Arrangements for Kitchen Use?

by flimflammed. Posted on Sep 11, 2020    1    1


I am a new business owner having bought a small craft cocktail bar almost exactly a year ago (timing amiright?! sigh). Anyhow, we've been struggling due to COVID as has everyone.

I was contacted by a baker who would like to use the space in our off hours. This seems like it could be another good source of revenue. The bars in the area that seem busier also offer food. We have a very limited menu especially now because we don't do enough volume to keep ingredients that spoil.

The kitchen is small and does not have a fryer or a hood. The baker would want access to the space, I have an induction plate, a commercial convection oven, a lay down freezer, and quite a bit of refrigerator space. We could sell some of the food with drinks but they would plan to sell their own on the side also. Does anyone have any experience with this? In particular I would appreciate advice on compensation.

Would they pay me a %age of gross sales? A flat monthly fee for the space? Do I hire them and just add their food to the menu? Any and all help or advice would be great.


Comments

not_mad_lad 2

No experience with this so take my comment with a grain of salt. But if it was me, I’d charge them a flat fee for use of the space. As for reselling their product - you could buy it at “wholesale” from them and then charge what you want or allow them to sell at their price and you take a commission. Safe route is a commission on them selling as you are never out any money for unsold goods that go bad. Now, there may be all sorts of legal/regulation type stuff to worry about with food that is entirely being ignored in my response as I have no experience with food/drink businesses