Shared Kitchens – High Profit, Low-Risk Food Business Ventures

shared kitchens-restaurant

If you are planning to start a food business, trust me it is hard work. The first hurdles a food entrepreneur will face is trying to find a commercial place to produce food legally. According to stats, in the last 5 years, there has been notable growth in the number of shared kitchens available.

Commercial kitchens and commissaries are called “shared space,” where several people may have access to the group kitchen. You will have to book your time slot when using a shared space kitchen.

Before starting your restaurant business, you need to have a licensed space, so that you can legally carry your food business. Also, you require ample space and all the facilities that are required to run a restaurant.

But, with the coming restaurant industry trends of 2019 like shared kitchen, things have changed! If you are planning to start a delivery-only restaurant, then this trend is for you.

Econsult reported in 2016, there were more than 200 food incubators in 39 US states, a 50% increase from the last three years.

So, what is shared kitchen as the name indicates, you share the kitchen space with other professionals.

What is Shared Kitchen?

Shared kitchens are a licensed and inspected food processing facility that rents out the use of space and equipment to small-scale value-added food production entrepreneurs, caterers. 

Shared kitchen spaces have become a growing force in an era when more entrepreneurial foodies are turning their food and beverage specialties into businesses selling direct-to-consumers and via online food ordering platforms and foodservice outlets.

The shared kitchen is also referred to as kitchen incubators or community kitchens. Moreover, a commercial space that has been licensed, certified and designed for food production. Chefs, bakers, caterers and other professionals split the cost of the kitchen space among them. 

Building a facility can cost you thousands of dollars. It is a cost-effective solution as compared to investing in a large commercial food space. All you need to pay a monthly rent based on the time you used the kitchen space. In addition to this, you don’t have to deal with customers directly. These kitchens don’t provide extra space for customers, this means they can’ t dine in.

According to a report by The Food Corridor and the Network for Incubator and Commissary Kitchens, 82% of US incubators had booked revenue increases over the previous three years and 76% were either breaking even or making money.

If you are planning to start a food business or would like to jump into this new concept of food business, then we will let you know all about the shared kitchen.

Types of Shared kitchens

There are four different types of shared kitchens to choose from, so you can find one that balances your needs and the price point:

  1. Shared Commercial Kitchen Space
  2. Private Commercial Kitchen  Space 
  3. Renting a Restaurant’s Kitchen  Space 
  4. Non-Traditional Sources 

Why you need Shared kitchens as a food entrepreneur?

The shared kitchen is a cost-effective solution. You get good food space for less rent. Also, you get to share the cost with others. This can be highly beneficial for caterers who need a working space on weekends. Plus, they don’t have to pay a full month’s rent. These kitchens are fully equipped, so you don’t need to buy new kitchen tools. But, you need to pay extra for using kitchen equipment.

Buying a dedicated commercial kitchen is too expensive and most home kitchens simply are not equipped or licensed to produce commercial food.

Small businesses in need of a commercial kitchen now have a new, inventive way of accessing high-quality commercial kitchen equipment.

Licensed, shared commercial kitchens are the simple and affordable solution for those looking to grow a food industry business because they provide all the benefits of a traditional commercial kitchen at a fraction of the cost.

Here are some major benefits to using a community or shared-use kitchen to make your food business dreams a reality:

 1. Meeting the regulations of your area

They are built in keeping mind the regulations and specific standards for safety, cleanliness, and others. So, you don’t have to worry about the rules and can run your restaurant business without any legal hindrance. Also, you don’t have to worry about getting it shut down by the health inspector since the kitchen is licensed and insured. But, you need to have a product liability insurance, food handler’s card and business license to get started. 

 2. Additional Resources

Some commercial kitchen provides additional resources like food safety training and access to mentors. All this helps you to grow your business. 

 3. Delivery-only restaurants

Shared kitchen except orders only through restaurant online ordering platforms and offers no dine-in facility. As a restaurant owner, you don’t have to worry about the ample space and parking space.

4. Incubator programs

Shared kitchens usually provide additional services – like incubator programs and demo space – that help your business bring home the bacon! You’re the food expert. 

5. No extra bills

The shared kitchen you rent from will take care of all the extra bills including electricity, contractors, security, sewage, pest control, building codes, and more – so you don’t have to worry about the bills.

Where to find a shared kitchen?

You might be thinking about where can you find a commercial kitchen for you. An easy way to find one for yourself is to search it on The Kitchen Door or The Food Corner by city, state or zip code. It is like other search engines who will provide you the comprehensive list of available kitchens. The Food Corridor has more than 80 shared kitchens across the U.S. and Canada. It is a trend that is picking up among many new restaurant owners, so it’s better to get on board now. 

Moreover, it will provide you a place where you can legally cook your food and save on infrastructure. In addition to this, the minimum risk is involved, so when you are ready to enter the next phase of growth, you can easily move your business. Furthermore, If you can’t find something suitable online for your business, try contacting other local renting organizations for kitchen spaces.

So whether you are a chef, caterer, baker, food truck, or any other food entrepreneur, if you are planning to start with food business then investing in the shared kitchen is best for you.