Pulled Pork

BoneDaddy's

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So, I have a local food truck that would like to buy pulled pork from our BBQ team on a regular basis. Any amount I can give him he will purchase. So maybe around 20 butts per month. Given it runs from .99-1.99 depending on the store and specials, what is a fair price per pound to charge him? He is a buddy, but recognizes that I have time and materials so he is not looking for a hand out!
 
I would give him a list of materials and just ask for a flat payment price for the end product after he buys materials.
 
This is a good question for the catering/vending forum. However, the first thing they will tell you is make sure you have your business licenses, insurance, comissary kitchen set up, etc. If the food truck will let you use theirs, great. If not, you're going to need to find one and factor that into your pricing.

Most people figure out that at that quantity, it's not worth it unless they have free access to a commercial kitchen.
 
This is a good question for the catering/vending forum. However, the first thing they will tell you is make sure you have your business licenses, insurance, comissary kitchen set up, etc. If the food truck will let you use theirs, great. If not, you're going to need to find one and factor that into your pricing.

Most people figure out that at that quantity, it's not worth it unless they have free access to a commercial kitchen.

I do have the free access to a commercial kitchen, he owns one.
 
You asked the question, so don't get mad at my response; I'm not trying to scare you, but you should research the State and Local laws in Bedford, New Hampshire

Without being incorporated or registered as a Limited Liability Company (LLC), having food service liability insurance, all the proper permits, licenses, certifications, and required inspections, that you are taking a huge financial risk without limits.

No one should engage in the food business without being registered as a legitimate business. Without being incorporated (or legally registered as a LLC) you and all of your assets owned by you and your family are up for grabs in a lawsuit. Incorporating separates you and your personal assets from those of the recognized corporate entity. In a lawsuit they can sue the corporation but cannot come after you unless you blatantly caused harm as an individual.

If you are planning on selling food or catering an event, even for a friend you should be aware of the laws and the risks involved. By ignoring these and not investigating the legal requirements for any event, you are putting yourself at a great risk. Ignorance of the laws and regulations are not a defense, in fact it will just help to build a stronger case against you if something should go wrong. More importantly, something doesn't actually have to go wrong, one only needs to claim they got ill from your food.


First: Are you incorporated or registered as a Limited Liability Company?

Second: Will you be operating within State, Local, and Health Department regulations?
Do you have a business license, a food handlers permit, and will you prepare the food in a health department approved and inspected commercial kitchen?

Third: Do you have the proper liability insurance to cover you and the patrons?

Fourth and lastly... are you Serve-Safe Certified?


Be aware that without these qualifications and being fully covered with insurance, you are taking a huge huge risk both personally and financially.

Without proper procedure and requirements, there are too many risks and not enough rewards. What legal ramifications are you willing to endure should this become an issue of someone getting ill?
Trying to sneak past the "government" can lead to way too many bad things for you. This is a risk that anyone with common sense should never consider taking.


How much of your personal assets are you willing to risk due to food-borne illness issues should they occur?
Or if someone claims they became ill sometime after eating your food. If a civil suit is brought against you because of this claim, you could lose your home, your savings, everything you own, and even your investments.

It might be difficult to prove with a single case, but what if someone who handles the food in the chain accidentally contaminates something. You will have more than one case from the event. Then you have an unlicensed food handler, who is not using a state approved and inspected kitchen, and who has failed to get all the required permits, certifications, licenses, and local inspections.

It's not just the fines and penalties from the state and local authorities for operating illegally, but when you have a civil suit filed the tables turn. Just the fact that you ignored all the required permits, licenses, certifications, and inspections are stacked against you. Couple that with many states who do not elect judges, but rather politically appoint them; then you can have an inexperienced judge in law who has their own interpretation or opinion of the law to deal with. Some of these appointed judges do not know the law and will make decisions based on personal opinins.

As stated above the extreme fines and penalties imposed by the state, county, and local authorities can't be argued in a court of law, ignorance of them just isn't a feasable defense. Then which can be exorbitant, even if they can't prove the case. This is why many corporations find it easier just to settle out of court than run the legal gamut.

You also have many corporations that have tried to fight a case of stupidity in court and have lost millions trying to win. Look at the case of a patron who ordered hot coffee and drank it while operating a motor vehicle. Consequently they spilled hot coffee on themselves as a direct result of their own personal action. Yet a good lawyer put the blame on the corporation, and they successfully sued for over a million dollars. Common sense does not prevail in a litigious society.

My intent is not to discourage you, but to point out the possible ramifications of this type of event without the proper "coverage", "licenses", "certifications" and "permits".


Some think they have a legal defense because:

Some would say that they are doing this as a hired hand and they should be covered under the companies / organizations insurance policy. Not true, unless you are getting a weekly paycheck and paying into workman's compensation, disability insurance, state and federal taxes, then you are not an employee. If you are paying these taxes you could be considered an employee, but you could also be held personally liable as a co-defendant because you used your personal equipment to cook the food.

Secondly if you are using your own equipment to cook with, many states view this as a sub-contractor status where YOU are responsible for all of your own permits, licenses, and liability insurance. So again, you have legal fees to defend a lawsuit, coupled with fines and penalties imposed by the state, county, and local authorities.

Most importantly, if you do this for a friend you trust, they may not sue you, but then you have to worry about the many others who will be in attendance. Some might be looking for an easy way to make a quick buck. How luck do you feel?

But yet others will claim being free from everything because they are selling food by the tray.
However unless you are legally licensed to sell cold / frozen foods, then you have lost control of the food until it was served;

You are responsible to properly prepare, maintain, and/or serve food fit for human consumption.
You are responsible to properly take the temperature of the food at the time of service.
You are responsible to ensure all persons were wearing gloves, hats, nets, ect while prepping, cooking, and serving the food.


It may be a one in a million case that someone becomes ill, but we live in a litigious society today. People make false claims all the time in an effort to sue for personal gain. If you are prepared to risk it ALL then go ahead. Otherwise walk away until they do the necessary diligence to cover themselves.


This is a totally different thing than just cooking great BBQ for your family in your back yard for personal friends.

If you want to go into business then take the appropriate steps. If not the be prepared to accept all possible consequences.
Below is an example where a caterer sold pans of food to a client for an event and still got sued simply because he lost control over the food that was served later that day.

http://wcti12.com/news/nation-world...ny-after-guests-at-wedding-reception-got-sick

https://www.syracuse.com/news/index...s_caterer_after_guests_get_violently_ill.html


As far as food preparation;
The kitchen in which food is prepared is subject to the Uniform Building Construction Code. To my knowledge, all 50 states use this code and even expand further upon it with even more local regulations. In general, the Uniform Building Code states: any kitchen that is used to prepare food that is not served immediately on premises must be to current local health codes. Also be aware that all parts of the building that has access to the kitchen must also meet those codes, not just the kitchen area.

A few other states allow for certain uses if your "APPROVED" kitchen is separate from the home, where you cannot pass from the approved kitchen into the home. In other words, you must completely leave the kitchen structure (pass outside) to access the the house, then you could possibly have that kitchen approved. This is not always the case, it is dependent upon your local authorities.

BBQ sold to the public goes under different rules than BBQ that is sold to a retailer that is resold. If you are selling to a retailer that is then reselling the food, you need to meet the USDA FSIS regulations and have to have a approved USDA facility and are subject to USDA sampling.

Keep in mind that is someone claims they got ill, your friend probably won't sue you, but a good lawyer can trace the chain of accountability back to you.
 
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So if I do 10 butts at a time, figure around 80 lbs precook, sauce, injection and lump, I am around $2.30/lb. If I figure a 40% loss pricing comes around $3.80/lb

so $4/lb and still gotta get it to him cheap enough to make money on it. Wouldn't be worth it for me to cook at someone else's place but that's just me :thumb:
 
so $4/lb and still gotta get it to him cheap enough to make money on it. Wouldn't be worth it for me to cook at someone else's place but that's just me :thumb:

Yeah, even given not having to serve it, etc, cutting margins razor thin, you're still needing $8/lb. That means he needs to sell it for $24, which ain't happening.
 
IamMadMan
That's a pretty good run down on liability. I hadn't given it that much thought since I just cook for home and family. But every now and again I think I might want to venture forth and look at something more ambitious. But, its the things in your list that give me pause. I'm familiar with liability issues having started a number of LLC's for other things.


You advice is very good. I would follow it up with the caution that forming an LLC is not enough. Having an attorney and legal followup to insure the LLC is legit is the only way to survive a real lawsuit.
 
In typical restaurant businesses food cost is 1/3 of the menu pricing. That being said you need to charge 3 times your cost if you have a brick and mortar store, insurance, utilities, taxes etc. check your local laws, in my state the roach coach is only able to purchase from licensed facilities.
 
If he has a food truck he must already be working out of a certified commercial kitchen.

It might be a better arrangement if he "hires" you and you work out of the kitchen he is currently using that way everything is still in his name and you should be covered under his insurance and what not. You could still cook the pork (have him purchase it?) and you just season and smoke it out of the kitchen he currently is using, if the owner allows of course.

You'd probably still need food safety certification and some other things but at least you're not having to form your own LLC and pay for all the other expenses to be able to do it legitimately.

That's just my $.02- I'm not an expert on these things but I did do a bunch of research when I was thinking of starting a food truck myself a few years ago.
 
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