How to Start a Cooking Class Business

With all the cooking shows these days, it suddenly seems like everybody’s obsessed with good food and eating right. If you have a culinary background, or are just great in the kitchen, you could start a cooking class business, grab a slice of this growing $2 billion market and ride the foodie wave to entrepreneurial success. If you already have a fully equipped kitchen, you could start for a very small investment.

Of course, you can’t just fry up a business like an egg. Business knowledge will be a crucial ingredient in this entrepreneurial recipe. Luckily, this step-by-step guide provides all the savvy and insight you’ll need to start cooking up business success.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a cooking class business has pros and cons to consider before deciding if it’s right for you.

Cooking class industry trends

The need for chefs and food service workers is boosting the demand for cooking classes in the US. 

Industry size and growth

• Industry size and past growth – After growing an average of 3% yearly over the past five years, the US cooking class industry is worth $2 billion.((https://www.ibisworld.com/united-states/market-research-reports/cooking-classes-industry/)) Culinary arts schools, meanwhile, are valued at a whopping $24 billion.((https://www.ibisworld.com/industry-statistics/market-size/culinary-arts-schools-united-states/))
• Growth forecast – The global cooking glass industry is predicted to expand more than 450% by 2029, as Generation Z and millennials look to boost their cooking skills.((https://www.absolutemarketsinsights.com/reports/Global-Cooking-Class-Market-2021—2029-820))
• Number of businesses – There are more than 300 culinary arts schools in the US.((https://www.ibisworld.com/industry-statistics/number-of-businesses/culinary-arts-schools-united-states/))
• Number of people employed – The industry employs more than 140,000 people, according to IBISWorld.((https://www.ibisworld.com/industry-statistics/employment/culinary-arts-schools-united-states/))

Trends and challenges

Trends in cooking classes:

• Virtual cooking classes, pre-recorded and live, are taking off, and some companies even deliver the required ingredients. Monika Reti, of Hipcooks, even started offering virtual cooking classes during the pandemic.
• Heritage cooking, with recipes based on your family origins, is becoming popular in the culinary arts. This presents specialization opportunities for cooking class companies.

Challenges in the cooking class industry include:

• The boom in virtual classes, sometimes offered by well-known chefs, is making the cooking class market very competitive. Sur La Table is an example of a large company that offers popular online cooking classes.
• Rising food prices are reducing profit margins for cooking class businesses.

What kind of people work in cooking classes?

• Gender – 61% of culinary arts instructors in the US are male, while 39% are female.((https://www.zippia.com/culinary-arts-instructor-jobs/demographics/#gender-statistics))
• Average level of education – 41% of culinary arts instructors hold an associate degree and another 40% have a bachelor’s degree.((https://www.zippia.com/culinary-arts-instructor-jobs/demographics/#degree-level-types))
• Average age – The average age of a culinary arts instructor is 45 years old.((https://www.zippia.com/culinary-arts-instructor-jobs/demographics/#age-statistics))

How much does it cost to start a cooking class business?

Startup costs for a cooking class business range from $2,000 to $10,000. The low end is for a business you run from home, with either in-person or online classes, or both. Costs include a website, marketing, and ingredients for your first class. The high-end includes renting a space with a full kitchen. 

You can also become a Certified Culinary Instructor if you have a Bachelor’s Degree in any subject through the American Culinary Federation (ACF). It requires 120 course hours and is $450 for non-members.

You’ll need a handful of items to successfully launch your cooking class business, including: 

• Stove
• Refrigerator
• Fryer
• Full set of pans including baking pans
• Utensils and dishes
• Food choppers and any other necessary food equipment

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Location rental with kitchen equipment	$0 - $5,000	$2,500
Ingredients for first classes	$100 - $300	$200
Initial marketing budget	$500 - $1,000	$750
Total	$2,150 - $10,400	$6,275

How much can you earn from a cooking class business?

Cooking classes generally cost $50 to $100 per person for each one-hour lesson. The high end is generally for private lessons, so these calculations will assume a price of $50 per lesson. Your profit margin after food costs should be about 80%.

In your first year or two, you could teach classes from home and have four classes of six people per week, bringing in over $62,000 in annual revenue. This would mean a nice profit of nearly $50,000, assuming that 80% margin. As you gain traction, sales could climb to 10 classes of 8 people per week. At this stage, you would rent a commercial space, reducing your margin to around 50%. With annual revenue of nearly $210,000, you’d make an impressive $100,000.

What barriers to entry are there?

There are a few barriers to entry for a cooking class business. Your biggest challenges will be:

• Standing out from the endless competition
• Having a big enough kitchen or funding the rental of a kitchen space

Step 2: Hone Your Idea

Now that you know what’s involved in starting a cooking class business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research cooking class businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a German heritage cooking class business. 

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your classes will be based on your cooking skills, but you should also look for certain types of recipes that are trending. For example, butternut squash as an ingredient was trending for a while. If you decide to do food specific to a certain ethnicity, choose a series of recipes within that category that you can teach.

How much should you charge for cooking classes?

Cooking classes generally run $50-$100 per person for each one-hour lesson. Private lessons are at the high end of that range. You might want to offer a package deal or online subscription, like five lessons for $200. Working from home, your ongoing expenses will be only ingredients, so you should aim for a profit margin of about 80%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, but it may tend to be younger people, in the 25-to-40 range. You can find them on sites like Instagram or Facebook. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you may need to rent out a commercial kitchen space. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Cooking Class Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “cooking classes” or “gourmet cooking”, boosts SEO
• Name should allow for expansion, for ex: “The Kitchen Academy” over “Vegan Cooking Classes”
• Avoid location-based names that might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Cooking Class Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary highlighting the key points of your cooking class business plan, including objectives, mission, and financial highlights.
• Business Overview: A concise description of your cooking class business, outlining its mission, vision, values, and the problem it aims to solve.
• Product and Services: Detailed information on the cooking classes and services you offer, including the types of cuisines, skill levels, and any additional services such as catering or private events.
• Market Analysis: An examination of the target market for your cooking classes, including demographics, trends, and potential customer needs and preferences.
• Competitive Analysis: An assessment of competitors in the cooking class industry, analyzing their strengths, weaknesses, and what sets your business apart.
• Sales and Marketing: Strategies for promoting and selling your cooking classes, including online and offline marketing, pricing, and sales channels.
• Management Team: Introductions and brief bios of key individuals involved in running the cooking class business, emphasizing their relevant skills and experience.
• Operations Plan: Details on the day-to-day operations of your cooking class business, covering logistics, facilities, equipment, and any partnerships or collaborations.
• Financial Plan: A comprehensive financial projection for your cooking class business, including startup costs, revenue forecasts, and profit and loss statements.
• Appendix: Additional supporting documents and information, such as resumes of key team members, detailed market research, or any legal documents relevant to the business.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cooking class businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cooking class business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a cooking class business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Licenses and Permits

Starting a cooking class business requires obtaining a number of licenses and permits from local, state, and federal governments.

Depending on your location, you may need a food handler’s permit. Check with your local governments for requirements.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cooking class business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as MainStreet, Jamix, or Occasion, to manage your class bookings, recipes, ingredient inventory, purchasing, and billing.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

For your cooking class business, the marketing strategy should focus on showcasing the unique culinary skills and experiences you offer, the expertise of your instructors, and the joy of cooking. Emphasize the variety of your classes, whether they cater to beginners, enthusiasts, or specialized cuisines, and the engaging, hands-on approach you provide. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding: Your branding should convey the fun, creativity, and educational aspects of your cooking classes. This includes your logo, promotional materials, and the ambiance of your cooking space.
• Direct Outreach: Network with local community centers, food bloggers, and culinary enthusiasts. Partner with local food markets, kitchen supply stores, and restaurants to cross-promote your classes.

Digital Presence and Online Marketing

• Professional Website and SEO: Develop an engaging website that details your class schedule, instructor profiles, and testimonials. Use SEO best practices to optimize for local search terms related to cooking classes, culinary education, and food experiences.
• Social Media Engagement: Utilize platforms like Instagram, Facebook, and YouTube to share enticing photos and videos from your classes, cooking tips, and student success stories.

Content Marketing and Engagement

• Culinary Blog: Share posts about cooking techniques, recipes, kitchen hacks, and the cultural stories behind various cuisines.
• Customer Testimonials and Reviews: Feature positive feedback and stories from participants who enjoyed your classes.
• Instructional Videos and Live Streams: Create engaging content like short cooking demos, live Q&A sessions, or full-length classes available online.

Experiential and In-Person Engagements

• Open House and Taster Events: Host open house events where potential customers can experience mini-classes, meet the instructors, and sample the dishes.
• Participation in Local Events and Festivals: Engage in local food festivals and events to showcase your classes and offer quick cooking demonstrations to the public.

Collaborations and Community

• Collaborations with Chefs and Food Influencers: Partner with local chefs or food influencers for guest classes or special events, which can draw in their followers and add credibility to your offerings.
• Community Workshops: Offer workshops at community events or collaborate with schools and organizations for educational cooking sessions.

Customer Relationship and Loyalty Programs

• Loyalty Rewards for Repeat Customers: Implement a program that offers discounts or special privileges to students who sign up for multiple classes.
• Referral Incentives: Encourage word-of-mouth marketing by offering discounts or special offers to customers who refer friends.

Promotions and Advertising

• Targeted Local Advertising: Use local media, community bulletin boards, and online community groups to promote your classes.
• Email Marketing: Build an email list to inform subscribers about new classes, seasonal courses, and special events.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your cooking class business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cooking class business could be: 

• Make the beloved dishes of your German ancestors
• Learn to cook online from the comfort of your own kitchen
• Vino while you learn to whip up great meals for your family

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a cooking class business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in food for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in cooking classes. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

If you’re starting out small from a home kitchen, you may not need any employees. But as your business grows and you get a commercial kitchen, you will likely need workers to fill various roles. Potential positions for a cooking class business include:

• Cooking Instructors – teach cooking classes, or assist with classes
• General Manager – staff management, scheduling, accounting
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Cooking Class Business – Start Making Money!

Few industries in the world are growing as fast as the cooking classes industry. If you can whip up a great meal, you can start a business in your own kitchen. You’ll be helping people learn to cook delicious dishes while making great money. Eventually, you could rent a commercial kitchen and open a culinary school. You can also start a cafe to complement your school and start building your culinary empire. 

Now that you know the ins and outs of the business, hurry into the kitchen, and launch your new cooking class business!