How to Start a Home-Based Catering Service

Pros, Cons and Steps to Opening a Catering Business from Home

Home Based Catering Business
Start a catering business part-time or full-time. Credit: Burke/Triolo Productions | Getty Images

Overview of a Catering Service Business

While there is no surefire recipe for a successful home catering service business, a dash of culinary skills, determination and grace under fire can go a long way. Catering businesses can be run from home full or part-time, and earn between $30,000 and $80,000 a year, according to Shmoop.

You should consider starting small, catering events that you can manage on your own or with a couple of helpers to avoid having to hire a staff of servers.

 Start-up costs depend much on how big you want to start, your state's requirements for selling food made from home, and what you already own to help you get started. On average, you can expect to invest $10,000 to $50,000 to get started, according to Entrepreneur.com. But if you start with small events, you should be able to open your business for less.

Many catering start-ups succeed by conquering a niche; focusing on a particular food and/or certain kinds of events to keep overhead low and advertising focused. For instance, if you're expertise is in kosher food, you'd focus on Jewish events such as Bar Mitzvah, and promote through Jewish publications and other sources Jewish people would read. 

Pros of a Catering Service Home Business

  • It's the perfect job for amateur chefs.
  • A chance to advertise on the job -- potential customers are eating your food.
  • The top 50 US caterers generate less than 15% percent of the industry revenue, according to aBusiness Wire article, meaning there's room for small operations.
  • You can start small and grow, or stay small.
  • You can start part-time, working only weekends, and then expand to full-time as you get clients.

Cons of a Catering Service Home Business

  • A bad meal can generate bad word of mouth.
  • Clients might make unreasonable demands or be difficult to work with.
  • Mishandled food can sicken guests, creating potential liability issues.
  • Requires a great deal of organization and planning skills, plus a commitment to being on time. People are expecting you to bring food and service it. You can't not show up if you plan to have a successful business.

What You Need to Get Started in a Catering Service Home Business

Before you jump into a catering business, you should decide a few things:

  • Will you focus on a specific type of food or event. For example, will you just do cocktail parties?
  • Will you cook on the client's premises or cook at home and deliver the meal? This could mean buying special equipment to keep the food warm or cold during transport.
  • Does your state allow you to cater from home, and if so, do you need any special inspections or permits. Contact your state's occupational licensing agency or health department to find out what you need to do to be approved to operate a home-based catering business.

Once you've determined the above, you should gather needed equipment and supplies. Most states that allow home-based catering have specific rules about food handling.

For example, you may need to have a set of cooking utensils, pots, pans, servers, etc that are used for business only and not from your personal kitchen. The same may be true for food ingredients. In some cases, you might be required to have an entire separate kitchen.

Other To-Dos to Get Started Catering

  • Business license and liability insurance
  • Professional cookware, dishware, utensils and other food-preparation and serving tools
  • A detailed business plan to keep the operation lean 
  • Marketing plan and materials.
  • Vendors to obtain your food and supplies wholesale. Give them flyers and get them to advertise for you.
  • System for collecting and responding to testimonials and referrals.
  • Discounts for referrals

 

Legacy Update February 2016 Leslie Truex

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