That’s great, man! Cooking is a passion for many, and turning it into a business can be super rewarding.
Let’s break down the steps to get you started.
Is There Money to make in Catering?
Oh, definitely! South Africa has a thriving events industry, from weddings and corporate functions to conferences and festivals. People LOVE good food, and catering businesses play a crucial role in making these events memorable.
Plus, with increasing health consciousness, there’s a growing demand for caterers offering healthy, specialised, or dietary-friendly options.
Your First Steps
Find Your Perfect Catering Niche
What do you LOVE to cook?
This is the BIGGEST question.
Your food should be something you’re passionate about. If you love spicy Indian food, maybe that’s your thing. Or maybe you’re all about fancy French dishes. Maybe you have a lot of hits when it comes to vegan food, or you’ve been kosher your whole life and have mastered kosher friendly meals.
Whatever it is, let your love for cooking shine through.
WHO are you cooking for?
Think about the kind of people you want to feed.
Are you into making fancy meals for weddings? Or do you prefer the buzz of corporate events? Maybe you want to cook for families and kids.
Knowing who you want to cook for will help you figure out what kind of food to make.
WHAT makes you special?
What sets you apart from other caterers?
Do you have a secret family recipe? Are you really good at making food look amazing? Maybe you only use super fresh, local ingredients.
Find your unique selling point and SHARE IT WITH PEOPLE.
Your perfect niche is a mix of what you love to cook, who you love to cook for, and what makes you different.
Advice from the pros
We spoke to a lot of other caterers when writing this guide and one piece of advice that popped up time and time again was: don’t be afraid to try new things and change your mind as you go along and grow and improve – the most important thing is to have fun and enjoy what you do. THAT’S where great food happens.
What to specialise in?
- Food trucks are a good idea because they offer flexibility and lower overhead costs, so they’re perfect for serving a diverse customer base.
- You could become a personal chef and provide customised meals for individuals or families, offering a personalised dining experience.
- You could create pre-packaged, ready-to-eat options for busy people – these are sure to be a hit with office workers and those on the go.
- You could specialise in baked goods – from cakes to pastries, there’s a HUGE market for delicious treats, especially for special occasions.
- You could make baby food and tap into the growing demand for healthy baby food options.
- You could also do office catering and provide lunch and snack options for busy professionals / businesses.
- You could cater to health-conscious consumers or people with specific dietary needs with organic and plant-based options.
- You could make and sell meal kits to offer convenient cooking solutions with pre-measured ingredients and recipes.
It all depends on your passion, skills, and target market.
Create a Solid Business Plan
Your business plan should include things like:
- What kind of catering service will you offer?
- Who are you trying to sell to?
- How much money do you need to start and run your business?
- How will you attract customers?
- How will you manage your business day-to-day?
To make it a bit easier for you, here’s a free One Page Business Plan Template.
Where Are You Gonna Cook?
Catering from home
Cooking from your own kitchen might seem like the easiest option, but let’s break it down, because there’s a lot to consider behind-the-scenes…
What are the rules?
Contact your local municipality to find out if you CAN run a food business from home.
Is there space?
Do you have enough room for all your cooking gear, storing ingredients, and cleaning up?
Can you keep it clean and sanitised?
Your kitchen needs to be super clean to meet food safety standards. This means regular cleaning and sanitising, which can become tedious when people are living there and using the kitchen a lot.
What about equipment?
Home ovens and stoves might not be powerful enough for large batches of food.
Will you get distracted?
Family, pets, and other household activities can interfere with your work if you’re not careful.
Renting a Commercial Kitchen
Renting a commercial kitchen gives you a dedicated space designed for cooking. Here’s what to consider if you’re thinking of renting:
- Location: A kitchen close to your target market can save you time and money.
- Kitchen features: Look for kitchens with the equipment you need, like big ovens, stoves, and plenty of prep space.
- Cost: Factor in rent, utilities, and any additional fees.
- Shared spaces: Some kitchens are shared with other food businesses. This can be a good way to save money, but you’ll need to coordinate schedules so that it isn’t inconvenient.
- Equipment: You might need to bring your own small equipment, like blenders or mixers.
Food Trucks and Pop-up Shops
Cooking on the go can be exciting, but there are challenges…
- Buying or renting a food truck is a BIG investment.
- You’ll need special equipment that’s designed for a small space.
- Different rules apply to food trucks, so check with your local authorities about permits and regulations.
- Rain or extreme heat can disrupt your business.
- Finding parking spots to set up can be tricky, especially in busy areas.
Must-Have Equipment
Now that you’ve chosen your culinary headquarters, it’s time for you to equip it for the job. Here’s a breakdown of the essentials, recommended by other pro caterer entrepreneurs:
The Big Things
Stoves
You’ll need to invest in a sturdy stove with enough burners to handle your cooking needs. Your options include gas or electric, depending on your preference.
Ovens
Whether you need a convection oven for baking or a large standard oven for roasting, choose one that fits your menu.
Refrigerators and Freezers
Keep ingredients fresh with reliable refrigeration. If you offer frozen meals or desserts, a freezer is crucial.
For Food Prep
Knives
A good set of sharp knives are essential for chopping, slicing, and dicing. Invest in chef’s knives, paring knives, and serrated knives.
Cutting Boards
Opt for durable, non-porous cutting boards to prevent bacteria growth. Consider colour-coding them for different purposes (e.g., meat, vegetables).
Mixing Bowls
From stainless steel to lightweight plastic, choose bowls in various sizes for mixing, whisking, and tossing ingredients.
Stuff you’ll need to Serve:
Plates and Cutlery
Invest in dinner plates, salad plates, and sturdy cutlery for buffets or plated events. Consider reusable options for a sustainable approach.
Chafing Dishes
These keep food warm and ready to serve at events. Look for different sizes to accommodate various serving needs.
Serving Utensils
Spatulas, serving spoons, tongs, and ladles are essential for presenting and serving food efficiently.
On the Go Necessities (if applicable):
Transportation
A reliable vehicle, like a van or truck, is essential for transporting food and equipment to event locations.
Consider things like fuel efficiency and cargo space.
Insulated Containers
Keep hot food hot and cold food cold during transport with insulated containers.
Licences and Permits
Running a catering business legally requires you to have the proper registrations and permits.
Here’s what you need to do:
Business Registration:
Choose a structure
Decide if you’ll operate as a sole proprietorship, partnership, or company. Each has its own legal implications, but there are a lot of benefits to starting a Pty Ltd Company.
- A Sole Proprietorship is the simplest and most common structure for small businesses. You’re the only owner, and your personal assets are at risk if the business gets into debt. It’s suitable for businesses with low startup costs and a single owner.
- A Partnership is a good idea if you want to share ownership and responsibilities with someone else. However, both partners are personally liable for business debts.
- Private Companies (Pty Ltd) offer limited liability, protecting your personal assets from business debts. It’s more complex to set up and manage, but it’s a popular choice for businesses looking to grow.
Register with the CIPC
You’ve got to make your business official (and legally allowed to operate) by picking a unique business name and then you need to register your company with the CIPC.
Once your registration is complete, you’ll receive a certificate confirming your business’s legal status.
Pro Registration Tip
There are online services that make registration a lot easier for you, and it can all be done online. You can register your company online with Canamac.
You can also use this nifty company name search tool to make sure your business name is actually available for you to use.
Essential Licenses and Permits
To operate a catering business, you’ll need specific licences and permits to ensure you comply with health, safety, and legal regulations.
Health Permit (Certificate of Acceptability)
This is crucial for food businesses. It demonstrates that your kitchen and food handling practices meet health and safety standards.
Zoning Permit
Ensures your business location complies with zoning regulations.
Fire Safety Certificate
Demonstrates that your premises meet fire safety requirements.
Additional Considerations:
- Food Safety Training: Many municipalities require food handlers to undergo training and certification.
- Liquor Licence: If you plan to serve alcohol, you’ll need a separate liquor licence.
Here is a detailed breakdown of what licences you’ll need if you want to sell food.
Building Your Brand
Make a logo
A logo is like your business’s face. It should look professional and represent your brand. Think about colours, shapes, and fonts that match your style.
You can use online tools like Canva or Looka to make a logo online for free.
Create a website
Your website is your online shop window. Make it look good and easy to navigate. People should be able to find your menu, contact details, and booking information quickly.
It doesn’t have to be complicated, or even expensive – you can use platforms like Wix, Squarespace, or WordPress to build a beautiful website without breaking the bank.
Market your business on Social media
Share mouthwatering photos of your food, engage with customers, and run contests or giveaways. Instagram and Facebook are great places to start marketing on social media.
Pricing Your Menu
So… how much should you charge?
The first step is to know how much it costs you to make each dish. Here’s what to include:
- Ingredients: The price of all the food items in the recipe.
- Labour: How much you pay your staff to prepare and serve the dish.
- Other costs: This includes things like electricity, water, and any other expenses related to making the dish.
Calculating Your Price
Once you know your costs, you need to add a profit. This is the money you make on each dish.
Here’s a simple way to think about it:
Double your costs
This means charging twice as much as it costs you to make the dish. For example, if a dish costs R20 to make, you’d charge R40.
Add a percentage
Instead of doubling, you can add a specific percentage to your costs. For example, if your costs are R20 and you want a 50% profit, you’d charge R30.
Looking at the Competition
Check out what other caterers in your area charge.
This can give you an idea of what people are willing to pay. But remember, you’re unique, so don’t just copy their prices.
Extra Income Ideas
- Add-ons: You could offer extra items like fancy table decorations or extra side dishes for an additional fee.
- Packaging: You can charge extra for special packaging if you’re providing it.
- Delivery: If you offer delivery, charge a delivery fee.
Pro Tip: It’s a good idea to review your prices regularly to make sure you’re still making a profit. The cost of ingredients and other expenses can change over time.
Spread the Word
Networking is going to take you far
Go to industry events, talk to wedding planners, and connect with other businesses. You never know who you might meet.
Publicity
Maybe you could offer to cater a special event for a local charity – free publicity is always good!
Partner up
Collaborate with other businesses, like florists or event venues, to offer complete packages to clients.
Remember: Building a strong brand takes time and effort. Be patient, consistent, and always focus on providing exceptional food and service.
Let’s Get Cooking!
Starting a catering business can be a fulfilling venture that allows you to share your love of food with others.
Now that you know how to get up-and-running, are you ready to turn your culinary dreams into reality?
Take the first step by registering your business.
With dedication, hard work, and a passion for food, you can build a thriving catering business in South Africa.
If you need any help along the way, our Support Team is always happy to help!
