Baking Desserts For A Local Restaurant - What To Charge?

Business By stephaniesbakery Updated 10 Sep 2008 , 1:15pm by michellenj

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stephaniesbakery Posted 10 Sep 2008 , 3:41am
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I have a restaurant that lets me use their commercial kitchen for my baking free of charge, in exchange, they want me to make my desserts and then they are going to sell them at their restaurant. They are buying all of my ingrediants as well. They want to know what I will want for pay? Since neither them or I have done something like this before we are both clueless.

I think it would be good to charge a flat fee per week, since I will probably only be baking for them one day a week. I was thinking around $75.00 per week, but wasnt sure if that seemed like a good rate or not. It really makes it difficult since they let me use their kitchen as part of the deal. Does anyone have any ideas or input that would help me out?

8 replies
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Teena_Marie Posted 10 Sep 2008 , 4:02am
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It's my understanding that some people charge up to $15 per hour for labor. so if you considered one eight hour day at that rate it would be $120. Since they are letting you use their space you would want to give them a discount. if you charged them $75 per week that would be a $45 discount. seems pretty reasonable to me. but im not a business owner

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mandm78 Posted 10 Sep 2008 , 4:04am
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Just my 2 cents....I'm looking at it 2 ways. Do it for free since they are letting you use their kitchen and they are buying ingredients, or charge them only your labor cost. If you stick with $75.00 for one days work, how long will it take you to make the desserts? If it takes you 5 hours, then you are getting paid $15.00 per hour. Less time, more per hour, more time, less per hour.

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CakeDiva73 Posted 10 Sep 2008 , 4:17am
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If they are letting you use their space for free, and they are providing the ingredients, I would absolutely do it for free. Is it a large kitchen? Could you multi-task and be working on stuff for yourself while baking their stuff on the side?

Around here, kitchen space goes for $25 per hour. I would do whatever I could to keep that owner happy so they don't decide to start charging YOU the going rate icon_smile.gif. Just my humble opinion, of have a golden set-up that I would love!!!! congrats

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Mike1394 Posted 10 Sep 2008 , 8:35am
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I agree w/ the free charge. Since they are buying the ingredients, and aren't charging you.


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julzs71 Posted 10 Sep 2008 , 9:04am
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How much do you bake there? How much do you charge for cakes? This could go either way. If you don't bake there a lot then I would charge him an hourly rate.

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Homemade-Goodies Posted 10 Sep 2008 , 9:04am
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Ditto the no charge advice....if you guys started putting on paper what your labor cost vs what it cost them for you to do your own baking on their site, you'd likely come up owing them at the end of the week.

Congrats on the super deal! icon_biggrin.gif

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Curtsmin24 Posted 10 Sep 2008 , 9:06am
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I also would do the free of charge, but I would also ask what type and sizes of desserts they are wanting you to provide. If it was just several simple cakes and pies as a whole I would do it free. But if we are talking about individual desserts or multi-layer tortes. I would charge what you put on the table $75. But you are doing it free and you are getting something free also. So ask yourself what is it worth to you. HTH. Good luck.

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michellenj Posted 10 Sep 2008 , 1:15pm
post #9 of 9

I'd do it for free-up to a certain number of hours per week. Above that amount of hours, I'd charge them $15/hour for my time. There will be certain times, such as Easter, Thanksgiving, etc. when you might have to do a lot more than usual, and you don't want to get used.

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