What does it cost to start an off-premise catering company?

Price an existing kitchen rather than a new build

The format rents time in an already licensed shared kitchen and brings its own transport and event equipment. It assumes retained cooking, refrigeration, sinks, drainage and ventilation at the host premises; those assets are not bought by the caterer. A site requiring a new hood, grease system or electrical work is a different project and must be re-budgeted before using this total. The actual kitchen must permit the planned menu, storage, staff access and cleaning process. Licensing scope

The source kitchen page lists a 100-hour package starting at $1,400 and an on-demand booking charge of $65 plus $45 per hour, with a 4-hour minimum. Its headline and package prices are not fully aligned. The case instead allows $2,800 monthly for 120 reserved hours; both the hours and storage terms need a written agreement. Listed comparison and limits

Separate assets, launch expense and remaining cash

The security payment is an asset, not rent expense. Opening inventory is an asset consumed and replenished as events occur. The model fully spends the preopening allowances before the first trading month. Owner equity and debt fund the total; neither customer advances nor future event income is treated as an opening financing source.

Obtain a one-vehicle delivered scope

The one-van allowance is compared with Ford’s dated 2026 cargo-van starting MSRP of $48,400 and destination/delivery of $2,095, totaling $50,495. That leaves $3,505 inside the modeled van budget for unquoted tax, title and configuration costs. This is a comparison to a starting vehicle, not a matching VIN, a used-van valuation or a complete sanitary transport conversion. Ford fact sheet

Request a cargo layout showing the loaded containers, racks, restraint points, cleanable surfaces and people required to carry them. Confirm payload and opening dimensions for the actual vehicle, then obtain insurance and service costs. Refrigeration, powered holding, special upfit or a second van would change the budget. Do not assume a second simultaneous venue can be served merely because monthly mileage looks small.

Count what the portable equipment allowance actually buys

The selected carrier has six full-size shallow-pan positions. Four carriers provide 24 positions before hot/cold separation; the actual menu determines portions per pan and how many units are needed. Capacity is not 24 interchangeable full menus. The manufacturer price does not cover the entire portable-kit schedule. Cambro dimensions and list basis

Keep the reserve distinct from event deposits

The $40,000 reserve starts after all listed uses are funded. The model’s lowest deposit-adjusted cash is $8,886, despite positive bank cash. Monthly ledgers track advances, cancellation refunds, late balances, ingredient inventory/payables and rental prepayments. Increasing the reserve improves cash balances only; it does not create EBITDA or booked events.

Rental tableware is a recurring event cost, not part of the owned kit. A 100-person comparison with a plate, two flatware pieces and a glass per guest totals $620 at the inspected vendor listings, excluding delivery, tax, linens and service charges. The case allocates $800 per staffed buffet and prepays it one month ahead. The remaining $180 is an unquoted allowance, not proof that a complete rental order fits. Rental scope and policy

Get commitments in the order cash becomes due

Confirm kitchen eligibility, time slots and storage before buying the van and carriers. Then collect event dates and menus before reserving rental inventory. Obtain a dealer delivered price, supplier item schedule and rental quote with payment/refund dates. Evidence of price without timing cannot establish the cash needed before service. This case uses one common opening budget across the operating scenarios; lower and higher demand do not magically change asset acquisition costs.

Replace gaps rather than treating them as free

Outstanding scope includes the signed kitchen license/access contract, dealer taxes and selected payload, cold transport specification, full equipment invoices, event rental minimums, delivery/cleaning/damage charges, permit and training fees, insurance, hired-worker burden and real guest demand. Sales tax is excluded from menu prices and assumed collected/remitted in the same month; income tax, alcohol, tips, a venue and major kitchen conversion are outside the model. Tax boundary

A quote that exceeds an allowance requires a new input revision and a rerun of funding, debt and all scenario cash. The current arithmetic is usable as a planning case while those local questions remain explicit.

Validate the case inputs

Download the input and evidence register (CSV). This case export separates observed context from assumptions and leaves quotation fields blank for your project. It is an educational register, separate from the planned personalized model.