How Much Does It Cost to Start a Catering Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 27
- 2 min read
Starting a catering business can be a profitable and fulfilling venture, especially if you’re passionate about food and events. Whether you plan to serve weddings, corporate functions, charity events, or private parties, understanding the startup costs is essential for budgeting and long-term success.
At Wexford Insurance, we specialize in helping catering and food service businesses protect their operations with tailored catering business insurance. In this guide, we’ll break down the typical costs involved in launching a catering business and how to plan for them.
Average Startup Costs for a Catering Business
The cost to start a catering business can range from $10,000 to $50,000+, depending on your location, scale, and services. Here's a breakdown of key expenses:
1. Licensing and Permits – $500–$2,000
You’ll need:
Business license
Food handler’s permit
Health department approval
Commercial kitchen certification
2. Commercial Kitchen Rental or Setup – $1,000–$10,000+
You can rent a shared kitchen or build your own. Costs vary based on:
Location
Equipment availability
Monthly rental fees
3. Catering Equipment – $5,000–$15,000
Essential items include:
Food warmers and coolers
Prep tables and utensils
Serving trays and chafing dishes
Transport containers
4. Marketing and Branding – $500–$3,000
Initial costs may include:
Logo and branding
Website development
Business cards and flyers
Social media setup
Market Your Catering Business with Contractor Back Office
Contractor Back Office helps catering businesses build a strong brand by managing websites, Bookkeeping and social media platforms. These tools support your marketing and branding efforts by showcasing your menu, promoting events, and engaging with clients—helping you grow your business from day one.
5. Staffing and Labor – Varies
If you hire chefs, servers, or delivery drivers, factor in:
Hourly wages
Training costs
Uniforms
6. Insurance Coverage – $500–$3,000/year
Protect your business with:
7. Initial Inventory and Supplies – $1,000–$5,000
Includes:
Ingredients
Disposable serving items
Cleaning supplies
Estimated Costs
Expense Category | Estimated Cost Range |
Licensing & Permits | $500 – $2,000 |
Kitchen Rental/Setup | $1,000 – $10,000+ |
Catering Equipment | $5,000 – $15,000 |
Marketing & Branding | $500 – $3,000 |
Staffing & Labor | Varies |
Insurance Coverage | $500 – $3,000/year |
Inventory & Supplies | $1,000 – $5,000 |
Total Estimated Range | $10,000 – $50,000+ |
Cost-Saving Tips
Start small with limited menu offerings
Rent equipment instead of buying
Use a shared kitchen space
Focus on high-margin events like corporate catering
Final Thoughts
Starting a catering business requires a thoughtful investment—but with the right planning and protection, it can be a highly rewarding endeavor. At Wexford Insurance, we help catering entrepreneurs secure the coverage they need to launch and grow with confidence.
