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06/14/18
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primarily in Ramsey, but they may be able to utilize the kitchen incubator as an <br />expansion opportunity. <br />National restaurant incubators <br />Current Incubators: <br />To carry out a nationwide survey and analysis, around 650 shared commercial <br />kitchens/ food incubators were identified across the country and information like mailing <br />address, email address, respective websites and most importantly their kitchen <br />descriptions were assembled in a file. The kitchen descriptions include kitchen capacity, <br />available amenities like ovens, burners and others, rental rates and hours among much <br />useful information. <br />Responses to the surveys for this category have been positive and very useful. It <br />was found that for incubators it is difficult to provide the high capital investment that is <br />required for the initial development. It is found that it is very challenging to make a profit <br />and many of the incubators were losing money in the initial years of the business. <br />Regulatory policies were another common reason that proved challenging for some of <br />the respondents. <br />Challenges identified by restaurant incubators currently in existence ranged from <br />the difficulty of operating while generating enough revenue to meet ongoing expenses, <br />to engaging and becoming engrained within the community the incubator serves. <br />Square One Kitchens, which operates in Fargo, North Dakota, listed the following points <br />as key obstacles in operation of a food incubator: <br />• Helping the community understand what a shared kitchen is and how it works <br />(this concept is much different than a standard food business so it seemed to <br />confuse people) <br />• Finding a space that would fit the needs of the business <br />• Investment — it cost quite a bit to get this [Square One Kitchens] up and running <br />with the equipment, fit up, etc... <br />• Only had one built-in client prior to starting. The beginning phase was very <br />stressful as [we] had to wait for clients to be ready to start their business and <br />utilize Square One. <br />The Cauldron Kitchen, operating from Ottawa, Canada, per their website is a <br />shared commercial kitchen service for catering, food businesses, bakeries, personal <br />chefs, and culinary classes. Having been in business for 2+ years as of the time of the <br />interview, the Cauldron had this to say regarding obstacles: <br />• The obstacles to start the business were finding a suitable commercial lease <br />location with appropriate services (electrical, sewage gas) <br />• A shared commercial kitchen requires a little more than what a restaurant needs <br />because it has multiple pieces of equipment <br />15 <br />
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