HomeTrendsIndustry TrendsThe 5 Step Guide To Start A Catering Business in 2022

The 5 Step Guide To Start A Catering Business in 2022

Are you struggling to start your own catering business? Don’t worry this step-by-step guide has got you covered.


There is hardly any event that goes without food and drinks. Statistically speaking, the Motilal Oswal Financial Services has predicted that the Indian food service industry (FSI) will flourish by 9% during the fiscal years 2020-25. 

There is no denying that running a catering business is challenging and many restaurant businesses fail in their first year. But this guide covers all the crucial things you need to take care of to begin your catering business. What are the 8 things you need to check before starting a business?

5 Important Steps For Starting A Catering Business

1. It all begins with good planning

The first thing to start a business is correct planning. Right planning decides the course of your business. Include the following considerations in your planning:

  • Research about the what and how of catering. Figure out whether you want to start as an onsite or offsite catering business. Then choose what you will serve. Many caterers pick one niche which can include drinks, barbeque, dessert, or buffet. 
  • Another vital step is to see what your competitors are doing. Survey the market inside out and get hold of exact market analytics for better management. 
  • Decide who is going to be your consumer base and what would be your capacity. 
  • Try to narrow down your suppliers and vendors from the start so you will have the right dealer at last. 

Effectually conduct research and try to extract exact data analytics to write down your business plan.  Meanwhile, also try to figure out your niche in the restaurant industry.


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2. The Right Way to Execute

It is time to execute the research you carried out. The main crux of this step is to reflect your vision in everything you do. Choose your niche and USP after much thought and exploration.

  • Decide your USP and speciality.
  • Choose your name,  logo, uniform, cutlery, packaging, and all other items in tune with your beliefs and motto.
  • Design your studio or office in vibe to your ambition. 
  • Prepare a handbook, a photo gallery, or a website to exhibit your vision in a proper way.

Well trying to showcase your vision in the functioning of your business can cost you a lot of money so plan accordingly. You can try to sketch the name, logo, interior, and other stuff on your own or you can even hire an intern. Once you have decided this you can move to decide your finances.

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3. Sort out your Finances

Managing finances is one of the instrumental factors. Figuring out from where will you procure funding can be tough and tricky. By now you know how many people you want to cater to, and how many staff members you need. Based on that predict the cost of your equipment and other charges. Make a rough estimate and don’t forget to keep the value of money required a little higher.

  • Go ahead if you can fund yourself on your own.
  • Otherwise loan money from a bank or from people you know.
  • Appeal public to crowdfund your venture.
  • Find a business partner who can collaborate with you.
  • You can check if your niche qualifies to be funded under some government scheme.

Secure enough money to pay your staff in the initial months. It takes time before you actually start making a profit. Also, always keep funds for unexpected situations.  Get food liability insurance. Do you know about the available liability insurance in India?


4. Acquire Mandatory Licenses

Getting Licenses is tiring but very crucial to start any business. The process can take time as there is a lot of paperwork and documentation. So apply for obtaining licenses well in time.  For starting a catering business you need the following license:

  • Business license from the state to establish your business.
  • FSSAI license to demonstrate that you serve quality and safe food. An FSSAI license projects you as a trusted name among your customers.
  • GST registration to manage your taxes flawlessly.
  • Shop and Establishment registration if you have more than ten staff members.
  • Liquor License if you plan to serve cocktails.
  • Insurance for fire. Getting insurance for fire hazards is pivotal in the food biz as any mishap can happen in your kitchen. So be prepared.

What are some other licenses to get for starting a business in the food and beverage industry?

Checking with a lawyer or a restaurant consultant can ease the process of obtaining the license for your business. 


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5. Other Requisites to Take into Account

  • Chisel the menu according to your niche and also try to stay with the trend.
  • In the beginning, buy essential equipment only. 
  • Carefully hire your staff members and train them.
  • Use an advanced  POS system to lower your burden. You can even mechanize your kitchen.
  • Last but not least, market your business. You can begin serving at some charity event or continue to do so even when you have got the necessary attention. Other ideas to market include; creating a website, and promoting on social media.
  • Collect reviews, and feedback from customers to uplift your brand.

Hope this guide helps you in starting your own catering business. Keep yourself updated with recent news in the Food and Beverage industry by following us on Instagram.

Khyati Tiwari
Khyati Tiwari
Khyati Tiwari is a content writer at Petpooja. Besides that, she is always busy finding the right song for her mood. For any queries reach her at khyati.tiwari@petpooja.com

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