To start a catering business, choose a niche, register the business, get your kitchen and food safety approvals, cost every menu per head, and build relationships with clients who book again: offices, venues, schools and event planners. Food safety approval comes first. In the UK, food businesses register with their local council at least 28 days before trading. In the US, your county or city health department sets the rules. In Nigeria, state and local authorities and NAFDAC (for packaged products) apply.
This guide covers how to start a catering business in the US, the UK and Nigeria: approvals, startup costs, pricing and getting clients.
Key takeaways
- Food safety approval is not optional. Sort your kitchen before you take a booking.
- Cost every dish per portion. Catering margins disappear in waste, staff time and transport.
- Repeat clients (offices, venues, planners) beat one-off parties for steady income.
- Deposits and a final headcount deadline protect your cash flow.
Is catering a profitable business to start?
Catering sits inside a large food service sector with growing demand for skilled cooks and managers. In the US, a large share of food service managers already run their own businesses.
- $62,470 median annual pay for chefs and head cooks (May 2025) US Bureau of Labor Statistics, 2025
- 7% projected job growth for chefs and head cooks, 2025–35 US Bureau of Labor Statistics, 2025
- 31% of US food service managers are self-employed US Bureau of Labor Statistics, 2025
Pay for skilled cooks varies by setting. Hotels and recreation venues pay more than restaurants, which hints at where premium catering clients are.
What type of catering business should you start?
| Catering type | Who books | Order size | Equipment needs | Pros and cons |
|---|---|---|---|---|
| Corporate drop-off (office lunches, meetings) | Office managers, PAs | 10–100 people | Insulated carriers, packaging | Repeat weekly orders; tight delivery windows |
| Events and weddings | Couples, families, planners | 50–500+ | Chafing dishes, staff, hire items | High value; seasonal and staff-heavy |
| Small chops and party trays | Families, small events | 20–150 | Fryers, trays | Fast to start (popular in Nigeria); price competition |
| Meal prep and subscriptions | Busy professionals, gyms | Recurring | Containers, labeling | Predictable revenue; labeling rules |
| Specialist (vegan, halal, kosher, allergen-free) | Specific communities and venues | Varies | Segregated prep areas | Less competition; strict process needed |
Start with the type that matches your kitchen capacity. A home kitchen can usually handle drop-off trays for 30 people. It cannot safely handle a 300-guest wedding.
What licenses and approvals do you need for catering?
United Kingdom. Register your food business with your local authority at least 28 days before trading. This applies if you trade from home, from a mobile unit or only online (GOV.UK). Expect a food hygiene inspection. Set up as a sole trader once you earn more than £1,000 from self-employment in a tax year (GOV.UK). If you hire staff, you need employers’ liability insurance of at least £5 million (GOV.UK). If you serve alcohol at an unlicensed venue, a Temporary Event Notice costs £21 (GOV.UK).
United States. Your county or city health department issues food service permits and inspects your kitchen. Many states’ cottage food laws, which let you sell some foods from home, do not cover catering, so plan for a licensed commercial kitchen or a shared commissary kitchen. Register the business and get an EIN (IRS), and check state and local licensing through the SBA licensing guide. Many health departments also require a certified food protection manager on staff; ask yours.
Nigeria. Register a business name or company with the CAC. If you sell packaged, labeled food products through shops or online, NAFDAC product registration applies (NAFDAC). For event catering, check with your state ministry of health and local government about food handler medical certificates and premises inspection.
How much does it cost to start a catering business?
| Cost item | US (USD) | UK (GBP) | Nigeria (NGN) |
|---|---|---|---|
| Registration and permits | Health permit and business license fees vary by county | Food registration free; sole trader free | CAC fee plus local permits (check current fees) |
| Commercial or shared kitchen | $15–$40 an hour rental, or own fit-out | £15–£35 an hour rental | ₦0 at home to ₦3,000,000+ for a fit-out |
| Serving and transport equipment | $1,500–$6,000 | £1,200–£5,000 | ₦500,000–₦3,000,000 |
| Food safety training | $100–$300 | £20–£150 | ₦20,000–₦100,000 |
| Liability insurance (yearly) | $500–$2,000 | £150–£600 | ₦80,000–₦300,000 |
| Branding, menu design and website | $500–$3,000 | £400–£2,500 | ₦200,000–₦1,500,000 |
Approval rules come from the official sources above. All amounts are estimates from typical quotes we’ve seen; local prices vary a lot. Use them for planning only, and get quotes from two or three local suppliers before you buy equipment.
How do you price catering per head?
Use food cost as the base, then add labor, overheads and profit. Worked example (illustrative) for a 50-guest buffet in the UK:
- Ingredients per guest: £6.00. For 50 guests: 50 × £6 = £300.
- Staff: 3 people × 6 hours × £13 = £234.
- Packaging, fuel, hire items and gas: £90.
- Total cost: £300 + £234 + £90 = £624, or £12.48 per guest.
- Add a 30% markup: £624 × 1.30 = £811.20, or £16.22 per guest. Quote £16.25 per head.
Check your food cost percentage: £300 ÷ £811.20 = 37%. If ingredients drift above 40% of the price, revise the menu or the price.
The same logic works in naira. Recalculate food costs every few weeks when ingredient prices move, and say in your quotes how long the price is valid.
Take a deposit when the client books and set a final headcount deadline, usually 7 to 14 days before the event. Charge for the confirmed number even if fewer guests attend.
How to start a catering business: the launch plan
Six steps to your first paid event
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Choose your niche and menu
Five to eight dishes you can make consistently at scale.
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Secure your kitchen
Your approved home kitchen, a rented commissary kitchen or your own premises.
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Register and get approvals
Business registration, food business registration or health permit, insurance.
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Cost and test every dish
Cook each at full volume once. Weigh portions and record the true cost.
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Build your brand and menu
A clear menu with per-head prices or "from" prices and minimum orders. TechDella Studios can design the brand.
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Land anchor clients
Pitch three offices, two venues and two event planners in your first month.
How do caterers get clients?
- Office managers. One office that orders lunch every Friday is worth 52 bookings a year. Drop off samples with a menu.
- Venues and planners. Ask to join their recommended supplier lists. Show your approvals and insurance.
- Local search. “Catering near me” and “small chops Lagos” are real searches. A Google Business Profile with photos and reviews and a site with clear menus are basic. Our local SEO service covers this.
- Email past clients. Send seasonal menus before holidays and year-end. A simple email marketing routine brings repeat orders and supports customer retention.
The caterers I'd bet on treat office lunches as the business and weddings as the bonus. Weddings are big but rare; a Friday office order repeats. If I were starting, I'd build one simple page for corporate lunches with per-head prices and minimums, then email it to every office manager who tries a sample tray. And I'd follow up the same week, not next month.
Myth vs fact
- MythIf you can cook for a party at home, you can start catering from your home kitchen right away.
- FactSelling food to the public needs approval. In the UK you register with your council 28 days before trading; in the US, health departments generally expect catering to come from a permitted kitchen.
- MythCharging less than competitors wins more events.
- FactUnderpricing usually means you run out of money on staff and transport. Price from your real per-head cost and compete on reliability and taste.
Before your first paid event
- Kitchen approved and food business registered or permitted
- Food safety training completed by you and key staff
- Liability insurance active
- Menu costed per portion at full volume
- Quote template with deposit, headcount deadline and validity period
- Transport and temperature control plan
- Allergen information for every dish
- Photos of your food for your menu and website
Frequently asked questions
Can I start a catering business from home?
In the UK, yes, if you register with your local council and pass a hygiene inspection. In the US, most states' cottage food laws do not cover catering, so you usually need a permitted commercial or shared kitchen. In Nigeria, check state and local health requirements.
How much does it cost to start a catering business?
A small drop-off catering business can start with a few thousand dollars or pounds for equipment, approvals and insurance, especially if you rent kitchen time. A full event caterer with staff and premises costs much more.
How much should I charge per head for catering?
Start from your full cost per guest (ingredients, staff, transport, overheads) and add a margin, often 25% to 40%. Keep ingredients below about 35% to 40% of the price.
What permits do I need for a catering business?
UK: food business registration with your council, plus a Temporary Event Notice if you sell alcohol at an unlicensed venue. US: a health department permit and local business license. Nigeria: CAC registration, state health requirements, and NAFDAC registration for packaged products.
How do I get my first catering clients?
Start with offices, venues and event planners near you. Bring samples, a printed menu and proof of your food approval. Ask every happy client for a review and a referral.
Want to see where your bookings could come from? Our growth audit reviews your search visibility, website and inquiry flow.
