Posted by Carl Jones, Premier Catering on May 21, 1998 at 23:23:40 :
In Reply to: Compensation Packages posted by Karen Upright on May 20, 1998 at 19:50:09 :
: I may soon be entering negotiations with another restaurant to bring my catering business (and me, and possibly one member of my staff) under their banner, taking over responsibility for their catering business and adding mine to it.
: I have no idea what industry standard compensation in this industry is. Anyone have any suggestions/comments?
: Karen
I am assuming that their catering division already exists..... There are some factors I need to know before making a recommendation
* are they having difficulties running their catering
* are you bringing more clients than they have?
If they are dont do alot of catering, but want to do more and are looking for you to grow it
you need last 3 years sales and p&l's and possibly offer to grow their catering
and have them pay you a percentage on new growth of sales, plus salary, plus an on going
percentage of a clearly defined profit.
If I were doing this for a restaurant, I would offer to take over their catering to keep their
name out and I would handle pricing, billing, collecting, then I would
pay them a percentage of the profit...
example, i dont do barbeque..... but i would have them prepare their specialty (pulled pork bbq)
i would handle side items, beverages, dinnerware, set up (everything)
do it under their name and i would pay them food cost and labor for their product and
then give them 25% of the net profit... (net sales - variable expenses - an overhead percentage)
this may work as a win/win for a local bbq restaurant who has an owner in poor health
who sees a once thriving, but now declining catering division as a headache
he would rather not deal with..... i am about to approach him.... this may lead to me
taking over the restaurant under a management contract which would keep him around as a
figurehead, and pay him probably more than he is making, but give me a nice additional income
i'm rambling...
Carl