What Is A Fair Price For Renting A Kitchen Hourly?

Business By holliellen Updated 4 Feb 2011 , 2:37am by mtnlaurelcakes

holliellen Posted 27 Jan 2011 , 9:17pm
post #1 of 15

I called a catering company that I really want to rent from. They are right near my house and really nice. They have never done this before but are very interested. I am meeting them there tomorrow to see the facility. I have NO idea what other people around the country pay for this type of thing. I know it would vary from area to area but if you could tell me what you pay that would be great! I live in a very rural area but custom cakes/prices seem to go over well. TIA
Hollie

14 replies
jason_kraft Posted 27 Jan 2011 , 9:39pm
post #2 of 15

Hourly rates vary widely depending on location, amenities, and number of hours used, usually between $10-30/hour. On-site storage units may or may not be extra.

holliellen Posted 28 Jan 2011 , 4:45pm
post #3 of 15

Ok great thats what I was hoping you'd say. I was thinking along the same lines.
Thanks,
Hollie

FromScratchSF Posted 28 Jan 2011 , 4:57pm
post #4 of 15
Quote:
Originally Posted by jasonkraft

Hourly rates vary widely depending on location, amenities, and number of hours used, usually between $10-30/hour. On-site storage units may or may not be extra.




Jason, so low over there? Man, I feel abused every time I have to pay my kitchen bill every month here in SF icon_biggrin.gif No point posting how much, because it's probably ABOUT the same as most people's house payments in other parts of the country icon_cry.gif

lacey88 Posted 1 Feb 2011 , 9:31pm
post #5 of 15

i am renting a commercial kitchen in colorado. $250 per month for 20 hours icon_smile.gif

holliellen Posted 2 Feb 2011 , 3:49pm
post #6 of 15

THanks for all the replies. I am going to rent the kitchen I was referencing!! Yahoo and for 10 dollars an hour!

cakeandpartygirl Posted 2 Feb 2011 , 4:07pm
post #7 of 15
Quote:
Originally Posted by holliellen

THanks for all the replies. I am going to rent the kitchen I was referencing!! Yahoo and for 10 dollars an hour!




That's awesome!!! thumbs_up.gifthumbs_up.gifthumbs_up.gif

FromScratchSF Posted 2 Feb 2011 , 4:51pm
post #8 of 15
Quote:
Originally Posted by cakeandpartygirl

Quote:
Originally Posted by holliellen

THanks for all the replies. I am going to rent the kitchen I was referencing!! Yahoo and for 10 dollars an hour!



That's awesome!!! thumbs_up.gifthumbs_up.gifthumbs_up.gif




Awesome!

On this note, I am super stoked, a spot just opened up at a hard-to-get-into commercial kitchen where I live - I just put in my application... $25 an hour!!! I want to weep with joy icon_biggrin.gif

cakeandpartygirl Posted 2 Feb 2011 , 5:25pm
post #9 of 15
Quote:
Originally Posted by FromScratchSF

Quote:
Originally Posted by cakeandpartygirl

Quote:
Originally Posted by holliellen

THanks for all the replies. I am going to rent the kitchen I was referencing!! Yahoo and for 10 dollars an hour!



That's awesome!!! thumbs_up.gifthumbs_up.gifthumbs_up.gif



Awesome!

On this note, I am super stoked, a spot just opened up at a hard-to-get-into commercial kitchen where I live - I just put in my application... $25 an hour!!! I want to weep with joy icon_biggrin.gif




That's what I pay for mine! Cool now you can increase your profit margin! icon_biggrin.gificon_biggrin.gif

mtnlaurelcakes Posted 2 Feb 2011 , 5:50pm
post #10 of 15

This info is great!
I was thinking of asking a newly opened cupcake shop about using their facilities. She only does cupcakes. Hates doing cakes. I like doing cakes. Seems it may be a match made in heaven. Since I am just starting, and just doing the occasional cake, I was thinking of offering her 10% of the profits. Does that sound reasonable? I may also offer to do some cupcake decorating for her for special occasions. Thanks for your help.

jason_kraft Posted 2 Feb 2011 , 6:12pm
post #11 of 15
Quote:
Originally Posted by bellacakes46

Since I am just starting, and just doing the occasional cake, I was thinking of offering her 10% of the profits. Does that sound reasonable?



If I were renting out space I certainly wouldn't agree to 10% of the profits. If you sell a $50 cake that consists of $10 of ingredients, $5 of overhead, and $15 of labor (assuming one hour), your profit is $20. 10% of that is $2.

I wouldn't even want 10% of the revenues, generally rent is collected based on an hourly rate or a monthly charge for a set amount of hours.

mtnlaurelcakes Posted 3 Feb 2011 , 11:25am
post #12 of 15

Thanks for your help. I appreciate seeing the view from the other side of the coin. On a busy month I do 2 cakes. Most times it is 1 cake every other month so a monthly rental of space is not realistic right now. We are talking beginner here. I will keep doing them from home until I out grow myself. icon_smile.gif

The lady who owns the shop has asked permission to give customers my name and number. She said she has people come in asking for cakes, which she doesn't do. She has also offered to display and sell some cakes for me. The deal being that she gets to keep the profits. It's only about 4 cakes a month. Any opinions or advise on this? I don't want to be taken advantage of but I want to be fair as I see it as advertising for me.

Thanks again for your help to a beginner,
bellacakes46

Dayti Posted 3 Feb 2011 , 12:16pm
post #13 of 15

First of all the lady needs to find out if she can sell cakes in her store that are not baked on the premises icon_wink.gif

jason_kraft Posted 3 Feb 2011 , 4:44pm
post #14 of 15
Quote:
Originally Posted by bellacakes46

Thanks for your help. I appreciate seeing the view from the other side of the coin. On a busy month I do 2 cakes. Most times it is 1 cake every other month so a monthly rental of space is not realistic right now. We are talking beginner here.



Not all commercial kitchens require a monthly commitment, in some cases you can rent by the hour, so if you only end up using 3 hours a month you only pay for those 3 hours based on your negotiated hourly rate.

Quote:
Quote:

She has also offered to display and sell some cakes for me. The deal being that she gets to keep the profits. It's only about 4 cakes a month. Any opinions or advise on this? I don't want to be taken advantage of but I want to be fair as I see it as advertising for me.



It doesn't seem fair for her to keep all the profits. The way wholesale typically works is that you sell the retail shop your products at price X (which leaves you with some profit), and the retail shop marks it up and sells to customers at X + Y% (which gives the retail shop some profit as well). You could potentially discount your selling price to the retail shop but you should still make sure you are making a profit based on your ingredient cost, labor cost, and overhead.

mtnlaurelcakes Posted 4 Feb 2011 , 2:37am
post #15 of 15

Dayti: Good point. Maybe I will see what she would charge me for a couple of hours to use her facilities. That way they are baked on premises.


jasonkraft: Thank you sooo much. You have been very helpful.

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