Search For Commercial Kitchen

Business By HannahsMomi Updated 18 Feb 2012 , 1:46pm by HannahsMomi

HannahsMomi Posted 16 Feb 2012 , 7:14pm
post #1 of 14

I've begun searching for a commercial kitchen to use for my business. I'm hoping I can get some suggestions of how to approach churches, lodges, schools, or similar facilities in asking them to rent their kitchen space. Any suggestions? I guess I'm asking for a "sales pitch", if I can call it that icon_smile.gif I want to start off on the right foot and be as convincing as I can be! Also, someone had told me a particular church was not interested because they were concerned they'd have to get insurance. Is this true? Or would my vendor's liability insurance be sufficient? I'm clueless. Please help? Thanks in advance!

13 replies
HannahsMomi Posted 17 Feb 2012 , 12:48pm
post #2 of 14

really? no one?

MimiFix Posted 17 Feb 2012 , 1:48pm
post #3 of 14

Vendor's insurance usually only covers product liability. You also need insurance for the production facility so if, for instance, you burn down their building, there is extra coverage for them. Talk with your agent to make sure you have complete coverage.

Be as professional as possible. It's important that whoever you approach knows you are a serious, committed businesswoman. You may not get positive results on your first try. Keep working on it until you succeed. And always bring them something tasty. Best of luck!

fl_cake_lover Posted 17 Feb 2012 , 7:05pm
post #4 of 14

After a particularly challenging day as a teacher, I grabbed my portfolio and cake resume and hit the streets. I went to every cake place I wanted to work at, restaurants, and delis. I ended up at a small cafe and started work there a few days later. We only had a verbal contract, which worked out to my advantage in the end because the owner wasn't willing to renegotiate our terms after 6 months. I then moved to another deli in a much nicer area and have been there ever since. The owner is a friend, so we still have a verbal agreement, and I pay a percentage of my monthly sales as rent. I'm no longer teaching and am trying to make this my full-time job.

I would suggest being yourself. Let your work and enthusiasm speak for itself. Do some research about the owners, what they sell, and their customers if you can. Use facebook, google, or even yelp to see what the reviews are and what info they have out there for you. Call ahead (I did this as I was driving around) and ask who the owners are and if they're available. If you don't know the owners, writing up some kind of rules or guidelines is imperative so you know what you're responsible for (from cake boards, ingredients, etc.) and add something about renegotiating in 3 or 6 months. It doesn't have to be certified or written up by a lawyer if you don't feel that's necessary, but at least everyone is on the same page.

Good luck!

fl_cake_lover Posted 17 Feb 2012 , 7:08pm
post #5 of 14

Oh, and churches weren't that a open to the idea because if they accept money for rent, it would change their non-profit status. Jason_Kraft might be able to add more info on this one.

MimiFix Posted 17 Feb 2012 , 9:36pm
post #6 of 14
Quote:
Originally Posted by fl_cake_lover

Oh, and churches weren't that a open to the idea because if they accept money for rent, it would change their non-profit status. Jason_Kraft might be able to add more info on this one.




One of our local churches allows a mobile catering business to use their kitchen. The church does not charge rent. The catering company makes a donation. It's been a long-term arrangement and apparently this "loophole" has not caused any issues with higher ups.

fl_cake_lover Posted 17 Feb 2012 , 9:52pm
post #7 of 14

One of our local churches allows a mobile catering business to use their kitchen. The church does not charge rent. The catering company makes a donation. It's been a long-term arrangement and apparently this "loophole" has not caused any issues with higher ups.

Are the "higher ups" you're referring to church members or God? LOL!

MimiFix Posted 17 Feb 2012 , 9:56pm
post #8 of 14
Quote:
Originally Posted by fl_cake_lover

Are the "higher ups" you're referring to church members or God? LOL!




I looove puns!

step0nmi Posted 17 Feb 2012 , 10:11pm
post #9 of 14

my experience with churches in my area is that they cannot and will not rent because of the Non-profit status...no one can work in their church that is wanting to make a profit. such a shame too :p but oh well!

jason_kraft Posted 17 Feb 2012 , 11:44pm
post #10 of 14

The IRS allows tax-exempt non-profit charitable organizations to charge for unrelated services and even make a profit without jeopardizing their tax-exempt status, as long as the organization does not funnel profits to individual shareholders or participate in political or lobbying activities. In some cases tax may be owed on the portion of income that is unrelated to the organization's primary purpose.

More info from the IRS:
http://www.irs.gov/charities/article/0,,id=156395,00.html
http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

HannahsMomi Posted 18 Feb 2012 , 1:15am
post #11 of 14

Thank you all for the great info! I just didn't realize how difficult it would be to find a commercial kitchen. There is one that is available and it's purpose is to help new small businesses. The problem is, it is $20/hour and that is without storage space. I'd have to pay extra for fridge space and shelf storage space icon_cry.gif That is a lot of money! Anyway, I'm trying to find a cheaper alternative...such as a church or a community center. No luck so far. I'll keep at it...and use the great tips and info you all have given! I appreciate it so much! I've been getting conflicting info about churches, but I'm going to keep looking and see what happens. See if I can at least get a church to say it is possible....and then go from there.

jason_kraft Posted 18 Feb 2012 , 1:27am
post #12 of 14
Quote:
Originally Posted by HannahsMomi

There is one that is available and it's purpose is to help new small businesses. The problem is, it is $20/hour and that is without storage space. I'd have to pay extra for fridge space and shelf storage space



That's actually not too bad, you may be able to negotiate a lower rate if you pay in advance or buy larger blocks of time, but even at $20/hr you shouldn't have too much trouble including that cost when pricing premium products.

kariz0201 Posted 18 Feb 2012 , 3:08am
post #13 of 14
Quote:
Originally Posted by HannahsMomi

Thank you all for the great info! I just didn't realize how difficult it would be to find a commercial kitchen. There is one that is available and it's purpose is to help new small businesses. The problem is, it is $20/hour and that is without storage space. I'd have to pay extra for fridge space and shelf storage space icon_cry.gif That is a lot of money! Anyway, I'm trying to find a cheaper alternative...such as a church or a community center. No luck so far. I'll keep at it...and use the great tips and info you all have given! I appreciate it so much! I've been getting conflicting info about churches, but I'm going to keep looking and see what happens. See if I can at least get a church to say it is possible....and then go from there.




that's not bad at all!!! I've been having trouble finding a commercial kitchen in my area. I found 2 within a 45 mile radius of me and both charge about $200-$220 for 4 hours. Storage isn't an option at either place. Good luck!!!

HannahsMomi Posted 18 Feb 2012 , 1:46pm
post #14 of 14

OK...I'm feeling much better about that price now! Thanks for the pep talk. I go to tour the facility on Monday and get more details. We'll see how it goes! Are there any questions I should be sure to ask?

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