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

Updated: January 18th, 2023
Start A Catering Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

The cost of opening a a catering business can vary based on several factors. However for a a catering business you can expect to spend $62 to $93,577 with an average cost of $49,284.

  • The minimum startup costs for a catering business: $62
  • The maximum startup costs for a catering business: $93,577
  • The average startup costs for a catering business: $49,284

Here's a detailed list of a catering business startup costs:

Learn more about starting a catering business:

Where to start?

-> Pros and cons of a catering business

Need inspiration?

-> Other catering business success stories
-> Examples of established catering business
-> 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