The bar owner would continue to sell alcohol and take the profits from the alcohol sales. They will not charge us anything except utilities. We would cover all expenses and purchases pertaining to food and take all food profits. Does a 1099 make sense for a situation like this?
This is not a terrible idea. it is basically he wants to subcontract out a part of the business he is terrible at running. and the least profitable for him. and your risk is small. you are not leasing the kitchen? ( many hotels do this and they force operators to pay them to do it ).
As long is you cover your risk and make sure the owner can’t change the terms later. I would have everything spelled out on what you would pay him and how it is determined. if you really start making money, he will want to change terms. just like if you are not making money you will want to get out of the situation. have everything spelled out in a contract.