Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Renting A Church Kitchen, Advice Needed
New Posts  All Forums:Forum Nav:

Renting A Church Kitchen, Advice Needed

post #1 of 62
Thread Starter 
Hay all, I have some questions and would like some advice on renting a church kitchen, Ifound a church right up the street from me that will rent their kitchen to me, a few weeks later I went to meet with them it was brief maybe 10 minutes. They looked sceptical until I told them Ihave taken safe serve have liability and so on. The head lady of the kitchen said quote "maybe this will be a lot better then I thought" icon_smile.gif. We then went over storage and ect, then how much to pay a hour. The lady said 10.50 I said that perfect I'm on a low income trying to start a business. The guy on the other hand insisted I pay more due to oven use. Understandable right? Yes. But then again most of my time there will be fondant work maybe a hour worth of baking. I left and received a call today he said I will be paying 20.00 a hour plus 100.00 deposit. I know this is a good price for a rental but with how tight my budget is makes $20 a hour impossible for me..

Any ideas on how I could try to see if they could reconsider to maybe $15 a hour or less being as I won't really be using the oven that much.. Heck I only get 1 order a week if that lol!! Any tips advice would be great!! How would you try to see if they could reconsider price if you're income was low?

Please no negitive comments on how I shouldn't try to start a business with low income.. Trust me its possible with the str eighth of the lord.
post #2 of 62
Find out the manufacturer of the oven and see how much gas/electricity it uses. Calculate how much it will cost to run the oven per hour based on utility rates. Offer to log your oven time and pay them accordingly. $10/hr for non-oven time, and more for baking days.
post #3 of 62
How much does your business plan say you can spend on a kitchen rental and still make a decent wage and profit margin based on your local market?
post #4 of 62
Thread Starter 
Quote:
Originally Posted by Sassyzan View Post

Find out the manufacturer of the oven and see how much gas/electricity it uses. Calculate how much it will cost to run the oven per hour based on utility rates. Offer to log your oven time and pay them accordingly. $10/hr for non-oven time, and more for baking days.


I will give that a try, sounds pretty fair to me! Thanks, any other ideas would be greatly appreciated.
post #5 of 62
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

How much does your business plan say you can spend on a kitchen rental and still make a decent wage and profit margin based on your local market?


Still working on my business plan, but it looks like for right now only 750.00 a month, Idont get many orders. I should once I advertise more.
post #6 of 62
Ideally you should have a maximum hourly rate that you can build into the cost of your products (along with labor, ingredients, and other overhead) so your price including markup will not be too high for your area. Without this number you are flying blind.

I'm not sure what the $750/month figure represents.
post #7 of 62
Thread Starter 
[quot.

I'm not sure what the $750/month figure represents.[/quote]

That's how much I have right this second to spend on rent.
post #8 of 62

i think you need a regular customer like a restaurant or independent coffee shop or two that you can supply all the time with great baked goods

 

the gas stations like wrapped baked goods

 

a school maybe --the adult technical shool types maybe

 

large work places that might want continual breakfast/lunch goodies supplied on an ongoing basis

 

i'd say i think you need some regulars maybe

 

i do wish you the very very best

one baker's never ever do is the next baker's 'i swear by this'
Reply
one baker's never ever do is the next baker's 'i swear by this'
Reply
post #9 of 62
Quote:
Originally Posted by LovelyCakes4Us View Post

That's how much I have right this second to spend on rent.
You should not be making decisions based on your current cash on hand. Your customers should be paying for your time at the kitchen, not you, and you need to know how much you can build into the price of your products without outpricing your market.

You may find that spending $15/hour will price you out of the market, in which case your business has already failed before you even started unless you can find another target market. Or you may find that you can go as high as $25/hour, so $20/hour would work for you and leave you some extra room for profit. This is why it's so important to have your business plan ready before you start looking for a kitchen.
post #10 of 62
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

You should not be making decisions based on your current cash on hand. Your customers should be paying for your time at the kitchen, not you, and you need to know how much you can build into the price of your products without outpricing your market.

You may find that spending $15/hour will price you out of the market, in which case your business has already failed before you even started unless you can find another target market. Or you may find that you can go as high as $25/hour, so $20/hour would work for you and leave you some extra room for profit. This is why it's so important to have your business plan ready before you start looking for a kitchen.
[quot.

I'm not sure what the $750/month figure represents.[/quote]

That's how much I have right this second to spend on rent.


Sounds good thanks.. Can you explain more on the whole market thing..
post #11 of 62
Thread Starter 
I charge 2.00-2.70 per serving, I'm kind of the "budget cake diva" around these parts. You'd think I would have business coming out of my ears, nope not the case. Don't advertise much as for right now, still in the process of everything.


Maybe a few words of wisdom on constructing a business plan with a low budget?
post #12 of 62
Quote:
Originally Posted by LovelyCakes4Us View Post

Sounds good thanks.. Can you explain more on the whole market thing..

I strongly recommend contacting your local SCORE chapter to find a local business mentor who can help you get your business plan in order. There is an entire field devoted to explaining "the whole market thing".

http://www.score.org/chapters-map

Suffice to say that being known as the place people go when they are on a budget is not a good thing, unless you have a legitimate cost advantage over your local Walmart.
post #13 of 62
Thread Starter 
Quote:
Originally Posted by jason_kraft View Post

I strongly recommend contacting your local SCORE chapter to find a local business mentor who can help you get your business plan in order. There is an entire field devoted to explaining "the whole market thing".

http://www.score.org/chapters-map

Suffice to say that being known as the place people go when they are on a budget is not a good thing, unless you have a legitimate cost advantage over your local Walmart.


Went to S.C.O.R.E no luck, the guy was a joke! I know they are volunteers but sheesh he was no help what so ever, told me to come back when I have a business plan? Lol dude I came to get help with my business plan der!

Yep i know being the cheapy cake lady is not a good look, but hell try to get people to pay more in my neck of the woods is like pulling teeth! I live in a Walmart community they have no idea the quality or hard work that goes into creating custom cakes. I use WASC with a twist, SMBC with home made vanilla y'all know how spendy them beans are, expensive butter should I go on? Then charge 50.00 for a two tier cake! Aaah drives me coo coo!
post #14 of 62
If there are no other SCORE volunteers in your area (definitely contact them to tell them about your bad experience), a good starting point is bplans.com.

http://articles.bplans.com/writing-a-business-plan

Where are you located?
post #15 of 62
Thread Starter 
[quote name="jason_kraft"

Where are you located?[/quote]

Mpls Mn
Question, how do bakery's such as Mexican bakery's that accept Ebt make a profit? The one by my house sells. Cakes at $20 a pop! Then again their cakes are not the best to be honest..
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Renting A Church Kitchen, Advice Needed