What Do You Pay/charge For Renting Kitchen Space?

Business By handymama Updated 4 Jan 2010 , 5:23pm by Melinda3

handymama Posted 7 May 2008 , 4:04pm
post #1 of 32

My bakery isn't even built yet and people are wanting to rent it. Since it's a special dream come true that's been birthed through many hard labor pains I'm not eager to rent it at all. On top of that, it's going to be nicer than my home kitchen in some respects! Anyway, I need to know what is a fair rate for hour/day/week/month, and if this would include all of my equipment including small things like gumpaste tools and brushes. If you are a renter or you rent your space please tell me what the rules are as well as the rate. Thanks so much.
Nancy

31 replies
jewelykaye Posted 7 May 2008 , 8:38pm
post #2 of 32

I rent kitchen space from a bakery. I pay $10/hour. I pay that only expecting to use her space not her tools however her and I get along really well so she lets me use anything.

I think it has worked out really well for both of us. Because when she goes out of town or gets booked for a date then she sends the business to me. This looks good on her because she is still helping the client. Plus any business she refers to me I give her 10% plus she gets the $10/hour for the time I'm in her shop working on the cake.

I would say to carefully interview the people who want to rent from you. You have to make sure that your personalities fit.

shapeacake Posted 8 May 2008 , 12:10am
post #3 of 32

I pay $17/hour. I'm allowed to use almost everything in the kitchen (except ingredients of course). I had to pay a substantial deposit, and there are strict cleaning guidelines, which I appreciate. Storage space is extra. I was looking at another place for $20 an hour.

Consider requiring insurance (most liability insurance comes with fire insurance for your place), and be sure to see proof of their food safety certification.

Definately prepare a contract.

indydebi Posted 8 May 2008 , 3:06am
post #4 of 32

I plan to rent out the down-time in my kitchen ..... $350/month, proof of insurance and food safety course. I dont' want to keep track of hours which is why I prefer a flat fee per month. Plus it's easier for me to budget a flat fee on the income stmt. If the renter is in there just 10 hours a week, it works out to less than $10/hour.

Mac Posted 8 May 2008 , 12:35pm
post #5 of 32

I pay $400 a month for 3 evenings a week for 4 hours (6-10). That figures abbout $8.33 per hour (sometimes I am there less than that. I supply my insurance and all of my licenses--don't forget those. I don't use any of their ingredients, I purchase my own and LABEL them. I do have one cabinet are that I absconded for my stuff.

Alligande Posted 8 May 2008 , 3:10pm
post #6 of 32

I pay $10.00 an hour or $60.00 a day. They only items that our orginal deal included was use of the kitchen and the heavy equipment (mixer, oven etc.) all ingredients and small wares where provided by me. I now have a much more flexiable arrangement, as we have become friends and I help my landlord when he needs a chef.. and we both gave up keeping track our understanding is that if one of us feels abused that we will speak up!

If I was using my own kitchen I would be concerned about renting it out to my competition, my landlord is a deli, I make cakes no conflict, he also rents to a couple of small cateres and once again no conflict because they do onsite catering he only does off site.

shaloop Posted 8 May 2008 , 8:47pm
post #7 of 32

I pay $350/month for 2 1/2 days per week. I use the sinks/ovens/prep tables but have all of my own smallwares and ingredients. I have two shelving units for my stuff and share the cooler and freezer on my work days. I'm renting from a caterer. She does savory, I do sweet. Still a new arrangement so we have yet to bump heads on timing/kitchen use. My former kitchen roommate was a tamale shop. Paid $300/month and shared use of ovens/prep tables/sinks and I had my own storage shelving and refrigerator and small appliances (mixer/food processor, etc).

terri76 Posted 9 May 2008 , 2:45pm
post #8 of 32

ok, I'm amazed! I've never priced renting a space but how do you come out with a profit on your cakes? I've talked to my local health dept. and I have to have a seperate kitchen at my home to be "legal". I've thought about renting a space but at those rates, I'd not make a profit.

I don't know what to do, I want my own space but the cost of a small building/shed/rent is to high. Any advice?

indydebi Posted 10 May 2008 , 4:36am
post #9 of 32
Quote:
Originally Posted by terri76

ok, I'm amazed! I've never priced renting a space but how do you come out with a profit on your cakes? I've talked to my local health dept. and I have to have a seperate kitchen at my home to be "legal". I've thought about renting a space but at those rates, I'd not make a profit.

I don't know what to do, I want my own space but the cost of a small building/shed/rent is to high. Any advice?




Same way those who have a storefront make a profit and pay their rent every single month .... volume and excellent pricing. thumbs_up.gif

Mac Posted 10 May 2008 , 1:46pm
post #10 of 32

From past orders and looking at the books from last year, most of the time, orders from one weekend covers my rent. About half of the next weekend orders covers my expenses (ingredients) so that makes 2 1/2 weekend orders my profit (IF I can keep my hubby out it...LOL).

terri76 Posted 10 May 2008 , 2:26pm
post #11 of 32

Thanks Mac! That makes me feel better and gives me just what I was looking for. If you don't mind me asking, about on average, how many cakes do you do a week and are they mostly layered (larger) or sheet...?

Thanks a bunch!!!

Mac Posted 11 May 2008 , 12:45am
post #12 of 32

I usually have at least 1 wedding cake (the minimum I charge for a wedding cake is $75.00), 1 2-tiered or larger birthday cake, 3 or 4 sheet cakes and about 6 dozen cookies.

Most of the wedding cakes are for 100 guests at $3.00 per serving, and I charge that for ANY tiered cake. The sheet cakes are $35 for simple BC and the cookies are $2.00 each and up.

Hope that helps...January is always slow for me and for some reason, I panic...LOL!!! But then comes valentine's day and I am off and running for the year.

handymama Posted 16 May 2008 , 2:36pm
post #13 of 32

What sort of licensing and insurance do you require of your renters?

SugarMama602 Posted 16 May 2008 , 9:56pm
post #14 of 32

I'm looking at a space in AZ for $20/hour - but we haven't discussed the storage of things I need there. Hopefully it's not an additional charge!!! And I have a call in to the Health Dept. regarding the storage of my cake pans at home and then bringing them with me.

pumpkinrollbakery Posted 21 Oct 2009 , 4:52pm
post #15 of 32
cakeandpartygirl Posted 21 Oct 2009 , 5:53pm
post #16 of 32

Where are the $10 per hour places to rent in texas. The one that is closest to me is $25/hr. I can't afford that just starting out.

konagirl Posted 29 Oct 2009 , 10:20pm
post #17 of 32

I am starting to rent time in a shared kitchen in November. I pay $150/month for 12 hours per week. Each person basically "owns" two six-hour shifts per week (e.g., every Tuesday and Thursday from 9 to 3 p.m.).

That price includes use of all the equipment and pans in the kitchen (30 qt mixer, etc.) as well as dry storage, 1/2 a fridge, and freezer space.

I think it's going to be a great way for me to get started!

Motta Posted 1 Nov 2009 , 4:29am
post #18 of 32

Would a church kitchen be considered a "commercial" kitchen? Is there anyone working out of a church kitchen and paying rent?

indydebi Posted 1 Nov 2009 , 4:35am
post #19 of 32
Quote:
Originally Posted by Motta

Would a church kitchen be considered a "commercial" kitchen? Is there anyone working out of a church kitchen and paying rent?



I have a caterer friend who cleans her church for no pay and they let her use their kitchen for no rent. The kitchen was not originally health inspected (it was considered a warming kitchen), but when she started using it, she had them come in and inspect it for her use. So if it's not an inspected kitchen right now, that doesn't mean it won't work out for you. Check to see how the rules work in your area.

Motta Posted 1 Nov 2009 , 4:44am
post #20 of 32

Debi - thank you! We just got our quote on a basement kitchen and it's way too expensive for us right now. I was so sad but that's the fact. So, I need an alternative. Thank you for answering this for me - it's helped to cheer me up.

saberger Posted 31 Dec 2009 , 3:38pm
post #21 of 32

what kind of deposit do you require? Do you rent to multiple people or only one? For those that rent by shift, how to you figure that out? Do you make them commit for a certain number of months?

I will have kitchen space that I want to rent/share and trying to figure it all out. TIA

melmar02 Posted 31 Dec 2009 , 3:56pm
post #22 of 32

Motta - I have a co-worker who has a cake ball business and she also uses her church's kitchen. Also, check into senior or rec centers. Sometimes they will also have a kitchen that may be available for rent.

Cak3mama Posted 1 Jan 2010 , 7:04pm
post #23 of 32
Quote:
Originally Posted by pumpkinrollbakery

[url]http://www.cookssharedkitchen.com[/url]




Were is this company at ?? I can't seem to find it on there site !!

DelectabilityCakes Posted 2 Jan 2010 , 9:09pm
post #24 of 32

I'm starting to look into this as well in Florida because of the fact that they don't authorize at home bakeries for licensing unless it's in an entire separate facility from the house.. so the commerical kitchen comes in 3 plans.. 400 a month for 20 hrs, 700 a month for 40 hrs, or 1,000 a month for 80 hours. Then 25.00 an hr per hour separate or additional if it runs longer. Plus cold and dry storage.

Seems a little high but we'll see.

saberger Posted 2 Jan 2010 , 9:49pm
post #25 of 32

Do you have to pay a deposit? If so, how much?

SliceCakeStudio Posted 2 Jan 2010 , 9:59pm
post #26 of 32

a few comments:

Church kitchens - call around and ask. Some in my area would only rent to non-profit orgs.

One kitchen I called on wanted $450 a month for 20 hours. The one I ended up renting cost $18/hour, and minimum is only 3 hours per month. We also pay $20 for sanitation materials. There are about 4-8 renters in her kitchen at any given time and we never overlap, it's perfect. (Scheduled on a google calendar). If we are willing to share kitchen space (like today if I'm only decorating and not baking) - we are allowed to share rent!! That is cool.

My deposit is refundable, but was $350. Keep in mind your liability insurance should also cover wherever you rent.. just a side note. icon_wink.gif

dkltll Posted 2 Jan 2010 , 10:23pm
post #27 of 32
Quote:
Originally Posted by DelectabilityCakes

I'm starting to look into this as well in Florida because of the fact that they don't authorize at home bakeries for licensing unless it's in an entire separate facility from the house.. so the commerical kitchen comes in 3 plans.. 400 a month for 20 hrs, 700 a month for 40 hrs, or 1,000 a month for 80 hours. Then 25.00 an hr per hour separate or additional if it runs longer. Plus cold and dry storage.

Seems a little high but we'll see.




I am also in Florida (North FL) & can't seem to find anything I cam afford. I would be interested if you find anything.

Melinda3 Posted 2 Jan 2010 , 11:06pm
post #28 of 32

That's so awesome! I never thought about renting a church kitchen. I live in the Ga area and they don't give out home kitchen licenses. My husband and I are good friends with the youth pastors at a church close to us. If they let me use/rent their kitchen, how would I go about getting a license? Does anyone know what I would need to do? Thank you!!

snowshoe1 Posted 3 Jan 2010 , 12:09am
post #29 of 32

Do any of you who rent your kitchen have a contract you would be willing to share with me?

We are thinking about renting out our site and I have the assignment of putting together a contract...but I'm sure I'm leaving out some important points! Thanks in advance for any help you can offer! icon_biggrin.gif

saberger Posted 3 Jan 2010 , 2:23am
post #30 of 32

Could I request that contract as well, please? I am trying to rent my site and could use any help in making sure I am covered. TIA

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