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Tagged: “Shared-Use Kitchens”

How Union Kitchen’s Ecosystem Helps Build Profitable Food Businesses

How Union Kitchen’s Ecosystem Helps Build Profitable Food Businesses

Union Kitchen is a shared-use kitchen and food business accelerator in in Washington D.C. While having a shared-use kitchen eliminates the need for capital for kitchen equipment, there are many other things food businesses need to raise capital for, which why they have distribution and retail outlets as part of their model. Their vertically integrated business and infrastructure – the kitchen, distribution and retail outlets – pairs with its accelerator program, which includes technical assistance, mentorship, classes and other means to help its members be successful. They have worked with over 400 businesses that have hired over 1,000 people and of those 400, 80 have opened their own storefronts. The financial community is more willing to provide capital to their member businesses because their ecosystem has allowed their members to prove that their products have traction in the marketplace and their operations are solid.

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Shared-Use Kitchens And Their Tenants: A Shared Path to Financial Sustainability

Shared-Use Kitchens And Their Tenants: A Shared Path to Financial Sustainability

FEED Kitchens is a shared-use kitchen that also serves as a business incubator for food businesses like small-batch bakers, sauce makers, caterers and food carts. Started with $1.4 million of initial investment, their current location includes 5,400 square feet and 3 and 1/2 full time equivalent employees. Their kitchen is in use on average about 35% of the time. They would need to be at about 45%-50% use (24 hours a day, 365 days a year) with a few more “anchor tenants” using the space on a more regular basis to completely cover costs with fee-for-service revenue only. Currently, about 80% of their revenue is from fee-for-service use of the kitchen.

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