How to Start a Catering Business: Kitchen, Licenses, Clients, and Delivery
How to start a catering business step by step: choosing a licensed kitchen, permits and insurance, pricing per person, finding clients, and delivering on time.
To start a catering business, choose your niche, cook in a licensed kitchen, get your food permit and insurance, set prices per person that include delivery and setup, find your first clients, and plan how every order arrives on time and at a safe temperature. Unlike a home bakery, a caterer almost always needs a licensed kitchen, because most catered food needs time and temperature control.
This guide covers each step, from the kitchen to the first delivery.
Key takeaways
- Most cottage food laws exclude foods that need refrigeration or hot holding, which is most catering, so plan on a licensed kitchen from the start.
- Shared commercial kitchens commonly rent for $10 to $29 an hour (The Food Corridor, 2023).
- Keep hot food at or above 140°F and cold food at or below 40°F in transport, and don’t leave food out more than 2 hours (FoodSafety.gov).
- Office lunches and drop-off catering are the easiest clients to win and repeat.
- Price per person, with delivery, setup, and staff as separate lines or built in.
Step 1: Choose your catering niche
| Type | What it involves | Delivery needs |
|---|---|---|
| Drop-off catering | Trays and boxed meals delivered, no staff on site | A timed delivery, often to offices |
| Corporate and office catering | Recurring lunches and meetings | Scheduled deliveries, often weekly |
| Full-service events | Weddings and parties with staff, setup, and service | Equipment, food, and staff to the venue |
| Specialty | One cuisine, dietary focus, or format such as grazing tables | Varies |
Drop-off and office catering are the usual starting points: lower startup cost, no service staff, and clients who reorder.
Step 2: Find a licensed kitchen
Cottage food laws cover low-risk foods that don’t need temperature control. Catering menus rarely fit. Florida, for example, excludes meat, dairy, and baked goods that need refrigeration (UF/IFAS Extension), and Texas excludes meat and poultry from cottage food (Texas DSHS).
So most new caterers rent time in a shared or commissary kitchen. In a 2023 survey of 161 operators, 76% charged $10 to $29 an hour (The Food Corridor). Ask each kitchen about cold and dry storage, which are usually billed separately, and where vans can load. Our guide to commissary kitchens covers what to compare.
Other options are renting a restaurant’s kitchen during closed hours, or building your own once volume justifies it.
Step 3: Register the business, get permits and insurance
The paperwork follows the SBA’s launch checklist: location, business structure, name, registration, federal and state tax IDs, licenses and permits, a business bank account, and insurance (SBA). The federal tax ID, an EIN, comes straight from the IRS at no charge (IRS).
For a caterer, the permits usually include:
- A food permit for your catering operation from the local or state health department, tied to your licensed kitchen
- Food safety certification, such as a food handler card for staff and a manager certification for you; ServSafe Manager costs about $195 (The Food Corridor, 2026)
- A sales tax permit, if your state taxes catering sales; check with its tax agency
- Event permits where a venue or city requires them
Insurance: shared kitchens usually ask for at least $1M in general and product liability coverage, with the kitchen named as an additional insured (The Food Corridor, 2026). Venues often ask for the same. If you or your staff drive for work, ask your agent about commercial or hired and non-owned auto coverage.
Step 4: Price your catering
Price per person, then list what’s included:
| Line | What it covers |
|---|---|
| Food per person | Ingredients, packaging, and kitchen labor, plus margin |
| Delivery | Distance, timing, and vehicle size |
| Setup | Arranging food and equipment on site |
| Staff | Servers and attendants, per hour |
| Rentals | Chafing dishes, linens, serving ware |
Many caterers set a minimum order or headcount for delivery, so small orders don’t lose money on the drive. Price delivery from a real quote: enter your kitchen and a typical client address in the delivery cost calculator.
Step 5: Find your first catering clients
The clients that reorder are the ones to chase first:
- Offices. Office managers and executive assistants often order team lunches and meeting food on a regular schedule. A reliable 11:45 a.m. delivery wins repeat business.
- Event planners and venues. Many venues keep preferred vendor lists. Ask how to get on them.
- Your existing network. Weddings, parties, and community events lead to referrals.
- Online. A clear menu with per-person prices, minimums, and lead times on your website and Google Business Profile.
Every one of those clients judges you first on whether the food arrived on time and right.
Step 6: Plan delivery like part of the menu
Catered food has a clock. In transit, hot dishes should stay wrapped or insulated at 140°F or hotter and cold dishes at 40°F or colder, and nothing should sit out longer than 2 hours, or 1 hour when it’s above 90°F (FoodSafety.gov).
That makes delivery a scheduling job:
- Time the pickup to when food comes off the line, not to when a driver is free.
- Pack in insulated carriers that hold temperature for the drive plus setup.
- Use a vehicle where pans ride flat, such as a minivan or cargo van for large orders.
- Arrive before the serving time, with room for parking, the elevator, and setup.
- Get proof of drop-off time and condition, such as a photo.
Book event and office orders as scheduled deliveries; keep on-demand for a forgotten item. Our guide to scheduled versus on-demand delivery explains the difference, and in-house delivery versus a courier service compares owning a van with paying per delivery.
We run scheduled catering deliveries in 100 US metro areas, including a courier service in Dallas, Las Vegas, and San Antonio, in vehicles up to cargo vans. Every delivery has live tracking and a photo at drop-off, and you can keep a preferred list of couriers who already know your kitchen. See our catering courier service.
Frequently Asked Questions
Can I start a catering business from home?
Usually not for full catering menus. Cottage food laws cover low-risk foods that don’t need temperature control, and most catering food does. Plan on a licensed commercial kitchen.
What licenses do I need to start a catering business?
Typically a business registration and tax IDs, a food permit for your catering operation from the health department, food safety certification, a sales tax permit, and any event permits a venue or city requires. Requirements vary by state and county.
How much does it cost to start a catering business?
It depends mostly on the kitchen. Renting a shared kitchen commonly costs $10 to $29 an hour (The Food Corridor), plus storage, insurance, equipment, and certification. Building your own kitchen costs far more.
How do I get catering clients?
Start with clients who reorder: office managers ordering weekly lunches, event planners, and venues with preferred vendor lists. A clear online menu with per-person prices and lead times helps.
How do caterers keep food hot during delivery?
Insulated carriers that keep hot food at or above 140°F, a pickup timed to when the food is ready, and a delivery timed to the serving window.
The Bottom Line
A catering business is a licensed-kitchen business from day one. Rent a shared kitchen, get your food permit and insurance, start with drop-off and office catering, and price per person with delivery and setup included. Then treat delivery like part of the menu: timed to the kitchen, held at safe temperatures, and on site before serving. To price a delivery from your kitchen, use the delivery cost calculator.