Working with ghost kitchen or third party for food -- do you get a cut?

[sboyajian]

My partners and I are currently in the buildout phase of our brewery. One thing we haven't wanted to deal with, mainly due to space and cost, is providing food in-house. We are lucky in that the building we are in houses 2 sources of food. The restaurant directly beside us (which we share back access with), has an unused line in their kitchen and has offered to put together a custom menu, allow people to order through QR code and deliver directly to table.

To us, this is the ideal situation as I don't want people leaving when they get hungry, but I also don't want to deal with more staff, more equipment, a second cold room and food safety concerns.

We feel we need a contract. Basically just something ensuring they will provide this service on an agreed upon schedule and that X weeks of notice be provided should they wish to no longer provide this service. Basically just a way for us to ensure food is available and also if they need to get out of it, we have time to figure out a backup.

What we are unsure about is a cut. Essentially, they are increasing their dining room by a considerable amount when you consider the extra seats and mouths we provide. While yes, we will surely see an increase in profits due to people not leaving to get food, they will likely see a much larger ROI.

Does anyone have an agreement like this in place with a restaurant? Do you get a % of sales? It doesn't seem out of line for us to ask to negotiate a fee as we are providing them the avenue to see a huge increase in profit (essentially a rent free dining room).

[gitchegumee]

You've already identified this as win-win. Forget about a "cut" and just allow takeout menus from your neighborhood restaurants. Diversity in dining without the hassles of kitchen/staff and goodwill among your neighbors. Trying to squeeze a restaurant during these times seems counterproductive.

[sboyajian]

You've already identified this as win-win. Forget about a "cut" and just allow takeout menus from your neighborhood restaurants. Diversity in dining without the hassles of kitchen/staff and goodwill among your neighbors. Trying to squeeze a restaurant during these times seems counterproductive.

Not trying to squeeze a restaurant. This restaurant is already fully operational and doing very well. What they want to do is open a ghost kitchen in the back, with existing staff and vendors on an unused line, named it after our brewery and use our taproom as a second dining room. Effectively getting a second restaurant at zero cost.

We'd be left to deal with clean-up, we'd effectively be the face should something be wrong with the food, etc. From a business perspective, I don't see why we shouldn't get something.

Maybe I'm overthinking it.

[liammckenna]

When you pen an agreement, identify your concerns. If your concerns are not met, within reason, as your agreement will outline, you can sever such agreement. Having food onsite, prepared by professional, cannot but help your bottom line/customer traffic. As far as a 'cut' is concerned, perhaps some free meal vouchers, for yourself and your staff at a prescribed rate of their sales.

Pax.

Liam