Going Rate For A Kitchen Sublet

Business By Alligande Updated 25 Jan 2012 , 4:06pm by jason_kraft

Alligande Posted 25 Jan 2012 , 1:13am
post #1 of 9

It has been a long time since I posted but I am trying to figure out what rate to charge for my new kitchen. For the last four years I have been renting a kitchen and am now moving into my own space. I had a sweetheart deal before, basically kitchen for catering labor.

My new space is strictly for baking, not catering plus there will be no meat, makes it easier with the health dept.

I already have a cooking school teaching classes, but as they mostly teach the ladies that lunch and bring exposure they have a good deal. Now I am talking to some others, and really have no idea what is a decent price. (I am in a high rent area but my rent is reasonable)

love to have some input

8 replies
jason_kraft Posted 25 Jan 2012 , 1:45am
post #2 of 9

Rental rates vary widely (usually between $10-30/hour) depending on location, amenities, number of hours used, and contract length.

Are there any other commercial kitchens in your area you can price-check with?

Alligande Posted 25 Jan 2012 , 4:15am
post #3 of 9

No finding a kitchen to rent is very hard, there are no obvious candidates to ask.

jason_kraft Posted 25 Jan 2012 , 4:18am
post #4 of 9

Where are you located? There are kitchen rental options in just about every metro area.

MimiFix Posted 25 Jan 2012 , 12:19pm
post #5 of 9
Originally Posted by Alligande

I am trying to figure out what rate to charge for my new kitchen.

Hi Alligande, I'm a little confused. Do you have a kitchen space for rent and want to know what to charge others? Or are you interested in renting a space for your own production?

Alligande Posted 25 Jan 2012 , 1:54pm
post #6 of 9

I am in a southern New England coastal resort town, and have been involved in food service and the hospitality industry since I moved here 17 years ago, so I am well aware of what options are available.
I was trying to get a feel for what people are actually paying to rent kitchen time, some of the rents seem to high to work for the type of business we are in. I want a fair rent, but do not want to put someone in a position that they can not make it work.
Please PM if would rather not discuss numbers publicly.

jason_kraft Posted 25 Jan 2012 , 3:08pm
post #7 of 9

Well, since you are in the same business, how much would you be able to spend on hourly rent and still make a decent profit?

This might be a good start if you want to price check:

MimiFix Posted 25 Jan 2012 , 3:19pm
post #8 of 9

Renting kitchen space has become way too high. Many businesses and for-profit shared use kitchens are simply greedy. I now recommend that my students look for kitchens in social service agencies, religious organizations, and community halls. These places will often barter or charge $10-$15 per hour. I would really try to stay in that price range. Once your production costs (at a more expensive facility) and ingredients costs are figured, it often prices products out of the market.

jason_kraft Posted 25 Jan 2012 , 4:06pm
post #9 of 9

I don't think it's necessarily greed on the part of kitchen owners...being a landlord can be hard work, depending on tenant quality. There's also supply and demand at work, and if food service businesses were not able to make a profit at existing rental rates, the landlords would lower their prices or go out of business.

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