Location? Looks like you are near Vancouver BC? Have they made you any offers? Hourly pastry cooks in restaurants here (Seattle) might get up to $18/hr MAX with solid experience, but chocolate is a more specialized skill and you're doing product development so maybe $20-25. What do various pastry jobs pay where you are?
Restaurants in BC always seem a little more expensive than comparable places here, so hopefully they are paying staff better. And I suppose health insurance isn't a bargaining chip in Canada - here our salaries might be lower if the company is paying an extra several $K for benefits.
If you don't want to give them your recipes then sub-contracting seems better. More efficient for your production if you're just making extra of your own products to sell to them. But if they are already established with some of their own recipes, that could be tricky.
