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Just me, but a consideration of a price reduction for the sake of an ongoing relationship, translates to an ongoing price reduction.
I'm not really understanding this whole thread. You are a plate up caterer, and this restaurant wants to sell your food?
What are they expecting? Plated food, bulk food, ?? The OP needs to decide if he or she wants to enter the wholesale market. A lot of pro's and con's come along with this decision. My first thought would be quality consideration. If you've grown your catering business on food quality, than I'd be leery about attaching my name to a product another vendor is going to be responsible for.
I can go on. I've been in both markets for a bit of time.
I agree here. If it's something like baked goods or pastries, there is a bit more leeway as they do not go bad as fast. If they are speaking about entrees or maybe buffet items, now it goes into if the restaurant is holding them correctly etc.

You may want to look into providing it for them if they agree not to give out your name? But that could also be detrimental is someone may really like your product so you have to take that into consideration as well.

It's not so cut and dry as allowing someone else to use your products and they may mishandle, you might get a bad name and your reputation / business could be completely destroyed.
 
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