What should I pay a venue for kitchen use

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Joined Oct 23, 2016
I have been asked to be in house caterer for a very nice venue just getting off the ground. I am expected to handle the rental of the venue, excluding Weddings.(someone else handles the venue rental for weddings)  I have been offered 25% for whatever I book . They are asking for 25%  of my gross for each event in return. What is a reasonable fee to pay for use of a venue?
 
982
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Joined Jun 23, 2015
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Reasonable dose not make a profit.

PRICE = COSTS + PROFIT DESIRED

COSTS = Labor (including your own, if applicable) + Food + Utilities + Rent + Licenses + Tax reserve + Insurance + any other costs of doing business, including interest, depreciation, and all the hidden costs.
 
4,474
421
Joined Jun 27, 2012
What @Jimyra  said.

Have you checked the comps for your area?

mimi

edit to add...

Does this place have an inspected kitchen or is it just a hall with bathrooms and a room to set up your stuff and plug stuff in (and at least one sink in the food handling area for hand washing?).

Will you be working under the facility's license (if the answer is no do you have a proper legal kitchen to work out of?).

Who is going to be responsible for the insurance?

mimi
 
Last edited:
4,474
421
Joined Jun 27, 2012
I just noticed your thread heading...my bad.

So this kitchen.... has it been inspected and licensed ?

Is this where you will be doing all of your prep and storage and cooking?

Sorry don't want you to feel like you are being grilled... just wondering (you being an at home cook and all) if you are including all of this in with the quotes.

Commissary kitchens can be pricey /img/vbsmilies/smilies/smile.gif.

mimi
 
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Joined Oct 23, 2016
Thanks MiMi for the quick response.  The kitchen is inspected and I will do all work out of their kitchen for work catered at their venue. I am not sure about the insurance and license issues I will have my first meeting  with the owner tomorrow. If I do the work under their insurance and license is 25% unreasonable. They are asking me to come out of retirement to do this. It is no problem for me to carry my own insurance and license if need be. I was thinking more of 10 to 15 % or a flat rate per event.  
 
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Joined Oct 23, 2016
perhaps I described myself wrong. I have 30 years in Restaurant management and have done hundreds of Weddings and other banquets. I have been out of the business for about 10 years with the exception of a few fundraising events for non profits, usually 200 to 400 ppl, or favors for friends. I have never been licensed myself but have worked out of the restaurants I ran or the venue provided for me by the people who hired me. So food cost, labor, execution, and all details of the event itself I am comfortable with. I am just not sure about the best way to structure this agreement and want to make sure I get it right. Basically on that end I don't know what I don't know.
 
4,474
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Joined Jun 27, 2012
Then I would come at this just like any other business.

Get all of your facts and costs together and form a business model.

mimi
 
6
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Joined Oct 23, 2016
Thanks for your input. So glad I found this site. I am sure this is just the first of many questions!

Beth
 
982
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Joined Jun 23, 2015
I would go to a local SCORE office.  They are retired business executives working with the  Small Business Administration.  Before signing any agreement a lawyer may save you some problems.
 

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