Pub kitchen contracts query

[MisterMusty]

Hi,

I'm looking into the idea of setting up a kitchen in a local pub to sell Indian food to its tenants and would love to hear from anyone who has any relevant experience.

I'm interested in the terms that are typically agreed between pub owner and caterer (I'm assuming that all brewer owned pubs will sort their own catering so this will be independent publicans only):
- does the caterer pay rent to the publican or does the publican just take the drinks money diners spend?
- If the publican gets some of the food income is it typically a percentage or flat-rate 'rent'.
- does the caterer ever get a cut of the drinks served to diners?
- do the bar staff typically take meals to customers or will the caterer need service staff?
- who owns the kitchen gear and is responsible for upgrading it if need be?

Any info on any of the above would be greatly appreciated.

Thanks

 

[AndyBlue]

I would suggest that there isn't a typical agreement with this type of thing, so youa re going to work with your prospective landlords to find a happy medium. I would think the realistic options are :

1. You pay a fixed rent for the kitchen and equipment with all costs of cooker / gas / electric covered by the landlord. This works for the landlord initially as he is guaranteed a set income, but if you get really busy he will probably want 2.
2. You pay a percentage of your takings to the landlord, issue with this for the landlord is you declaring all your takings.

I wouldn't expect you to get a cut of drinks etc. However all this will depend on the landlord and how switched on his is and what systems he has. I have a hairdressers and we rent a room to a beautician and becaus eshe helps in our salon - sweeping up/answering phone etc which saves us some money she gets a lower fixed rent.

 

[PublicanSam]

This approach is fraught with difficulties, however, as others have pointed out no "set" way - it's what you negotiate that counts.

If I were approached then I would expect a rent for the kitchen, a contribution to utilities and a small% of the food sales.

In return I would expect to do joint marketing and promote the menu.

This would not necessarily be the best route for you as you are left with lots of fixed costs. I would try and get a straigth % deal, the more you sell (and the more you profit) the more the publican will get.

Just to clear one thing up though, by far the majority of pubs in UK are independent operators - freehouses, tenancies and leases - so there's lots of opportunity out there.

Top Tip - why not offer a Curry Night experience to several pubs, each on a different night of the week and spread the risk / expand the marketplace for your food. You could also market yourself as a freelance chef who can provide mezz or set meal catering for pubs looking to put on themed nights that require authentic cuisine.