Posted by Sam Sears, CEC on May 03, 19100 at 21:44:44 :
In Reply to: Renting a kitchen posted by Patti on May 03, 19100 at 19:56:30 :
: I am a startup caterer who is negotiating a rental agreement for the kitchen of a church school. They have never rented out their kitchen before and are going to ask me what I should pay. What seems reasonable without my losing profits? Should I pay per hour or a flat rate? My business runs from lunches for eight to weddings of 200.
How many events do you do a month?????, including rent & utilities most pay around 3 - 5% of gross revenue for these "occupancy" costs. If you are a "busy" full time caterer, I believe the flat rate is the way to go......but as to a certain price per month....you'll have to figure that one out.....but if you do only a few events a month, possibly a per hour would be more beneificial.....we are considered an average sized catering company, we did 425 seperate events last year ....
so my advise is to figure out a Fair rental that is beneficial to both parties.