Catering can be a very rewarding business venture. Everyone loves food, so caterers often receive positive attention and feedback at special events. Their services can elevate special moments, such as wedding receptions or graduation parties.
Caterers get to play a role in people’s most exciting celebrations. They may also provide services to businesses hosting special events, such as employee appreciation meals. Caterers choose their clients and set their own prices. Running a catering company can be lucrative and can give people more control over their careers.
However, complying with state regulations is critical for the continued success of a catering company. They generally need to adhere to food service rules and retain appropriate state licensing. If a person who owns or manages a catering company wants to provide alcohol service for special events, they may need to pursue secondary licensing.
What does California require?
Every business that serves alcohol, either at a specific facility or off-site at private locations, requires an alcoholic beverage control (ABC) license authorized by the California Department of Alcoholic Beverage Control.
Caterers can apply for a new alcohol service license by submitting paperwork and paying a fee to the California Department of Alcoholic Beverage Control. They can also purchase an existing license from another caterer who intends to retire, dissolve their business or cease providing alcohol service. Either option is likely to cost thousands of dollars and may take months to complete.
A basic catering alcohol license is not the only legal obligation imposed on caterers that serve alcohol. Catering companies usually need to secure one-day event authorizations for each event they cater. They must retain a permanent license and apply for daily permits for events based on the number of people attending. The fees for those permits range from $100 to $1,000 per day.
Ensuring compliance with the rules for alcohol service at catered events is of the utmost importance for the protection of the catering company. Trying to navigate the bureaucratic process of acquiring or transferring an ABC license can be incredibly challenging.
Securing a liquor license can be a way to expand a company’s offerings and increase its profit margins. Catering professionals may benefit from partnering with a legal professional as they pursue necessary licensing and ensure that their company complies with all relevant alcohol service regulations.
