The Cost of Opening a Catering Business

What is the cost of opening a catering business is one of the most often asked questions, but it is the hardest to answer, because it very much depends on what you want to open. Here are just a few of the variables that will make the number go up or down by a huge amount:

• What kinds of food
• What types of events
• What size staff
• What part of the country
• What style of service
• What volume of business
• What seasonal variations
• What marketing is required
• What location is selected
• Will alcohol be served
• Will you buy an existing business, a franchise, or start from scratch

And that list is only for starters! Actually, the last question may be the biggest variable.

It is possible in some places to buy an existing business that is closed down or barely surviving for a song, and with proper management turn it around and prosper handsomely.

On the other hand, the cost of opening a catering operation that is currently only a gleam in your eye is much, much higher. If you really want to start with an empty lot and build from there, you can rarely get it done for less than several hundred thousand dollars.

There are also some common sense differences: the more upscale your potential clientele, the more expensive your ingredients, the more service you provide, the more competition you have, the more marketing you must do- all these points add to the expenses you will encounter.

The only accurate way to judge is to start with a fairly firm idea in mind of what kind of operation you want and who your custoemrs will be.

Then, you can begin comparing that with the competition that is in place to see what kind of business they do, what rent they are paying, and what other basic costs they have.

Using the Catering Success Kit spreadsheet software, you can then begin to very accurately forecast the cost of opening, running and growing the business, as well as figuring what your profits will be for all your hard work.

To read more about our kit, our guarantee, and the best catering business plan software you will find, click the link and read on!