I really would like everyone's input on this PLEASE! I live in a small town where everyone is either disabled or retired. So not a whole lot of $$. I am getting ready to do a purposal for the only "nice" restaurant in town. (my son has worked there for years, so am familiar with owner) I know the owner doesn't offer desserts to his customers and when he does private parties and catered events he just uses Sara Lee or something dried out from Wally World.
So now that you kind of know the scenerio let me tell you what I want to do. Because of the economy the owner has had to cut back on some of the items from his menu and his lunch crowd has slowed down alot.
My idea is to offer him 2 types of cake, 2 pies, tiramisu, and cheesecake. I will not charge him anything in the beginning but what he sells then I will collect from that, I think he would be able to mark up at least 25 to 35%. That's about what restaurants charge for their food markups. I will deliver, and pick up out dated every 6 days to replace with fresh items. Does this sound like a good idea? I will even print up lists of the desserts for him, if I have to. This is to get my business really moving. He advertises alot on local radio and papers, so am thinking he could just say "Now featuring blah blah bakery desserts".
So let's see what everyone thinks. I value your opinions!
consigning desserts is pretty risky. And you're assuming ALL the risk, ALL the upfront costs, and ALL the stales which get thrown out. The reason for wholesaling and discounting the price somewhat is no risk of stales for you, no productin costs for the retailer.
I'd seriously suggest a straight wholesale relationship at a price you think will benefit you both.
And make sure you license covers this. In some states it throws you into "manufacturing" rather than "catering" which is different from "food service."
It may also affect your liability insurance, since you will have a lot more exposure to the public.
Things to think more about.