Using Someone Else's Licensed Kitchen

Business By puzzlegut Updated 19 Nov 2006 , 5:02pm by whimsette

puzzlegut Cake Central Cake Decorator Profile
puzzlegut Posted 18 Nov 2006 , 7:19pm
post #1 of 7

I'd like to have my own cake/bake business, but a store front is out of the question right now. What I thought about is just using a licensed kitchen to bake from and sell decorated cakes to people who order them and perhaps sell baked goods at craft fairs, flea markets, and farmers' markets.

Here in town, they are fixing up an old building and turning it into a restuarant. I thought about asking them if I could work for them and make their desserts for them (and possibly do other prep work as well). But I also thought about asking them if it's possible to use their kitchen to bake my cakes and other things I want to sell. I would definately want to assure them that this wouldn't compete with their business and that I would bring in my own ingredients, clean up my messes, do my baking when I'm not on the clock for them, and try not to interfeer with their daily business.

I'm wondering how to approach them with this and if there should be some sort of compensation or payment I should give them for using their kitchen for my business, like a flat rate (which I don't think would be good because I'm sure my baking would change month by month) or a percentage of my sales. My boyfriend suggested that I work for them for free in exchange for using their kitchen, but I don't like that idea because I would have no idea how much they would want me to work for them and it wouldn't be practical if I don't have a lot of orders to do. I'd like to hear from other people who use someone else's licensed kitchen and find out what type of agreement you have with them. Thanks.

6 replies
Chef_Stef Cake Central Cake Decorator Profile
Chef_Stef Posted 18 Nov 2006 , 7:29pm
post #2 of 7

I use a kitchen in a local mexican restaurant, and he's finishing a new steak house closer to my home right now, and I haven't been very busy so haven't used it much, but so far, he hasn't let me pay him... icon_eek.gif though I've offered. He just waves me off with "Oh, I don't know, we'll figure that out." or on a recent small cake, "You only need the oven for an hour? Don't worry about it..."

I've heard $10 an hour or percentage of sales. My dh said to offer him a flat rate for each time I use the kitchen, like $40 for the morning or whatever. He's really nice, and really flexible, so I feel very lucky.

I wouldn't offer work in exchange. I sort of touched on that with him, maybe making sheet cakes for the restaurant or he mentioned selling desserts through his restaurant (by me), but I think I'd get the short end of that for sure for some reason. I'd rather pay as I go, if he'd ever give me a price!

RisqueBusiness Cake Central Cake Decorator Profile
RisqueBusiness Posted 18 Nov 2006 , 11:48pm
post #3 of 7
Quote:
Originally Posted by puzzlegut

I'd like to have my own cake/bake business, but a store front is out of the question right now. What I thought about is just using a licensed kitchen to bake from and sell decorated cakes to people who order them and perhaps sell baked goods at craft fairs, flea markets, and farmers' markets.

Here in town, they are fixing up an old building and turning it into a restuarant. I thought about asking them if I could work for them and make their desserts for them (and possibly do other prep work as well). But I also thought about asking them if it's possible to use their kitchen to bake my cakes and other things I want to sell. I would definately want to assure them that this wouldn't compete with their business and that I would bring in my own ingredients, clean up my messes, do my baking when I'm not on the clock for them, and try not to interfeer with their daily business.

I'm wondering how to approach them with this and if there should be some sort of compensation or payment I should give them for using their kitchen for my business, like a flat rate (which I don't think would be good because I'm sure my baking would change month by month) or a percentage of my sales. My boyfriend suggested that I work for them for free in exchange for using their kitchen, but I don't like that idea because I would have no idea how much they would want me to work for them and it wouldn't be practical if I don't have a lot of orders to do. I'd like to hear from other people who use someone else's licensed kitchen and find out what type of agreement you have with them. Thanks.




renting a lic kitchen fees vary from place to place. You can pay as little as 10.00 an hour for off hours or as much as 25.00 an hour for peak time.

if you want to barter time for cake, then you need to price your product accordingly..NO DISCOUNT! He is NOT discounting the time he charges for you!

I have my own small place, but if I need production space, I have access to a plant, but he never wants money either..lol

I only used his place once w hen I had to do hundreds of bite sized cupcakes and a cake order for a festival.

I can even get my sheet cakes and round from him, ...well, that's a way to get around baking here..lol

whimsette Cake Central Cake Decorator Profile
whimsette Posted 19 Nov 2006 , 4:13pm
post #4 of 7

I rent commercial kitchen space since I began a little over 3 years ago. It's the best thing I've done for my business but it hasn't been flawless. My advice:

1. Don't barter anything. Arrange for a straight hourly or monthly rate and get it in writing. Get receipts for each rental payment because it comes in handy when tax season comes rolling around. If you barter, how are you going to claim that as a business expense? Plus, for me, bartering has never really been a fair dollar-for-dollar deal.

2. Decide whether you want to rent from them or work for them (as their pastry chef). Not both. Don't work for free. Ever. (Unless it's for charity.)

3. Know what hours you're allowed in the kitchen and what equipment you can use including cleaning equip and supplies. (And get it in writing.) If they do any kind of catering, offer baked goods, or are open for break+lunch+dinner, they may well be using the kitchen and equip during the same hours you need to use it.

dailey Cake Central Cake Decorator Profile
dailey Posted 19 Nov 2006 , 4:26pm
post #5 of 7

now for those who rent from a commercial kitchen, do the owners of the kitchen need to get *additional* insurance? i called a few places to ask if i could used their facilitlies and they declined stating something about it raising their insurance. i'm just wondering if i got my *own* insurance maybe they would not be so hesitant?

RisqueBusiness Cake Central Cake Decorator Profile
RisqueBusiness Posted 19 Nov 2006 , 4:40pm
post #6 of 7

you can try and see if it helps!

whimsette Cake Central Cake Decorator Profile
whimsette Posted 19 Nov 2006 , 5:02pm
post #7 of 7

Oh, that's a great question. I'm not sure how it works for the owners.

It couldn't hurt to ask the the kitchen manager/owner/leasing agent.



Quote:
Originally Posted by dailey

now for those who rent from a commercial kitchen, do the owners of the kitchen need to get *additional* insurance? i called a few places to ask if i could used their facilitlies and they declined stating something about it raising their insurance. i'm just wondering if i got my *own* insurance maybe they would not be so hesitant?


Quote by @%username% on %date%

%body%