Starting a catering business takes more than cooking talent. You need licenses, systems, pricing, and clients before the first event. This guide walks you through the essentials so you launch with a real business — not just a hobby that sends invoices.
What licenses and permits does a catering business need?
Requirements vary by state and city, but most caterers need a business license, a food handler's permit, and a commercial kitchen certification or licensed commissary agreement. Some municipalities require a separate catering permit on top of your general food service license. Check with your local health department before you take a single paid booking.
Liability insurance is non-negotiable. A general liability policy protects you if a guest has an allergic reaction or if something goes wrong at a venue. Many venues will not allow you on-site without proof of insurance, so secure it early.
How to handle the commercial kitchen requirement
Most states prohibit catering from a home kitchen. Your options are renting a licensed commissary kitchen by the hour, partnering with a restaurant that rents their space during off-hours, or eventually building or leasing your own commercial space. Commissary rentals are the most practical starting point — they keep overhead low while you build your client base.
- Commissary kitchen: Pay per hour, no long-term commitment, lowest startup cost.
- Restaurant partnership: Negotiate a monthly rate for off-peak hours, typically early mornings.
- Shared commercial space: Some cities have food incubators with affordable long-term leases.
How to price your catering services from day one
New caterers consistently underprice. They calculate food costs and forget labor, transportation, equipment rental, kitchen rental, packaging, and their own time. A useful starting formula: food cost should be 28–35% of your total price. If a meal costs $12 per head in ingredients, your minimum price is around $34–43 per person before adding service fees.
Get more depth on this in our complete catering pricing guide.
Build your business systems before you get busy
The biggest mistake new caterers make is handling everything manually. Quotes in email threads, contracts buried in inboxes, payments chased via text. Once you have three events booked simultaneously, that approach falls apart. Set up your client management and invoicing system at the start — not after the chaos hits.
Threecus is built for exactly this: service businesses that need to track leads, send contracts, and collect deposits without switching between five different tools. Having it in place from day one makes every new booking feel manageable instead of overwhelming.
How to get your first catering clients
Your first clients will almost always come from your personal network. Tell everyone you know that you are launching. Offer to cater a small event at a reduced rate in exchange for photos and a testimonial. Those photos and that testimonial will do more marketing work than any ad campaign in your first year.
From there, focus on referral relationships with event venues, wedding planners, and corporate event coordinators. These referral partners can send you consistent work once you have proven yourself. See our guide on how to get catering clients for a full strategy.
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