only the services they need. These facilities used to be found only in large cities or were associated with universities or nonprofit organizations. But new ones continue to open, and many are now private, for-profit businesses.
In the Resources in Appendix III you will find a list of such facilities in the US and in Canada. You can also do an Internet search for any new facilities which continue to open.
For entrepreneurs without the expertise or money to invest in a full-scale business, using an incubator kitchen is a wonderful way to start, especially since many of these centers offer basic business and production help. It can be just the support you need to be successful.
If using an incubator kitchen interests you, be aware that it will involve fees. While this is less expensive than renting a storefront, you will need some capital to go this route.
If you are kitchen savvy (perhaps you’ve already worked in commercial food service or have a culinary degree), there might be a facility near you where you can rent just the space, without paying for their other services.
2.2 Places that accommodate large gatherings
Another possibility is to use the kitchen facilities in a town hall, community center, house of worship, or other places which often have large production areas to accommodate gatherings. These places might welcome additional revenue. If these kitchens are not already certified, it might be easily done. A formal written agreement between you and the facility is recommended. This is further explained in section 3.
2.3 Renting a commercial space
You can sometimes work out an agreement with a business owner who already operates in a licensed kitchen. There are restaurants, catering companies, delis, coffee shops, bakeries, markets, and natural foods stores that are closed during certain hours — they might welcome the extra income from renting their space to you while their business is not operating. If you are producing a small quantity of products and only need a kitchen one day a week, many food businesses may welcome you on days when they are closed.
You could also look into renting space from a small restaurant during its off hours. The clean-up crew for the restaurant might be finished before midnight and the first shift might not start lunch until ten in the morning. Perhaps there’s a small cake business in your town that only uses their kitchen three or four days a week and would love to make some extra money by renting it out to you when they’re not using it. These places might also barter space so that you can pay for the kitchen with your fresh-made items or your time.
It’s important that the commercial space is licensed and has the equipment you need to process your products. The basics should be in good working order and up to code — refrigeration, sinks, electric and plumbing, walls, and floors.
How is the kitchen equipped? Does it fit your needs? Not all commercial kitchens are alike. Perhaps you need a stovetop with two burners, but the facility only has a convection oven. Make a list of your needs, such as counter space, mixer, food processor, oven capacity, cooling rack, and baking pans. Can you supply and transport any equipment that the facility lacks? Ideally the place will have secured space where you can lock up your ingredients and small equipment. Otherwise, be prepared to haul all your materials with you.
Also consider your personal safety when choosing a place. You may be in a different, unfamiliar location. Your work hours may be during off hours when it will be dark outside. Is the surrounding neighborhood safe? These considerations should factor into your decision on whether or not to use a particular kitchen.
You should also get sign a formal written agreement, as explained in the next section.
3. Get the Rental Agreement in Writing
It is very important to have a signed agreement that is specific to your needs and the needs of the owner of the subletting business. Your business depends on your ability to use the facility for production. A lease agreement will protect both parties.
If the owner objects to a formal agreement, mention that an agreement protects him or her as well as you. I would be very suspicious of anyone who refuses this request. Anyone who objects to a written agreement usually isn’t a good choice for business dealings.
Occasionally an informal agreement works, but it basically relies more on honor of fulfillment rather than an enforceable written contract. Issues often arise with an informed agreement and bad feelings can happen, especially when money is involved.
A written agreement can help clear up any misunderstandings that might occur. It doesn’t need to be anything fancy, just a list of agreed terms. Even if you’re bartering for the space (e.g., you pay the owner or business in cakes and cookies), it’s best to have a written agreement because it protects everyone. Don’t forget to make two copies, dated and signed by both parties. For added protection, be sure to have a witness to the signatures.
In your contract you will need to clearly describe the following:
• Specify times when you can use the space.
• Define what the rent is and when it will be paid (e.g., monthly, quarterly, or on a per-use basis). You may also want to include how the rent is to be paid (e.g., $50 per month plus a dozen muffins each time the space is used).
• Discuss how the utility costs will be divided (e.g., percentage of the utilities, flat monthly fee, or included in the rent).
• Licensing: The agreement should include the current license number or the name of the licensing agency for the facility.
• Detail what equipment and supplies you can use.
• Define who will be responsible for breakage or nonfunctioning equipment.
• Specify who is responsible for clean up. For example, what if the oven is filthy or the sink is clogged before you arrive?
• Discuss storage of your items. Will there be secured cabinets to avoid pilfering or contamination of your property?
• Include information about insurance coverage. Are you covered under the owner’s insurance or do you need your own?
Include anything else, no matter how silly you feel about mentioning it (e.g., where to park if it’s within a city district). Little things can potentially become big problems if they are not discussed in the written agreement.
Basic Buttermilk Muffin Batter
Yield: Makes 6 large or 12 medium muffins
• 1–2 cups total additions (dried or seasonal fruit, chopped; nuts or coconut)
• 1 large egg
• 1/3 cup oil
• 1/2 teaspoon baking soda
• 1/3 cup granulated sugar
• 1 cup buttermilk (or 7/8 cup milk with 2 tablespoons vinegar or lemon juice)
• 2 teaspoons vanilla
•
