The practical steps to launch a catering business in the US: concept, kitchen, permits and food safety, insurance, pricing, event staffing and pay rules.
Catering covers very different businesses: corporate breakfasts and lunches delivered to offices, weddings and private parties, drop-off trays, full-service events with servers and bartenders, meal prep and specialty diets. Each has its own rhythm. Corporate catering brings repeat weekday orders and predictable volumes; weddings bring larger tickets but weekend peaks, tastings and long planning cycles. Choose one or two to start, based on your skills, your local market and the hours you want to work.
Food sold to the public generally has to be prepared in a kitchen approved by the local health department. Home kitchens are usually not allowed for catering perishable foods; state cottage food laws, where they exist, typically cover only certain lower-risk foods and often exclude catering. Common options are renting time in a commissary or shared commercial kitchen, partnering with a restaurant during its off hours or building out your own space.
Expect a health department permit and inspection, and food safety certification requirements. Many jurisdictions require at least one certified food protection manager and food handler training for staff. Transporting and holding food at safe temperatures at events is a major part of catering food safety; plan equipment and procedures for it. Check with your county or city health department before signing a kitchen lease. Our kitchen operations checklist can be adapted for daily routines.
Price from your costs, not from a competitor’s menu. For each event, add up:
Many caterers quote per guest with a minimum, plus separate staffing and rental charges. Whatever format you show customers, check each quote against your cost build-up. Our selling price calculator and profit margin calculator help.
| Item | Calculation | Cost |
|---|---|---|
| Food | 60 × $9.50 | $570.00 |
| Prep and cooking labor | 2 cooks × 4 hours × $24.00 | $192.00 |
| Delivery and setup | 1 staff × 2 hours × $20.00 | $40.00 |
| Payroll taxes and insurance (example 20%) | 20% × $232.00 | $46.40 |
| Disposables | Fixed | $45.00 |
| Overhead share | Fixed | $80.00 |
| Total cost | $973.40 | |
| Price at 25% margin | $973.40 ÷ 0.75 | $1,297.87 (about $21.63 per guest) |
Event staff are the face of a catering business. Many caterers use a core of experienced staff plus on-call servers for busy weekends. Plan staffing ratios for each event type, brief every team before service and use a clear event checklist.
Pay rules matter here. Servers and cooks who work under your direction are usually employees, not contractors; see contractor vs. employee. Non-exempt staff must be paid for all hours worked, including setup, travel between the kitchen and the venue during the workday, briefings and cleanup, and overtime over 40 hours in a workweek. Long events can trigger state meal and rest break requirements. If customers pay a service charge, know whether it is a tip or a fee under your state’s rules. See travel time pay and split shifts.
| Area | What to have |
|---|---|
| Orders and quotes | Written quotes, deposits and change deadlines |
| Prep lists | Quantities by menu item scaled to guest count |
| Event checklists | Packing, equipment, setup and breakdown lists |
| Staff scheduling | Event shifts published early, with confirmations |
| Time tracking | Clock-in at the kitchen and venue, travel recorded |
| Food safety logs | Temperatures and holding times |
See creating employee schedules and EZTime for event staffing.
A chef with restaurant experience rents a shared commercial kitchen three days a week and focuses on corporate lunches for offices within a 20-minute drive. They build a small menu that travels well, price per guest with a 25-person minimum and deliver with one helper. By month six they have six repeat office clients, hire two part-time cooks and move to five kitchen days a week. Weddings stay off the menu until they have a reliable team for weekend events.
EZTime helps caterers schedule event staff, publish shifts to the mobile app and record actual hours with clock-in at the kitchen or venue, including optional GPS location. Time can be assigned to events with job and client tracking for event costing, tip pooling handles shared tips and approved hours are exported for payroll.
Staffing depends on service style. A drop-off lunch may need one driver. A plated dinner needs servers, kitchen staff and a captain. Build your own ratios from experience, then plan labor as hours: setup, service, breakdown and travel. Event staff are usually employees who must be paid for all of those hours, including travel between your kitchen and the venue during the workday.
Our job labor cost calculator and travel time pay rules help you get the labor line right.
Have a qualified attorney review your standard contract once. See how to ask for payment professionally.
Tick each item that is in place.
0 of 6. You have an idea; now build the foundations: kitchen, licenses and insurance.
Usually not for perishable foods. Most health departments require a licensed commercial kitchen. Check your state’s cottage food law and local rules.
Typically a business license, a health department permit, food safety certifications and sales tax registration. Alcohol requires separate licensing.
Often per guest with a minimum, plus staffing and rentals, based on a build-up of food, labor, delivery, overhead and profit.
Usually employees if you direct their work. Check the classification tests before treating anyone as a contractor.
Generally yes for non-exempt employees. Setup, briefings, cleanup and travel between work locations during the day are usually hours worked.
Commonly general and product liability, commercial auto, property and workers’ compensation once you hire.
With jobs and clients tagged in EZTime, you can compare what you quoted with the hours the work really took.