Catering business plan for the Philippines, with permits, costs and a free Excel model

What your plan has to prove

Whether you show the plan to a bank, a cooperative, a partner or only to yourself, it has to answer one question: will the events you can realistically book pay for food, staff, transport and your fixed costs, with profit left over? Everything else in the plan supports that answer.

Start with a one-page summary of the business: what you cater, for whom and where. A caterer serving weddings and debuts in Pampanga is a different business from one supplying packed meals to BGC offices. Then describe your packages, your competitors and why clients will choose you, your team, your equipment, and finally the numbers.

Keep the plan honest about seasons. December, the wedding months and fiesta dates can fill your calendar, while the rainy season and the weeks after New Year can be quiet. A plan that assumes the same number of events every month will look better on paper than it performs in real life.

Step by step

1. 1

   Choose your business structure

   Register a business name with DTI if you are a sole proprietor, or register with the SEC if you set up a corporation or a one person corporation.

2. 2

   Get local clearances

   Secure a barangay clearance where your kitchen is located, then apply for the mayor's or business permit at the city or municipal Business Permits and Licensing Office.

3. 3

   Pass fire and sanitation checks

   Get a fire safety inspection certificate from the Bureau of Fire Protection, and a sanitary permit from the local health office, with a health certificate for every employee.

4. 4

   Register with the BIR

   Register with your Revenue District Office, using Form 1901 for a sole proprietor, and set up your invoices before your first event.

5. 5

   Build the numbers

   Use the Excel model to set your packages, food cost percentage, staff and fixed costs, then check break-even and how many months it takes to earn back your startup spend.

Registrations and permits to include in your startup budget

Every caterer needs the same core registrations. Some fees are national and published, while local government fees vary by city or municipality, so ask your Business Permits and Licensing Office for its assessment early and put the real figure in your plan.

FDA, VAT and invoices: what applies to a caterer

Many new caterers assume they need an FDA License to Operate. FDA licensing under Administrative Order 2014-0029 is aimed at food manufacturers, repackers, traders and distributors, so a caterer that only cooks and serves meals is normally regulated through the local sanitary permit; ask the FDA if you start packing food for retail sale. You will need FDA licensing if you start making prepacked food for sale through shops or online, such as bottled sauces or packaged pastries, so mention it in the plan if that is part of your growth path.

On tax, a caterer becomes liable to register for 12% VAT once gross sales pass ₱3 million in any 12 months. Below that, you pay percentage tax and issue non-VAT invoices. Since the Ease of Paying Taxes Act took effect in 2024, the invoice is the main document for services, and the official receipt is only supplementary. Build the tax line into your pricing so a VAT-registered client is not surprised by the final bill.

Your plan should also say how you will collect money. Most Filipino caterers take a reservation fee to hold the date, a downpayment some weeks before the event and the balance before or on the day. Write those terms into your contract and your cash flow forecast.

Packages, price per head and food cost

Filipino clients usually buy catering as a package priced per head with a minimum number of guests. A package bundles the menu with tables, chairs, linens, styling, waitstaff and sometimes a host or sound system. Build two or three packages at different price points and show in the plan what each one includes and what it costs you to deliver.

Cost each package from the recipe up. Price every dish per serving at current market prices, add rice and drinks, then add the cost of staff for the event, transport, fuel and the wear on your equipment. Food cost as a share of the package price is the number to watch. If rice, pork or cooking oil prices jump, that share moves first.

Keep a buffer for extras. Guest counts often rise in the last week, and clients ask for additional dishes or a lechon at short notice. Price these add-ons in advance so you are not negotiating at the venue.

How the free Excel model works

The download has four sheets. The first lists one-off startup costs: kitchen equipment, chafing dishes and buffet setup, tables, chairs and linens, a vehicle downpayment, permits and opening inventory. The second is a monthly profit and loss built from your event mix, with a direct cost percentage for food and consumables and a list of fixed monthly costs.

From those inputs the model calculates gross profit, net profit, net margin, the monthly revenue you need to break even and how many months it takes to earn back the startup cost. The third sheet projects twelve months with a growth rate you set. The last sheet lists the assumptions and sources.

Every yellow cell is an input. The peso figures in the file are illustrative examples only, not market data. Replace each one with quotes from your suppliers, your own package prices and the permit fees your LGU gives you.

Funding the start and running the first year

Most catering businesses start small and grow equipment with bookings. Renting tables, chairs and some buffet equipment for the first months keeps the startup budget low and lets you test which packages sell. Your plan can show a second phase of purchases once monthly bookings reach a set level.

Track every event against the plan. After each one, compare what you quoted with what the food, staff and transport actually cost. Three or four events in, you will know whether your food cost percentage is realistic and which packages earn the most.

Venura's catering app keeps each booking with its menu, guest count, quotation, invoice and payments in one place on web, Android and iOS, so your actual numbers are ready when you update the plan. You can try it free for 30 days, and pricing outside India is shared on request.

Catering business plan: questions from the Philippines