Creating catering menus that cater to a diverse array of dietary requirements is an ever-growing challenge in the culinary industry. It necessitates chefs and event planners to broaden their repertoire beyond traditional dishes, often leading to innovative gastronomy but also presenting potential obstacles.

The first hurdle is the need for comprehensive knowledge about different dietary restrictions. Whether it's allergies, religious tenets or personal health choices such as vegetarianism or veganism, understanding the nuances is crucial. This education extends not only to ingredients but also to cross-contamination risks and preparation techniques.

Secondly, sourcing alternative ingredients can be difficult and expensive. Substitutes for common allergens like nuts, gluten or dairy may come at a premium price. These costs inevitably impact budgeting decisions and require careful financial planning to ensure that menus remain both inclusive and economically viable.

Moreover, these limitations can stifle culinary creativity if not approached with a positive mindset. Chefs must balance respecting dietary constraints with maintaining high standards of taste and presentation - a task that requires innovation and adaptability.

However, there are significant upsides too. Caterers who effectively navigate these challenges can tap into niche markets hungry for options that consider their dietary needs. Furthermore, creating inclusive menus promotes an image of sensitivity and sophistication which could enhance business reputation.

In conclusion, the impact of dietary restrictions on catering menus compels adaptation within the food service industry. While this transition comes with its set of difficulties from education to cost management – it simultaneously opens up avenues for growth through inclusivity, innovation, and heightened customer satisfaction.