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Catering Service Business

कैटरिंग सर्विस व्यवसाय · केटरिंग सर्व्हिस व्यवसाय

Cook and serve food for weddings, functions, corporate events and religious gatherings on a per-plate rate with your own team and equipment.

₹5–10 lakhPrices not yet confirmed with suppliers

Investment

₹7.9 lakh

Profit a month*

₹51,000

Space
600 sq ft
Staff
2 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A caterer takes orders for events, plans a menu at a per-plate price, buys ingredients, cooks in bulk at the venue or a base kitchen, and serves through a buffet or sit-down service. The business needs large vessels, burners, serving counters and crockery, a head cook, and a pool of cooks and servers hired for each event. It suits someone with cooking or event experience and a wide circle of contacts, since most orders come by reference. Food is roughly half the plate price and event labour is the next big cost. Good months are very good; the off-season can be nearly empty. The hard parts are seasonality, advance planning for exact head counts, food safety at scale, dependence on a head cook, and late payments.

Skills needed: Bulk cooking or managing a head cook (maharaj), costing per plate, event planning and handling clients on the day.

Profit calculator

Change the numbers to match your town

48 plate/day: Plate served (vegetarian function menu)

Add-ons

Total investment

₹7.9 lakh

Your own money

₹79,036

Subsidy

—

Bank loan

₹7.11 lakh

Mudra Tarun

A typical month in year 2

Sales₹4,20,000
Raw material & packing−₹3,08,400
Electricity−₹2,040
Salaries−₹33,600
Rent−₹10,500
Other running costs−₹14,700
Operating profit₹50,760
Loan instalment (EMI)−₹16,585
You keep each month₹34,175

After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.

Break-even at 20% capacityDSCR 4.02 (banks like ≥1.5)Payback ≈ 2.2 years

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Investment breakdown

Machinery & equipmentPrice
Large cooking vessels, kadais, tawas and ladles₹1,80,000
High-pressure burners, bhattis and gas manifold₹60,000
Chafing dishes, serving counters and hot cases₹1,20,000
Plates, bowls, spoons, glasses and serving ware₹80,000
Storage drums, crates, water dispensers and insulated boxes₹40,000
Mixer-grinders, vegetable cutter and wet grinder₹45,000
Racks and work tables at the base kitchen₹30,000
Used tempo for equipment and foodadd-on₹3,50,000
Machinery & equipment (without add-ons)₹5,55,000
FSSAI, Shop Act and other registrations₹8,000
Rent deposit for kitchen or godown₹30,000
Menu cards, tasting sessions and sample events₹25,000
Uniforms and branding₹15,000
Working capital 5 days of raw material, 7 days of credit to buyers, 1 month of expenses₹1,57,360
Total project cost₹7,90,360

Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.

Cost and margin per unit

Plate served (vegetarian function menu) (per plate)₹
Ingredients (vegetables, grains, dairy, oil, spices)190.00
Cooks and servers hired for the event (per plate)45.00
Cooking fuel12.00
Disposables, water and ice10.00
Material cost257.00
Selling price350.00
Margin before running costs93.00 (27%)

Capacity is about 4,000 plates a month. A published guide gives wedding catering margins of 25–35% on plate rates of ₹300–800, and 2026 guides put budget vegetarian wedding plates at ₹400–650 in smaller cities. Ingredient cost depends entirely on the menu.

Space, power and staff

600 sq ft

Rented shed · rent ≈ ₹10,000/month

Small-town rent for a base kitchen and store for vessels. Most cooking for large events happens at the venue.

3 kW, single-phase

Bill ≈ ₹4,000/month at full capacity

2 staff + you

  • 1 × Head cook (maharaj): ₹22,000
  • 1 × Kitchen helper / store keeper: ₹10,000

Licences and registrations

FSSAI registration / licence

mandatory

When: Before taking orders · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit

Caterers are food businesses. Check the current turnover limit for basic registration on foscos.fssai.gov.in; venues and corporate clients ask for your licence copy.

Shop and Establishment registration

mandatory

When: Within the period your state sets after starting · Cost: Small fee; varies by state

GST registration

if applicable

When: When turnover crosses the registration limit for services · Cost: Free

Outdoor catering is taxed; a caterer at the volume assumed here will usually cross the limit. Confirm the rate and input-credit rules with a CA.

Fire and safety arrangements for commercial LPG

if applicable

When: At the base kitchen and at venues · Cost: Varies

Use commercial cylinders with proper regulators and keep extinguishers at every event.

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

How it works

  1. Meet the client; fix the menu, plate rate, minimum guaranteed plates and service style; take an advance.
  2. Cost the menu, book cooks and servers, and arrange transport.
  3. Buy ingredients a day or two before; prepare bases in advance.
  4. Cook at the venue or base kitchen; set up counters before guests arrive.
  5. Serve, replenish and keep food hot and covered.
  6. Clear up, count returned equipment and collect the balance.

Loan route

Mudra loan (Tarun)

Own money ₹79,036 · Loan ₹7.11 lakh · EMI ≈ ₹16,585

No collateral, no subsidy.

How Mudra works

PMEGP (new units)

Subsidy ₹1.19 lakh (general, urban) to ₹2.77 lakh (special category, rural). EMI ≈ ₹13,821–₹11,057.

Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).

Who buys and how to sell

Buyers

  • Wedding and engagement families
  • Birthday, naming and house-warming functions
  • Corporate offices and factories (events and daily meals)
  • Religious and community gatherings
  • Schools, colleges and clubs

Ways to sell

  • References from past clients
  • Tie-ups with marriage halls, decorators and event planners
  • Tasting sessions for wedding families
  • Corporate canteen and meal contracts
  • Social media with photos of real events

Season: Very seasonal. Wedding months (broadly November–February and April–June, by local muhurat calendars) and festivals are peak; the monsoon and inauspicious periods are slow.

Competition: Established local caterers with hall tie-ups, and many small cooks. Taste, hygiene, punctuality and enough food on the day build a name.

Risks and how to handle them

Food poisoning at an event

Use fresh ingredients and safe water, keep hot food hot and cold food cold, and never carry leftovers to another event.

Food runs short or large quantities are wasted

Agree a guaranteed plate count in writing, with a rate for extra plates, and plan quantities by experience.

Clients delay the final payment

Take a large advance and the balance before or on the event day, as written in the order.

The head cook leaves in peak season

Keep working relationships with two or three cooks and document your signature recipes.

Burns and gas accidents

Train staff, check hoses and regulators, and keep extinguishers and first aid at every site.

Tips from the trade

  • A tie-up with one or two marriage halls can fill most of the season.
  • Daily corporate or institutional meals earn less per plate but cover fixed costs in the off-season.
  • Photograph counters and food at every event; families choose caterers from pictures and tastings.

Questions people ask

How is the plate price worked out?+

Add the cost of ingredients for the menu, cooks and servers, fuel, transport, disposables and rentals, then add your margin. Published guidance puts catering gross margins at about 20–35% depending on the event.

Do I need to own all the equipment?+

No. Many caterers own the cooking vessels and burners and rent crockery, counters, tables and tents for each event. Owning more makes sense as bookings become regular.

How much investment is needed to start a catering service business?+

About ₹7.9 lakh for a small unit: ₹5.55 lakh for machinery and equipment, ₹78,000 for set-up costs and ₹1.57 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a catering service business make per month?+

At 30% of capacity, sales are about ₹4.2 lakh a month and operating profit about ₹50,760 before the loan instalment. After an EMI of about ₹16,585, the owner keeps about ₹34,175 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for catering service?+

Mixer-grinders, vegetable cutter and wet grinder (about ₹45,000).

Can I get a Mudra loan or PMEGP subsidy for catering service?+

With a project cost of about ₹7.9 lakh, the bank loan of about ₹7.11 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹2.77 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

What licences are required for catering service?+

Mandatory: FSSAI registration / licence, Shop and Establishment registration. Depending on your set-up you may also need: GST registration, Fire and safety arrangements for commercial LPG, Udyam registration.

Similar businesses

Sources

Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.

Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.