Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Renting Kitchen Space - Hourly rate?
New Posts  All Forums:Forum Nav:

Renting Kitchen Space - Hourly rate?

post #1 of 35
Thread Starter 
Like a lot of CC members, I've been decorating cakes for awhile and have really been wanting to start a small business on the side. Thanks to all the CC tips on businesses, home licensing, etc., I found out that Georgia doesn't license home bakeries, and have had absolutely zero luck finding a place to rent space. Until I did that, I couldn't go about getting inspected, business license, cards, website, etc. I've been very careful about orders that I've accepted (very close friends and family only) and haven't made any money yet. I've had a ton of people ask for a card, but couldn't give them one or take their orders!

I think I've found someone to rent from! She seems wonderful, has a chocolate boutique where she is willing to display my products, knows all the ins and outs of starting a business here...it just seems great! Just wanted to share my excitement (which is hopefully not premature), as well as ask a quick question -

Anyone out there who rents kitchen space know a ballpark hourly rate? She is saying $20-$30 an hour.
post #2 of 35
That sounds about right.
post #3 of 35
Thats about the average price per hour.

You should really see if she'll rent to you monthly. You'll come out better especially if you run into a cake that gives you problems.

Congrats and good luck!!
Stephanie
"Faith is not believing that God can BUT knowing that God will"
Reply
Stephanie
"Faith is not believing that God can BUT knowing that God will"
Reply
post #4 of 35
Quote:
Originally Posted by amandamotley

Like a lot of CC members, I've been decorating cakes for awhile and have really been wanting to start a small business on the side. Thanks to all the CC tips on businesses, home licensing, etc., I found out that Georgia doesn't license home bakeries, and have had absolutely zero luck finding a place to rent space. Until I did that, I couldn't go about getting inspected, business license, cards, website, etc. I've been very careful about orders that I've accepted (very close friends and family only) and haven't made any money yet. I've had a ton of people ask for a card, but couldn't give them one or take their orders!

I think I've found someone to rent from! She seems wonderful, has a chocolate boutique where she is willing to display my products, knows all the ins and outs of starting a business here...it just seems great! Just wanted to share my excitement (which is hopefully not premature), as well as ask a quick question -

Anyone out there who rents kitchen space know a ballpark hourly rate? She is saying $20-$30 an hour.



What do you get with paying $20-30 hourly?

Here's a few questions to ponder:

Do you have to clean the floors? Handle any equipment maintenance? Are you able to use any of her equipment, if so, which pieces are okay and which are off limits? Is this a kosher kitchen? If so, will it affect you using the kitchen? How is the chocolatiers relationship with the town health inspector? Are you allowed to leave some of your equipment, supplies, decorations at the kitchen? If so, is there an additional fee for such storage? (Health inspectors want to know if you'll be doing this too.)
Engineering is mathematics only louder.
Reply
Engineering is mathematics only louder.
Reply
post #5 of 35
Quote:
Originally Posted by amandamotley

Like a lot of CC members, I've been decorating cakes for awhile and have really been wanting to start a small business on the side. Thanks to all the CC tips on businesses, home licensing, etc., I found out that Georgia doesn't license home bakeries, and have had absolutely zero luck finding a place to rent space. Until I did that, I couldn't go about getting inspected, business license, cards, website, etc. I've been very careful about orders that I've accepted (very close friends and family only) and haven't made any money yet. I've had a ton of people ask for a card, but couldn't give them one or take their orders!

I think I've found someone to rent from! She seems wonderful, has a chocolate boutique where she is willing to display my products, knows all the ins and outs of starting a business here...it just seems great! Just wanted to share my excitement (which is hopefully not premature), as well as ask a quick question -

Anyone out there who rents kitchen space know a ballpark hourly rate? She is saying $20-$30 an hour.



What do you get with paying $20-30 hourly?

Here's a few questions to ponder:

Do you have to clean the floors? Handle any equipment maintenance? Are you able to use any of her equipment, if so, which pieces are okay and which are off limits? Is this a kosher kitchen? If so, will it affect you using the kitchen? How is the chocolatiers relationship with the town health inspector? Are you allowed to leave some of your equipment, supplies, decorations at the kitchen? If so, is there an additional fee for such storage? (Health inspectors want to know if you'll be doing this too.)
Engineering is mathematics only louder.
Reply
Engineering is mathematics only louder.
Reply
post #6 of 35
Just a question.... how is renting out a space worth $20-30 an hour? I have had cakes that have taken upwards of 17 hours! So let's do the math... 17 x $25 (we'll go in the middle of $20-30) = $425 plus the cost of materials for that particular cake= $30... so we are looking at it costing me $455 to make this cake and now I would have to charge above and beyond that to even break a profit! !?!?!?!??!?!?!?! But that was on my most complicated cake (that i made for a friend and charged $100 for it which they "hemmed and hawed" about)... but even for smaller cakes say it takes 5 hours to complete. 5 X $25= $125 plus materials of say, $10. So for a fairly simple 8 inch 2 layer cake it would need to be priced over $135 to make some money. And I usually would charge $50-$60 for it.... I just don't see how it's worth it. Just my opinion.
Franck: Well, Mr. Banks. This is a very reasonable price for a cake of this magnitude.
George: A cake, Franck, is made of flour and water. My first car didn't cost $1,200.
Reply
Franck: Well, Mr. Banks. This is a very reasonable price for a cake of this magnitude.
George: A cake, Franck, is made of flour and water. My first car didn't cost $1,200.
Reply
post #7 of 35
Quote:
Originally Posted by SarahsSweets2006

Just a question.... how is renting out a space worth $20-30 an hour? I have had cakes that have taken upwards of 17 hours! So let's do the math... 17 x $25 (we'll go in the middle of $20-30) = $425 plus the cost of materials for that particular cake= $30... so we are looking at it costing me $455 to make this cake and now I would have to charge above and beyond that to even break a profit! !?!?!?!??!?!?!?! But that was on my most complicated cake (that i made for a friend and charged $100 for it which they "hemmed and hawed" about)... but even for smaller cakes say it takes 5 hours to complete. 5 X $25= $125 plus materials of say, $10. So for a fairly simple 8 inch 2 layer cake it would need to be priced over $135 to make some money. And I usually would charge $50-$60 for it.... I just don't see how it's worth it. Just my opinion.



And there's the rub!

Rent, whether you have a shop or rent a kitchen, must not exceed your profits and overhead costs.

I'm renting a kitchen for a steal. Why? because I have to clean/tidy up the kitchen AND my food costs are low. I had to do months upon months of culinary math prior to deciding to rent. I analyzed the food cost of every recipe I'd be using (choco. truffles & Chocolate Wedding cakes) and every base cake and charge according to the most expensive item. (That food cost item will never exceed over 31%-- I'm working to get that % down without sacrificing quality.)
Engineering is mathematics only louder.
Reply
Engineering is mathematics only louder.
Reply
post #8 of 35
On the topic of renting kitchen space, I came across this website on craigslist. I just posted a wanted ad for renting kitchen space. Hope this helps anyone looking for a space.

http://www.commercialkitchenforrent.com/
Ana

Top of the Tier Cake Shop
www.toptiercakeshop.blogspot.com
Reply
Ana

Top of the Tier Cake Shop
www.toptiercakeshop.blogspot.com
Reply
post #9 of 35
I rent space for $250/month. I get my own fridge, freezer and a huge shelf to keep all my stuff. I just have to clean up after myself. My goal is when I leave to have it look the same way as when I got there. I'm really lucky that I don't have to do any deep cleaning. I just clean my dishes and counter. I actually am able to tell the person who does the cleaning if I need any deep cleaning done. I am so thankful for this space and the wonderful people I rent from. Because I am so lucky to have found this, it confirms that I'm doing what (I believe) I'm meant to do.
I'd definitely ask about monthly rental as well. When I inquired at one kitchen they said $25/month. That would really add up when I have a lot of big jobs. Monthly is the way to go.
post #10 of 35
Thread Starter 
Those are great questions to take with me - thank you! If I understood her correctly, storage space is an option and is included in the $20-$30 range. She does not, however, provide refrigerator space. I can bring my own fridge in and pay a little more to cover the power it will use. I will eventually be renting by the month (I hope), but I have an 8-5 job, and just do cakes on the side, and can't justify the expense at this point. Someday, though!

SarahsSweets, I definitely see where you're coming from, but I don't really have another option if I want to be legal (other than finding a place to rent for less, which I'm not sure that I can do). I think I can just build it into the price of my cakes fairly easily, as long as I can have everything ready to go when I set foot in the kitchen!
post #11 of 35
Best of luck amandamotley! You're going to do great. I looked at your pictures and your cakes are really cute!!
post #12 of 35
I am also looking for a kitchen to rent. As far as how it will affect my prices, I am worried!
Smile! Jesus loves you!
Reply
Smile! Jesus loves you!
Reply
post #13 of 35
Quote:
Originally Posted by missyssweets

I am also looking for a kitchen to rent. As far as how it will affect my prices, I am worried!


Me too. I will most likely be signing a lease in the next week or so....I think I will need to make an additional 6 cakes/month to cover it. You need to figure out what your profit is now, and then what you will need to afford the rent...I am renting monthly, though, not by the hour.
post #14 of 35
Quote:
Originally Posted by MamaBerry

And there's the rub!

Rent, whether you have a shop or rent a kitchen, must not exceed your profits and overhead costs.



Also remember in that $20-$30/hour, that you are not paying the water bill, the electric bill, the gas bill, the sewer bill, the dumpster bill, the security system, the fire extinguisher costs, the annual or semi-annual kitchen cleaning fee (some places hire a professional to come in once or twice a year to "deep clean" the kitchen), the insurance on the equipment, the tenants insurance, buying the soaps and cleaning supplies for the mop sink, for the hand-soap dispenser, for the comm'l dishwasher, for the floors (my first purchase just for soaps for my kitchen was $700). You also did not lay out $50,000 for the equipment that you'll be using.

MamaBerry makes a good point .... when you take that step to become a "real" business, meaning to get legal/licensed,etc, then you start to realize what "real" business expenses are. It's an eye opener, all right! icon_wink.gif
post #15 of 35
Yes, you are right about that, indydebi. I looked into opening another place with a girl, and I think the vent hood alone was $15,000. I thought, NO WAY. This time around, I will have rent, and then a $350 food permit bill. Not too bad.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Renting Kitchen Space - Hourly rate?