Kitchen Rental Opinions - Help!

Business By dmich Updated 4 May 2009 , 6:57pm by SugaredUp

dmich Posted 15 Jan 2009 , 6:20pm
post #1 of 27

Hello all,
I am very excited because a local bakery has agreed to rent kitchen space to me. He is very flexible with the time he would allow me to use the kitchen. However, neither he nor I have any idea what the rate should be. At the moment, I'm just looking to do a few cakes per week. I would love your help on this.

26 replies
Mac Posted 15 Jan 2009 , 6:28pm
post #2 of 27

dmich--
I rent a private school's kitchen and I pay $400 a month for 3-4 nights a week. For legality reasons, I got my catering license and commissary permit as well as my own insurance.
Hope that helps

dmich Posted 15 Jan 2009 , 6:48pm
post #3 of 27

Thanks, Mac. How many hours per week would you say you're using their kitchen?

dmich Posted 15 Jan 2009 , 7:44pm
post #4 of 27

Anyone else? BTW, I live in Utah, so the cost of living and general expenses aren't as high here as other places.

cupcakemkr Posted 15 Jan 2009 , 7:53pm
post #5 of 27

of course you want to pay as little as possible. Is he letting you use fridge and storage space? i believe you still need a food handlers permit and insurance. Start with $40 each use.

ETA:
In MA I think they go for something like $45 per hour (ouch!)

dmich Posted 16 Jan 2009 , 12:29am
post #6 of 27

Yep, I was planning on setting up as a separate business, taking the food handlers class, and getting insurance.

Wow, if it's even close to $45, I won't be able to swing it! Let's hope he'll agree to a lower rate.

gladyk Posted 16 Jan 2009 , 4:20am
post #7 of 27

Given the state of the economy you should be able to negotiate. Good luck!

dmich Posted 16 Jan 2009 , 4:33am
post #8 of 27

gladyk, I did have that in the back of my mind. The fact that the owner of the bakery said yes so quickly makes me think he needs the money.

allibopp5 Posted 25 Jan 2009 , 8:20am
post #9 of 27

dmich, I'm in a similar situation and would love to find out what you guys came up with. Did you agree on a rate? I was thinking of offering a percentage from each cake. That way if I don't have orders and I'm not using the space, I don't pay.

dmich Posted 27 Jan 2009 , 4:10am
post #10 of 27

allibopp, I still haven't worked it out. I've been trying to get prices on all of my possible expenses and then crunch the numbers to say a) what I could afford to pay in rent and b) how much per serving I need to charge for my cakes.

Any other advice from you experienced out there would be truly appreciated. icon_smile.gif

step0nmi Posted 27 Jan 2009 , 4:20am
post #11 of 27
Quote:
Originally Posted by dmich

allibopp, I still haven't worked it out. I've been trying to get prices on all of my possible expenses and then crunch the numbers to say a) what I could afford to pay in rent and b) how much per serving I need to charge for my cakes.

Any other advice from you experienced out there would be truly appreciated. icon_smile.gif




this is what you need to do! you may need to charge more actually. don't forget to call around and see what your competition is charging icon_wink.gif

dmich Posted 27 Jan 2009 , 4:27am
post #12 of 27

Thanks, step0nmi. I've been lurking on all of my local competition's websites and printing off their pricing pages so I can get an idea what I should be charging. Since I'm such a newbie (have been decorating for about 6 months), I have such a difficult charging more. I know that I need to get over this!

Chef_Stef Posted 27 Jan 2009 , 5:25am
post #13 of 27

I use a kitchen that has a sliding scale for hourly; the more hours you use it, the cheaper the rent. Lots of hours a month would get it to $10 an hour. Few hours a month = $22/hour. HTH

dmich Posted 27 Jan 2009 , 5:31am
post #14 of 27

Chef Stef, that helps a lot. Thank you!

ladyonzlake Posted 27 Jan 2009 , 3:16pm
post #15 of 27

Hi!
I'm in Seattle and I rent a shared commercial kitchen. She has different prices for the amount of hours you use. I use it P/T 40 hours a month and pay $250 a month plus $30 for a small bit of storage. Basically I get 1 drawer, and an upper and lower cabinet.

I also pay $25 for 4 hours to rent the conference room for tastings. I ususually rent that once a month and for my other tastings I do those at home.

I believe for 80 hours a month she charges $500 a month and for unlimited use she charges $900 which includes the conference room. She has a large walk in refrigerator and a large freezer, 4 convection ovens and tons of work space.

Hope this helps!

dmich Posted 27 Jan 2009 , 3:22pm
post #16 of 27

Wow, that's really cheap! I'd be thrilled if I got something that cheap! Thanks so much for the info.

joeybiscotti Posted 27 Jan 2009 , 3:51pm
post #17 of 27

Wow - most of the posters here are getting off so cheaply - I am jealous! Here in NY, I rent a commercial kitchen by the day as needed, and it's quite expensive. I think the current day rate for 8 hours is around $300.00 per day. But it is a necessary evil, I suppose!

allibopp5 Posted 27 Jan 2009 , 5:57pm
post #18 of 27

Thank you so much for sharing, actual numbers help out so much. I'm unsure of how many cakes I can pull in, so still unsure how much I can afford for rent.
Would anyone be willing to share what percentage of their sales (approx) goes to rent? Just wondering how much in sales you're pulling in to make, say, $500/month rent a plausible deal...?

godsgood Posted 31 Jan 2009 , 6:13am
post #19 of 27

dmich, just a thought: is your kitchen at home sufficient for the business you are expecting or wanting to do? Work space, storage, oven, etc.? I used to live in Utah, and I know they allow you to use your home kitchen there, you just need to get it inspected. When (I'm assuming that you will) you go to get your business license, they will come out and inspect, there is no charge (besides the business license, which is fairly inexpensive). Anything you pay to get your home kitchen ready to work in will probably be much cheaper than paying rent to someone. By the way, about pricing, have you checked out Carrie's Cakes? Believe me, after seeing her prices, you won't feel bad about whatever you decide to charge. Granted, she is very talented and more experienced, but even with very little experience, you should be able to charge enough to make a pretty good profit.

Bridgett

dmich Posted 31 Jan 2009 , 1:48pm
post #20 of 27

godsgood, thanks for your reply. Oh, how I wish I could do this from my home! My two options are 1) to have a separate kitchen (don't have one and can't afford to build one right now) and 2) operate through the cottage food industry laws, which require you to have no free-roaming pets in your house (I have 2 cats and a dog). (sigh) Really, my only option is to rent. However, now I'm having some problems with the place I was going to rent from. So, it's back to square one.

Yes, I have checked out Carrie's Cakes. She does beautiful work and charges accordingly. I have looked at the prices of all the local cake decorators to try to come up with a reasonable price.

Thanks again for your thoughts.

godsgood Posted 31 Jan 2009 , 3:12pm
post #21 of 27

Where at do you live? Cause I have a couple suggestions for you if you are close to either one...

SugaredUp Posted 3 Feb 2009 , 6:00am
post #22 of 27

Dmich, or anyone else, can you guys fill me on how this works? How does one baker rent from another baker and not compete? I'm meeting with a competitor next week to discuss renting her place. I'm confused as to how this would even work out. I want to be able to meet my customers there and hold tastings if I'm paying by the month. But she does wedding cakes also.... I feel like a dummy, but I don't get it!

dmich Posted 3 Feb 2009 , 1:29pm
post #23 of 27

SugaredUp, the bakery where I was originallly going to rent doesn't do custom cakes. They sell alot of muffins, croissants, and standard dessert cakes. I'm not sure how you work it in the situation that you described. Hopefully someone else can be a little more helpful.

step0nmi Posted 3 Feb 2009 , 3:11pm
post #24 of 27
Quote:
Originally Posted by SugaredUp

Dmich, or anyone else, can you guys fill me on how this works? How does one baker rent from another baker and not compete? I'm meeting with a competitor next week to discuss renting her place. I'm confused as to how this would even work out. I want to be able to meet my customers there and hold tastings if I'm paying by the month. But she does wedding cakes also.... I feel like a dummy, but I don't get it!




SugaredUp- if someone is willing to rent you their space and they do cakes also, doesn't necessarily mean they want to compete. You are going to have to look and see what that baker does best and what you do best and see if it's totally different! that baker may also have more demand than she wants/needs in her place right now so possibly bringing you in could alleviate some of that pressure of doing every cake.

It also sounds like you need to write some things down based on some of the worries you have with working in another bakers space before you have this meeting. There is no use keeping those in when speaking with the other baker in fear they they are trying to "compete" or you will eventually be "competing". this could actually become a good business deal for you.

always look at the up side icon_wink.gif

SugaredUp Posted 3 Feb 2009 , 3:38pm
post #25 of 27

Thanks, Step0nMi. I should get my thoughts together before tomorrow. I'm losing my current space at the end of Feb because the business I rent from is closing down.

ladybug76 Posted 4 May 2009 , 5:22pm
post #26 of 27

Hi there!! I ran across this forum and just wondering if there were any PA bakers out there that rent commercial kitchen space?? I live near Harrisburg. Just wondering what the 'going rate' would be, so I can be competitive and fair when I present an offer to a kitchen I was hoping to rent space from. Thanks!!!

~ Jaime

SugaredUp Posted 4 May 2009 , 6:57pm
post #27 of 27

Jaime, I'm not in PA. Maybe you should start a new thread. You might have better luck if you do that.

Amber

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