How to Start a Catering Business in South Africa

Imagine you’re at a wedding, surrounded by happy guests, and the aroma of delicious food fills the air. 

Then you watch the catering staff professionally serve food and snacks, and you fall in love with their creativity and professionalism 

You thought to yourself, “What would it cost me to do something like this too.” 

Well, you’re in luck coming across this guide! Because we are just about to show you how to start a catering business in South Africa

It’s no longer news that the catering industry in South Africa is thriving with a projected growth rate of 4.5% annually. 

If you’ve got a passion for food and an entrepreneurial spirit, starting a catering business might just be what you need to do.

However, what should you do? How should you do it? What would you need to make your catering business a success? 

Don’t panic. We compiled this guide to walk you through the process needed to set up your own successful catering business in South Africa. 

1. Research and Planning

Before you start your business, you need to do your homework. 

Trust me, many people learned this the hard way when they first dipped their toes into the catering business.

However, you are lucky to have found this even before you start. 

If you think everyone would want your catering services, you might be wrong

That’s why you need to narrow down your target market. 

Are you aiming to cater to corporate events, weddings, or maybe both? 

Just know that anyone you choose has its unique demands and challenges.

To get started, find your local people’s eating habits, then identify your possible competitors and what they are offerings

Carry out surveys or focus on groups to understand customer preferences

Don’t be afraid to talk to other caterers about your intention during your market research. Most of them are happy to share their experiences, and you might even find a mentor. 

Also, you need to craft a solid business plan to guide you through the process and help you avoid disasters. 

Your plan should include:

• Executive summary: discuss briefly an overview of your business, tell people what your business does and what it’s all about.
• Company description: here, describe your business in more detail. What kind of products or services do you offer, where you’re located, and what makes you unique?
• Market analysis: This is when you write the result of your research and analyze your competition and target audience. Write about everything you understand about who your customers are, what they want, and how you can reach them.
• Organization and management structure: in this section, you should outline how your business is organized, like who’s in charge, what their roles are, and how they’ll work together to make your business successful.
• Services offered: Here is where you describe what products or services your business offers. What kind of food you’ll serve as a catering business?
• Marketing and sales strategies: In this section, you should explain how you plan to attract and keep customers, how you’ll advertise, what prices you’ll charge, and how you’ll make sure customers are happy.
• Financial projections: Then lastly, talk about how much money your business will make and spend. Predict how much revenue you’ll generate and what expenses you’ll have.

2. Legal Requirements

Now that you’ve got your business plan, it’s time to make things official. 

The next step is to register your catering business in South Africa which is a must-do. 

Here’s what you need to do:

• Choose a business structure (Sole Proprietorship, Partnership, or Private Company)
• Register with the Companies and Intellectual Property Commission (CIPC)
• Register for tax with the South African Revenue Service (SARS)
• Register for VAT if your annual turnover exceeds R1 million

You also need to get the necessary licenses and permits to operate legally.

You need to have a business license from your local community, a health and safety certificate, a liquor license if you plan to serve alcohol as well as food handler’s certificates for all staff

However, the requirements needed to get these may vary depending on your location and the specific services you offer. 

3. Developing Your Menu

This is actually what some people do first without learning how to start a catering business in South Africa. 

And guess what? Their businesses do not last. 

Of course, you can rest assured because you have put things in their right places with the first two steps. 

Now is the time to show people your creative catering skills. 

As earlier said, not everyone is your customer. You can’t serve everyone. Hence, you should do a few things you are exceptionally good at instead of spreading yourself too thin. 

Before you develop your menu, you should consider 

• Your target market’s preferences
• How often the ingredients are usually available 
• Dietary restrictions and sensations (vegetarian, vegan, gluten-free, etc.)
• How to balance flavours and consistencies
• How appealing those dishes are on visual

That being done, you need to find reliable suppliers for quality ingredients Instead of having to source them at retail prices all the time, you can build relationships with local farmers for fresh produce, butchers for quality meats, speciality stores for unique ingredients, and wholesale suppliers for other bulk items your business needs. 

4. Setting Up Your Kitchen

You don’t need to be told that your kitchen is the heart of your catering business. 

Whether you’re starting from home or setting up a commercial kitchen, you need to get this right. 

First and foremost, you need to get the important kitchen equipment and supplies needed. Some of them include 

• Commercial-grade ovens and stovetops
• Large-capacity refrigerators and freezers
• Food processors and mixers
• Pots, pans, and baking sheets
• Serving equipment (chafing dishes, platters, utensils)

You may also need insulated food carriers to maintain food quality during transit.

In addition, your location must be easily accessible. Whether you’re starting from home or renting a commercial space, you should consider:

• Zoning laws and regulations
• Closeness to suppliers and clients
• Adequate space for food preparation and storage
• Parking and loading areas

If you’re just starting and you are on a budget, a home-based kitchen can be a great way to keep costs down. 

Just make sure you comply with all health and safety regulations.

5. Marketing Your Catering Business

Just like any other business, your catering service won’t sell itself. You need to market it. 

It’s not just enough to learn how to start a catering business in South Africa, you should learn how to market your business too. 

Nothing to be afraid of. You’ve got the skills, you’ve got the kitchen, now it’s time to let the world know about your business.

Firstly, you need to create a strong brand identity. 

Building a brand is more than just the design of a business logo. Your brand design is like the personality of your business. 

When developing your brand, you need to consider:

• Your unique selling proposition (What makes your catering service special?)
• Your target market’s preferences
•  The style and tone of your communication
• As well as the visual elements like colours, fonts, and imagery

Your brand should be reflected in everything from your business logo design, menu design, your staff uniforms as well as your business card design. 

That’s what it takes to build one. 

Furthermore, you need to have an online presence to help push your business.  To do this, here’s what you need:

• A professional website showing your services, menu, and testimonials
• Active social media profiles (Facebook, Instagram, Pinterest are great for food businesses)
• An active Google My Business listing for local SEO

If you need help with your branding and online presence, UGC Deck offers expert graphic design and social media management services to help your business stand out. 

If you are keen on your brand impression, schedule a consultation with our team. 

During this meeting, we’ll discuss your business goals, target audience, and the specific branding you might need in your business. 

With that, we will provide a tailored solution for your business branding designs and a detailed estimate for our services.

Our expert team of professionals will carry out in-depth research into your business, industry, target audience, and competitors to understand your branding needs.

To book a free consultation with us about your branding need, get in touch with the UGC Deck team via +2348063469469 (WhatsApp or phone) or reach out to us using  hey@ugcdeck.co (email) 

6. Hiring Staff

As your business grows, you’ll need to build a team that shares your passion for great food and service.

While looking for someone with great culinary skills, don’t forget to check out their attitude and reliability. Also, you need to look out for whether they have: 

• Relevant experience in catering or hospitality
• A positive attitude to work and willingness to learn
• Ability to work under pressure
• Good teamwork skills
• Flexibility work at any hour as catering often involves irregular hours

You can also consider offering internships or apprenticeships. It’s a great way to find passionate young talent and shape them to fit your business needs.

However, you need to constantly train your staff to instil your business values and ensure consistent quality.

You need to teach them food preparation and presentation standards, health and safety procedures, customer service skills as well as emergency techniques

7. Launching Your Business

You’ve done a great job putting things in their right places, now it’s time to turn up and launch your business

There are two ways to go about this. 

Firstly, before going all out, consider a soft launch to test the waters which could be

• Catering for friends and family events
• Offering discounted services to a limited number of clients
• Participating in local food markets or events

You can use this as an opportunity to iron out any unusual activities in your business and gather valuable feedback.

Then the second way to launch your business is the grand opening style which could be via

• Hosting a tasting event for potential clients
• Partnering with local businesses for cross-promotion
• Inviting local food bloggers or journalists
• Offering special promotions or discounts

However, don’t forget that first impressions count. Make sure everything is perfect, from the food to the service to the atmosphere.

8. Managing Finances

As a caterer, don’t think if you could cook great food, the money would take care of itself.

You need to learn proper financial management for the success of your catering business.

Create a budget for what your business expenses are.  Your budget should include

• Fixed costs (rent, equipment leases, salaries)
• Variable costs (ingredients, utilities, marketing)
• Projected income
• Emergency fund

Ensure to always overestimate expenses and underestimate income because of unforeseen circumstances.

Also, you need to keep your finances in order. Use accounting software like QuickBooks or Xero to track income and expenses

You should also set up separate business and personal bank accounts, and keep detailed records of all transactions

Don’t forget to regularly review your financial statements. You can also consider hiring a professional accountant for complex matters

9. Building a Client Base

Now that your business is up and running, it’s time to focus on growing your client base. After all, what’s a catering business without clients to cater for?

Don’t be shy about promoting your business. Don’t be afraid to tell everyone you know about your catering services.

Join local business associations and chambers of commerce and attend  industry events and trade shows

You should also consider working together with complementary businesses like event planners, venue owners, and others. 

If you can, volunteer to cater for charity events.

Also, use online platforms to promote your business and get more clients. You can use social media like TikTok and others to promote your business. 

Read the full guide on how to sell on social media. You might find it helpful. 

In the catering business, word-of-mouth could turn out to be your best friend or worst enemy. And this could happen with the way you treat and attend to your customers. 

You should learn how to provide outstanding customer service to help retain your clients and get referrals. 

Here are some tips that might be helpful to the effect: 

• Always be punctual and professional
• Be flexible and accommodating (within reason)
• Pay attention to details (dietary restrictions, presentation, and everything else. 
• Follow up after events for feedback
• Handle complaints promptly and graciously

Don’t forget to also keep in touch with past clients.  You can send simple “thinking of you” emails or holiday cards to keep you top of mind for their future events.

Victoria Oludare

Victoria is a writer for marketers and business owners.She has experience in website, social media, and newsletter content & copywriting. If not writing, she would be innovating how to rank businesses on their website.