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Catering Cost Breakdown: How Much Does It Really Cost To Start a Catering Business?

cost to start a catering business

Starting a catering business can be a very profitable endeavor, but it’s important to understand the associated costs in order to make sure your business is profitable from the outset. This article will explore the different costs associated with starting and running a catering business. We will also provide tips on how to keep your costs as low as possible so that your catering business can be as successful as possible.


Food Costs

Obviously, one of the biggest costs associated with catering is the cost of food. When you’re first starting out, it’s important to keep your menu simple and your ingredients affordable. As your catering business grows, you can start to experiment with more expensive ingredients and fancier dishes. But in the beginning, stick to basics that won’t break the bank.

The estimated cost for this is around $50 per day or $1500 per month.


Rent and Utilities

If you’re catering out of a commercial kitchen, you’ll need to factor in the cost of rent and utilities. Commercial kitchen space can be expensive, so it’s important to shop around and find the best deal possible. You may also be able to negotiate a lower rate if you’re willing to sign a longer lease.

The estimated cost for this is around $200 per day or $6000 per month.


Staff Costs

If you’re catering events with more than 50 guests, you’ll likely need to hire additional staff to help with set-up, serving, and clean-up. The cost of staff will depend on the number of hours they work and their hourly wage.

The estimated cost for this is around $100 per day or $3000 per month.


Marketing Costs

In order to get your catering business off the ground, you’ll need to invest in some marketing. This can include creating a website, designing print materials, and advertising in local publications.

The estimated cost for this is around $50 per day or $1500 per month.


Total Estimated Costs

The total estimated cost of starting and running a catering business is around $400 per day or $12,000 per month. Of course, these costs will vary depending on the size and scope of your catering business. But this should give you a general idea of the start-up and ongoing costs associated with starting a catering business.


Tips for Keeping Costs Low

You can undertake a few  activities to keep your catering costs low. First, be sure to shop around for the best deals on ingredients and supplies. Second, try to negotiate lower rates for rent and utilities. And finally, don’t be afraid to DIY when it comes to marketing and advertising. 

By following these tips, you can keep your catering business costs low and ensure that your business is profitable from the start. Catering cost breakdown, how much to start a catering business, catering business costs, catering supplies, and catering ingredients–these are the key areas in which you should have a solid grasp.