I really want to thank you all. Your advice is really helping me a lot!
The town said that the building we are renting a space in couldn't be used as a cafe, restaurant, or have food being made there. It isn't zoned for it. They thought we would be cooking the pizza and cakes and serving that there during the party. We had to clarify what we were doing exactly and get them to approve us bringing outside food in and serving it. While we were waiting on an approval we looked into other rentals in the area just incase we didn't get the approval. We had found one but it was much smaller but really cute. That's when I came up with the idea for the girls only princess tea parties. Once we got the approval from the town for the original place we decided to stick with it because of the size, location and parking availability.
So, I can stick with my original idea and incorporate the princess tea party as a party theme. It won't be as elaborate as I pictured but will still be great.
My start up costs won't be too bad. I already have all the tables and chairs(which is one of the biggest expenses) from when we had the business before. I also have some supplies. All the paper goods will be bought wholesale through the supply company I used before. We have saved enough money for the start up costs plus the year rent.
I have a son and a daughter and I am very aware of how there is so many things for girls more than boys! I will admit it bothers me too!

But as a mom of a girl I know how much they love dress up and tea parties!
Someone mentioned prices. I really want them to be reasonable, but I am in business to make money. I am trying to offer packages that are inexpensive and go up to expensive. Having done this business before I know that parents will spend money on their kids. When it involves birthdays, they tend to spend even more. I had birthdays range from $225 to one parent spending $700!!! The average was around $300.