Question:
I was approached by a cool taco cart chef who wants to do a pop-up in my full-service brick-and-mortar. I think it can bring in some new people, but I’m not sure how to structure it financially. Can I just rent her the kitchen? Revenue share?
– Owner, Westchester, N.Y.
Answer:
Collaborations like these can have many benefits:
• Keeping things fun and interesting for staff.
• Developing your talent by teaching them new approaches.
• Bringing some of the other chef’s followers to experience your hospitality.
• Cross-promotion.
• Newsworthy PR event.
• Reminding previous guests that you are offering something new and exciting.
Before worrying too much about the finances, think about the goals for the event and what you think it can accomplish for your restaurant. Will working with this chef bring a halo of “cool” to your concept? Might it get people coming out on a slow night or tough time of year? Does it keep you top of mind on the local dining scene? Is there an opportunity to do a reciprocal collaboration? Is it simply fun for you and your team? Any of those are great reasons, but if you struggle to answer that question, you may want to rethink the merits of the collaboration.
Ben Fileccia, a longtime GM and operations director and current director of operations and strategy of the Pennsylvania Restaurant & Lodging Association, agrees. “I love collaborations like this. And I personally think it is pretty straightforward. The clear advantage would be to the brick-and-mortar, because of the organic relevance having a popular taco truck doing a pop-up there.”
If you’ve decided to move forward, I think you can structure this in a variety of ways. I would advise against any sort of rental or sublet agreement (even for the night), because it may violate your lease, liquor license or health department codes, which have you noted as the certified operator of your establishment. On that note, be sure your collaborator has all necessary permits and insurance.
I’ve seen a variety of financial arrangements. Here are a few:
• Ticketed event with revenue and cost-share.
• Ticketed or a la carte event with one party bearing all costs and paying a percentage to the other for their time and marketing.
• Pop-up chef providing food and1 you keeping bar revenue.
• A promotion-only event with no actual revenue or cost-share.
Fileccia’s advice is, “The brick-and-mortar should only be offering drinks and maybe one or two food items. Perhaps they showcase their best dish (priced appropriately for the pop-up) and maybe a dessert or something that the cart’s chef will not be offering (churros?). The cart can then sell its food and collect full price. The brick-and-mortar should be able to attract many first-time diners and should be able to get many of them to return. They could even offer some type of promotion for the guests that participate that evening, for their next visit. The most important thing for an event like this, though, is to have fun. That’s the best way to ensure getting those happy guests back.”
As always, check with your attorney, health department and restaurant association to be sure your event complies with local codes.
More on collaboration events here.