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Catering

Catering sells food and service for events. Each event is quoted separately, and kitchen access is the key constraint.

Updated

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What the public data shows

U.S. businesses with no employees in the Census Bureau’s Special Food Services category (NAICS 7223), 2023.

Close match — Special food services: caterers, mobile food and food contractors.

Businesses with no employees
381,492
The middle business took in
$5,000–$9,999
in sales for the year, before expenses
Average sales per business
$27,687
pulled up by a few large ones

How much these businesses took in, 2023

  • Under $5,00035%
  • $5,000–$9,99919%
  • $10,000–$24,99924%
  • $25,000–$49,99910%
  • $50,000–$99,9996%
  • $100,000–$249,9994%
  • $250,000–$499,9991%
  • $500,000–$999,999<1%
  • $1,000,000–$2,499,999<1%
  • $2,500,000–$4,999,9990%
  • $5,000,000 or more0%

78% took in less than $25,000 for the whole year — many are side or part-time businesses. If you plan to do this full time, your plan needs sales well above the middle. The local plan works out exactly how much.

What these numbers are — and aren’t. Sales (receipts) before any expenses: not profit, and not what the owner takes home. Counts every business with no paid employees that filed a tax return, including side businesses. The Census Bureau adds a small amount of noise to protect privacy. Businesses with employees aren’t included.

Source: U.S. Census Bureau, Nonemployer Statistics 2023 (released 2025) (data files), retrieved 2026-10-31.

Main caution: Catering generally requires a licensed commercial kitchen, not a home kitchen.

What it costs to run

These are the categories to price with local quotes. The plan lists every one of them for you.

Every engagement

  • Food cost per event
  • Event staff pay
  • Rentals (tables, linens, equipment)
  • Transport per event
  • Other per-sale costs

Every month

  • Kitchen, commissary or space rental
  • Permits and inspections (yearly ÷ 12)
  • Liability insurance
  • Point-of-sale and payment software
  • Ongoing marketing
  • Bookkeeping and tax preparation
  • Equipment repairs and maintenance
  • Other monthly costs

To start

  • Chafers, transport boxes and equipment
  • Initial permits and inspections
  • Business registration and local licenses
  • Website, logo and booking or store page
  • Other one-time costs

Your own pay is part of the cost, too. The plan works out the price that covers it — or start with how much to charge for catering.

Licenses, insurance and rules to check locally

Requirements differ by state, county and city. Check two layers:

1. Your own license, if the work needs one

Some work needs a personal license or certificate (a food-handler card, for example). Search the CareerOneStop License Finder (US Department of Labor) for your kind of work and state.

2. Business licenses, permits and insurance

Start with the SBA: Apply for licenses and permits guide, then your city or county. Questions to answer:

  • What health permits and licensed kitchen does catering require where you are?
  • Do you need a permit to serve alcohol, or will clients arrange it?
  • Does your state charge sales tax on catered food and service?
  • If you hire, what are your state’s rules for workers’ compensation, payroll taxes and worker classification?

Check local prices before you set yours

Get three real prices from catering businesses near you, the way a customer would: their websites, a quote request, local listings and review sites, or neighborhood groups. Note what each price includes. Enter them in your local plan — it shows where your price sits and whether your costs leave room to compete.

Test demand before you spend

Offer your first few engagements at your real price to people who match your customer — not discounted favors for friends — before investing in more equipment or marketing.

Decide your pass mark before you start — for example, a set number of paid engagements within 30 days.

Questions your local plan has to answer

  • What do local competitors charge? Ask for quotes the way a customer would.
  • How long does each engagement take you, including travel and preparation?
  • How many engagements can you deliver in a week at a quality you’re proud of?
  • How will customers find you, and what will it cost to win each one?

This profile is educational. It describes how this kind of business generally works; it doesn’t show that it will be profitable where you are, and it isn’t legal, tax or financial advice.