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SHARED KITCHEN
INCUBATORS--
COMMUNITIES SHARING
A VISION FOR
ENTREPRENEURIAL
DEVELOPMENT

 A presentation of the Keystone Kitchen Project Team:
 Winifred McGee, Senior Educator, Penn State Extension, in collaboration with
 Larry Grunden & Alan McConnell, PENNTAP
Definition of a Shared Kitchen
 A facility set up for commercial food
 production that is available to multiple users
 (tenants) on an assigned schedule.
A Shared Kitchen Incubator
• approved for commercial production
• start-up assistance to value-added producers
  and food entrepreneurs
• guidance in commercial food processing
• education/support:
  – business planning and management
  – sources of financing
  – marketing and sales
  – distribution
Quick Facts –
Shared Kitchen Incubators
• 2004 – no shared kitchens in PA
• 2007 – one shared kitchen
  – Rural, Western PA (Republic)
• Historically, several kitchens opened and
  closed in the Commonwealth
• The challenge is not starting, but keeping a
  kitchen incubator open
Keystone Kitchens Team
• PSU Outreach Group
  – Penn State Extension
  – PENNTAP
• Funding sources
  – PDA Bureau of Marketing
  – DCED – First Industries Grant – assisted by
    Agriculture & Rural Affairs – Vice Chairman (local
    State Senator)
  – NE Sustainable Agriculture Research and
    Education Grant (Appalachian Initiative)
Keystone Kitchens
Project Goals Explore establishment of
                 one or more shared kitchen
                 incubators in the
                 Commonwealth:
                   – research established
                     kitchens in other states
                   – develop BMPs for
                     sustainability
                   – lead stakeholder meetings
                   – follow-up assistance
Keystone Kitchens Incubator Study Tour
BMPs for Shared Kitchens*
• a shared kitchen incubator is a business venture
   – conduct a pre-venture feasibility study
   – write and implement a business plan
• integrate the incubator and community
• have a champion – committed to the vision and in
  for the long haul
• partner with a university for support
• community consensus about mission
• establish tenant entrance requirements

 *Results from NE SARE Keystone Kitchens Project
BMPs for Shared Kitchens (cont’d)*
• start-up funding from grants, not loans
• recruit/compensate management
• build an effective advisory team
•   layout – never too much storage!
•   lease forms list responsibilities/rights
•   tenants’ fees that cover operating costs
•   tenant success  incubator success
•   move from grants to fee support ASAP
    *Results from NE SARE Keystone Kitchens Project
BMPs for Shared Kitchens (cont’d)*
•   1-2 anchor tenants for steady revenues
•   target 35-50 tenants to “break-even”
•   long-term tenants supply networks
•   select tenants who can share space
•   rural/urban tenant types differ
•   good (kitchen) marketing is essential
• offer value-added services to
  tenants

        *Results from NE SARE Keystone Kitchens Project
Stakeholder Meetings
• Philadelphia (24)       Republic (12/3)
• York (20)               Mercer (45/21)
• Wilkes-Barre (48/12)    Coudersport (15/3)
On-going Work of the KK Team
Provide assistance to potential kitchen start-ups
  – feasibility studies
  – funding identification
  – business start-up planning
  – marketing of shared kitchen concept
  – triage of would-be tenants
  – community group skills and process
Conclusions
Necessary for community kitchen building:
  – Inclusivity among agencies which creates/builds a
    common vision
  – Willingness to explore and change the vision
  – Slow and steady growth by investing time and effort –
    feasibility studies open communication
  – Identify one cheerleader/agency who is given authority to
    “carry water”  others support
  – Remember the kitchen is a business, first and foremost
  – Apply and strenuously follow the BMPs to ensure
    sustainability
Moving Forward: Why We’re Here
Logical Progression and Shared Experience –
Shared Commercial Kitchen Roundtable
    • History and Context  BMPs
    •Survey Research  Needs and Visions
    •Feasibility Studies/B-Plans  Mapping
    •Financing Strategies  Sustainability
    •Processing and Discussion  Inclusivity

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Introduction to Shared Use Commercial Kitchens and Best Practices

  • 1. SHARED KITCHEN INCUBATORS-- COMMUNITIES SHARING A VISION FOR ENTREPRENEURIAL DEVELOPMENT A presentation of the Keystone Kitchen Project Team: Winifred McGee, Senior Educator, Penn State Extension, in collaboration with Larry Grunden & Alan McConnell, PENNTAP
  • 2. Definition of a Shared Kitchen A facility set up for commercial food production that is available to multiple users (tenants) on an assigned schedule.
  • 3. A Shared Kitchen Incubator • approved for commercial production • start-up assistance to value-added producers and food entrepreneurs • guidance in commercial food processing • education/support: – business planning and management – sources of financing – marketing and sales – distribution
  • 4. Quick Facts – Shared Kitchen Incubators • 2004 – no shared kitchens in PA • 2007 – one shared kitchen – Rural, Western PA (Republic) • Historically, several kitchens opened and closed in the Commonwealth • The challenge is not starting, but keeping a kitchen incubator open
  • 5. Keystone Kitchens Team • PSU Outreach Group – Penn State Extension – PENNTAP • Funding sources – PDA Bureau of Marketing – DCED – First Industries Grant – assisted by Agriculture & Rural Affairs – Vice Chairman (local State Senator) – NE Sustainable Agriculture Research and Education Grant (Appalachian Initiative)
  • 6. Keystone Kitchens Project Goals Explore establishment of one or more shared kitchen incubators in the Commonwealth: – research established kitchens in other states – develop BMPs for sustainability – lead stakeholder meetings – follow-up assistance
  • 8. BMPs for Shared Kitchens* • a shared kitchen incubator is a business venture – conduct a pre-venture feasibility study – write and implement a business plan • integrate the incubator and community • have a champion – committed to the vision and in for the long haul • partner with a university for support • community consensus about mission • establish tenant entrance requirements *Results from NE SARE Keystone Kitchens Project
  • 9. BMPs for Shared Kitchens (cont’d)* • start-up funding from grants, not loans • recruit/compensate management • build an effective advisory team • layout – never too much storage! • lease forms list responsibilities/rights • tenants’ fees that cover operating costs • tenant success  incubator success • move from grants to fee support ASAP *Results from NE SARE Keystone Kitchens Project
  • 10. BMPs for Shared Kitchens (cont’d)* • 1-2 anchor tenants for steady revenues • target 35-50 tenants to “break-even” • long-term tenants supply networks • select tenants who can share space • rural/urban tenant types differ • good (kitchen) marketing is essential • offer value-added services to tenants *Results from NE SARE Keystone Kitchens Project
  • 11. Stakeholder Meetings • Philadelphia (24)  Republic (12/3) • York (20)  Mercer (45/21) • Wilkes-Barre (48/12)  Coudersport (15/3)
  • 12. On-going Work of the KK Team Provide assistance to potential kitchen start-ups – feasibility studies – funding identification – business start-up planning – marketing of shared kitchen concept – triage of would-be tenants – community group skills and process
  • 13. Conclusions Necessary for community kitchen building: – Inclusivity among agencies which creates/builds a common vision – Willingness to explore and change the vision – Slow and steady growth by investing time and effort – feasibility studies open communication – Identify one cheerleader/agency who is given authority to “carry water”  others support – Remember the kitchen is a business, first and foremost – Apply and strenuously follow the BMPs to ensure sustainability
  • 14. Moving Forward: Why We’re Here Logical Progression and Shared Experience – Shared Commercial Kitchen Roundtable • History and Context  BMPs •Survey Research  Needs and Visions •Feasibility Studies/B-Plans  Mapping •Financing Strategies  Sustainability •Processing and Discussion  Inclusivity