How Much Does It Cost to Start a Catering Business in the UK?

Starting a catering business in the UK can be a rewarding way to turn your passion for food into a thriving enterprise. Whether you dream of serving elegant canapés at weddings, running a food truck at local festivals, or providing office lunches to busy professionals, the catering industry offers endless opportunities. But before diving in, it’s essential to know exactly what it costs to get started — from kitchen equipment and licences to marketing and insurance. Let’s break it all down in detail so you can plan your budget wisely and avoid unexpected surprises.

Understanding the Basics of a Catering Start-Up

Catering is one of those businesses that can begin small and grow quickly with the right approach. The initial cost largely depends on your business model. Are you setting up a home-based catering service, a commercial kitchen, or a mobile food van? Each comes with different financial requirements and setup considerations.

For most people starting out from home or a rented commercial kitchen, the initial investment typically ranges between £5,000 and £25,000. However, if you plan to launch a full-scale catering company with vehicles, branded equipment, and staff, you could easily spend upwards of £50,000 or more.

1. Legal Setup and Business Registration

Before cooking your first batch of food for paying customers, you’ll need to register your business properly. In the UK, all food businesses must register with their local council’s environmental health department at least 28 days before trading. Fortunately, this is free, but it’s crucial to comply with hygiene and food safety regulations.

If you plan to operate under a business name, you’ll also need to register with HMRC and decide on your structure — sole trader, partnership, or limited company.

• Cost: £0–£50 depending on your setup.
• Timeframe: Usually 1–2 weeks.

Some catering businesses also choose to trademark their brand name or logo, which can cost an additional £170–£200 if you do it online.

2. Food Hygiene and Safety Certificates

You and any staff who handle food must complete Level 2 Food Hygiene and Safety training at the very least. For managers or supervisors, Level 3 is often recommended.

• Cost: £20–£150 per person (depending on the training level and provider).

You’ll also need to comply with the Food Standards Agency (FSA) rules for storing, handling, and transporting food safely. A food hygiene inspection by your local council will determine your official rating — a crucial part of building trust with customers.

3. Kitchen Equipment and Tools

This is where most of your budget will go. Depending on your menu, you’ll need:

• Commercial ovens, hobs, and grills
• Fridges and freezers
• Food processors and mixers
• Chafing dishes and serving trays
• Cookware, knives, utensils, and chopping boards
• Cleaning supplies and storage containers

If you’re setting up from home, you may already own some essentials, but professional equipment is built for high-volume cooking and safety compliance. You might start with refurbished gear to save money.

Approximate cost:

• Small home-based setup: £2,000–£6,000
• Commercial kitchen: £10,000–£25,000
• Mobile catering van: £15,000–£40,000 (depending on the vehicle condition and fit-out).

Don’t forget smaller but vital items like thermometers, protective clothing, and first-aid kits — these can add another £300–£500 to your bill.

4. Premises and Utilities

If your kitchen at home doesn’t meet health and safety standards, you’ll need to rent a commercial kitchen or shared catering space. Many new caterers in the UK now use “kitchen rentals” where you pay by the hour or day.

• Shared kitchen space: from £15–£35 per hour
• Small commercial kitchen lease: £500–£1,500 per month (depending on location)

You’ll also need to budget for utilities — electricity, water, and gas. In a commercial setting, this could add £200–£400 per month to your running costs.

5. Licences, Permits, and Insurance

Insurance is non-negotiable. You’ll need:

• Public liability insurance – to protect against accidents or injury claims.
• Employer’s liability insurance – required if you hire staff.
• Product liability insurance – in case your food causes illness.
• Vehicle insurance – if you deliver food or run a catering van.

Costs vary depending on coverage, but expect to pay between £250 and £800 per year.

You might also need:

• Music licence (if playing music at events): around £100–£200 annually.
• Street trading licence (if selling in public places): around £100–£300 per location, depending on your local authority.
• Gas and electric safety certificates ( can be £155- £450 )

6. Staffing Costs

You might start off solo, but as your catering business grows, you’ll need help with cooking, serving, delivery, and cleaning.

• Catering assistants: around £11–£14 per hour
• Chefs or cooks: around £15–£25 per hour
• Waitstaff and servers: usually £10–£13 per hour

During busy periods, hiring temporary staff or agency workers can help you meet demand without committing to full-time salaries.

8. Transport and Delivery

If your business involves delivering meals or catering on-site, reliable transport is crucial. Many caterers use a refrigerated van or small cargo vehicle.

• Used catering van: £6,000–£15,000
• New vehicle (custom-fitted): £20,000–£40,000

Add to that fuel, maintenance, and MOT costs, which can average £1,000–£2,000 per year.

9. Ongoing Costs and Contingencies

Even after launching, you’ll have monthly expenses to manage. These include:

• Ingredients and supplies
• Packaging and disposables
• Cleaning materials
• Staff wages
• Marketing renewals
• Repairs and maintenance

A wise approach is to keep at least 10–15% of your total start-up budget as an emergency reserve for unforeseen costs or slow months.

10. Estimating Your Total Start-Up Budget

Here’s a rough breakdown for different types of catering businesses in the UK:

Type of Business	Estimated Start-Up Cost	Typical Monthly Costs
Home-based catering	£3,000 – £7,000	£500 – £1,500
Shared/commercial kitchen	£10,000 – £25,000	£1,000 – £3,000
Mobile catering van	£15,000 – £40,000	£800 – £2,000
Full-scale catering company	£25,000 – £60,000+	£2,000 – £5,000+

How to Keep Costs Down When Starting

1. Start small: Offer limited menus or focus on niche events like birthday parties or afternoon teas.
2. Buy second-hand equipment: Many quality catering items are available used at a fraction of the cost.
3. Rent instead of owning: Shared kitchens and short-term leases help reduce overheads.
4. Do your own marketing: Manage your social media, design flyers, and build local partnerships before hiring agencies.
5. Use seasonal ingredients: Reduces food costs and gives your menu a fresh, local touch.

The Bottom Line

Starting a catering business in the UK doesn’t have to break the bank. With careful budgeting and a clear understanding of your target market, you can launch a profitable enterprise that grows steadily over time. The most important investment isn’t just in equipment or licences — it’s in your reputation for delivering delicious food and reliable service.
So, how much does it cost to start a catering business in the UK? For most entrepreneurs, somewhere between £5,000 and £25,000 will get you off the ground, depending on your scale and ambitions. Plan carefully, keep your expenses realistic, and focus on creating memorable experiences for your clients — that’s the real recipe for success in the catering world!

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