for food, tableware, linen, and other appliances you may need. In the beginning, one van may suffice.

How Much Does A Catering Company Make?

Determine a base fee for all events that covers transportation costs and insurance. The cost of labor should not interfere with the cost of food production. See to it that all employees are duly compensated at the end of every service. The general rule of thumb is to estimate the cost of food and multiply by five.

When starting a catering business, it would be best to offer competitive prices. Remember, there are major league caterers who can provide significant discounts. To compete with them, you’ll need to have competitive pricing and something unique or extra. The price you’ll set for your menu and services will depend on what type of foods you offer. Further, the pricing will depend on the cost of ingredients, time to prepare, where you reside, and how much profit you plan to make. Here’s a very rough guide.

20% will go towards the cost of the food
20% for utilities, transport, etc
20% for the salary of your employees
20% for expenses and the unforeseen
20% for profit

Catering Market

Are you going to be making brunch or lunch-style food that includes sandwiches, salad, fries, quiches, plates of pasta, etc.? These foods are great for school functions, business lunches, small public ceremonies, etc.

The food must match the aesthetics if you only plan to cater to significant events like weddings, birthdays, and anniversaries. This may include finger foods, various appetizers, cocktails, wth exotic entrees, and several desserts.

If you love making desserts and have a flair for baking, you’ll need to charge a little extra because cakes and desserts tend to be expensive. Offering fancy desserts can limit your profit margins.

Prepare Your Menu

Preparation is the mother of manifestation. Like a chef’s ‘mise en place,’ having a prepared menu is a step in the right direction. This gives people an insight into their abilities. Your menu should consider the following;

Guestlist– don’t just assume; study the guest list and ask questions if need be.
Offer Variety– make variety fashionable. There should be many options from which to choose.
Consider special needs– people have individual preferences and limitations on the food. Some are voluntary, religious, or health-related.
Origin– Always consider the various ethnicities on the guest list. Try to satisfy as much as you can as referrals come from guests too.

Your Suppliers

Decide on who and where to source your product. Farmers’ markets are a great resource, while traditional wholesalers will offer the bulk of the necessary supplies. Insist on fresh and high-quality products and set standards. You can never go wrong with quality.

Your Menu Design

Here are a few menu design services available online

Ancillary Services With Catering

If you cater to corporations or significant social events like weddings, then you will need to acquire knowledge of the following:

How to run a bar
Setting up for the event
Takedown
Number of staff you will need
Where will you rent the furniture?
Liability insurance
Who will pay for any damage to the rental equipment
How much will you charge for the accessory rentals like tables and chairs?

When catering for significant events, you will need to supply serving platters, silverware, glassware, and utensils. So you must have a reliable supplier. Further, when catering for an event, you must also have the proper equipment to keep the food hot or cold if there is a delay in serving. In some cases, the venue may have the equipment you require.

Catering Company Insurance

When dealing with food, it is vital to have insurance for your physical establishment, food services, and vehicles. If you are catering from your home, you will need additional insurance coverage as your standard homeowner’s insurance will not cover any business-related activity. You’ll need to have Liability insurance if a customer gets food poisoning or somebody trips over something and decides to sue

Business owner’s policy.
Workers’ compensation insurance.
General liability insurance.
Commercial auto insurance.
Liquor liability insurance.

Here is a list of some standard insurance companies

biBERK
Three Insurance (Berkshire Hathaway Company)
Next Insurance
Thimble
Geico
Insureon
Mercury Insurance
Allstate
Chubb
CNA
Farmers Insurance
Huckleberry
State Farm
Hiscox
Nationwide
The Hartford
Travelers-Business Insurance
Liberty Mutual
Progressive Commercial

Best Places To Get Small Business Insurance

Catering Company Staff

If you are starting small or operating out of your home, you may not need staff. But if you work out of a professional kitchen, you will need to hire staff. The best way is to contact an agency that can help with the hiring. Your biggest headache will be getting a reliable chef; these professionals are hard to come by and demand a high salary. Next, you will need to train all your employees, and you will want to provide them with standard uniforms, primarily when serving customers.

Most events will be buffet-style; try to avoid overstaffing. Your services might be required sporadically so that full-time staff might be costly. Casual staff might do the trick.

Waiters
Chefs
Kitchen Staff
Van driver
Clean up staff

If you are not doing the cooking, then a chef is required. When employing staff, remember that guests at events are from all walks of life, so you’ll have to create a menu that appeals to all. Also, catering staff must contribute to a welcoming and friendly environment at any event.

Planning against unforeseen circumstances is smart. Imagine the vehicle delivering food to the venue stops working. You run the risk of food spoilage if there is no fast solution.

Staffing agencies that you may want to use:

How To Build A Top Catering Company

Catering is a serious business, and appearance does count. Thus, when meeting a customer, vendor, or supplies, always be appropriately dressed. There should be no food stains on your clothes- it will reflect very poorly on you. When in the kitchen, always wear an apron to prevent stains on your clothes.
Do not go overboard with the menu. Focus on a limited menu of great food rather than offering many mediocre dishes. But if a client makes a special request, then you should prepare it.
Consider a tasting event: Many people think they are great cooks, but unfortunately, the public can be very fussy. If you host tastings, an ideal place is at the front of the store or near a plaza’s curbside. You may also send food samples to local business offices, grocery stores, and the general public and ask for an honest opinion. Based on the feedback, you may need to tweak your dishes until they are perfect.
Check with your landlord and the local city council about zoning laws. You may have to install grease traps and ventilation hoods.
Don’t underestimate the work: You will most likely face setbacks like cancellations or delays while in the catering business. If that happens, you will need sufficient space for food storage; You will need several refrigerators or even a large walk-in freezer.
Find a good accountant: Because you will be busy with the catering business, it is essential to hire an accountant to keep track of all your paperwork, including invoices, expenses, salaries, tax deductions, and income. This will prove to be a good move at the end of the year.
If you are a good cook but have little idea of running a business, you may consider taking a catering business class. Within 4-6 weeks, you will acquire all the practical knowledge you’ll need to run a successful catering business.

Branding My Catering Business

Here are a few branding consulting companies

Free Tools To Monitor Your Brand Include

Is the market ready for your product or service? Who are your potential clients (target market)? Who are your competitors, and what can you do better? To answer these questions, you need to create an industry analysis.

Local Catering Company Market Analysis

Some free tools that you can use for FREE market analysis include

The SBA has an interesting article on marketing your new business here

Catering Company Marketing

If you want to reach potential clients, marketing is vital. Some of the things you can do to market your catering business include the following:

Develop a website
Participate in social media websites
Design stationery, business cards, and brochure
Create a flyer and distribute it locally
Create some of your signature dishes and take photos that you can showcase on your brochure and website
Create a blog and be active on it. Write about your catering business, the menu, the different services, etc.
Leave your business card with businesses, banquet halls, and wedding sites.
Place ads in the local newspaper

Build My Own Catering Company Website

The domain name protects your website address on the internet. You can register a domain name with the hosting company you choose to buy it. Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

Wholesale Catering Business Supplies

If you are starting small, then your best supply option may be a wholesaler like Costco. Once the business gets busy and deals with larger orders, you may consider a more substantial food supply company. If you use fresh produce for cooking, then you may want to contact local farmers in your area. Most alcohol distributors will offer you special deals if you display their brand’s logo.

Get To Know The Vendors

Today, the business of catering is much more than just cooking great food. The catering company is also responsible for providing utensils, china, linen, glassware, etc. In fact, in some circumstances, you may even have to supply the chairs and tables. However, many of the vendors you deal with will help you out with the supplies. Because there are many vendors in this business, you’ll need to do thorough research on each of them to ensure you’re working with the best. Speak to other caterers to find out who’s got the best reputation. Vendors also want to make a profit, so it’s essential that you come up with an agreement of mutual benefit.

What Type Of Equipment Is Needed To Open A Catering Business?

Catering business cards

Dishwasher
Cooker
Oven
Grill
Microwave
Pots, pans
Utensils- forks, knives, spoons
Plates, cups, glasses
Food cart for transport
Fridge
Walk-in cooler
Food warmer
Blender