This article was written by our expert who is surveying the industry and constantly updating the business plan for a catering company.
Equipment represents the single largest expense when launching a catering business, typically consuming 30-50% of your total startup budget.
Understanding exactly what equipment you need and how much it costs is crucial for creating a realistic business plan that won't leave you underfunded. The difference between success and failure often comes down to having the right equipment budget from day one.
If you want to dig deeper and learn more, you can download our business plan for a catering company. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our catering financial forecast.
Professional catering equipment costs range from $40,000-$200,000 for a complete setup, with heavy-duty appliances accounting for 30-50% of total equipment expenses.
Smart budgeting requires balancing upfront costs with long-term operational efficiency, considering both new and used equipment options along with ongoing maintenance expenses.
| Equipment Category | New Equipment Cost | Used Equipment Cost | % of Total Budget |
|---|---|---|---|
| Heavy-Duty Appliances (ovens, fridges, dishwashers) | $6,000-$40,000+ | $3,000-$20,000+ | 30-50% |
| Smallwares & Bulk Tools (knives, pans, utensils) | $2,000-$7,500 | $1,000-$4,000 | 5-10% |
| Installation & Delivery | $1,500-$10,000 | $1,000-$5,000 | 5-10% |
| Mobile Catering Unit Setup | $15,000-$100,000+ | $10,000-$50,000 | 40-100% |
| Fixed Kitchen Setup | $40,000-$200,000 | $20,000-$100,000 | 30-50% |
| Annual Maintenance | $1,500-$4,000 | $2,000-$5,000 | 3-5% (ongoing) |
| Annual Replacement/Restock | $700-$3,000 | $500-$2,000 | 3-8% (ongoing) |
What equipment do I need to start a catering business and how does it vary by operation size?
The equipment list for a catering business depends entirely on your scale of operations and service model.
Every catering operation requires core essentials: ovens (convection and combi for larger operations), ranges or cooktops (gas or induction), refrigerators and freezers (reach-in for small operations, walk-in for larger ones), food preparation stations with stainless steel tables and cutting boards, food processors, blenders, and mixers. You'll also need a commercial dishwasher or glasswasher, storage shelves and ingredient bins, sinks and wash stations, proper ventilation hoods, and complete smallware sets including knives, pans, mixing bowls, and utensils.
Small-scale or home-based catering businesses can focus on portable units, compact refrigerators, countertop ovens, and smaller dish machines. These operations typically serve 20-50 people per event and require equipment that fits in standard home kitchen spaces or small commercial rentals. Mobile catering operations like food trucks need specialized portable equipment that can handle road transport and limited space constraints.
Large-scale event catering requires high-volume ovens, large refrigeration systems, walk-in coolers and freezers, higher-capacity dishwashers, extensive bulk storage solutions, more serving equipment, and food transport carts. These operations handle 100-500+ guests per event and need equipment that can process large quantities efficiently.
This comprehensive equipment breakdown is one of the strategies explained in our catering business plan.
What are the current costs for new versus used professional catering equipment?
Professional catering equipment represents a significant investment, with new equipment typically costing 40-60% more than used alternatives.
A complete commercial kitchen setup with new equipment ranges from $40,000-$200,000 depending on size and complexity. Mid-sized catering operations typically invest $50,000-$100,000 in new equipment. Key appliances include convection ovens ($2,000-$5,500), commercial refrigerators and freezers ($2,000-$10,000), and commercial dishwashers ($2,000-$8,000).
Used equipment offers substantial savings, typically costing 40-60% less than new equipment while maintaining professional quality. Core appliances like ovens, refrigerators, and mixers can often be found in excellent condition at half the retail price. However, used equipment may have shorter lifespans and higher maintenance costs.
The key is finding equipment that meets NSF (National Sanitation Foundation) and UL (Underwriters Laboratories) safety standards regardless of whether it's new or used. Restaurant equipment auctions, equipment dealers, and lease return programs are reliable sources for quality used equipment. Always inspect used equipment thoroughly and factor in potential repair costs when making purchase decisions.
How much should I budget for heavy-duty appliances like ovens, refrigerators, and dishwashers?
Heavy-duty appliances typically account for 30-50% of your total catering equipment budget and represent your largest single expense category.
| Equipment Type | New Equipment Cost | Used Equipment Cost | Capacity Range |
|---|---|---|---|
| Convection Ovens | $2,000-$5,500 | $1,200-$3,300 | 4-20 sheet pans |
| Combi Ovens | $5,000-$10,000 | $3,000-$6,000 | 6-20 pans |
| Reach-in Refrigerators | $2,000-$4,000 | $1,200-$2,400 | 1-3 doors |
| Walk-in Coolers | $5,000-$15,000 | $3,000-$9,000 | 6x6 to 12x12 feet |
| Walk-in Freezers | $8,000-$25,000 | $4,800-$15,000 | 6x6 to 12x12 feet |
| Undercounter Dishwashers | $2,000-$4,000 | $1,200-$2,400 | 24-30 racks/hour |
| Conveyor Dishwashers | $4,000-$8,000 | $2,400-$4,800 | 150-200 racks/hour |
These appliances require professional installation, which adds 10-15% to the equipment cost. Energy-efficient models cost 10-30% more upfront but reduce utility bills by 15-40% over time, typically paying for themselves within 2-5 years.
What's the expected budget for smaller tools and utensils when buying in bulk?
Smallwares and bulk utensils typically represent 5-10% of your total equipment budget but are essential for daily operations.
Professional-quality knife sets for a catering operation cost $300-$1,200 depending on the number and quality of knives needed. A complete set should include 8-20 chef knives, paring knives, serrated knives, and specialty blades. Commercial-grade pans, pots, and trays range from $1,000-$4,000 for a complete bulk purchase. This includes sauté pans, stock pots, sheet pans, hotel pans, and specialized cookware.
Serving utensils, mixing bowls, measuring tools, and serving trays add another $1,000-$4,000 to your smallware budget. When buying in bulk, you can often negotiate 15-25% discounts with restaurant supply companies. Consider stainless steel options for durability and easy cleaning, even though they cost more upfront.
The total smallware investment typically ranges from $2,000-$7,500 for a complete catering operation. Focus on multi-purpose items that can handle various menu requirements and invest in quality pieces that will withstand heavy commercial use. Replace plastic items with stainless steel or other durable materials wherever possible to reduce long-term replacement costs.
How much does a complete mobile catering unit cost versus a fixed kitchen?
Mobile catering units and fixed kitchens have dramatically different cost structures and operational requirements.
Complete mobile catering units range from $15,000-$100,000+ depending on size, customization level, and equipment complexity. Basic food trucks with standard equipment start around $15,000-$40,000 for used units or $50,000-$80,000 for new builds. High-end custom catering trailers with full kitchen capabilities can exceed $100,000. Mobile units include the vehicle or trailer cost, kitchen equipment installation, propane systems, generators, water tanks, and specialized ventilation systems designed for mobile use.
Fixed brick-and-mortar kitchens cost $40,000-$200,000 for complete setup including equipment installation and facility fit-out. This includes kitchen equipment, installation, electrical and plumbing work, ventilation systems, and compliance modifications. Fixed kitchens offer more space, easier maintenance access, and typically lower per-meal operating costs for high-volume operations.
Mobile units provide flexibility to serve different locations and events but have higher per-meal costs due to fuel, maintenance, and limited capacity. Fixed kitchens require higher upfront investment but offer better economies of scale for large operations. Many successful catering businesses start mobile and transition to fixed locations as they grow.
You'll find detailed market insights in our catering business plan, updated every quarter.
What are the typical installation and delivery costs for catering equipment?
Installation and delivery costs add 10-15% to your total equipment budget and vary significantly based on complexity and location.
Basic delivery for smaller equipment items typically costs $100-$500 per delivery, while larger appliances like walk-in coolers or commercial ovens can cost $500-$2,000 for delivery and basic installation. Complex installations requiring electrical work, gas connections, or ventilation modifications can add $1,500-$10,000+ to your project cost.
Professional installation ensures equipment operates correctly and maintains warranty coverage. Gas appliances require licensed technicians and local authority inspections, adding $200-$800 per appliance. Electrical work for high-voltage equipment like large ovens or dishwashers requires licensed electricians at $75-$150 per hour.
Factor in site preparation costs including floor reinforcement for heavy equipment, utility upgrades, and ventilation installation. Remote or difficult-access locations can double installation costs due to equipment handling challenges. Always get written installation quotes before purchasing equipment to avoid budget surprises.
What annual maintenance and repair costs should I budget from the start?
Annual maintenance and repair costs typically represent 3-5% of your total equipment value and are essential for preventing costly breakdowns.
Commercial kitchens typically spend $1,500-$4,000 annually on maintenance and repairs, depending on equipment age and usage intensity. Preventive maintenance contracts cost $200-$500 per major appliance annually but can reduce emergency repair costs by up to 60%. These contracts typically include regular inspections, cleaning, calibration, and minor repairs.
Emergency repairs can be expensive, with service calls costing $150-$300 plus parts and labor. Major component replacements like compressors, heating elements, or motors can cost $500-$3,000 per incident. Older equipment (5+ years) typically requires 20-30% more maintenance spending than newer equipment.
Create a maintenance reserve fund equal to 5% of your equipment value to handle unexpected repairs. Keep detailed maintenance records to track costs and identify equipment that may need replacement. Consider extended warranties for critical equipment that could shut down your operation if it fails.
How much should I budget annually for replacing frequently worn-out items?
Plan to replace 5-10% of your smallwares, glassware, cutlery, and linens annually due to normal wear, breakage, and loss.
- Glassware and plates: Budget $500-$1,500 annually for breakage replacement, with higher costs for operations serving many events
- Cutlery and serving utensils: Expect $300-$800 annual replacement costs due to loss and wear
- Kitchen linens (towels, aprons): Budget $400-$1,200 annually for replacement due to staining and wear
- Small equipment (thermometers, timers, hand tools): Allocate $200-$600 annually for replacement
- Serving linens and tablecloths: Budget $1,000-$3,000 annually depending on event volume and quality standards
High-turnover items like paper products, disposable serving pieces, and cleaning supplies require ongoing budgeting but aren't typically considered equipment expenses. Focus replacement budgeting on reusable items that impact your professional image and operational efficiency.
What financing and leasing options are available for catering equipment?
Equipment financing and leasing options can help preserve cash flow while building your catering operation.
Equipment leasing typically costs $300-$1,500 monthly for a $20,000-$80,000 equipment package over three to five-year terms. Lease rates depend on your credit profile, with good credit securing rates around 6-12% annually. Leasing conserves working capital and often includes maintenance packages, but total costs exceed purchase prices by 20-40% over the lease term.
Equipment financing loans allow ownership while spreading costs over 2-7 years. Interest rates range from 5-15% depending on credit quality and loan terms. Many equipment suppliers offer in-house financing with competitive rates and flexible terms. SBA loans can finance equipment purchases at favorable rates for qualified small businesses.
Consider lease-to-own programs that combine leasing flexibility with eventual ownership. Some lessors offer upgrade options that let you replace equipment with newer models during the lease term. Always compare total costs including interest, fees, and maintenance when evaluating financing options.
We cover this exact topic in the catering business plan.
What regulatory standards must equipment meet and what compliance costs should I expect?
All commercial catering equipment must meet specific regulatory and safety standards that vary by location and equipment type.
NSF (National Sanitation Foundation) certification ensures equipment meets food safety standards and is required in most jurisdictions. UL (Underwriters Laboratories) or CE certification confirms electrical safety compliance. Gas appliances require local authority approval and professional installation with permits costing $100-$500 per appliance.
Budget $2,000-$10,000 for compliance modifications and upgrades depending on your local requirements. This includes fire suppression systems, proper ventilation, accessibility modifications, and safety equipment. Health department inspections may require specific equipment modifications or additions before approval.
Energy codes may require specific efficiency ratings for new equipment, potentially limiting your options or requiring higher-cost models. Some areas have strict noise regulations affecting equipment choices for mobile operations. Research local requirements thoroughly before purchasing equipment to avoid costly compliance issues later.
How do energy-efficient appliances impact my budget short-term and long-term?
Energy-efficient appliances cost 10-30% more upfront but generate significant long-term savings through reduced utility bills.
| Equipment Type | Standard Model Cost | Energy-Efficient Cost | Annual Savings |
|---|---|---|---|
| Commercial Convection Oven | $2,000-$4,000 | $2,400-$5,200 | $300-$800 |
| Reach-in Refrigerator | $2,000-$3,500 | $2,400-$4,550 | $200-$600 |
| Commercial Dishwasher | $3,000-$6,000 | $3,600-$7,800 | $400-$1,200 |
| Walk-in Cooler System | $8,000-$15,000 | $9,600-$19,500 | $800-$2,400 |
| Commercial Ice Machine | $1,500-$4,000 | $1,800-$5,200 | $150-$500 |
| Commercial Range/Cooktop | $1,200-$3,000 | $1,440-$3,900 | $100-$400 |
| Ventilation Hood System | $2,000-$8,000 | $2,400-$10,400 | $200-$800 |
Energy-efficient models typically achieve ROI within 2-5 years through utility savings. ENERGY STAR certified equipment often qualifies for utility rebates ranging from $100-$2,000 per appliance, reducing the upfront cost premium. These savings compound over equipment lifespans of 10-15 years, making energy efficiency a smart long-term investment.
What percentage of my total startup budget should go toward equipment?
Equipment typically represents 30-50% of total catering startup costs, making it the largest single expense category for most operations.
The exact percentage depends on your business model and scale. Mobile catering operations may dedicate 40-100% of startup capital to their mobile unit and equipment since they don't need brick-and-mortar facility costs. Fixed-location catering companies typically allocate 30-40% to equipment, with additional funds needed for facility lease deposits, renovations, permits, marketing, and working capital.
Home-based catering businesses can start with equipment investments as low as 20-30% of total startup costs since they use existing kitchen space. However, they may need to upgrade residential equipment to commercial-grade items as they grow. Large-scale catering operations require substantial equipment investments but benefit from economies of scale that reduce per-meal equipment costs.
Balance equipment spending with adequate working capital for marketing, initial inventory, insurance, and operating expenses during your startup phase. Insufficient working capital is a common cause of early business failure, even with excellent equipment.
It's a key part of what we outline in the catering business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Smart equipment budgeting is the foundation of a successful catering business, requiring careful balance between upfront costs and long-term operational efficiency.
Whether you choose new or used equipment, mobile or fixed operations, the key is creating a realistic budget that accounts for all costs including installation, maintenance, and ongoing replacements.
Sources
- WebstaurantStore - Catering Supplies Checklist
- Operandio - Commercial Kitchen Equipment List
- Kitchen Equipments - Basic Essential Kitchen Equipment List
- Restaurant Times - Restaurant Kitchen Equipment List
- ButterPOS - Complete Restaurant Kitchen Equipment Checklist 2025
- Babak Food Equipment - Average Cost of Restaurant Equipment in 2025
- Profitable Venture - Used New Catering Equipment
- The Restaurant Warehouse - Kitchen Gear on a Budget
- EPOS Now - Commercial Kitchen Cost
- RestroWorks - Restaurant Equipment Buying Guidelines 2025
