Business owners/renters...
What is your average electric bill per month?
What is your average water bill per month?
What type of insurance and cost of the insurance?
What is the sq ft of your space?
I am building a 1250 sqft. building for a (community)commerical kitchen. In this space I have scheduled personal working spaces for either (6) 4ft spaces or (3) 8ft spaces along with locked storage and baker racks for each station. The rest is set up for community sharing space to include the worktables(specially design for cleaning with power plugs on five sides along with butchblock topping on portion of worktable); baker racks;ovens(convection,regular,microwave); stove; refrig./freezer; lg. mixer;hand mixer; counter mixer; food processor; turntables; sinks(3compartment and prep with garbage disposal);dishwasher; bathroom; mopsink/garbage area;more storage areas;consulting area with displays; pickup area with displays; advertising;security with alarm; computerized time clock; first aid station.
So if you were renting from me based on this information including utilities and liability insurance would 1500. month for the 4ft space and 3000. month for the 8ft space, $25. hour seem reasonable for you?
The only thing the decorator will have to supply for themself is their own supplies and mixes, and of course their own customers.
Considering I can spend anywhere from 1 hour to 12 hours decorating a cake...$25/hr is too high for me! I have an actual bakery and my expenses (including store front) don't run as much as $3k per month. Sorry!
Thanks for all the info on the PM's. Good points, will see how to reduce the overhead to create the lower costs.
i have 1100 SQ ft.
my electric ranges from 200.00- 500.00 a month....water about 35.00
i guess what you charge will have to do alot with where you are located....
that would be kind of expensive here....
concept of this kitchen is very interesting....
Yes, I think $1500 for the 4 ft space and 3000 month for the 8 ft space is waaay too much. That just doesn't seem realistic to me...Why would anyone pay that much when they could easily rent their own space (with more space I should add) within the budgets of those numbers. I've owned a 1600sf restaurant and the utilities gas/electric combined was around 200-600. The majority of course being for electric. That's why so many professionals strongly recommend getting as much gas appliances as possible to reduce the electric usage. My insurance premium for the year was around $1500 that's was for a restaurant serving no alcohol and 1 mil coverage. That policy included everything. Now, since this is for a commercial kitchen being rented to licensed professionals I hope they'll have their own professional liability insurance. I don't know what person in their right mind would try to operate a foodservice business without it. Although, they may or may not be covered under your policy I would make them having their own insurance be a requirement for renting. Now, that I mentioned that...that was one of the requirements my property management co required I showed proof of before I could take possession of the space. It only protects all parties involved.
I want to thank anyone that gives me your opinions. It seems though that I hit a bad figure when I stated 1500-3000 month. So let me break this down on my thinking.
The avg. decorator here stated $10.00 hr.; basing that rate on a 40 hr wk with a a daily rate of 8 hrs would come to $1600.00+ per month for that space based on 4.3 wks a month. If the decorator is working fulltime are they not putting in 40 hrs a week into their craft? This is brand new building/brand new equipment. I have also found a source for supplies to supply it with.
I have been researching on the internet for commercial kitchen rentals and the majority of them in cities run $25.00 per hr for a shared kitchen 4ft space. Rural areas run $12.50 hr. That is if one can find commercial kitchens available to rent.
So based on this info, am I thinking wrong here?
Please everyone, your opinions are very welcome on this.
I rent in Miami, Miami Beach to be exact...and I only pay 2 thousand a month, and all my utilites and garbage removal is included.
and it's my own space and I don't have to share it.
when you have a community kitchen you must provide Locked storage space for your "tenants" and...
they will still have things come up missing..
At the kitchen I rent, the rent is $10-$15/hour depending on how much time you need. For the "bulk renters" they pay about $450-$500/month for unlimited time. The kitchen is open 24 hours a day and refrigerators and storage is provided. It is in a somewhat rural community...there are no locks on cabinets or refrigerators and I've never had a problem with anyone using my ingredients.
RisqueBusiness, thank you. Let's clear up something here. You stated your paying 2000. mthly. Does that include all your equipment you bought to set up your space also?, space and utilities, and garbage pick up. How many sqft is yours. Although the private space is 4/8ft, they will have the use of a 1250 sqft area. The private spaces includes individual baker racks along with storage cabinets that have locks and counterspace with 4plug outlets,garbage service, utilities, use of all equipment,advertising. They will be where there is foot traffic to build their business. They do have to provide proof of insurance and business license.
I really need all this information to put a value that is reasonable but, I also need to compare what to what. Many, many thanks for your imput.
I don't sell cakes. But if I rented 8 ft. of space from you - which includes space and equipment, I would have to make at least $36,000 per year just to cover the cost of paying you. Then I still have to buy all the ingredients that I need. That is not going to leave much for my efforts.
Just doing that math - it seems too high to me.
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