Catering Business

How Much Does It Cost To Start A Catering Business? (In 2024)

Pat Walls

•

Updated: January 18th, 2023

Looking to start a catering business?

But curious about:

how much it costs to start a catering business?
what are the typical catering business startup costs?
or the actual cost of starting catering businesses?

Well, we have the data to prove it, supported by real catering businesses and how much they actually cost to start.

Let's go over it.

Learn more about starting a catering business:

Where to start?

-> Pros and cons of a catering business

Need inspiration?

-> Other catering business success stories
-> Marketing ideas for a catering business
-> Catering business slogans
-> Catering business names
-> Catering business Instagram bios
-> Catering business Instagram captions

Other resources

-> Catering business tips
-> Email templates for a catering business
-> Blog post ideas for a catering business

Equipment & Supply Expenses

Starting a catering business may require purchasing some equipment, whether that's for producing the product or packaging the goods, or equipment needed in the back office.

Cost	Required?	Min Cost	Max Cost
Cleaning Supplies ➜	Optional	$63	$200
First-aid Equipment ➜	Optional	$3	$500
Uniforms	Optional	$0	$500

Retail Business Expenses

If you plan to have a brick & mortar location for your catering business, you must weigh the costs of your rent, as it may be the most expensive part of running your business.

Rent costs for your catering business very much depends on your location. This cost will vary by both region and specific areas of town: a lease in the heart of Manhattan could cost over $80,000/month in rent. Meanwhile, a storefront lease in Florida or Tennessee could cost less than $1,000/month.

Cost	Required?	Min Cost	Max Cost
Shop Decor	Optional	$0	$5,000
Utilities (storefront business)	Optional	$0	$1,000
Building improvements and remodeling	Optional	$0	$950
Storefront Property Rent ➜	Optional	$1,250	$3,500
POS System	Optional	$0	$1,200

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Cost	Required?	Min Cost	Max Cost
Set up business: LLC & Corporations	Required	$50	$500
Small Business Insurance	Recommended	$500	$2,000
Permit and License Fees	Optional	$50	$700
Lawyer Fees	Optional	$0	$1,500

Software Expenses

Your catering business needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Cost	Required?	Min Cost	Max Cost
Email marketing tool	Recommended	$0	$100
Accounting & Invoicing Software	Recommended	$0	$50
Internal Communication Tool	Recommended	$0	$20
IT Support ➜	Optional	$150	$2,000
Social Media Management Tools	Optional	$0	$50
Payroll Software	Optional	$0	$200

Employee & Freelancer Expenses

Cost	Required?	Min Cost	Max Cost
Payroll Costs & Fees ➜	Optional	$150	$250
Employee Hiring Expenses	Optional	$1	$2
Employee Rewards ➜	Optional	$0	$100

Website Costs

Every business should have a website, and it's worth spending a bit of money to set it up right.

Cost	Required?	Min Cost	Max Cost
Domain Name ➜	Required	$12	$200
Website Hosting Costs ➜	Required	$0	$300
Website Builder ➜	Recommended	$10	$500
Business Email Hosting Service ➜	Recommended	$1	$15
Website & Live Chat Tool	Recommended	$0	$200
Web Designer ➜	Optional	$200	$6,000

Inventory Expenses

If you sell a physical good, you'll likely have to start with some inventory.

Cost	Required?	Min Cost	Max Cost
Upfront Costs For Inventory	Optional	$300	$5,000
Inventory Storage	Optional	$0	$5,000
Package Design ➜	Optional	$50	$3,000
Shrinkage	Optional	$0	$1,000
Distribution costs	Optional	$0	$750

Food Business Expenses

Cost	Required?	Min Cost	Max Cost
Kitchen Appliances	Optional	$2,000	$25,000
Food Licenses	Optional	$100	$500
Kitchen Facility	Optional	$0	$10,000
Initial Ingredients	Optional	$25	$500

Vehicle Expenses

Cost	Required?	Min Cost	Max Cost
Mode of Transporation	Optional	$0	$10,000
Commute cost	Optional	$2	$4

Advertising & Marketing Costs

Cost	Required?	Min Cost	Max Cost
Business Cards ➜	Optional	$0	$50
Customer Research & Surveys	Optional	$0	$300
Local fairs and festivals	Optional	$0	$500
Business Signage ➜	Optional	$75	$2,486
Direct Campaigns, Printing and Mailing	Optional	$0	$300
Affiliate Marketing Commission & Fees	Optional	$0	$250
Influencer Marketing	Optional	$0	$750
Google Ads	Optional	$0	$300
Facebook & Instagram Ads	Optional	$0	$350