One of the things that is going to make or break the success of a pop-up or residency is a financial model that really works for both the venue AND the guest pop-up. It’s not a one-size-fits-all approach – different structures will work differently for each venue, and for each concept too. For example a venue with a strong drinks focus but no food offering is likely to want to retain control of all beverage sales in terms of bar staffing and profit – that may not work for a concept which revolves around food and wine pairings. Or a venue with a kitchen which is used for service during their opening hours may structure their pricing to include a kitchen porter, leaving all other staffing up to the pop-up – which can be covered in a number of ways, whether it’s through drinks sales or designing a cleverly priced menu to cover those extra costs. It’s all about finding the right model for YOU – something that is going to leave both parties financially and logistically satisfied.

Whether you have a venue, or you’re looking to hire a venue, we’ve broken down some common options below. Many places will be flexible, and some will use a combination of several of these options – but remember, the most important thing is to have really clear communication about expectations and inclusions right from the start. These should give you a head start when you’re thinking about your needs.

Profit sharing model

A profit sharing model is one where the total profit will be split between the pop-up and the venue, in the pop-up’s favour. If the pop-up is on a longer term basis, that number will most likely be a percentage of the sales. If the pop-up is short term with ticketed sales, such as a supper club, it’ll be a percentage of those tickets. The ‘burden’ of making sales is shared and both parties will be invested in the pop-up’s success, which usually means the venue will provide help with the marketing.

• If the venue has a bar and you’re just taking care of the food, the venue might suggest they open their bar and take 100% of the wet sales. It’s a great opportunity for them to take in more revenue and it’ll complement the food offering, so why not?!
• Good for: first-timers nervous about getting bums on seats!

Fee for venue only

This is a fairly straightforward one. You’ll be let in, and the space will be yours to use (and care for) during your event. The rate may be a flat fee for the day or half day, or it might be an hourly rate. If you’re planning on doing a series over several days or weeks there might be a package discount. The expectation is that you’ll be fairly self-sufficient and will be able to provide all your staff and run the event yourself, without needing help from the venue.

• Good for: experienced and self-sufficient pop-ups who have the resources, staff, and time to organise and carry out a full event.

Fee for venue plus extras

This fee will be higher than the model above but will also include certain extras that the venue has deemed non-negotiable. For example, they might insist that one of their staff members be there on the day of your event to help everything run smoothly – a venue manager of sorts. You’re most likely to see this with a larger venue which offers more features, i.e. a sound system, several floors/rooms, or expensive equipment. Some venues might include a KP, or a cleaning fee. The principle is the same: that higher number ultimately reflects a cost that would have come out of your own pocket and time.

• Good for: both first-timers and experienced pop-ups who like having options to help them run their events as smoothly as possible.

Small or no fee + bills

You’ll come across this model with fully-kitted out venues who have the drink menu down and are looking for someone who can take over the kitchen. More than just a head chef, you’ll retain autonomy and full responsibility over BOH. That means you’ll be running the numbers, designing the food offering, and covering all of your ingredients and kitchen staff. In return it’ll be your brand on the menu and you’ll take all the profit, contributing to a share of the bills for the gas and electric you’re spending. The idea here is that you’re both boosting each other’s sales.

• Good for: an experienced pop-up that’s confident in running a kitchen, a full team, and comfortable managing their own finances. Suitable for a long-term agreement.

No venue fee at all!

Similar to the model above, you’re most likely to see this with drinking venues or outdoor events, where the kitchen space is limited or virtually non-existent but a food offering would increase both traffic and customer spend. You show up, you set up your kit, you make your sales, you take home all the profits. They’ll take all the drinks they sell; essentially, you’re just taking a little corner of their real estate and trading side-by-side to boost each others’ trade by offering food and drink that diners will want to enjoy, together.

• Good for: a self-sufficient concept that’s fairly mobile and adaptable, like a market or festival trader – you’ll already have all your equipment, limited or disposable service-ware, and payment methods all set up.

Additions

Any of the models above may include extras at a cost, such as these:

• Venue staff. This can include KPs to help you clean up, FOH for service, or an on-site manager to monitor that everything is going smoothly.
• Separate kitchen space. Some venues with a smaller prep space might have a full, separate kitchen which could cost you extra to use.
• Bar usage. If the venue has a bar and you’d like to use it (with or without their staff), you may need to pay extra.
• Third-party ticket providers. If you’re hosting a ticketed event, some venues may ask you to market the event through a third-party provider, which means you’ll be expected to cover those fees, too.
• Usage during trading hours. If you’re requesting to rent a venue during their trading hours, you can expect to pay more to cover the forecasted revenue they’d have taken had they been open.
• A deposit with a contractual agreement. Some venues with more kit and space might require you pay a deposit ahead of the event. As long as nothing gets damaged and the space is returned as you found it, you’ll get it back.

Tips

• If you’re a pop-up, make sure you read the fee terms carefully – a slightly higher number may seem unfeasible at first glance but upon further reading you realise it includes several services you’d need to account for anyway. Similarly, a lower number might seem really generous until you realise you’ll have to dip into your own pocket to cover extra costs.
• Everyone needs to be absolutely clear on what the terms are. That includes how the pop-up should find the space, how it’ll be using the space (including any equipment), for how long, and how it should leave it once finished. This is especially important when it comes to things like cleaning, those end-of-event details that ultimately leave the last impression and could make or break the relationship between pop-up and venue.
• A written contract laying out all the terms and conditions might be a good idea. At the very least, you’ll want to make sure you have those T&Cs written in an email to refer back to. It’s also a good idea to take photos of the space before and after the event so both parties have visual references, too.
• Communicate! If you’re unclear about something or hesitant about a particular term, let the other party know. You’re better off bringing it up early on than waiting until the day before your event.
• Understanding your resources, and therefore your needs, before entering an agreement is essential – whether you’re hiring out your space or you’re looking to rent one. Not all pop-ups are suitable to all venues and vice versa, and that’s okay!