Hi, I have been asked to supply a restaurant with my decorated cakes. I made a 3-tier "dummy" cake, and I'm going to make a smaller dummy cake for their display case. I have to come up with a price list to supply to the restaurant. The way we will work it is...if someone orders a cake for a celebration at the restaurant, the restaurant gets a "cut" of the price. If someone looks through my picture book and orders a cake for an outside party, I get the entire price of the cake. My problem is that I can't come up with the prices (I'm always told that I price way too low). I know that the restaurant needs to make a decent profit, and I'm afraid that if I price the cakes too high, no one will order any at all. Does anyone have any experience with restaurant pricing guidelines? Thanks in advance for all your help.
For restaurants, I typically discount my cakes anywhere from 10% to 20%, depending on the type of cake. I give the restaurants my price list that shows a retail price for customers and a discount price for businesses. It seems to work well..I also get to put my brochures at the restaurants. Good luck to you and I hope this helps!
Thanks for the help! I'll see where that takes me.
Congrats on getting your cakes into the restaurant to sell mimi... best of luck with it
How did you get hooked up with making cakes for restaurants? What restaurants are they, chains or local ones?
That is really cool that you are able to do that, it must be great for business.
A friend of mine is a "Clown", and he works at this restaurant every Thursday night - children's night. I had a surprise birthday party for him at the restaurant (I'll post a picture of his cake) and they loved it and it evolved from there. It's a seafood restaurant, not a chain restaurant. I'm just having trouble coming up with the pricing because they don't want to lose any money on the customers that would be eating my cake for a party there instead of ordering the restaurant's dessert. I can understand that, but I have to make some profit in order to make it worth my while - plus the restaurant is about 20 minutes away. I'm sure I'll work out something. I'm excited about it. I've been decorating cakes for over 25 years, and have worked in a few bakeries and been doing cakes on my own all this time. This could be a great outlet though. Thanks for the well wishes.
sounds like this couldn't have happened to a nicer person. I am tickled for you! Good Luck with it!