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Catering Business Plan | The First Step to Success

Start your catering business with a detailed guide

The catering sector in India is continually increasing at a pace of 15-20% per year, and the greatest part is that it is immune to recessions and monopolies, relying solely on customer service, food quality, and proper pricing. Established caterers strive to franchise their brand, but a solid business strategy is required for a new venture. Therefore, let us have a look at how to make a solid catering business plan to succeed in the industry.

Preparing high-quality food in huge quantities necessitates a wealth of knowledge, competence, experience, staff management, precision, and a talent for creating delectable dishes that few possess.

What is the purpose of a catering business plan?

An important aspect of the plan is determining the ultimate goal and appropriate techniques for running a successful catering business. The strategy includes market research, product planning and development, supply adjustments, product research, and marketing tactics.

This can be also a better business ideas for students in India to look into for their career.

Product demands must be met, exclusive inventory and equipment must be maintained to keep the catering business afloat, and proper marketing methods must be used to offer your product to the right market.

Techniques for staffing and remuneration to keep the firm afloat.

A significant portion of the business plan is devoted to financial requirements and contingencies in the event of a deficit.

To get a good start on the creation of an excellent catering business plan, familiarise yourself with the following prerequisites and formalities:

  1. Purchase of inventory

  2. Investing in technology in the correct way

  3. Employment and labour

  4. Location/transportation purchase

  5. Marketing strategies

Things to Plan for Starting a Catering Company

Certain details must be found out before starting a catering business:

Identifying the Catering Industry

To appreciate the importance of executing a catering business plan, the target and ultimate goal should be clear. Knowledge of food, recipes, nutrition, gourmets, and suitable price are all important considerations.

You can choose from a variety of catering options, including:

  • Catering at your doorstep
  • Catering on the go
  • Functions/occasional catering at a hotel/restaurant
  • Catering on a private basis

Business Structure

The most important thing to decide while starting a business is the business structure. Therefore, while making a catering business plan, also decide on how will the authority be delegated and how much per cent of capital will be invested by each.

You can register your catering business as:

  • Private Limited Company Registration
  • Sole Proprietorship
  • Partnership
  • One Person Company
  • Limited Liability Partnership

Goal of starting a catering business

The most crucial thing is to select a niche or the suitable subject in which the individual is an expert and has the most information about the product.

The major objective for starting a catering business must be determined – whether to serve gourmet meals, nutritional food, or street food at reasonable prices.

It will be easy to conduct a thorough investigation on the relevant segment of the catering business once the goal is defined.


Catering businesses might have a lot of costs, and some of them may be concealed because they are a saturated market.

As a result, careful consideration of the amount to be spent is required.

You may need a minimum investment of Rs.2 lacs initially for the catering business.

For this, it is sometimes necessary to seek the advice of a financial adviser.

Market investigation

While looking at the market, market research, customer surveys, following trends and tastes, deciding on a location, and creating a menu are all important things to consider.

This exercise necessitates the use of advertising and selling.

Target Niche

The consumer base is vast, therefore depending on the goods you’re offering, your target market will be entirely comprised of:

  • Meal options on the MENU
  • Competitive rates are unquestionably more appealing. Anything higher or lower than the current rate can be detrimental to your company.
  • Recognizing the Present Competition
  • Marketing and Advertising

Documents Required for Catering Business

Before starting a catering business, you’ll need the following documents:

  • An applicant’s identity verification, such as a driver’s licence, PAN card, or voter ID card is mandatory.
  • Ration card, energy bill, driver’s licence, Aadhar card, and other proofs of applicant’s residential address are acceptable.
  • Copy and proof of the business’s PAN card.
  • For the past six months, business bank statements, including salary statements, have been working in the service industry.
  • Photos that will fit in a passport
  • If necessary, a partnership deed.
  • Proof of the catering company’s registration.
  • Documents about legal commercial transactions.

Get Your Permits And Licenses

Only after you’ve grown your company and had a turnover of more than 12 lakhs per year do you require a couple more licences and approvals.

But, before you do anything else, make sure you have your FSSAI licence by confirming that the following conditions are met.

  • External pollutants must not be present in your business’s location.
  • Proper and adequate storage in the most hygienic conditions is essential.
  • The stalls or counters should be spotless and well-maintained.
  • You need to be sure that the food you’re utilising isn’t contaminated in any way.
  • Only freshly prepared food should be sent out for consumer delivery.
  • Personal hygiene is also necessary of the employees you engage to assist you in your business.
  • Dust and other contaminants must not be present in the containers you use for cooking and transportation.

Catering Business Plan Frequently Asked Questions:

1. Do I need to register my catering business for GST?

Yes, provided the expected annual turnover exceeds Rs.20 lakh.

2. Is it possible for a catering company to also manage other types of events?

Yes, you can, if you have complied with permits and licenses specific to a sound event management company as well.

3. What should an entrepreneur keep in mind while starting a catering business?

Before investing a significant amount of capital in a new catering venture, the applicant should consider the following factors:

  • Thorough market research, including demand and supply analysis, as well as a thorough understanding of the product he will be dealing with.
  • Choose his niche and forte
  • Brush up on business abilities and obtain pre-requisites
  • Identify the possible clientele he will be catering to
  • Create a solid business plan, monitor it, and then put it into action.

4. What are the most important markets for new caterers to tap into?

Starting with small projects, a new catering business owner can explore four main categories to diversify his name and business:

  • Business Clients
  • Social Gatherings
  • Cultural Organizations
  • Personal Collaborations and Small Events such as Personal Gatherings

5. How should a solid catering business plan be?

To create a unique catering company strategy, one must write down the following:

  • Focus on achieving short-term goals first
  • Detailed research and split of start-up costs
  • Tax structure and ownership details
  • Services he expects to offer
  • Market analysis should be in handy
  • Analysis of Top Competitors
  • Target Audience and Customers

6. Which should be the best location to start this business?

Most importantly, we should take care while choosing a location to start catering business or any other business as it could be a crucial point in making or breaking the initial boost for your business.


For instance if you want to start your catering business in Mumbai or in Jaipur then these locations can provide initial boost for your business and also you can go for company registration in Mumbai or any other city.

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