Kitchen Operations
How to Start a Catering Business: Licenses, Kitchens, and Food Safety
Starting a catering business is mostly a permit and kitchen question. Here is the order to do things in, and the food safety rules that apply once food leaves the kitchen.
Key takeaway
Before you buy equipment or book an event, ask your local health department what permit a caterer needs and which kitchen it will approve. Almost every other decision depends on that answer.
To start a catering business, you choose your catering model, register the business, get a food service or catering permit from your local health department, and prepare food in a health-department-approved commercial kitchen. Most jurisdictions also expect a certified food protection manager on staff. Home kitchens usually do not qualify.
Most advice on starting a catering business focuses on menus, marketing and pricing. Those matter, but they come later. The step that trips up new caterers is regulatory: food served to the public has to come from an approved source, and the health department decides what counts. Get that answer first and the rest of the plan falls into place. Get it wrong and you can end up with equipment, a menu and a client list you are not allowed to serve.
What are the three main types of catering?
Catering businesses sort into a few models, and your model drives your permit, your kitchen and your food safety risks.
| Model | What it looks like | Main food safety challenge |
|---|---|---|
| Drop-off catering | You prepare food, deliver it, set it up and leave | Food sits at the client's site with no one controlling temperature |
| Full-service event catering | Your staff cook, serve and clear at weddings, parties and events | Holding food hot and cold for hours at a site you do not control |
| Corporate catering | Recurring breakfasts and lunches for offices | Volume, tight delivery windows and allergen labeling |
| On-site or venue catering | You operate the kitchen inside a venue or facility | The venue's kitchen must meet code and your permit must cover it |
Many caterers mix these. The point of naming your model early is that health departments ask about it. Serving food you transport and hold at an event is a different risk from serving it straight from the line, and the permit application will reflect that.
Can I start a catering business from home?
Usually not. This is the most common question new caterers ask, and the answer surprises people.
Most states have cottage food laws that let people sell certain foods made in a home kitchen. Those laws typically cover shelf-stable items such as bread, cookies, jams and dry mixes. They generally exclude foods that need time and temperature control for safety, such as cooked meats, rice, cut fruit, dairy dishes and most of what a caterer serves. The exact list varies by state.
The reason is the approved-source principle in the FDA Food Code, which most states adopt in some version. Food served to the public must come from a source the regulatory authority has approved. A home kitchen shared with family, pets and household cleaning is not built or inspected to that standard. The TCS foods hub explains why these foods are the ones regulators worry about.
A few jurisdictions do allow a licensed kitchen in a home, but it is usually a separate, inspected kitchen, not the one you cook dinner in. Ask your local health department before you assume either way.
What licenses do I need to start a catering business?
Requirements are set by your state, county and city, so the list changes with your address. The typical set looks like this.
- Business registration, such as an LLC or sole proprietorship, plus a federal Employer Identification Number if you will hire staff
- A food service or catering permit from your local health department, often tied to the kitchen you name on the application
- A sales tax permit in states that tax prepared food
- Food manager certification for the person in charge, where your jurisdiction requires it
- Food handler cards for staff, in states and counties that require them
- A liquor license or event permits, if you serve alcohol, which is often handled separately
- Business insurance, which many venues require before they will let you in
The U.S. Small Business Administration has a general guide to registering a business and applying for licenses. For the food side, our guide to restaurant licenses and permits walks through the health department process in more detail. Much of it applies to caterers too.
Where will you cook? Choosing a kitchen
Since most caterers cannot cook at home, you need a permitted kitchen. The common options are these.
Rent a commissary or shared-use kitchen. You book prep time and storage in a kitchen that already holds approvals. This is the usual starting point because it avoids the cost of building. Our guide to what a commissary kitchen is covers what to check before signing.
Rent an existing restaurant kitchen during off-hours. Some restaurants rent their kitchen when they are closed. Your health department will usually need to approve the arrangement, and you will need a written agreement.
Build or lease your own commercial kitchen. This gives you control and capacity, but plans usually need health department review before construction. Read commercial kitchen requirements before you sign a lease.
Whichever you choose, pick for cooling capacity and cold storage before price. Caterers cook in large batches, and cooling big volumes quickly is where kitchens most often fall short.
Food safety rules that matter most for caterers
Catering carries more food safety risk than a restaurant because food travels. It leaves a controlled kitchen, rides in a vehicle and sits at a site that may have no handwashing sink, no refrigeration and unpredictable service times.
Holding temperatures. Under the FDA Food Code, hot TCS food is held at 135°F or above and cold TCS food at 41°F or below. Insulated carriers, chafing dishes and ice baths only work if someone checks them with a thermometer. The hot and cold holding hub covers the details.
Time as a control. When holding equipment is not practical, the Food Code lets operations use time instead of temperature under specific conditions, often with written procedures the health department may need to see. The time as a method of control hub explains how it works.
Handwashing at the event. Many event sites have no sink near the serving area. Your health department may require you to bring a portable handwashing station.
Allergens. Buffets and plated events mix many dishes and many guests. Label dishes clearly, keep serving utensils separate and train staff to answer allergen questions accurately.
A written system. The strongest caterers write their procedures down: what gets cooked when, how it is cooled, how it is packed and how long it can be held on site. That is the core of a food safety management system, and it is what inspectors look for.
The CDC notes that foodborne illness outbreaks are often linked to improper holding temperatures and poor personal hygiene. Both risks go up when food leaves the building.
How do I start a small catering business?
Start small, but start in order. A sensible sequence for a one- or two-person operation:
- Pick your model and a short menu. Fewer dishes mean fewer holding and allergen problems.
- Call your local health department. Ask which permit a caterer needs, what kitchen they will approve and whether you need a certified manager.
- Secure a kitchen that meets their requirements.
- Register the business and get your tax IDs and insurance.
- Get certified. Earn your food manager certification and make sure any staff have the food handler cards your area requires.
- Apply for your permit and pass any required inspection.
- Test your logistics with a small event: carriers, thermometers, travel time and setup.
Doing step 2 first saves money. Several of the later steps, including the kitchen and the equipment you buy, depend on what the health department tells you.
Is a catering business profitable, and how much does it cost?
It can be, but there is no reliable industry-wide profit figure for small caterers, and startup costs depend almost entirely on your kitchen choice. Renting commissary time keeps upfront costs low. Building your own kitchen raises them sharply. Equipment, vehicles, insurance and permits all vary by location.
What makes catering attractive is that events are booked in advance, so you buy food for a known guest count. That reduces waste compared with a restaurant. What makes it hard is uneven demand and the labor cost of events. Price your menus from your own costs, not from a competitor's price list.
What this means for you
If you are planning to cater: treat the health department as your first call, not your last. Your permit, your kitchen and your food safety plan are linked, and the department's answer shapes all three.
If you will run the kitchen yourself: plan on holding a food protection manager certification. Our guide to the certified food protection manager explains who needs one and why. Off-site service, holding and time as a control are all tested on the ServSafe Manager exam, which passes at 70%, at least 56 of the 80 scored questions.
If you will hire staff: check whether your state or county requires food handler cards, and budget time for training before your first event.
Frequently asked questions
Is a catering business profitable?
It can be. Catering has an advantage over restaurants because events are booked ahead with a known guest count, which reduces food waste. Profit depends on your kitchen costs, labor and pricing. No reliable industry-wide profit figure exists for small caterers, so build your prices from your own food, labor and kitchen rental costs.
How much money do you need to open a catering business?
It depends mostly on where you cook. Renting commissary or shared kitchen time keeps upfront costs low, while building your own commercial kitchen costs far more. Permits, insurance, equipment and a vehicle vary by location. Get quotes locally and check your health department's permit fees before setting a budget.
Can I start a catering business from home?
Usually not. Cottage food laws in most states cover shelf-stable items like baked goods and jams, not the cooked, time and temperature controlled foods caterers serve. Most caterers work from a permitted commercial or commissary kitchen. A few jurisdictions allow a separate licensed kitchen in a home, so ask your health department.
What are the three types of catering?
The most common split is drop-off catering, where you deliver and leave, full-service event catering, where your staff cook and serve on site, and corporate catering for recurring office meals. Some caterers also run on-site catering inside a venue. Your model affects your permit and your food safety risks.
Do caterers need ServSafe certification?
Many jurisdictions require a certified food protection manager in food establishments, and health departments often treat caterers the same way. ServSafe Manager is one accredited option. Staff may also need food handler cards depending on your state or county. Check your local health department's rules before your first event.
What license do I need to sell food at events?
Usually a catering or food service permit from your local health department, and sometimes a separate temporary event permit for each event. Requirements vary by city and county. If you serve alcohol, you typically need separate alcohol licensing. Our guide to temporary food permits covers event-specific rules.
Planning to run your own kitchen? The ServSafe Manager track covers holding, off-site service and every other topic on the certification exam.
Sources
- FDA Food Code 2022, including hot and cold holding requirements and time as a public health control
- FDA: FDA Food Code overview, how states and localities adopt the Food Code
- CDC: Food Safety, foodborne illness and its common causes
- ServSafe Manager, the food protection manager certification
- U.S. Small Business Administration: Apply for licenses and permits
- U.S. Small Business Administration: Get federal and state tax ID numbers
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