Hi all! New to this board. Hope you can help. I am meeting in a few hours with a caterer to look at his kitchen for rent. I would be renting space/and getting licensed through his business. I will be bringing in all my own equipment, but would need the use of his stove, walk-in, ovens and a shelf or two for dry goods. I was thinking of $10/hour. Is that too low? I don't want to insult him. Thanks for any help.
I don't know what happened, but you should wait and see what he want's frist...maybe he wants less than that.
If he wants more you can always negociate..
Good luck and keep us posted..>!
You might strike a deal with you doing desserts for his catering company for a reduced rent. Can't hurt to ask!
Think about REALLY how much time you're going to need in that kitchen before even THINKING about committing to $10/hr!!! If you're not in a production setting, the cake can EASILY take 20-50 hours and you need to be in the licensed kitchen the whole time once you get the license to do all of the work and cleanup from the cake. Yes, you'll have to pay for space rental while you're cleaning up before and after you're done. I rent space from my IL's and without question, I spend a day just cleaning the space up to my standards (right next to OCD level) before I even turn my mixer on. It's annoying because I realize just how much time that's taking me away from the cakes, but the reality is that I'm producing food for a lot of people to consume, I'm not going to risk what someone else may have used that counter top for (paint cans, other equipment cleaning, summer bugs, etc.)..
If you're going to spend $10/hour on just your space rental, you're better off to purchase a spot of land or a building and get your own kitchen space built and pay $10/hour to your loan because you're going to find the $10 adding up quicker than the $3/slice... Even if you're charged $50/day you're still $$$ ahead of $10/hr. Talk with the owner and find out what type of deal you can make. Also, depending on the licensing process, you may not be able to sell cakes to him at a discount if he is reselling them. I know there is a WHOLE different set of rules here for producing for resale (in other words, if my IL's want a cake for an event on-site, I have to punch in on their time clock and make it for reimbursement, I can't just make it under my business)..
Cake couture
That is too good!
You should make alot of people think just how much time they actually spend on these cakes. There is a whole lot more to it.
TO go with an hourly rate seems unwise. But that's me.
If you pay $10hr and work 8hrs x 5 days that is $400 a week x 4 wks = $1600 a month. That is crazy!
mpc
Some cakes I swear I have to spend more time cleaning the flipp'n place up than I get to dedicate to the cake work... I figured out one week for a large groom's cake and it was at least 40 hours in 3 days just working on the cake and another day and a half cleaning the place up after the powdered sugar bomb went off. Let's just say I discovered paying for high-end fondant is much cheaper than 4 hours of cleaning up, and another 4 hours of making the stuff when you're exhausted LOL..
Of course, we never think about how much time we spend purchasing, running supplies, cleaning space, re-washing pans before use (if they've been sitting for a while since their last washing), washing dishes between batches, washing more dishes afterwards, waiting for things to dry before you can store them (because state codes like water spots, not towel dried pans), etc. etc. etc.
I can't remember who it was that said they rented space for a while somewhere at the cost of $27/day... Just wish I could remember where it was too...
You'll love this.
The kitchen I have to rent for next week is $50.00 AN HOUR. I have to use it to make samples for an event coming up, for which I ran out of kitchen options at the last minute!
Thank God there are 6 convection ovens there and a giant Hobart mixer, but still...I can't use it much or it will be a lose-lose situation for sure.
We'll build eventually. I'd say see what he wants for it to start with, but $10 is about what I've heard others pay.
Some cakes I swear I have to spend more time cleaning the flipp'n place up than I get to dedicate to the cake work... I figured out one week for a large groom's cake and it was at least 40 hours in 3 days just working on the cake and another day and a half cleaning the place up after the powdered sugar bomb went off. Let's just say I discovered paying for high-end fondant is much cheaper than 4 hours of cleaning up, and another 4 hours of making the stuff when you're exhausted LOL..Of course, we never think about how much time we spend purchasing, running supplies, cleaning space, re-washing pans before use (if they've been sitting for a while since their last washing), washing dishes between batches, washing more dishes afterwards, waiting for things to dry before you can store them (because state codes like water spots, not towel dried pans), etc. etc. etc.
I can't remember who it was that said they rented space for a while somewhere at the cost of $27/day... Just wish I could remember where it was too...
I do this for each and every single cake that I do...ALL BY MYSELF....it's very hard!! that's why I get so hot under the collar when the SAHB vs Lic Baker comes up..lol
unless I hire a dishwasher and I can't guarantee them work around the clock..lol
Also, a commercial dishwasher is too expensive right now and I don't have the room!!
To do this business professionally is NOT easy, it's daunting...when you have a business you don't have the luxury of turning down orders.
You have to make a certain amount of money EVERY month to pay everything and if you support yourself and your family...you have to add those monthly expenses into the mix.
As I get busier, I can see those 18 hour days becoming an every day thing....
and as far as there being enough business for everyone...NO..I don't agree with that...
We'd be making more money if the 100 sahb down the block were not underselling us because they "WANT TO PRACTICE"...lol
Not talking about the TRUE cake artists...that need to express themselves as other people need to breathe!!!lol
PS: you know who you are 
I pay the lady I rent a kitchen from a flat fee every month whether I have cakes or not and one thing I have to contend with is I have to work around her. The kitchen is not big enough for both of us. But that is the price I have to pay to be licensed. During Christmas I was feasting but in January it looks like famine so far. When you have this type of arrangement you have to make sure you can handle the rent in famine. As I am doing this part time and hoping to build my business to where it is feast all the time. I made sure I could handle the rent for 1 year without ever making any income. Granted my rent is low ($100.00 a month) but I do have to work around the caterer's schedule.
Hi a I am meeting in a few hours with a caterer to look at his kitchen for rent. I would be renting space/and getting licensed through his business. I will be bringing in all my own equipment, but would need the use of his stove, walk-in, ovens and a shelf or two for dry goods. I was thinking of $10/hour. Is that too low?
How'd it work out, kathy-mi?
Pricing depends on your area, really. The few rental spaces I've seen in my area start at $15.00/hr (renting on a monthly basis is slightly cheaper). I won't divulge what I pay, but I'd KILL for $10.00/hr! Buying or building a kitchen here is out of the question as real estate is outrageously expensive. In your area, however, $10/hr might be ridiculously high.
Working out of a caterer's kitchen can be a challenge, by the way. They often work the same hours that you'd need in the kitchen for your weekend clients. Get a guaranteed schedule - in writing - that you're allowed in the kitchen.
Also, are you taking your equipment home with you or leaving it at the kitchen? Some health departments won't allow home equipment to be used in a commercial kitchen. If you bring in your own stuff, you may have to leave it. If you leave it, are you prepared for it to get lost/stolen/borrowed? Will you have a locked space to keep your supplies? I don't want to scare you -- just putting some info out there to help you in your decision.
Cake couture
That is too good!
You should make alot of people think just how much time they actually spend on these cakes. There is a whole lot more to it.
TO go with an hourly rate seems unwise. But that's me.
If you pay $10hr and work 8hrs x 5 days that is $400 a week x 4 wks = $1600 a month. That is crazy!
mpc
$1600 does seem like a lot, but doesn't that include the electricity and not having all the hassle of actually owning the joint and investing in the equipment, and maintaining it?
If you have enough work to do 40 hours a week by yourself, then it is probably a good idea to try getting your own business, but if you are only doing a few cakes a month $10 seems like a bargain.
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