NAICS 722320 Quarterly Industry Report
Caterers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 722320Sector: Accommodation and Food Services (72)Updated: Q1 2026
About This Report
This industry profile for Caterers (NAICS 722320) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[8], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, food service analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the caterers industry.
NAICS Sector
72
Accommodation and Food Services
Industry Definition & Overview
Caterers (NAICS 722320) encompasses establishments primarily engaged in providing single event-based food services per the U.S. Census Bureau[5]. These businesses generally operate equipment and vehicles to transport meals to events or prepare food at off-premise locations. Banquet halls with catering staff are also included. Typical events served include wedding receptions, corporate functions, graduation parties, retirement luncheons, and trade shows.
The Census Bureau[6] counts approximately 12,010 active businesses employing 161,416 workers, with annual payroll of $3.15 billion. Average hourly wages run $27.60, with workers averaging 26.6 hours per week reflecting the event-driven scheduling patterns typical of catering operations. The industry is highly competitive with relatively low barriers to entry, creating price sensitivity among customers and ongoing margin pressure across most market segments.
Per the SBA Table of Size Standards[7], the size standard is $9 million in average annual receipts. State-specific food service licensing applies in all jurisdictions, with most states requiring food safety certification, health department permits, and use of licensed commercial kitchen facilities. Separate alcohol service permits are required for events serving beverages. Seasonal demand peaks around wedding season and holiday entertaining periods drive staffing requirements and cash flow management challenges throughout the calendar year. Food cost management and labor scheduling remain the primary operational concerns for caterers at every business scale.
What's Included in This Industry
- Event-based meal preparation and food presentation services
- Wedding reception and social celebration catering operations
- Corporate event, conference, and business function food service
- Banquet hall dining service with full catering staff
- Off-premise food preparation and transportation to event venues
- Menu planning, tasting, and customized event coordination
- Beverage service including bar setup and alcohol service management
- Rental coordination for tables, linens, china, and serving equipment
- Staff hiring, scheduling, and event day service team management
- Post-event cleanup and equipment breakdown logistics
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Accommodation and Food Services | 72 |
| Subsector | Food Services and Drinking Places | 722 |
| Industry Group | Special Food Services | 7223 |
| NAICS Industry | Caterers | 72232 |
| National Industry | Caterers | 722320 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 722310 | Food Service Contractors | Food Service Contractors provide ongoing institutional food service under management contracts, whereas caterers operate on a per-event basis without long-term facility management arrangements |
| 722330 | Mobile Food Services | Mobile Food Services share food preparation and transportation capabilities with caterers but serve individual customers rather than organized event groups and booked functions |
| 722511 | Full-Service Restaurants | Full-Service Restaurants share kitchen operations, menu development skills, and food safety compliance requirements, with many restaurants offering catering as a supplemental revenue line |
| 722513 | Limited-Service Restaurants | Limited-Service Restaurants overlap in food preparation capabilities, with some quick-service operators offering catering trays and party platters for corporate and social events |
| 812310 | Coin-Operated Laundries and Drycleaners | Coin-Operated Laundries and Drycleaners provide linen cleaning services that caterers contract for tablecloths, napkins, and staff uniforms used during banquet and event operations |
| 561920 | Convention and Trade Show Organizers | Convention and Trade Show Organizers generate catering demand by coordinating events that require food service, with caterers often securing contracts through venue and event planner partnerships |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.9% | 1,940 |
| 2 | New York | 9.3% | 1,215 |
| 3 | Florida | 7.4% | 962 |
| 4 | Texas | 6.5% | 850 |
| 5 | Pennsylvania | 4.4% | 570 |
| 6 | New Jersey | 4.1% | 536 |
| 7 | Illinois | 3.9% | 504 |
| 8 | Ohio | 3.6% | 476 |
| 9 | Massachusetts | 3.3% | 428 |
| 10 | Georgia | 3.0% | 387 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
1,992
Total SBA Loans
$881.1M
Total Loan Volume
$442K
Average Loan Size
11 yrs
Average Loan Term
10.46%
Average Interest Rate
22,904
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Caterers (NAICS 722320) has a size standard of $9 million in average annual receipts for federal contracting purposes. SBA lending programs[9] support kitchen equipment purchases, vehicle acquisition, and working capital for qualifying catering businesses managing seasonal cash flow fluctuations. Eligible businesses can access SBA 7(a) loans[10] for working capital, equipment, and acquisition financing, while 504 loans[11] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 184 | $53.5M | $291K |
| 2 | Live Oak Banking Company | 56 | $52.9M | $945K |
| 3 | Univest Bank and Trust Co | 16 | $41.3M | $2.6M |
| 4 | Northwest Bank | 8 | $40.0M | $5.0M |
| 4 | Merchants Bank of Indiana | 8 | $40.0M | $5.0M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 722320?
NAICS 722320 covers establishments providing single event-based food services per the U.S. Census Bureau[5]. Businesses transport meals to events or prepare food at off-premise locations. Banquet halls with catering staff are included. Wedding receptions, corporate functions, and trade shows represent typical event types served by caterers in this classification.
How large is the U.S. catering industry?
The Census Bureau[6] counts approximately 12,010 active businesses employing 161,416 workers, with annual payroll of $3.15 billion. Average hourly wages run $27.60 with average weekly hours of 26.6, reflecting the event-driven scheduling typical of catering operations. The market ranges from small owner-operated firms to large national catering companies serving hundreds of events per year.
What are typical catering business valuation approaches?
Valuations commonly apply multiples to seller's discretionary earnings (SDE), gross revenue, and furniture, fixtures, and equipment (FF&E) value per industry transaction data. Catering businesses typically receive modest valuation multiples due to competitive market conditions and relatively low barriers to entry. Customer portfolio quality, repeat booking rates, and revenue diversity across event types substantially affect business value.
What is the SBA size standard for caterers?
Per the SBA Table of Size Standards[7], the size standard is $9 million in average annual receipts calculated over the preceding five fiscal years. Most catering operations fall below this threshold, qualifying for SBA-backed financing programs including 7(a) loans for kitchen equipment, vehicle purchases, and seasonal working capital needs.
What licensing requirements apply to catering businesses?
State-specific food service licensing applies in all jurisdictions per state health department regulations. Most states require food safety certification, health department building permits, and operation from licensed commercial kitchen facilities. Private residence kitchens are typically not permitted for commercial catering in states like Florida and California. Separate alcohol service permits are required for events serving beverages.
How does seasonality affect catering business operations?
Wedding season (May through October) and holiday entertaining periods (November through December) create demand peaks that drive staffing and cash flow patterns per BLS industry data[8]. January through March typically represents the slowest booking period. Operators who diversify across corporate events, social celebrations, and institutional functions achieve more stable year-round revenue than those depending heavily on wedding catering.
What competitive dynamics affect catering profitability?
Low barriers to entry create a highly competitive market with price sensitivity among customers per industry analysis. Food cost volatility, seasonal demand fluctuations, and rising labor expenses compress margins across most market segments. Successful caterers differentiate through cuisine specialization, event quality reputation, and reliable service execution rather than competing primarily on price. Customer retention rates and referral pipelines drive long-term business value.
What customer portfolio factors affect catering business value?
Customer concentration risk is a primary valuation consideration, as over-reliance on a few clients reduces stability per industry transaction benchmarking. Revenue diversity across wedding, corporate, and social event segments creates more predictable income than dependence on a single event type. Long-term corporate client relationships and repeat booking rates command premium valuations compared to businesses dependent on one-time event bookings generated through online advertising.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]SBA Table of Size Standards sba.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA lending programs sba.gov
- [10]SBA 7(a) loans sba.gov
- [11]504 loans sba.gov
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