For savvy entrepreneurs, there’s a lot of opportunity in the food and beverage industry. Maybe you’ve thought about starting your own cafe, buying a franchise restaurant, or even going the microbrewing route.
A well-organized and successful catering business can bring in a nice profit. If you’re passionate about running your own business while showing off your culinary skills, starting a catering company gives you the best of both worlds.
Like any type of venture, starting a catering business requires careful planning, budgeting, and a whole lot of due diligence. You’ll also need a wide range of support from industry professionals who can help you bring your business to life.
In this blog, we’re sharing our top tips on how to start a catering business in Canada. Let’s get started.
What is Catering?
Before we get too far ahead of ourselves, let’s first clarify what a catering business does.
In the most basic terms, a catering business provides food and drinks wherever they’re needed. Nine times out of ten, it’s at special events like business conferences, weddings, or private parties – i.e. places where big groups of people need to eat. Think of it as a restaurant on wheels.
Catering services span a wide spectrum when it comes to scale. On the smaller side, some caterers may specialize in a particular cuisine, only handle the preparation and delivery of the food, or simply stick to events with a more modest attendance.
Larger, more established catering services can handle massive events and feed people by the thousands. They’ll also offer more comprehensive services, like event setup, supplying furniture and kitchenware, and providing professional bartenders and servers for the event.
About to start your own business? Check out these related blogs for more insights!
- What Permits Are Needed to Open a Restaurant in Ontario?
- How to Negotiate a Commercial Lease
- Are Restaurants Profitable?
Starting a Catering Business: First Steps
So you’re thinking about starting a catering business, but aren’t sure where to start. Let’s look at what your first steps will be in getting things up and running.
Know Your Role
Start by understanding what your role will be. Are you looking to prepare the food and run the business all by yourself? Or, will you be taking on one or two particular roles and hiring staff to fill in the rest? Consider what you can bring to the table and what you’re able to reasonably manage as a small business owner.
Know Your Budget
Starting a business isn’t cheap, and one of the most important parts of building your catering business (if not THE most important part) is budgeting. From major one-off expenses like real estate, transport vehicles, and kitchen equipment to ongoing things like advertising and utilities, you’ll need a solid financial plan before you get started.
Applying for a small business loan can help you boost your financial resources to get your catering catering off the ground.
Find the Perfect Space
With your business plan and budget in order, it’s time to find the perfect space to bring your vision to life. You’re looking for a place that’s functional, easy to access, and has enough space for cooking and storing large amounts of food.
Looking to buy or rent a commercial kitchen? Explore our featured listings.
Can You Start a Catering Business at Home?
A lot of entrepreneurs who are interested in starting a catering company think they can run it out of their own kitchen at home. While this is a great idea on paper, it usually doesn’t pan out in practice.
Your kitchen may be big enough to make meals for you and your family, but cooking and serving for dozens to hundreds of people multiple times a week? That’s a different story.
If you’re serious about starting a full-time catering business, you’ll need the right space. An experienced restaurant real estate agent can help you find a commercial kitchen that suits your plans and budget.
Protecting Your Business
Starting a business (no matter the size) is a big investment. You’ll want to protect yourself and your catering company as you work to get it off the ground. A great way to do that is by getting business insurance. Catering business insurance protects you from all kinds of risks, ranging from property damage to lost income, depending on your plan and provider.
Want to know more about working with a business broker? Explore these related readings from our blog!
- Working With a Business Broker: The Basics
- Why You Should Sell Your Restaurant With a Business Broker
- What’s the Difference Between Residential and Commercial Real Estate Transactions?
Make it Official
Like any business, you’ll need to register your catering company with the federal and provincial governments. Even if it feels like a DIY operation or side-hustle for the time being, you’ll need to do things by the book.
Start by registering your business with the Government of Canada. This will set up your BN for tax purposes. After that, you’ll need to register with the Ontario Business Registry to get an Ontario Business Identification Number.
Like a restaurant, you’ll also need to apply for (and get) the necessary licences and permits to serve and sell food. These can vary depending on the municipality, but they are just as important as your federal and provincial registrations.
Ontario’s AGCO has a special permit called a Caterer’s Endorsement for catering companies that provide or sell alcoholic drinks in otherwise unlicensed venues. If you plan to sell drinks, you’ll need this.
Bring Your Catering Company to Life
When you’re ready to start your catering business, Carve Real Estate is here to help. As commercial real estate agents at the forefront of Canada’s ever-evolving food and beverage industry, we have the insights, experience, and connections to help you realize your goals.
Commercial real estate deals can get complicated fast. Whether you’re looking to rent a commercial kitchen or buy an existing restaurant space, we’ll help you cut through the noise and land the perfect place to launch your business.
Starting a catering business? We can help! Reach us at ryan@carverealestate.com or call 416-618-0054.
