How to start a catering business

You may wish to start a catering business if you love cooking and customer service. It can be difficult to build a solid client base and a reputation if you do not work hard and market your business well.

Starting a mobile or home-based catering business involves many steps, including choosing a niche, writing a business plan, getting a food license, and getting insurance.

Starting a catering business UK

Starting a catering business in the UK requires careful planning and attention to detail, but can be a rewarding venture for those with a passion for food and hospitality. To begin, it’s important to conduct thorough research into the local market and target customer base. Developing a solid business plan that includes financial projections, marketing strategies, and a pricing strategy is essential for success.

In the UK, catering businesses must comply with a range of health and safety regulations, and obtaining the necessary licenses and permits is crucial. Additionally, it’s important to consider factors such as sourcing ingredients and supplies, developing a menu that appeals to a diverse range of customers, and building a strong brand identity. With the right approach and a focus on delivering exceptional service and high-quality food, a catering business can thrive in the UK market.

Who is catering suited to?

It’s not easy to prepare tasty and healthy meals for 200 people in a short period of time. Catering knowledge will still be essential even if your business has a head chef to handle the food preparation.

Consider taking some courses if you don’t have the necessary experience. There are NVQ’s and SVQ’s available in Catering Hospitality if you do not have the time or money for a degree. A catering business is a good place to gain managerial experience, at the very least, to gain an understanding of how everything works.

Choose your catering niche

When a market is so crowded, it’s essential to carve out a niche for yourself. You need a unique and compelling proposition to set yourself apart from the competition, regardless of what cuisine you enjoy or what gap in the market you’ve identified.

If you choose to make certain types of food, you will most likely choose to work at certain types of events, which in turn will inform your marketing and branding strategy.

Private catering and corporate catering are generally the same:

• Private – birthdays, weddings, anniversaries, funerals
• Corporate – catering for business events including office parties, awards ceremonies and other evening events, networking events and large meetings

There is more to what you offer than just food; you offer a complete service; an event, an occasion, an experience. Your business needs to offer people a reason to choose you over your competitors.

Invest some time in researching your local market. What is already available? Is there anything you could do better than others?

The corporate catering market

As part of our business sector offerings, we will provide cold sandwiches and other pre-cooked snacks for business meetings and training courses, but may also provide drinks and servers for business breakfasts and evening receptions.

Repeat business is one of the major advantages of corporate clients. Regular suppliers are highly valued by businesses, so if you provide a good service at a reasonable price and you are reliable, you will become invaluable to them. When they need catering in the future, they will remember you and contact you.

Since you’ll be preparing food on short notice, for several different businesses over the week, gastronomic quality won’t be the main concern since you’ll be serving the food at short notice. This sector may require more organisational skills than culinary skills.

When you become the preferred supplier to a large client base of businesses, focusing on the corporate market can help you grow your catering business quickly. The competition for this position is fierce, and you’ll have to put in a lot of effort if you want to succeed.

It’s important to ensure that you don’t have a cashflow gap between paying suppliers and waiting for client payments if you’re considering corporate catering. You’ll also want to consider invoice payment terms, as well as invoice factoring (more about invoice factoring here).

The private catering market

The private sector would also be a good target for your catering services. Weddings, funerals, and birthday parties are mostly the types of events for which this company will cater. You will need good culinary skills to run this type of business, since your menu’s quality and variety will be your key selling point, as well as the flexibility to fulfil any special requests clients might have.

If you want to stand out in the highly competitive private market, you should offer extra services. The more that you can save your clients time, effort, and money, the more likely they are to come back to you. This is a good way to diversify your revenue streams and attract more clients.

Instead of focusing on weddings, you might consider a niche in a certain type of cuisine, or even offering themed parties such as Mexican nights or hog roasts.

Decide how to start your catering business idea

You can run a catering business from your home, as a mobile catering business, or from a fixed location once you know what type of cuisine and service you’re going to offer.

Choosing which one is right for you depends on your ambitions and their advantages and disadvantages.

Home catering business

A home can double up as a catering operation as long as it has the necessary space and facilities. As a result, rental costs and equipment purchases will be reduced.

You might need to invest in some larger capacity equipment if you plan on making large quantities of food for a lot of people.

Mobile catering

Mobile food vans are becoming increasingly popular at events due to the explosion in street food businesses in the UK.

You can cater anywhere you are needed with a mobile catering business. Whether it’s a weeklong music festival or a single-day event, or even a wedding, you can pitch your van up anywhere.

Fixed site catering business

You can keep your work and home lives separate by operating from a specially rented or purchased site. Furthermore, your business will appear slick and professional since you will have much more storage space and large kitchen facilities.

In London and throughout the UK, you can rent fully-equipped professional kitchens to get started right away.

Develop your catering business plan

Business plans are the cornerstone of any successful catering operation, whether it’s a home-based or mobile operation. By crafting one, you’ll be able to develop a solid action plan with a clear goal in mind.

As part of your business plan research, you’re going to analyse your target market, find out who they are and how many they could potentially purchase from you.

It should include the following information:

• You, the business owner. Are you qualified and experienced in the catering industry? Do you have experience running a catering business? Have you ever worked as a chef or waiter?
• The business. Can you tell me what the mission of your catering business is and how it differs from those of existing caterers? What is the location of catering staff? What are the plans for financing the business?
• The service. Can you tell me what type of cuisine you will be making? What is the source of your equipment and supplies? Will you be subject to any red tape or regulations? What insurance will you need?
• The market.How will you reach your customers? Who are your customers? What is the size of your target market?
• Strengths, weaknesses, opportunities and threats. How does your catering business differ from the competition? What are the ways in which you are disadvantaged over your competitors? Does your catering business face any threats?
• The competition. You can also look for indirect competitors, such as restaurants and cafes, in your local area. Where do they excel, where do they fail, and what can you do to improve?
• Start-up costs and sales forecast. Set out all costs associated with setting up your catering business, such as purchasing food and equipment, renting premises or a van, paying bills, obtaining insurance, paying staff wages, and developing your website.

Putting together your catering business plan is a great way to establish the feasibility of your business and determine how much funding and budget you’ll need.

In addition to proving the viability of your catering business to investors, your catering business plan is a valuable marketing tool.

Work out what catering licences you need

There are certain risks involved in any business involving food service to the general public. In order to prove that you are a legitimate vendor, you need the proper licenses to prevent contamination and illness.

Food business registration/ approval

Registration is required for all businesses engaged in ‘food operations’. The following are included:

• Selling food
• Cooking food
• Storing or handling food
• Preparing food
• Distributing food

Whether it’s your home or even a mobile/temporary space like a stall or a van, every premises where any one of the above activities is carried out must be registered.

Unless you intend to sell directly to consumers, your premises must be approved by the council before you make, prepare or handle meat or dairy products.

You will need a licence from your local authority if you intend to sell or supply alcohol.

Food safety and hygiene regulations

Your role will require you to ensure compliance with food safety and hygiene regulations for your catering company. It is possible for a financial penalty or even a prison sentence to result from failure to do so.

There is no warning needed for your local council to inspect your premises, food, records, or procedures.

There are a number of rules that govern any food preparation business, including:

The business premises: Facilities for lavatory, hand washing, drainage, lighting, pest control, and lighting are necessary to make sure the premises are clean and in good repair.

The room in which food is prepared: Has surfaces that are easy to clean and disinfect (walls, floors, and tabletops), equipment that can be washed, stored, and waste removed.

The food handlers: They should observe good personal hygiene and wear clean clothes. All aspects of food hygiene should be taught to them, including not smoking while preparing food.

Equipment, containers and vehicles used to transport food: The equipment, containers, and vehicles should be designed to be easily cleaned and maintained in an hygienic condition. Cooked food is often transported in refrigerated vans.

Food storage: Food and food waste should be stored in closed-lid containers immediately after being removed from surfaces. Foods that are ready-to-eat uncooked, cooked, and dairy products are all subject to temperature controls. Most caterers must use refrigerated vehicles to transport these foods because they must be stored below 8°C.

Fire safety

Fire safety is the responsibility of every business, and if you don’t follow the rules, you could be fined or sentenced to prison.

Catering kitchens carry obvious risks due to the abundance of open flames in enclosed spaces.

To ensure that your property is compliant, you can arrange for a fire and rescue authority to inspect it and make any necessary changes.

Get catering insurance

Having adequate catering insurance policies can protect caterers in a variety of situations. As an operator, you’ll be working in unfamiliar venues, renting equipment, and interacting with new people all the time.

If you fail to do so, you could face financial hardship and even be forced to close your business.

Caterers are offered a variety of specialised advice and protection by the Nationwide Caterers Association (NCASS) to help ensure their safety, legality, and profitability.

Catering public liability insurance

Keeping in touch with the public is essential for the success of your catering business.

You will be covered by a public liability policy if a customer becomes ill after eating your food along with any claims for injuries and property damage.

Catering employer’s liability insurance

Whether your catering business has 100 employees or just one, you must have employer’s liability insurance. It does not matter whether they are contractors, temporary agency employees, or full-time employees.

You will be protected against a claim if a staff member falls ill or is injured on the job.

Catering van insurance

It’s vital that you insure your catering van or trailer if you run a mobile catering business.

According to the nature of your business, you can take out a wide range of policies.

Fire damage and theft should also be covered in your policy (exposed flames inside vans pose an obvious threat).

Get catering equipment

Catering equipment is necessary for starting a catering business.

Cooking and preparing food will determine what kind of kitchen equipment you need.

Including refrigerators, ovens, hobs, fryers, grills, and other food preparation equipment is necessary for basic catering operations.

Despite the fact that they’re expensive to run and take a long time to set up, many catering establishments don’t have one. You can wash up any necessary utensils or crockery whenever you need it with a simple sink and willing washer.

Choosing catering equipment should be a sensible decision. Don’t overbuy and end up underprepared. Don’t cut costs either.

Your business plan should detail all the equipment you may need.

For different events, you might also need different equipment. There may be some that require you to bring your own crockery and cutlery, and there may be others that provide it for you.

Catering utensils

The next step is to buy all the utensils you’ll need for food preparation after getting your large equipment sorted for cooking and storing.

It may be necessary to invest in other specialist equipment depending on your catering business’s needs. You can use it to prepare, cook, and serve all your basic foods.

Mobile catering equipment

A catering trailer or van is what you’ll need if you run a mobile catering business.

Pre-owned vans usually come equipped with most of the equipment you need. Ensure that it is in good working order and safe. You will need most of the same utensils.

On the NCASS website, you’ll find plenty of catering vans and trailers.

When supplies and equipment aren’t in use, you’ll need some storage space. You may need to take out a particularly large unit for storage, depending on the size of your operation.

Gas equipment

You must purchase gas cooking equipment with CE marking, indicating that it meets the European Economic Area’s safety standards. The equipment must also include a flame failure device to prevent the accumulation of flammable gas within the appliance.

Other supplies – consumables

Consumables, also known as essential items, that run out, will need to be watched. If you fail to maintain stocks, your operation can be derailed.

These are the main essentials:

• Blue roll
• Vinyl gloves
• Baking parchment/ foil
• Clingfilm
• Cleaning spray
• Washing up liquid and sponges

Wholesale catering supplies can be ordered online from a variety of sources.

Second hand catering equipment

It may be more cost-effective to buy some perfectly usable second-hand kitchen catering equipment rather than buying lots of new equipment.

You could then invest in something better as you make more money.

But you should avoid buying shoddy equipment that you’ll have to replace later and will cost you more over the long haul. Maintaining and cleaning your catering equipment regularly can extend its lifespan.

Register your catering company

It’s time to register your catering business now that you know what niche you want to target, what business plan you’re going to write, what equipment you’ll buy, and what licenses and insurance you’ll need.

To begin with, you should choose a name that is creative and distinctive for your catering business.

Catering company names

Caterers should choose names that reflect their values.

Your brand image and the way consumers may find you online are important to consider. The name of your catering business should reflect that it caters to weddings or other special events. Include a relevant word in your name if your restaurant serves a niche type of food.

Online searches can also be enhanced by using the word catering. Regardless of what it is, it should convey both cleanliness and professionalism.

How to market catering companies

In addition to being a big business, the catering industry also employs a lot of people. In other words, making a name for yourself is going to take a lot of hard work, as there are many players in the market.

You can market your catering business in the following ways:

Win customers with sampling sessions

Offering samples at farmers’ markets, giving away free samples on the street, or holding a stall at a bridal fair is an excellent way to give consumers a taste of what you have to offer.

When they need a caterer next time, you’ll be at the forefront of their minds if your food is delicious and you have your contact information.

Catering exhibitions

You can meet fellow caterers, suppliers, equipment manufacturers, and consumers by attending catering and hospitality exhibitions across the UK.

Get your name out there by networking and making connections.

Strong branding

You should have no problem developing really strong branding if you have a good concept, an offer that is compelling, and a good name.

Consistency in all your marketing is key to reflecting your brand.

Catering directory

Online catering directories can help you get your name out there. Online, there are many options available both locally and across the UK. Search engines will be able to find you more easily if you do this.

Mobile catering marketing

Your catering van or trailer is the best canvas for mobile catering. It’s like having a roaming billboard if you have a bright, vibrant and eye-catching van.

Getting good catering food photographs

The majority of people today are amateur food photographers, taking pictures of their meals with their smartphones at restaurants. There is actually a high demand for food photography.

Taking a photo of food that looks appetising takes skill.

Time and attendance software

Catering businesses typically rely on temporary workers to staff their sporadic events because their business model depends on sporadic events. Paying people all the time for their services makes no sense.

You can find temporary event staff at hundreds of agencies across the UK for short or long periods of time.

Maintaining track of the hours that your temporary staff are working and ensuring they are being paid correctly is easy with time and attendance software.

Payroll software

All those temporary workers must also be paid.

Paying your employees can be complicated and time-consuming without comprehensive payroll software.

You can choose from fully managed payroll software to part-managed payroll software or pay-as-you-go payroll software depending on your needs.

Selling your catering business

It might be a good idea to sell your catering business when it has reached a certain size or when you feel like stepping back.

There are several catering companies for sale up and down the UK on BusinessForSale.com. The website allows you to post yours and be put in touch with buyers who are interested.

Frequently asked questions

How much money do I need to start a catering business?

The amount of money needed to start a catering business can vary widely depending on factors such as the size and location of the business, the menu offerings, and the amount of equipment and supplies needed. However, a rough estimate for a small catering business might be around £10,000-£20,000 to cover expenses such as licenses and permits, equipment and supplies, marketing, and initial food costs.

Do I need any special training or certifications to start a catering business?

While formal culinary training or certification is not necessarily required to start a catering business, it can be beneficial in terms of developing your cooking skills and learning about food safety regulations. Additionally, many catering businesses require their employees to have a food handler's permit or other relevant certifications. It's important to research the specific regulations in your area and make sure you are complying with all necessary requirements.

Conclusion

Starting a catering business can be an exciting and rewarding venture for those with a passion for food and hospitality. To begin, it’s important to conduct thorough research into the local market and target customer base. Developing a solid business plan that includes financial projections, marketing strategies, and a pricing strategy is essential for success.

Obtaining the necessary licenses and permits, as well as acquiring equipment and supplies, is also crucial. A diverse and appealing menu should be developed, with consideration given to dietary restrictions and preferences. Finally, exceptional customer service and attention to detail are essential for building a loyal customer base and growing the business over time.