The business in one offer
Who it serves
Office managers and executive assistants at companies with 20 to 150 staff who order lunch for client meetings, training days and monthly all-hands. They are judged on whether food arrives on time, labeled and enough for everyone, so they value a caterer who confirms details, labels allergens and sends a clean invoice their finance team can process.
What to sell first
Drop-off lunch trays for 10 to 40 people, with three set menus such as a sandwich platter, grain bowl bar or pasta tray, delivered with labeled dietary options and disposable serving utensils. Excluded: onsite service staff, alcohol, wedding catering and custom tasting menus.
Set menus make it easy to quote, buy ingredients and prepare efficiently. Drop-off service avoids staffing and long event hours, and office clients often reorder for regular meetings, which supports steady demand.
What could it cost to start?
This is an original example budget for the limited pilot described above. It is not a researched market average or a complete quote for every location.
| Item to price | Example allowance |
|---|---|
| Commercial kitchen rental, first month | $800.00 |
| Insulated carriers, trays and utensils | $400.00 |
| Health permit and food handler training allowance | $500.00 |
| Initial ingredients for test orders | $600.00 |
| Food liability insurance quote allowance | $700.00 |
| Online ordering and invoicing setup | $150.00 |
| Example total | $3,150.00 |
What this assumes—and excludes
Assumes you have cooking experience and a reliable vehicle for deliveries. Excludes buying kitchen equipment, hiring staff, catering licenses for full-service events, owner pay and advertising. Kitchen rental and permit costs vary, so contact your health department and kitchen providers for exact terms.
Collect actual supplier, insurance and local-authority information. Add a reserve for delays and unexpected costs; the example total is not a funding recommendation.
How the unit economics work
At an assumed $420.00 per order and $160.00 in direct costs, contribution is $260.00 before monthly fixed costs, owner pay and taxes. With 6 all-in working hours per unit, that is $43.33 per delivery hour before those deductions. These inputs illustrate the arithmetic; they do not establish a market price or expected earnings.
The example also allows $900.00 in monthly fixed costs. Include unpaid acquisition and administrative time when deciding whether the offer is worthwhile.
Try your own numbers
These are editable planning assumptions, not prices we have verified. Calculations stay in your browser.
Operating result = (price − direct cost) × units − monthly fixed costs. Before owner pay, taxes, financing and startup recovery. At these inputs, delivery requires 60 hours per month, plus any work not included in your per-unit estimate. Sales volume is a scenario, not a forecast.
How to find the first customers
Test a small offer before scaling traffic. Record the source of each enquiry, whether it fits the offer, and whether the buyer pays.
- Contact office managers at nearby companies and offer a free sample tray for their next meeting, with a menu and order form.
- Partner with coworking spaces to offer catering for member events, and ask whether they will list you as a preferred caterer.
- Ask business associations and chambers of commerce about catering opportunities at events, and provide menus and pricing.
- Track each order by company and repeat frequency. Ask clients for feedback after delivery and adjust menus based on what they reorder.
What to validate before spending more
- Contact your health department to learn requirements for caterers, including commercial kitchen use, food handler certification and permits.
- Prepare and deliver one or two test orders, tracking prep time, ingredient costs and delivery time. Adjust pricing if costs are higher than expected.
- Ask kitchen providers about storage space, scheduling rules and cleaning requirements, and confirm they meet health department standards.
- Get insurance quotes for food liability and confirm whether clients or venues will require additional insured certificates.
The operational catch
Headcounts change late and payment terms stretch long. An office may confirm 30 people, then email at 8 a.m. on the day asking for 38, or cancel because the meeting moved. Write a change and cancellation cutoff into the order form, such as 48 hours, and charge for food already bought. Many companies also pay invoices 30 or more days after delivery, so a few large orders can leave you short of cash for the next shopping run. Keep hot and cold holding temperatures in check during transport, and tell clients how long trays can sit out.
A practical way to fund the first step
Require full prepayment from first-time clients and a deposit on any order above a set size, which covers groceries before you shop. Rent kitchen hours instead of leasing a space, borrow or buy used carriers, and add equipment only when repeat clients justify it. A local SBDC adviser can help you model cash flow if you start taking net-30 corporate accounts.
Separate cash already available from money still to earn. Count only proceeds after direct expenses, and do not spend customer funds needed to fulfill their existing orders.
Questions before you start
Can I cook catering food at home?
Most health departments do not allow catering food to be prepared in home kitchens. You will usually need a licensed commercial kitchen or commissary.
How do I price catering orders?
Calculate ingredient costs, packaging, labor, kitchen time and delivery, then add overhead and profit. Set a minimum order size so small orders still cover your time.
When should I offer full-service catering?
Once you have reliable drop-off clients and kitchen processes, you can add full-service events. Plan for staffing, rentals, insurance and longer hours before taking on weddings or large parties.
Source-backed checks
These references support the specific checks below. They do not endorse this business idea or substantiate the example prices, costs or demand.
The FDA Food Code is a model code that helps state and local governments regulate food safety in retail and food service operations. FDA: Food Code 2022.
Penn State Extension explains that food businesses should start pricing by finding a break-even price that covers production costs. Penn State Extension: Pricing Strategies for Farm and Food Business.
America's SBDC provides a locator to find local small business development centers that offer advising to business owners. America's SBDC: Find your SBDC.
- Food Code 2022FDA · Reference checked September 8, 2026
- Pricing Strategies for Farm and Food BusinessPenn State Extension · 2026-02-04 · Reference checked September 8, 2026
- Find your SBDCAmerica's SBDC · Reference checked September 8, 2026
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