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How much rent should i be charging for the use of kitchen

How much rent should i be charging for the use of commercial kitchen in public house for chinese food to include buisness rates gas electric water etc. on the basis they turn over £4000 per wk

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This is a tough question to answer without having more detail, but I'll try to cover most cases.

The rent portion would mostly be determined by the going rate for space in the area you are located. Look at square footages and published advertisements in your area and use that as a guideline. Utilities would be easy to determine if you had separate meters for the kitchen, check and see if you do, or check with the utility and see if they can add meters.

If not, then use historical bills to see how much use of the utilities there was during a period when the kitchen wasn't in operation. Make sure that if you do this, you multiply the use (kWh, gallons/liters of water, ...etc.) by the current published rates, don't go by the dollars charged on past bills.

Another way to do this would be just charge a percentage of the monthly revenue. You'd have to check and make sure that you were charging enough to cover the utilities, though. 5% seems a good place to start. This would allow you to profit more if the kitchen had a good month, and since utilities would go up/down as their sales went up/down, it would let you handle not having a separate meter.

Hope this helps, and best wishes!

Posted on Feb 02, 2010

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Posted on Jan 02, 2017

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