Catering businesses operate by preparing, delivering, and often serving food and beverages for events such as weddings, corporate gatherings, parties, and other special occasions. It typically works on a contract basis, customizing menus and services to meet client needs, including dietary restrictions, event size, and theme. The business manages logistics such as sourcing ingredients, staffing chefs and servers, transporting food, and setting up dining areas. Like restaurants, success depends on efficient planning, high-quality food, reliable service, and strong client relationships to ensure repeat business and positive referrals.
If you’re in the market to buy or sell a catering business, it helps to have some context on how these businesses are valued, and some benchmarks on financial performance. To that end we have aggregated high level financial benchmarks of recent listings.
  
Market Snapshot
We have aggregated listings of catering businesses for sale to provide a current snapshot of the market. This information can give you an idea of what businesses are available and how they are valued.
| Number of Business Listings Analyzed   | 
112 | 
| Median Asking Price   | 
$418,750 | 
| Median Reported Revenue   | 
$599,160 | 
| Median Reported Earnings   | 
$154,321 | 
| Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. | 
  
Catering Business Valuation Multiples
| Range   | 
Revenue   | 
Earnings (SDE)   | 
| Lower Quartile   | 
0.42 | 
2.00 | 
| Median   | 
0.62 | 
2.54 | 
| Upper Quartile   | 
0.92 | 
3.99 | 
| Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. | 
  
Read the Report:
Catering Company Business Valuation Benchmarks
  
FAQs
How much does it cost to buy a catering business?
Asking prices vary depending on scale, but the median asking price for catering businesses listed for sale is $418,750.
How much does a catering business owner earn?
Owner earnings depend on the size and success of the business, but the median reported revenue for catering businesses stands at $599,160 while owners report median earnings of $154,321.
How do I value a catering business?
Valuing a catering business involves considering several factors, including growth history, annual sales, profit, and trends in the local market. Brokers, business owners, and business buyers will typically rely on valuation multiples to gauge business value relative to similar businesses in the market. Revenue multiples among catering businesses listed for sale in range from 0.42 to 0.92, with the median at 0.62. Earnings multiples range from 2.00 to 3.99, with the median at 2.54. These values suggest a typical catering company may sell for around 0.62 times its annual revenue, and 2.54 times its annual owner’s earnings.
  
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How to Sell a Restaurant Business
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