Starting a catering business is your dream come true? You love creating culinary highlights, hosting guests, and want to turn your passion into a career? But where do you start? If you feel overwhelmed by everything there is to consider, and you're looking for tips on how to successfully become self-employed as a caterer, this article is for you.

We've worked with caterers for many years, know the industry well, and are happy to support you on your path to your own catering business. We've put together our best tips here, and you'll find plenty of other resources and inspiration for new and established caterers with us too.

Requirements

Having prior experience in the hospitality industry gives you important foundational knowledge about processes and structures. Working at a restaurant or hotel can also teach you a lot about dealing with customers. Trade literature like magazines and books, or further training, can also give you valuable knowledge.

Also inform yourself about the requirements in your location, what courses or knowledge do you need to demonstrate? Examples include knowledge of infection protection laws and food hygiene. (By the way, you don't need a license or restaurant concession, since as a caterer you're not covered by restaurant law. If you offer baked goods, though, you may need special permission.) A good point of contact for information is your local Chamber of Industry and Commerce (IHK). You'll also find plenty of guidance on the BMWK's business startup portal.

It's also important to think about suitable premises from the start, since you're not allowed to use your own home kitchen, more on that below.

Market research

Before deciding how you want to position yourself, what food you'll offer, and who you want to cater for, market research is an essential step. Especially if you're in a smaller town with a limited target audience, it's very important to know who you're competing with.

For example, if you're planning Turkish catering and there are already three other caterers offering Turkish food, consider whether there are enough customers for another provider, or whether further specialization would make sense (Turkish finger food or barbecue, perhaps?).

Want to build a vegan catering business and notice there's already some competition? Take a look at what they offer and think about what you could do differently, and what would set you apart. Maybe there's still a gap for a vegan dessert caterer, or a food truck with plant-based street food?

To learn more about your competitors, you can read reviews or look up industry data on the catering business. Also read up on the latest catering trends and what's no longer as popular, to get a sense of whether your idea could pay off.

Define your target audience/niche

If you focus on a specific niche, it's easier to make a name for yourself:

• What kind of food will you serve? Do you also want to offer drinks?
• What occasions and target audiences will you cater to?
• Will you specialize in gluten-free, vegan, or halal dishes? Is your food especially healthy or climate-friendly?
• Will you cater all meals, or do you want to focus on breakfast?
• Does your offering come from a specific national or regional cuisine, or are there crossover dishes?
• Do you want to offer upscale cuisine or more down-to-earth food?

Once you've clarified these points, you can start putting together your first menu.

Choosing the right food - building a menu

Choosing your dishes is as individual as catering companies themselves. In general, keep in mind that there should be something for everyone. The number of people with allergies is rising, and more and more people eat with health and the climate in mind. So think about plant-based alternatives, gluten-free and dairy-free dishes, and dishes without other major allergens. It's important that you can precisely name and label the allergens in your food.

With all the enthusiasm and great ideas you might have, a manageable menu makes it easier to run your business, especially at the start.

Founding your business, business plan, and financing

Before founding your catering company, you should get advice on the right legal structure. Depending on whether you choose, for example, a GmbH, GbR, or UG, tax obligations and legal liability differ. Consultants specializing in startups can help you here, and tax advisors are also a good point of contact. Regardless of legal structure, you must register your new catering business as a trade. The tax office will assign you a tax number, allowing you to start and issue invoices, since you're now registered for tax purposes. The relevant Chamber of Industry and Commerce will also be informed of your business registration, membership in the chamber is mandatory for you as a catering business. Membership in the trade association (Berufsgenossenschaft) is another mandatory requirement.

You'll need capital to get started, for example to rent a kitchen, buy equipment and goods, and cover advertising and staffing costs. A business plan is an important requirement for bank financing, and some of the questions above will serve you well here. Also make sure to plan your prices so you can cover your costs while staying competitive.

Please note that you should always consult experts on tax and legal questions in particular. Responsibilities and obligations change over time and can also vary between countries and federal states. We can give you tips for the first steps here, but our guidance is no substitute for professional advice.

Location and equipment

As mentioned above, you can't simply prepare your food in your own home kitchen. It might be tempting to save money that way, but your premises need to meet the requirements for food businesses. If you want to start out working self-employed on the side, you can save costs by renting a kitchen.

If you're looking for your own premises, think about what types of food you want to prepare, and what size and equipment you'll need. How much baking or frying will be done? How many people need to be able to work in the kitchen at the same time? Also keep in mind that good transport links are an advantage if you're delivering your catering.

If you want to offer a complete package, so customers can order not just dishes and cutlery from you but also tables, chairs, and other equipment, remember that you'll need storage space too.

Remember that you need to transport food safely, which requires a suitable vehicle as well as equipment for keeping food warm or cold.

Staffing plan

It's hard to build a catering business alone, so plan from the start what staff you'll need and what additional costs that will bring. This includes not just employees who prepare food in the kitchen, but also potential service staff who set up food on-site, serve it, or, for example, run the grill, work in a food truck, or staff a cocktail bar.

You can learn more about finding good catering staff in this article.

Get visible - (online) marketing

Once you've sorted out the basics, the most important thing for launch is: finding customers! Think about how you can become visible and better known. Which strategies, platforms, and channels are right for you also depends on how you've defined your niche and target audience. If you specialize in events and corporate clients, for example, you'll find potential customers through different channels than if you mainly want to serve private customers.

A few examples:

• Social media: It's not (yet?) possible to taste or smell your delicious food through the screen, but presentation matters too. Visual social media channels like Instagram or Pinterest can go a long way in making your offering appealing to potential customers.
• Catering platforms: If you don't have much reach yet at the start, use the visibility and popularity of existing platforms. You can usually specify what kinds of catering you offer, upload photos, and sometimes even receive direct bookings via these platforms if users like your offering. heycater! is one example, platforms for event providers are another option. If you cater weddings, wedding portals are worth considering too.
• Word of mouth: The best advertising is still a personal recommendation. Your goal should be to delight your first customers so much they're happy to recommend you. Ask them for a testimonial for your website or application too.
• Offline advertising: Even though almost everything happens online these days, offline advertising still has its place. Trade magazines, trade shows, events, through ads, sponsorships, and participating in relevant events, you can increase your visibility.

This article gives you more tips on online marketing for caterers.

heycater! supports you at the start

Especially at the start, knowledge and reach are invaluable. We at heycater! support our caterers with both: in our extensive guides, checklists, and FAQs, you'll learn the essential basics, from hygiene to running a successful catering job. You'll also benefit from our visibility in the industry, and our users who are searching for exactly what you offer. Find out right away what heycater! can do for you as a new catering business!