Starting Your Own Catering Business - The Basics

Off Premise Caterers usually fall into three categories.

Party food caterers:

A party food Caterer will supply only the food for an event, usually in disposable containers. Either the customer picks up the food from the catering kitchen, or sometimes, the party food caterer delivers the food, but the party host is responsible for set up and clean up and usually provides all the small wares needed to serve the food.

Buffet caterers:

A Buffet Caterer will provide the food, deliver the food, set it up and serve buffet style with the the party goers serving themselves from the line. They usually have hot and cold holding pan equipment so that the food they serve is at proper temperature. They set up and clean up before and after the party.

Full-service caterers:

A full service caterer will not only provide food, but they also cook it to order on-site on countertop cooking equipment they bring with them. A full service caterer will also take care of providing and setting up the decor, table settings, china, glassware, silverware, tables and chairs, linen, tents, and more. They can also provide wait service personnel as well as parking and security personnel; whatever is required. Full Service Caterers will help arrange for other services, such as music, and entertainment.

Fortunately you can start a small catering service business simply as a party food caterer and as your experience, business and profits grow, work into being a buffet caterer and then a full service caterer.

Before Investing In Your Catering Business, Research Local Licensing and Regulations

Do local research on Business licensing as well as Food Service and Alcohol licensing and regulations. Some cities will require you work from a commercial kitchen. Know the city, county and state regulations both where you are preparing the food and also the regulations in the city and state where you are serving the food. It’s not hard. Call the city clerk. They will connect you with the right individuals to make certain you are always doing business in a manner that satisfies local regulations. You will need a Fed ID number, a State ID and a City license. In some cases you will need a temporary single use city vending license for serving food at an event within that particular city.

Bonding & Insurance for your Catering Business

A catering company may be able to provide services with just a city license, but if they are providing services on private property, it is important they and their employees are bonded as well. If a company is bonded, it means that a bonding company has set aside money that is controlled by the state and not the company to pay in the event that the client files a claim against the company.

Insuring your catering business is also a necessity. Look for “Food Liability Insurance”. You will find different packages. At the very minimum, you must carry liability insurance. You must be covered if someone is hurt by your food or equipment. You should also consider covering your equipment in case it is lost, stolen or damaged. You will want coverage that protects you if you your catering service does any harm to your client’s property. Customers will expect to see proof of insurance and in some cases will ask you to add their event location as an “additional Insured”. The request can be a person or an organization and covers them from a lawsuit if your negligence causes someone to be injured or hurt at their function. This is a common and not out of line request from your customer.

Organization is Key to a Successful Catering Business

Organize your planning and scheduling with a calendar. The use of a cloud based calendar that everybody has access to all the time and everybody can add to is perfect. Of course you can pay for an app, or just use what is free such as google Calendar or you can create your own free one on a google sheet or microsoft onenote.

Create a Food Prep Production Sheet. Use your menu and divide by each and every menu recipe into into food products needed, cost of each food product item and a place to extend that cost to the number of people being served. Additionally on this sheet the time requirements needed for preparation and place to extend the labor cost.

Create a Detailed Worksheet. These sheets tell your staff what needs prepped, the date it needs prepped, how much needs prepped, and who is going to do the prepping. These Detail Sheets also provide you or your employee a detailed list with a check off what needs to go to the event, including food, the linens, the flatware, the cooking and holding equipment, the cleaning supplies, incidentals such as matches,lighter, first aid kit, trash bags. The detailed list if checked off should be so complete, that nothing is ever left behind. Have your employees sign off on the list before leaving your workplace.

Of course there is plenty software out there already put together by catering professionals. If you cannot manually create your own organization sheets, then purchase the software. Some popular choices for catering management software is Total Party Planner, Cater Ease, or Better Cater. However you choose to organise your business, doing so will increase products and help to guarantee happy customers and a successful catering business.

What Equipment is Needed For Your Catering Business?

Of course this is going to depend on if you start your catering business as a Party Food Caterer, a Buffet Caterer, or a Full Service Caterer. But the one thing they all share in common, is that you should plan your menus you would like to offer your clients and build your equipment needs from the menus you have planned. Stick to what you know and food you have tested with friends and family. Create menus that would be appropriate for different audiences and different events.Do not forget the beverages. As well as the usual coffee and tea urns, special equipment is needed for dispensing beer and wine. Base your menu prices on the cost of food, labor to prep and serve. Don’t forget employee benefits and taxes in labor costs. Remember that your labor cost is more than the salary or hourly wage you pay your employee.

When your menu is planned, create your catering equipment and supply list from your menu.

Rapids Wholesale Equipment has been supplying restaurant and catering equipment since 1936. If you have questions, someone knowledgeable and kind is always on hand to answer your questions and Rapids is always delighted to help supply new business owners get started in the catering business. Visit our website, or sign up to receive our catalog. If you have questions, feel free to chat, email or call us at: 1-800-472-7431